Brian O'Shea (Waterford, Labour)
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Question 84: To ask the Tánaiste and Minister for Finance his views on reports of significant reductions in the number of high street shoppers here; the impact this will have on consumer spending and VAT returns for 2008; and if he will make a statement on the matter. [15602/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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At Budget time, my Department projected an increase in consumer spending of 3.8 per cent this year. This is lower than last year and reflects more modest employment growth and the absence of any significant SSIA impact. The Budget day forecasts for VAT receipts this year are partly based on this more modest rate of consumer spending. VAT receipts for the first quarter are slightly behind the expected profile for the first three months. However, while it is too early to say with certainty, the weakness seems to be related to the property market and not consumer spending. The main source of short-term trends on consumer spending is the monthly retail sales data series, published by the CSO. The latest data relate to January, and show a year-on-year inflation-adjusted increase of 3.0 per cent in consumer spending.