Michael Kitt (Galway East, Fianna Fail)

I welcome the opportunity to speak on this Bill. It is being introduced in the context of a deep and widespread recession in the international economy that we have not seen in more than 50 years. Ireland is experiencing a sharp decline in its GNP. I look on the positive side and hold the view that as the international recovery gains momentum, the impact on our national economy in terms of the residential housing output - construction of which passes through to our economic growth rate - should turn positive in the next few years. No one is suggesting that the process of recovery will be easy. This Bill, and the supplementary budget to which it gives effect, will play a major part in securing our future prospects.

Deputy Tom Hayes made a good point in regard to not being able to forecast the value of property. The same principle applies to the economy. It cannot be forecasted accurately what will happen. The measures detailed in the Bill are progressive and fair. The income levy was mentioned. This is a progressive measure. Those who are most able to pay will pay the most and the more vulnerable people will be protected with exemptions. The Bill clarifies the redundancy payments made in the first four months of the year. These will be subject to the income levy rates in force during that period.

Mortgage interest relief for the first seven years for qualifying home loans will focus on those most in need and provide a saving to the Exchequer. I agree with the point made by many Members that it is very unfair to have people tied to fixed rate mortgages when there are tracker or variable mortgage rates available. The Minister for Finance has known our views on this and he has been trying to address that issue. The measures in this Bill reflect the need for us all to be very aware of the need for a fair and proportionate share of the burden of adjustment required. Our tax base needs to be broadened and measures to achieve this are included in the budget, such as the termination of certain property-related accelerated capital reliefs, the abolition of the special 20% tax rate applicable to trading profits from dealing in or developing residential land and a reduction in the level of tax relief which investors may claim on the interest for mortgages and loans on residential rental properties.

One of the concerns raised with me on many occasions is the 12.5% corporate tax regime to which the Government is committed. It is important to emphasise that our tax system remains competitive and is pro-enterprise in character. I refer to the enterprise fund which was established in the budget and which is to be welcomed. The Taoiseach and various Ministers have spoken on the need to develop the smart economy. Tax reliefs have been announced for the acquisition of intangible assets as a means of maintaining employment in our existing industrial base and to attract sustainable high quality jobs.

This country continues to have advantages and these have contributed to our success in the recent past. I refer to our skilled labour force and almost 2 million people are in employment and the Government is continuing its investment in education which is very important. Our economy has flexibility and resilience and there has been investment in infrastructure which will continue. The Finance Bill is very important to this country as we endeavour to position Ireland to benefit from the global recovery when it emerges.

I was very glad that the budget emphasised the area of alternative energy. I refer to the proposal for energy independence made by Spirit of Ireland. Many Members have seen these proposals for energy self-sufficiency and for the export of energy which would be a crowning achievement for this country. Much of our energy requirements are imported and at this time when money is scarce we need to look at the question of investing in wind and water energy in particular and this has been promoted by the Spirit of Ireland group.

The cost of energy is referred to as one of the many reasons for our lack of competitiveness. The Minister for the Environment, Heritage and Local Government today referred to the export of waste and he is examining new markets for our energy products.

The budget has been complemented by the announcements made about the insulation grants worth €75 million for housing and the extra €75 million for school buildings and in recent days the announcement that the summer works scheme will be provided with €80 million to insulate school buildings. The proposals for alternative energy are very important. I hope the Acts relating to the ESB will be examined to provide definite proposals for alternative sources of energy.

The Minister stated he would welcome suggestions and I wish to make a brief suggestion about the work on the insulation of houses and schools. I refer to radon gas which has been a significant issue for many people in certain parts of the country where readings have been very high. It was stated that up to 200 people die each year from the effects of radon gas, a gas which has no odour, colour or taste and cannot be detected by humans. However, the gas can be measured by means of a specialised, easy to use home test kit.

I suggest that radon gas readings be taken in social housing and in public buildings such as schools. Studies have been carried out in Europe, the United States and China. When I was Minister of State at the Department of the Environment, Heritage and Local Government, I pressed the case to have radon gas readings taken in local authority housing where tenants had concerns and that remedial measures should be taken where necessary in those housing estates.

A related issue is the question of lung cancer. Many people are smokers and this is an added risk when radon gas is present in those homes. It has been found that counties Carlow, Galway, Kilkenny, Mayo, Roscommon, Sligo, Waterford and Wicklow, have seen an increase in amounts of radon gas and these areas should be given priority for the measurement of radon gas. A simple measurement system is available through the Radiological Protection Institute of Ireland. I hope that insulation grants will be included in the programme as well as a remediation programme for radon gas. This is being carried out in primary and post-primary schools, thanks to the summer works scheme and I hope it will be rolled out throughout the country.

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