Defence budget cutbacks and VAT savings

Summary

Treacy asked whether proposed £1.02 million cutbacks would affect armed forces development; the Minister said they would not, citing savings from lower VAT on Army purchases. Treacy sought clarification, while the Ceann Comhairle said the matter could be pursued in the budget debate.

Noel Treacy Mr. N. Treacy Fianna Fáil

What effect will the Government's proposed cutbacks of £1.02 million on the Department of Defence budget have on the development of the armed forces this year?

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Patrick Mark Cooney Mr. Cooney Fine Gael

None.

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Noel Treacy Mr. N. Treacy Fianna Fáil

Is the Minister satisfied with that?

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Patrick Power Mr. Power Fianna Fáil

Is that an indication that money was mis-spent earlier——

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Patrick Mark Cooney Mr. Cooney Fine Gael

There has been a significant reduction in the high rate of VAT and many Army purchases will benefit from this.

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Charles J. Haughey Mr. Haughey Fianna Fáil

Toilet paper.

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Noel Treacy Mr. N. Treacy Fianna Fáil

Is the Minister saying that this cutback is due to a reduction in VAT?

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Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

The Deputy can argue that on the budget debate.

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Noel Treacy Mr. N. Treacy Fianna Fáil

The Minister said that this cutback would be offset by a saving in VAT. I want him to clarify the position. Is this cutback due to a reduction in VAT?

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