'North' Is The Place To 'Spend' Christmas

Forget the North Pole, as it looks like the best place for people from the Irish Republic to 'spend' Christmas this year is not going to be Santa's home - rather its likely to be 'North of the border' instead.

Irish Environment Minister John Gormley has said the Dublin Government needs to look at ways of "stemming" the anticipated flow of shoppers from the Republic Northern Ireland this Christmas.

Mr Gormley's comments come as the British Government prepares to cut VAT rates by 2% to stimulate the overall UK economy.

The move is expected to draw more shoppers north of the border as the strength of the Euro and relatively high prices in the Irish Republic makes for attractive savings during this first ever 'Credit Crunch Christmas'.

Speaking in Dublin today, the Minister said it was important for Ireland and the UK to ensure their actions are "in sync" to ensure neither gains a competitive advantage.

However, his belief that Ireland and the UK should stay 'in sync' may be a bitter pill for the UK Government to swallow, after Fianna Fail's surprise guaranteeing of Ireland's banks earlier this year, which was said to have left the UK leadership furious.

The British Government pre-Budget report is today expected to include a cut in VAT from 17.5% to 15% - paid for in part by a new 45% tax rate on earnings over £150,000 – similar to the 3% levy on top earners introduced last week by the Irish government.

The move could indeed exacerbate the existing price differences that are prompting many consumers from the Republic to travel north of the border when shopping.

See: VAT Slashed In Pre-Budget Report

(DW)(BMcC)