Oireachtas Joint and Select Committees

Wednesday, 18 November 2020

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2020: Committee Stage (Resumed)

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The analogy the Deputy drew as to what would happen if Google were to withdraw out of Dublin, and his point that there would be a task force and plans put in place to try to deal with the withdrawal of a large employer from a city, is correct. It is just that, even in that context, the plans to fill a building and to replace jobs would not come through the kinds of targeted tax incentives he is looking for. We would not do that because for a country of our size, we cannot use tax incentives in the geographically focused way to which the Deputy referred. Leaving aside issues of size, it is far more effective and far more targeted to use grants and government expenditure to address the issues to which he refers. Leaving aside the issue of whether we could use tax incentives, and we have a pretty poor track record of demonstrating that tax incentives can work for urban regeneration or the regeneration of towns and villages in the way we would want, the way in which we would do this is through the allocation of funding. It is more effective, can be made more specific and can be tailored, and that is exactly what is happening.

I have already put on the record of the committee the commitment of €15 million to rehabilitate the Bord na Móna peatlands and the effect that is having. In addition, businesses in the midlands have secured €6 million in funding from the regional enterprise development fund. That money is going into businesses in the counties and constituencies to which the Deputy referred. We have the regional enterprise plan for the midlands, launched only in 2019. That is making progress on specific priorities such as an advanced manufacturing centre for the midlands and how we can realise the potential for food and big data in the midlands. Furthermore, under the rural regeneration development fund, specific projects have been funded that look to make progress on particular projects in the counties to which the Deputy referred.

Even in the circumstances to which he referred, therefore, we cannot, and should not, pretend that tax incentives are the way in which we can make progress. It is more effective, more targeted and makes better use of our money to spend taxpayers' money in the areas for the purposes the Deputy outlined, and that is what is happening. Recognition of this was given in our July stimulus plan and in budget 2021, and the issues to which the Deputy referred regarding the use of buildings - again, I have listened to what he said on these matters - I will raise with the Minister, Deputy Eamon Ryan. However, they are not issues for progress in the Bill but, of course, the Deputy is fully entitled to raise them in the debate on the Bill, which I recognise.

I will come back to him with information on the operation of the stay-and-spend scheme once I am satisfied with that. I have been informed during the debate that other holiday accommodation providers that are not legally obliged to register with Fáilte Ireland may choose to be voluntarily listed. This requires the service provider to make a self-declaration that his or her business complies with all statutory requirements. The voluntary application process is very simple and quick and incurs only a nominal fee of €1 for both 2020 and 2021. In fairness, that will not deal with all the issues to which the Deputy referred because that refers only to businesses that are not required to register with Fáilte Ireland, but it is still relevant to the issue he raised.