Fidelma Healy Eames (Fine Gael)

I welcome the Minister of State to the House. I have noted Senators' comments and will refer to them as I proceed. Given the point at which we are in our economic cycle and the state of our finances, I compliment the Government on a number of the Bill's elements, but we should consider other measures to ensure greater equity and fairness in society so that people can stay afloat.

I compliment the Government on its focus on budget cuts rather than job-destroying tax increases. The Finance Bill confirms that budget 2012 focused on spending measures, not tax. While there are spending cuts to services that every citizen will feel, at least people with incomes know that they will be able to take those incomes home. It was a difficult achievement. Similarly, the social welfare recipient was guaranteed that he or she would take home the same income. That the Bill does not contain further income tax impositions is welcome.

Senator Darragh O'Brien asked the Minister of State to comment on where the growth could be found in the Bill. I read it to identify the measures that will promote growth and capture the recovery. The first measures I would point to are those aimed at supporting small and medium enterprises. Key supports for this sector include foreign earning deductions to support companies which promote Irish exports to Brazil, Russia, India and China - the BRIC countries. If we do not export, we will be in trouble. We are a small open economy on the western fringe of Europe. We are totally reliant on alliances and trade. This is good news. The three year period of tax relief for start-up companies is being extended to 2014, which should help to boost the population of entrepreneurs in this country. This is a critical measure because SMEs are the backbone of this country. The amendment and commencement of the employment and investment incentive will help SMEs to raise investments over and above the limits that applied under the previous business expansion scheme. This will give companies an incentive to find capital.

Three new measures are aimed at boosting research and development activities. I was surprised to hear Senator Barrett ask for proof that research and development is going anywhere. When we look at some of our top technology companies -----