Ulick Burke (Galway East, Fine Gael)

I welcome the Minister of State to the House. The Bill has been presented to the House as Ireland enters a tough period in competitiveness and economic growth. The Tánaiste and Minister for Finance referred to Ireland as being on top of the world and the best place to do business at this time. He ignores the fact that people are losing their jobs throughout the State and business is declining in all sectors, including services and construction. People's livelihoods are being seriously threatened. Over the past ten years the Minister for Finance did not have to worry about these issues but today a working couple cannot afford to pay a mortgage, despite the additional mortgage interest relief provided in the budget, which is welcome. However, it is insufficient to meet the needs of these couples because they bought a house without realising the downturn was imminent.

The number of house repossessions granted by the courts is increasing by the day. That is a tragedy for young couples starting their lives. The onus is on the Tánaiste to substantially adjust the supports for young couples and it is essential that he realises these matters were not on the horizon when the budget was announced in December. I hope he amends the legislation to support young couples who have purchased houses and begun repayments when times were good but who now find themselves in serious trouble. Adjustments are particularly necessary where one partner has lost a job or is in part-time employment.

Many aspects of the budget are acceptable. Deputy Curran referred to supports for small enterprises, which are welcome. However, we have to realise that we will no longer see major foreign direct investment by multinational companies such as Dell. These companies are relocating part of their operations to lower cost economies while retaining research and development in Ireland.

The provision in the 2006 budget of a tax incentive scheme for tourism projects in the mid-Shannon region was welcome. It was more or less a parallel of the pilot scheme in the upper Shannon region which resulted in significant improvements in places such as Carrick-on-Shannon and surrounding communities. The provisions announced in the 2006 budget had benefits for parts of the Tánaiste's constituency. However, I have tried without success to ascertain the guidelines and criteria for the scheme. I was told when I was in the other House that they would be made available shortly. I raised the issue in the Dáil last June through a parliamentary question and more recently on the Adjournment but was given the same response. When I sought application forms I was told they were not available and there has been no agreement from Brussels regarding the scheme's acceptability and guidelines. We do not know the guidelines, so how can Brussels adjudicate on them? In addition, there is no interdepartmental agreement on the scheme. If a scheme initiated by the Minister for Finance is not agreed to by the Minister for Arts, Sport and Tourism, is that not unacceptable? We enthusiastically embraced the scheme and looked forward to the benefits it would bring to areas of Galway East such as Portumna, Woodford and Eyrecourt, which are not blessed with many tourist attractions, but nothing has happened. If it is a matter of the Department of Arts, Sport and Tourism wanting more than the Department of Finance is willing to give, it is time somebody made a decision because 15 months after the scheme's introduction, people are still prevented from using it to improve their incomes.

The three main aims of this Bill are supporting enterprise and innovation, advancing sustainable development and ensuring a fairer tax system. In a Finance Bill containing 200 pages of new tax legislation, it is critical that tax policies are used in a creative way to maintain our competitive position and sustain economic growth. However, some of the Bill's provisions will not meet these requirements. I welcome the support for small businesses to meet their VAT and corporation tax obligations by eliminating red tape. It is important that our tax code makes it easier for businesses to operate and incentivises sectors such as energy. The Bill provides for tax breaks on environmentally friendly activities and establishes the new commission on taxation. I welcome the incentives for businesses that invest in green equipment but these schemes need careful monitoring to prevent abuse.

The Tánaiste revealed that some companies based in the International Financial Services Centre see significant opportunities for expanding their operations into carbon trading, particularly in the context of EU plans for an enhanced emissions trading scheme. Companies will be able to buy and sell so-called carbon credits, which essentially give permission to emit a certain amount of carbon. The current emissions trading scheme has been subject to criticism but it is likely to become more widespread and lucrative in the future once carbon becomes a widely traded commodity.

The Government's failure to date to meet our Kyoto targets will be very expensive. According to figures released by the Minister for the Environment, Heritage and Local Government, between €150 million and €325 million will leave the country over the next five years to pay for carbon credits in order to offset this failure. This money would be better spent at home on technologies and projects which can reduce our emissions. The EU announced last month that we will have to make a 20% reduction on the 2005 emissions figure by 2020. The trading in carbon credits represents an opportunity for our financial services sector but, given our terrible record in reducing emissions, we are no more likely than any other country to profit and any benefits from financial services will be marginal compared to the enormous sums of money being spent on our failure to meet the Kyoto targets.

In the current climate, many industries and small, medium and large businesses may be experiencing temporary financial difficulties and it is important the Revenue Commissioners are lenient and accept that such difficulties exist. The Revenue often demonstrated flexibility in the past and put in place proper programmes in respect of the repayment of arrears. I suggest that it adopt a policy aimed at facilitating people in this regard in the short term. This would allow viable industries to remain in operation and to continue to provide employment. There must be an element of understanding and the Revenue should, as it has previously, adopt a policy of accommodation, particularly when, with its agreement, proper repayment plans are put in place.

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