Colm Burke (Fine Gael)

I wish to follow up on the VAT reduction in the tourism industry. One of the proposals at European level in 2009 related to the construction industry. In this country the number of people working in the construction industry has decreased from 270,000 to 106,000. One of the proposals at European level in 2009 was about the introduction of a 5% VAT rate for construction projects under a certain cost, for example, work under a total value of €15,000. The current problem is that a significant number of people involved in small building jobs are forced into the black market where they do not collect VAT. The Government must examine the issue. Many people want small jobs done on their houses. Getting quotes from people who accept cash is causing two problems. The first is that it is pushing out those who are in the market who are trying to make a living by playing completely by the rules and within the law. The second is that people who are in receipt of unemployment benefit are, unfortunately, now taking cash in lieu of going back into the workforce legitimately. This is an issue that deserves serious consideration by the Government. The talk now is of a growth package for Europe as a whole, a prospect that was first raised back in 2009. In the context of Ireland's assumption of the Presidency of the European Union in January 2013, we should work towards the introduction of a stimulus for the construction industry, not only in this country but right across Europe. It is a small but important step which would have wide-ranging benefits.