John Dennehy (Cork South Central, Fianna Fail)

As I said, there are millions of euro in unclaimed taxes and the Government has taken unprecedented action to return the money, something previously not considered.

There are two thresholds for claiming relief for health expenses — €125 for one person and €250 for a family, and the aim is to rationalise these into a single threshold of €125. Again, in an effort to expedite the tax repayment process, a requirement that the taxpayer paying the medical expenses must be related to the person in respect of whom the expenses were incurred will be abolished.

These are issues that will cost money but they are fair. They are directed towards those who pay taxes and are meant to compensate the person who is not in receipt of allowances and social welfare. I compliment the Minister for Finance, Deputy Cowen, on taking this initiative. It will mean a great deal to many people and will mean less income to the State. However, the Minister has accepted that it is not our money and we wish to return it automatically.

Likewise, section 31 provides for deposit interest retention tax free interest to be paid automatically by financial institutions to taxpayers of 65 years of age and over whose total income does not exceed the relevant income tax exemption limit. This will also apply to permanently incapacitated people in receipt of such interest in defined circumstances. It will ensure that relief is given without the need to apply to Revenue for a refund each year. I have no difficulty with upper limits being set to ensure there are not abuses of this leading to complaints similar to those relating to tax exemptions for artists. These measures are better features of what is usually described as the Big Brother approach, whereby the State takes a measure of control. However, in these cases it will be done to assist those people and we should welcome such measures.

In the same mould, section 10 extends indefinitely the special tax exemption for unemployment benefit paid to systematic short-time workers which had previously been renewed from year to year. This relates to specific areas and the first example I had of this issue was with dockers in Cork. Having this extended every year used to be messy as it is a matter of paying back money quickly. It has been extended indefinitely, however, so we need not worry about returning to it every year.

I welcome the fact that the Minister is looking at pensions in the context of tax treatment and so on. I know that the Minister for Social and Family Affairs, Deputy Brennan, has made great progress and has major proposals in regard to the social welfare aspect of pensions, but I believe that all other aspects of the matter must also be examined. Section 16 will amend the tax treatment of various pension products and approved retirement funds in a number of respects. An amendment to the legislation is also being made to clarify that the operation of the pension fund limits is not affected as a consequence of pension adjustment orders made by the courts in circumstances of judicial separation or divorce. This obviously affects a minority of people, but it is very important to that group. We should deal with such issues fairly quickly.

The more we can do to improve the entire pension structure and assist the voluntary contributors, the better. It was suggested to me this week by a retired civil servant, who makes proactive suggestions not for personal gain but to be helpful, that parents could be encouraged by way of the Finance Bill to contribute to a son's or daughter's defined contribution pension scheme, just as many parents assist a son or daughter if he or she is a first-time house buyer. We can argue over how this would pan out but if parents could benefit from an income tax reduction on their contributions, they would be willing to get involved.

The civil servant said the proposal could perhaps save the State from paying a non-contributory pension where the offspring, by virtue of disability or invalidity, would be unable to keep a job. He emphasised that an income limit should apply to parental income. If we had suggested an SSIA scheme before the bold Charlie McCreevy became Minister for Finance, such that savers would be given €1 for every €4 saved, our suggestion would have been rubbished. In this context, we need to examine pensions and take every possible step to help people out.

Increases in PAYE and personal credits, involving a top-rate reduction from 42% to 41%, widened tax bands and a doubling of the ceiling on which first-time buyers can claim mortgage relief are among the benefits that will accrue to taxpayers from the enactment of this Bill. These measures are to be welcomed by Members on all sides of the House.

A series of measures to target growth in small and medium-sized businesses will come into effect. My constituency colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin, has already stated that the extension of the business expansion scheme until 2013 and the decision to include recycling firms underline the Government's commitment to supporting small companies and entrepreneurs. It is an exciting time for the sector and the elements I have mentioned are key features of the Bill. Those of us who have tried to help people in business will be aware of the difficulties that exist and of how necessary it is not to have Irish businessmen heading off to Poland or any place else. There are many challenges facing small businesses in an increasingly globalised economy and State assistance in this regard, particularly the cutting of bureaucracy by facilitating easier tax repayments and less complicated filing of returns, is surely positive and welcome.

Recent high-profile job losses underline the need for the continued growth and expansion of indigenous small and medium businesses. As I stated on television and as I genuinely believe, we can never create too many jobs. My mother — Lord have mercy on her — might have asked whether we thought we would never again see a poor day. People were becoming blasé about jobs but we can never create too many. As we know from experience, particularly in Cork, multinationals can leave at the drop of a hat in pursuit of cheaper options. Budget 2007 provided €272 million for small business and research and development and this Bill will trigger that investment, which is most welcome.

The Taoiseach recently launched the national development plan, which sets out ambitious proposals for our country's continued progress until 2013. The Finance Bill is a keystone of that plan in that a total of €7.7 billion will be invested in upskilling the workforce in order to maintain the highest standards of education and training for all.

Since 1997, more than €5 billion has been returned to Irish taxpayers. Social welfare and public expenditure have doubled in that timeframe, and the national debt has been halved. This represents intelligent financing and prudent management of the economy. Some will argue about this — it is obviously the job of the Opposition to oppose and the job of those in Government to promote and govern — but they should note that the macro figures I am outlining are factual. Others will squirm at these figures but they represent a major step in the right direction. The Finance Bill 2007 is underpinning our progress, although one can argue about the micro side of the equation and about how individuals might be affected by the Bill's provisions. We all represent such individuals.

There is a new tendency for media commentators to say those in Government sound like the Opposition when it suits them, but I have said the Opposition had no difficulty whatsoever in producing a huge pamphlet after the budget stating the Government was right, outlining citizens' entitlements and welcoming the increases in social welfare and health spending. It is as though the Opposition had sanctioned the increases itself, and this is the way it should be. There is nobody totally in Opposition and nobody totally in Government. None on this side will ever be in a position not to criticise, seek new benefits or make suggestions for improvements. It is never a case of taking just one side; there must be a mixture of approaches and that is why we are elected.

Deputy Naughten had a go at the Minister of State at the Department of Finance, Deputy Parlon, about his negotiations on land prices. Let me refer to this because, as the Acting Chairman knows, I vote on the Committee of Public Accounts. The Opposition has been referring very loudly to overruns in the cost of road projects, yet the much-lauded IFA agreement trebled the price of the land involved and automatically triggered overruns. I commend this excellent Bill to the House.

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