Maurice Cummins (Fine Gael)

The Finance Bill brings into effect many of the items announced on budget day. By reducing the deficit to 8.6% of GDP and introducing adjustment measures totalling €3.8 billion in the budget, the Government is acutely aware it will have an impact on the living standards of people. I am particularly happy, as mentioned by other speakers, that the Finance Bill met the commitment in the programme for Government to increase the rate of mortgage relief to 30% for first-time house buyers who took out mortgages between 2004 and 2008. That was a commitment given prior to the election and in the programme for Government and has been delivered upon.

I welcome the decision to simplify the rules governing tax relief on charitable donations which could not come at a better time for many charities who are suffering. The Bill provides for the implementation of many pro-growth measures for business yet some Members said the Finance Bill did little or nothing for business. It has promoted measures such as the partial tax exemption for employees who travel abroad to develop markets in the BRIC countries and in South Africa. There is an improved research and development and credit regime that will benefit the small and medium size enterprise sector, a new income tax incentive for employees directly involved in research and development activity, a scheme for corporate investment in renewable energy and a further extension of the tax exemption for new start-up companies. These are some of the protection and growth measures for job creation and business included in the Bill.

There was mention of the universal social charge which has taken about 300,000 people out of the tax net. We have heard Sinn Féin say it is an unfair tax. This morning it said the household charge is an unfair tax and that the VAT increase is an unfair tax. One could say that all taxes raised by any government can be seen as unfair to the people they affect. However, the Government is faced with the problem of balancing the books which is a difficult job at this time.

There are a few areas where we could raise revenue. The delay in introducing licensing levies on companies involved in the promotion of gambling is a matter of concern. While a new betting Bill will be introduced later in the year, at a time when online gambling is largely tax free a greater revenue stream for the Exchequer should be raised from this source sooner rather than later. That is a revenue stream that should be taxed. I hope measures could be considered in the Finance Bill to introduce these levies before the introduction of the new betting Bill.

I refer to a number of items raised on the Order of Business in the past month. On the question of cigarette smuggling and fuel laundering, mentioned by Senator Wilson, there is a need for a more focused approach, the penalties for which should be increased further. Another matter raised by Senator Quinn relates to mileage rates for public servants which encourage the use of larger cars due to the larger mileage rates on such vehicles. Has that issue been tackled or is it the intention to tackle it? Those items can and should be addressed in the Bill.

I welcome the Minister for Finance to the House. He has a difficult job to do under very difficult circumstances but he is bearing up well to it and the finances are in good hands.