North shopping a problem - Lenihan

Radio Election Special: Minister for Finance Brian Lenihan answers people's Budget questions on Today with Pat Kenny
News Special: Watch Taoiseach Brian Cowen answer questions in the Dáil
Six One News: George Lee, Economics Editor, reports that Brian Lenihan answered calls from members of the public on RTÉ radio this morning
Six One News: David Davin-Power, Political Correspondent, reports on the Dáil proceedings after the Budget changes announced yesterday
Six One News: David McCullagh, Political Correspondent, reports that the Govt is still working out many of the details of the budget
Six One News: John Kilraine, Dublin Correspondent, reports that employer representatives have described the new &#x20AC;200 car parking levy as incredible

Wednesday, 15 October 2008 19:36

The Minister for Finance has said an increase in the number of people travelling North of the border to do their shopping had made things 'very, very difficult' when he was framing the Budget.

He said there was huge loss of revenue to Northern Ireland, because of the number of goods and services being purchased there by shoppers from the Republic. The Minister said this substantial expenditure meant the Government had to impose higher taxes for essential public services.

Minister Lenihan said this was the consequence if people opted to buy in another State. He said the only substantial 'compensatory payment' the State was getting for the loss of revenue was from Northern motorists who cross the border for cheaper petrol. The Minister said this informed his decision not to increase the excise on a litre of petrol by more than eight cent.

Responding to queries about the Budget on RTE Radio this morning, Brian Lenihan said the decision to impose a €200 charge on workers with free parking at their place of employment, would give Revenue 'an interesting time' and that it was a detailed matter of tax administration.

He said the issue of shift workers would have to be looked at, but he stressed that many employees had the option of using public transport to help reduce congestion in major urban centres.

Mr Lenihan said it was very difficult to see how commuters travelling long distances to work - outside public transport hours - could be charged for the privilege of a free parking space. He said it would be open to employers to decide if they wished to pay the charges.

Minister Lenihan also said the cut in tax relief for medical costs would not apply to claims being made for expenditure incurred in 2008.

On the issue of Ministers, Departmental Secretary Generals and Ministers of State volunteering to take a 10% pay cut, Mr Lenihan said he hoped other TDs would follow their example.