Noel Treacy (Galway East, Fianna Fail)

Ba mhaith liom mo chuid ama a roinnt le mo chomhghleacaithe, an Teachta Devins agus an Teachta Blaney. I value the opportunity to contribute to this debate.

This is the second Finance Bill of the Minister for Finance, Deputy Cowen, and the ninth successive such Bill that has been introduced by this Fianna Fáil-led Government, which has steered our economy, now seen as one of the most dynamic in the world, on a vigorous course of success since 1997. This Finance Bill sets into law many of the landmark policy decisions outlined in the Minister's recent budget as well as containing important new initiatives.

Over the past nine years, the Government has followed a strategic path of economic and social policies, aimed at supporting sustained economic growth and promoting improved equality and opportunity for all. We must follow a path that continues to build on our recent phenomenal success while remaining focused on the need to keep the economy competitive in an increasingly globalised world.

This Bill will give effect to the major tax and fiscal aspects of a budget that builds on its eight predecessors and brings more good news for old age pensioners, social welfare recipients and those on the minimum wage. Child care measures are of particular significance in this budget. Having addressed the concerns of many young couples in last year's budget, with significant adjustments to stamp duty, increases in child benefit and a special €1,000 supplement to all children under six years of age have been widely recognised as enlightened, far-sighted measures.

It is in sharp contrast to the voucher system proposed by Fine Gael, which would discriminate against women in the home and which was so effectively rebutted by the Taoiseach last week in this House. Does the main Opposition party have so little regard for mothers who have chosen to stay at home to raise their small children?

The taxation and fiscal measures announced in the budget for 2006 and given legality in this Finance Bill are designed to stimulate equality and fairness while sustaining an economic climate built on competitiveness. Among the most notable measures in this Bill are increases in the personal and PAYE credits to ensure the removal of all those on the minimum wage from the tax net, increases in the standard rate bands to ensure the exclusion of workers on the average industrial wage from the higher tax rate, the restriction on the use of tax reliefs by high income taxpayers, the phasing out of various tax schemes and exemptions, the ending of the remittance basis of taxation for certain non-domiciled employees, the continuation of the stamp duty exemption for young trained farmers for a further three years, the increase in the tax exemption limits for income from farm leasing for over five years, the extension of certain existing capital acquisitions tax, capital gains tax and stamp duty reliefs to cover the EU single farm payment entitlements in appropriate circumstances, the introduction of a new scheme of tax relief for heritage property donated to a proposed new Irish heritage trust, the introduction of a tax disregard for certain childminders who mind up to three children in their homes, adjustments to rules governing top-hat pension provisions and approved retirement funds, increases in VAT registration thresholds to help small business and an exemption from excise duties for biofuels and reductions in excise duties on certain home heating oils, such as kerosene and liquid petroleum gas, LPG.

Building on the unprecedented success of this Government's initiative to engender a saving culture among the population, this Finance Bill also outlines a further initiative aimed at encouraging lower income holders of SSIAs to transfer funds into pension schemes. Despite being pilloried by the Opposition, the National Pensions Reserve Fund has been an outstanding success in investing for the future but we know we must do more. I hope we will have the support of the Opposition parties to achieve more.

This SSIA initiative will mean a person transferring €7,500 from an SSIA into a pension scheme could receive a top-up of €2,500 from the Government to give a total pension contribution of €10,000. In addition, the exit tax to be paid on SSIA moneys transferred to pensions will be waived, giving a further top-up to the overall contribution.

I am long enough in this House to remember what it was like when the main Opposition parties, Fine Gael and Labour, were last elected to Government.

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