Why is this the case and who is to blame? We must find out. A few weeks ago I mentioned in the Seanad that if one wishes to buy the new BlackBerry Storm, which will become part and parcel of conducting business in the future, one can get it free in Newry but in Navan it costs €110 just for the telephone. Why are prices so high in the communications sector? I can give examples. We must find out why prices in the South are so high. We therefore must act as urgently as possible. A bad Christmas and new year in this part of the economy could stimulate the type of domino effect in unemployment that we all fear. The lack of consumer confidence and tight credit lines are being felt keenly throughout the retail sector. The Seanad is due to hold a full day of debate on the economy next Friday but we must do more than debate the issue. The Labour Party Senators are attempting to take the initiative. ![]() It is a little late to come to the party now with suggestions. It is a shame the Minister, Deputy Gormley, did not speak up when the Minister for Finance, Deputy Brian Lenihan, framed his budget. Our Government has increased VAT, which will make a bad situation worse. That stimulus package included a 2.5% reduction in the VAT rate. Gordon Brown, was the introduction of an economic stimulus for the economy. One of the actions taken by the British Prime Minister, Mr. However, he might be on to something when he says we should look to what the UK has done. It is almost as if the budget introduced by the Minister for Finance, Deputy Brian Lenihan, had nothing to do with the Minister, Deputy Gormley. He suggested that the response of Ireland and the UK to the international problems should be synchronised. He declared a few days ago that something would have to be done to stem the flow of shoppers from the Republic to the North. The Green Party Leader, the Minister, Deputy John Gormley, appears to recognise this. The result is that consumers are still paying way over the odds for goods and services, which is encouraging them to go elsewhere to shop, with potentially calamitous effects on the economy. We accept that this played a part but it is not the only reason. The Government blames the situation on the global collapse of the financial markets and on currency and exchange rate fluctuations. There are a number of reasons for the shortfall in VAT yield, which is €2.1 billion down on projections at the start of this year. Last month alone, high prices cost the Exchequer €400 million, the amount of money that should have been raised in value added tax, VAT, in November but was not. This issue affects small businesses as well as the public. I speak on behalf of the Labour Party Senators about the price of goods for Irish shoppers. ![]() ![]() Seanad Éireann condemns the Government for its inaction on this issue and calls on the Minister for Enterprise, Trade and Employment to establish a shoppers task force to examine and report on the reasons for these price differentials, to identify clearly to the public, where relevant, the differential cost base issues involved, to expose unacceptable profiteering by retailers where same exists, and to bring all possible pressure to bear to ensure that prices are maintained at an affordable level, and reduced where possible. There are many instances where Irish consumers face large price differentials as between here and abroad. There is a significant disparity between the price of clothes here and in the UK and The cost of mobile telephone usage in Ireland is among the highest in Europe The recent reduction of VAT in the North to 15%, whereas it is to increase to 21.5% in this State The cost of food sold by retailers in Northern Ireland is at least 20% cheaper than the same retailers charge in the Republic of Ireland
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