Tom Hayes (Tipperary South, Fine Gael)

I am pleased to have the opportunity to speak on the Finance Bill and to refer to some of the issues that are currently exercising people, including the enormous number of job losses in recent times. Many people are also very concerned at the numbers leaving Ireland, whether immigrants from abroad or native Irish people who were educated here, because there are no jobs available to them.

The budget and this Finance Bill do nothing to assist the one area in which there are opportunities to create employment, namely the small business sector. Never before have I heard so many people in small businesses complain about how difficult it is for them to operate at present. In that context, the increase in the VAT rate must be condemned, particularly as the British Government has cut the VAT rate in the United Kingdom, which is encouraging people to cross the Border to do their shopping in Northern Ireland. We see evidence of this on our television screens on an almost nightly basis. That is putting additional pressure on businesses which are already struggling because of the economic downturn. The budget and Finance Bill do nothing to help small businesses which have lost competitiveness.

Agriculture and tourism are very important sectors in Ireland. During the last recession in the 1980s, the agricultural sector helped to bring about an uplift in the economy. Food production increased in every county. However, because of actions taken in the past, fewer young people are staying on the land and agricultural colleges all over the country have closed. This budget has made matters worse by abolishing installation aid, which was one of the few incentives for young people to go into farming, produce food and create wealth. I condemn that decision and urge the Government to reinstate installation aid at some stage in the future. I urge it to do likewise with the farm improvement scheme, which has been suspended. There is not a village, town or county that will not be badly affected by the ending of such schemes. The Government is behaving in an anti-rural and anti-small business manner.

Tourism also presents many job creation opportunities. The industry has been neglected in recent years because of the Celtic tiger. People who have been taking holidays abroad should be encouraged to stay at home. There are many very good hotels in the country now which are struggling to stay afloat. The Government must do something to assist the tourism industry.

The racing industry also deserves attention. Coolmore Stud in my constituency of Tipperary South and many other small stud farms are providing much-needed employment. Areas like Fethard, Cashel and the rural areas around them, are very dependent on the bloodstock industry. The racing industry has suffered a cutback of €55 million in the budget and this is wrong. It is unfair to the industry. People do not understand. I invite Members of this House and commentators on the bloodstock industry to come to County Tipperary and see for themselves the dependence of many ordinary families on that industry. There is a misunderstanding and a misperception of the industry. It is thought that it is owned by kings and queens and the wealthy but that is not the reality. Small farmers are very dependent on the industry. They own a few horses or keep them for others and they lease out their land or their stables. The spin-off is the creation of 15,000 jobs in the industry.

The bloodstock industry should be removed from under the aegis of the Department of Arts, Sport and Tourism and put under the aegis of the Department of Agriculture, Fisheries and Food because it is an agriculture-based industry. It contains a certain amount of sport. When he was Minister with responsibility for sport the Ceann Comhairle gave it his approval and was very committed to it in his time. However, it would be preferable to have it under the aegis of the Department of Agriculture, Fisheries and Food which is its proper home.

Ireland produces approximately 42% of all foals in Europe. They are probably the best in the world, yet we are turning our back on the industry. Many people are under huge financial pressure, in particular the smaller people with one or two foals. In Goffs or Fairyhouse foals are selling at a huge loss and those people will be driven out of this industry. Nobody cares. The Government only announces cutbacks, which is wrong. I am not talking about the big multinationals and interests but the small farmers. We need to support this industry, to understand it better and to help the small people involved in it.

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