Jack Wall (Kildare South, Labour)
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Question 119: To ask the Minister for Finance his views on reports of significant reductions in the number of high street shoppers around the country and that the Cental Statistics Office has recently recorded the first year on year fall in retail sales since 2004; the impact this will have on consumer spending and VAT returns for 2008; and if he will make a statement on the matter. [21967/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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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 the first quarter of 2008, and show a year-on-year inflation-adjusted decrease of -0.2 per cent in retail spending on the corresponding period last year. Excluding car sales, retail sales rose by 2.1 per cent in the first quarter. It is clear that consumer confidence has deteriorated recently, as the outlook for the economy and employment has become less benign. This would appear to be impacting upon people's spending decisions.

The Budget day forecasts for VAT receipts this year are partly based on this more modest rate of consumer spending. VAT receipts in the opening months of the year are behind profile. Later today, as is the norm, my Department will publish detailed information in relation to the Exchequer position at end-May.