Jack Wall (Kildare South, Labour)
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Question 53: To ask the Tánaiste and Minister for Enterprise, Trade and Employment his views on a case (details supplied); and if she will make a statement on the matter. [44399/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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I understand that the case referred to by the Deputy relates to the practice of the company concerned imposing a charge on customers who pay their bills by means other than by direct debit.

The National Consumer Agency has received a number of complaints in relation to this practice from consumers. I am advised that the Agency met with the senior management of the company concerned on a number of occasions. Arising from these discussions, the company agreed that this charge would only apply to new customers of the company recruited after 27th November 2006 and that new customers would be made fully aware, before signing up for the company's services, that a charge would be imposed if they did not choose to pay their bill by direct debit.

In so far as the application of VAT to the charge mentioned in the Deputy's question is concerned, VAT legislation provides that VAT is chargeable on the total consideration in respect of or in relation to the supply of goods or services, including all taxes, commissions, costs and charges whatsoever except the VAT itself. Accordingly, all charges to customers for the provision of the services in question, including handling or processing fees, are subject to VAT at the rate of 21.5%.

Whilst the actual practice of imposing charges of this nature is not in breach of consumer law, I remain of the view that such charges should not be imposed in a manner that unduly impacts on consumers, particularly vulnerable consumers. In this regard, I understand that the National Consumer Agency continues to meet with the company concerned in relation to a range of issues.