Chris Andrews (Dublin South East, Fianna Fail)

By taking these steps now, we can realistically aim to recover by the year 2012 or 2013 and I welcome some very positive measures introduced. In this Bill, the Government has spread the burden as fairly as possible and has ensured that those who can afford to pay the most will carry most of the pain. For example, the plan to close a potential capital gains tax legal loophole allowing Irish resident companies disposing of shares in other companies to avail of what is termed a "participation exemption" where the shares derive their value from exploration or exploitation rights is very welcome.

The Bill aims to provide support to people who lose their jobs and I am glad to note that redundancy payments made in the first four months of the year will not be subject to the higher income levy rates introduced in the supplementary budget. This is only fair to people who have found themselves faced with the uncertainty and difficulty of unemployment. As a member of the Oireachtas Joint Committee on Enterprise Trade and Employment and the Joint Committee on Finance I very much welcome the move to reduce the rates of interest applied by Revenue to late payments and underpayments of tax by businesses. These will come down by approximately 20% to annualised rates of between 8% and 10% from 1 July. This will ease pressure on businesses which are finding things very difficult in the current economic climate.

I also very much welcome the introduction of a scheme of tax relief for the acquisition of intangible assets, including intellectual property. This measure enhances Ireland's competitiveness as a location for the development of intellectual property, and it links in with the aims outlined by the Government in Building Ireland's Smart Economy. The smart economy plan launched late last year aims, through investment and incentives, to reach a research and development target of 2.5% of GNP by 2013. We have already trebled our economy-wide research and development spend over the last decade. Again, this will be dismissed as inconsequential. This spend is approximately €2.5 billion of which some two thirds comes from the enterprise sector. This refocusing of our economy will ensure Ireland's long-term future and viability.

The Government is doing everything in its power to take the hard decisions that ensure Ireland returns to growth as quickly as possible. There are four corner-stones to the Government's strategy.

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