Fianna Fáil TD Brendan Smith has expressed deep concern about the impact on businesses in Cavan and Monaghan of a 2% hike in VAT next year. Deputy Smith has said there is no doubt that this will lead to significant job losses in border communities.
“I am appealing to the Government to think twice before loading another 2% VAT on consumers this winter. This will cause enormous damage to the economy of border counties like Cavan and Monaghan,” said Deputy Smith.
“Already we are seeing businesses north of the border capitalising on reports that Fine Gael and Labour are set to increase VAT by 2% in Budget 2012. We are seeing advertisements encouraging shoppers to travel across the border for a better price. For small businesses across Cavan and Monaghan that are already struggling at this time, such a significant hike will be disastrous for them as they head into the difficult winter months.
“The Government should be encouraging consumers to support their local economy, rather than incentivising them to flock across the border for better value. Fine Gael and Labour claimed that job creation would be their top priority in office, but their actions since coming into power show quite clearly that this is not the case. By frontloading VAT increases, pushing the cost of sick pay onto employers and cutting the rebate to employers on redundancies, this Government is stifling businesses and hampering entrepreneurship.
“With two weeks to go before Budget 2012 is confirmed in the Dáil, there is still time for the Government to see sense and reverse its decision to frontload a VAT hike. I am appealing to the Government Deputies in Cavan-Monaghan to make the case to their Cabinet colleagues to overturn this disastrous decision before jobs are lost,” said Deputy Smith.