asked the Minister for Finance if he is aware of the declining net disposable income available to consumers shown by the three-monthly returns from VAT; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Consumer Disposable Income.
34.
The VAT receipts for the three months ended 30th June relating to expenditure in the months of January, February, March and April show an increase of about £1.4 million over the corresponding period last year. This represents an increase in expenditure and an increase in disposable income of consumers in the same period.
The Minister has quoted the best figures. I was referring to the figures for the months from 1st April to July——
Will the Deputy please ask a question?
I have quoted the last available figures of VAT returns.
Even taking those figures, would the Minister not agree that with inflation running at 20 per cent they should be much higher?
No, the figures show there is an increase in the disposable income of consumers. Otherwise there would be no increase whatever.
In real terms?
It may well be that people are spending less but that does not mean they have less disposable income. It may be simply that people are prudent. For instance, it is common knowledge to people who are reasonably aware of what is going on that the number of new cars purchased this year is less than the number last year. This is because people are obviously reflecting a certain amount of concern about the energy situation.
It is not only that. They are being priced out of the market.