John Perry (Sligo-North Leitrim, Fine Gael)

People are finding it difficult to borrow money. Stamp duty has not been the catalyst that prevented sales of property from proceeding. If one is able to borrow close to €1 million, one should be able to pay an additional 2% in stamp duty. The €90 million in savings could have been secured by other means.

The measures proposed will have a detrimental effect on local businesses. A reduction in income of €48 for those on the minimum wage will reduce what is spent locally on services and in retail outlets. It will result in a decline in VAT, the largest source of tax receipts to the State. Modifications to the VAT rate could have generated additional income for the State.

It is regrettable that people who are hard pressed to meet the costs of maintaining a home will have their wage cut to €7.65 per hour. As someone who owns a business, I know that the biggest investment companies make is in their personnel. Staff retention is difficult and the measure sends out the wrong signal. The proposal by the Fine Gael Party's spokesperson on finance, Deputy Noonan, to abolish the employer PRSI contribution for employees, up to the level of the minimum wage, makes sense as it would reduce employer costs and allow staff to continue to earn €8.65 per hour.

Given the difficulty in finding staff willing to work for €8.65 per hour, the cut in the minimum wage will act as a further disincentive to work. Jobs will not be retained by reducing the minimum wage. The best initiative available to achieve job retention would be if the banks made money available. Having been bailed out by the State, one would assume they would support business by providing working capital for job retention and creation. Bonuses are being paid to bankers while viable businesses close.

The Taoiseach indicated that Bank of Ireland and Allied Irish Banks have €12 billion available for small companies. This money is not getting through to its destination, despite the work of Mr. John Trethowan of the Credit Review Office and notwithstanding various commitments that have been given. The best stimulus to the economy would be to ensure banks provide funding to businesses.

The Social Welfare Bill is grossly unfair to those it penalises and detrimental to the economy. It is a case of back to the future. As Deputy McGinley noted, we have returned to the 1980s with the vulnerable being required to pay the price. It is very disappointing that they are the casualties again.

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