I have two questions. One is in regard to the recent budget changes in VAT on theatres. Does the Minister of State accept the arguments of those involved in running theatres that they will lose by the recent changes in the budget whereby they will be denied the refund of VAT which they pay on purchases in connection with the promotion of their theatrical work, due to zero rating for the theatrical companies?

That seems to be a different question.

The Minister of State mentioned in his reply that £1 million benefit to the theatre arises from the change in VAT. My second question is, does the Minister of State consider the work of Comhaltas Ceoltóiri Éireann to be severely underfunded, and what action do his Government intend to take to ensure that CCE maintain their very important work in promoting the Irish language and Irish culture?

The latter is a separate question, and if the Deputy puts it down I will be delighted to answer it in detail in so far as I have responsibility in that area. Our funding is done through the Arts Council, who are a statutory independent body, and I have no power over where the funds go. Regarding the Deputy's earlier question, I have details from the Abbey Theatre which show that they would lose out by the exemption from VAT as distinct from zero rating from VAT. I have similar figures from the Gate Theatre. It depends largely on the extent to which capital undertakings, cost of scenery and so on are being undertaken by the theatre. I am concerned about this and I am in contact with the theatres about it.

I am surprised at the Minister's answer regarding CCE especially in view of the term of the question and of the answers he has been giving to the House on VAT. Surely it is misleading of the Minister of State to say to the House that theatres would benefit to the extent of £1 million arising from the recent VAT changes when he admits that he has already received representations from the Abbey Theatre. I have received very strong representations from the Druid Theatre in Galway who state categorically that they will lose substantially by reason of the budget changes in VAT. It is clear evidence again of major changes being implemented by the Government without taking into consideration the effects of the implementation of these changes. These are very detrimental to the theatre, as happened in the case of VAT changes in the construction and other areas——

We cannot argue the budget on this question.

Surely the Minister of State is misleading the House when he says that the theatres will benefit to the extent of £1 million.

The reduction in VAT last year and this year, the overall reduction, was in the region of £1 million for live performances. That is not misleading the House.

They lose all the refunds.

They are losing maybe £10,000 on the refunds by the difference between 5 per cent and zero. It has nothing to do with the original provision in which about £1 million was involved. The difference we are talking about now is £10,000 or £20,000.

The Druid Theatre maintain that they suffer very substantially.