Brian Hayes (Dublin South West, Fine Gael)

The Senator's prediction of a forced devaluation is somewhat apocalyptic in nature. As he is well aware, all of our debts are in euro. Were we to leave the euro and join another currency or re-establish the punt, all of our debts would, in effect, double overnight. If the Senator is of the view that we currently have a problem in respect of public and private sector debt, then he should just wait until that which he describes happens. I hope that the eventuality to which he refers will not come to pass because we must work our way through out difficulties as they stand.

I made the point on Second Stage that in the 1980s, one third of all taxes collected were used to pay interest on our national debt. Under current projections and in a worst case scenario, up to 20% of all taxes collected will go towards paying off our national debt. This is sustainable. There is no doubt that the situation is difficult. Our debt to GDP ratio currently stands at 95% and this will rise to 118% by 2013. At present, Greece's debt to GDP ratio is 165%. We may be in a difficult position but at least it is not as bad as that occupied by Greece. Our debt is manageable if we can encourage the economy to grow. That is why the measures in the Bill, small and modest though they may be, are designed to spark some hope within our domestic economy.

The Senator is correct when he refers to the necessity for competition. We need to ensure that we have a properly deregulated economy in which there is competition. I fully agree that there is a real need for labour reform. The package of measures relating to the reform of the JLCs which the Minister for Enterprise, Jobs and Innovation, Deputy Bruton, is due to bring before the Cabinet shortly is crucial in the context of ensuring that - in view of the collapse in the economy to the tune of 15% during the past three years - we will have a labour market that is fit for purpose.

Senators inquired as to how we will know whether what is proposed is working. I accept that there is no domestic policeman who will inform us about whether that which we are attempting to do will be passed on. However, the consumer price index, which is issued on a monthly basis, sets out information on a basket of goods and services. I understand it is possible to ascertain from the index the tourism-related information that will indicate which prices are increasing or decreasing. By collating this information we will be able to discover whether the initiatives in the Bill are making a difference. The monthly consumer price index will assist us in respect of this matter.

I thank Senator Mac Conghail for raising the matter about which he is concerned. He also discussed it with me privately yesterday. The Senator is absolutely correct. There is a zero rating of VAT on theatres.