Dáil debates

Wednesday, 21 October 2009

Government Charges on Businesses: Motion

 

8:00 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)

Time and again we are asked by the Government to be constructive, as I keep saying. Over the last month we have introduced simple straightforward Bills that could have been accepted and the closest we have ever got to acceptance is the Government's amendment to this motion, which does not address the simple one-liner, "That Dáil Éireann calls on the Government to freeze all charges on businesses until 2012", a three year freeze. The amendment skirts around the issue entirely. What catches the eye in particular is that it commends the Government on its strong focus on training and up-skilling of those in the workforce and those recently made redundant. It cannot be serious when unfortunately all around us the dirtiest word in people's vocabulary at the moment is "FÁS". There is not and there has not been a strong focus. Preparation has not been made for the rainy day in the way it should have been.

We in Fine Gael are trying to promote a situation whereby the Government does all in its power to protect every job it can from being lost. Every job gives a human being the ability to earn a living and, where applicable, help him or her to support a family. It also contributes to the tax revenue, which keeps the wheels of the State running - the public sector and its services. It is important to bear in mind that there is a human side and an economic side to it. The worrying aspect to the current downturn is the fact that we have low interest rates with relatively low energy prices. Every time there is an indicator that the economy is improving, the price of oil has tracked upwards with it. It is outside our hands to a great degree until we can harness our own resources.

Before he was elevated to his current role, the Minister of State, Deputy Dara Calleary, was on the Joint Committee on Climate Change and Energy Security with me. We all know the potential for alternative energy that exists off the coastline of his county. As we are not there yet, we need to deal with what happens in the world energy sector. Ireland's economy will lag behind every other economy, but it will not lag behind when it has to pay for its oil and gas. That is a factor outside our control. In everything else we do we should become competitive and drive down all our costs.

Deputy Michael Ring mentioned abattoirs. I could go on ad infinitum about how they have been closed and over-regulation by people who just do not seem to have a grasp. I know of one case where an abattoir started its kill at 9 a.m. The vet did not come in until 9.30 and made them dump the perfectly healthy animals that had been slaughtered. That is not acceptable on the part of someone paid by public money that comes from private industry. There was no question of anything untoward having gone on. It is not right to have over-regulation instead of proper auditing and spot checks, which is a much more satisfactory approach as highlighted by Patrick Wall in the reports following the pork dioxin crisis.

We need to take a stand to give people a chance to make a plan in the knowledge that they will not be faced with an increase in rates. We would argue that there should be a PRSI holiday for anyone creating a job. There should be a VAT reduction. In the same way that the corporation tax reduction brought in more corporation tax, that calculation should be done for VAT. The reduction should at least be applied for a year to see if it works. One of the big arguments about the Lisbon treaty focused on protecting our integrity in determining corporation and other tax rates. Corporation tax was the one everyone wanted to target. Our low corporation tax means that we take in a large amount of corporation tax. Everyone accepts that. We have become a hub for companies involved in financial services, information technology and pharmaceuticals where corporation tax is applicable. Why do we fear reducing VAT so much? I do not see the logic. I have heard the Minister for Finance defend maintaining high VAT rates.

Our biggest market is outside the eurozone. The sterling exchange rate of 92p to 93p to €1 is killing exporters. As we are an export-based nation, oil prices and exchange rates which are outside our control have a major effect. While we also do not control interest rates, that is not an issue at the moment. We need to stimulate the economy, get people back to work and give some certainty and encouragement. The Government should not come up with amendments that skirt around and praise everything that has been going when jobs are being lost on a daily basis. Our proposal is to freeze all Government charges for the next three years, which is not difficult. The ever-decreasing number of businesses that are paying rates and employing people should not be faced with the uncertainty about possible increasing charges penalising them for staying in business.

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