Joe McHugh (Donegal North East, Fine Gael)
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Question 108: To ask the Minister for Finance the cost to the Exchequer in lost trade to Northern Ireland since the introduction of Budget 2009; and if he will make a statement on the matter. [32157/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy may be aware, the Revenue Commissioners and the Central Statistics Office (CSO) prepared a report, at my request, on the Implications of Cross Border Shopping for the Irish Exchequer. The report was published on my Department's website on 20 March 2009. The report estimated the likely value of cross-border shopping in 2009 to be in the range of €450m to €700m, with a potential loss in Exchequer revenues arising from reduced VAT and excise yields of between €72m and €112m. In addition, a possible corporation tax loss in the range of €20m to €31m is tentatively estimated. It should, however, be noted that any estimate for corporation tax is provisional and should only be considered as indicative of the potential loss.

The report noted that the main causes of price differentials between goods in Northern Ireland and the Republic, are operating costs, profit margin (mark-up), taxes and the rapid depreciation of Sterling against the Euro. While changes in the standard VAT rates widened some price differentials, their impact however remains small compared to the size of the change in the exchange rate.

The report also noted that there is rather limited availability of quantifiable data on cross border shopping, and with a view to improving the data available, Revenue and the CSO have worked on questions for inclusion in the Quarterly National Household Survey (QNHS) that should facilitate a more detailed assessment of cross-border shopping in the future. It is expected that the results of the QNHS Cross Border shopping module will be available by end October 2009.

Joe McHugh (Donegal North East, Fine Gael)
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Question 109: To ask the Minister for Finance if he or his officials will formally meet with the British Chancellor of the Exchequer pursuant to Strand II and Strand III of the Good Friday Agreement before the introduction of his budget for the development of a strategy to combat the impact of sterling-euro price differentials and to stimulate north south trade; and if he will make a statement on the matter. [32170/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy may be aware, I met with Chancellor Darling earlier this year and discussed a range of financial and budgetary matters. I also generally meet him and other European Finance Ministers at the monthly ECOFIN council meetings in Brussels. However, I have no plans to meet the Chancellor in advance of the Budget.

In relation to North South Trade, the Irish Government remains strongly committed to North/South cooperation and we will continue to explore ways in which we can work closely with our colleagues in the North to advance our common interests.