Brian Lenihan Jnr (Dublin West, Fianna Fail)

-----and this Government has not hesitated to offer this crucial sector support where it was most needed. We responded rapidly to the pig dioxin crisis last year, where we provided some €200 million to save that industry and the jobs within it. We have made a large investment in agricultural infrastructure through the farm waste management scheme. We remain committed to supporting an environmentally sustainable agriculture sector and are in discussions with the European Commission with a view to introducing a new five-year agri-environmental scheme. I have agreed to provide €50 million from within the existing allocation to support this scheme.

I am also providing more than €121 million for forestry and bio-energy. This includes a capital provision of €116 million to plant a further 7,000 hectares of trees next year. This demonstrates the Government's continued commitment to this vital sector as set out in the renewed programme.

Retaining a Pro-Enterprise Tax Policy

Our corporation tax rate of 12.5% has become an international brand, known the world over. It is a powerful expression of our enterprise ethos and continues to attract new business and new jobs to this country. In a time of great uncertainty for international business, it is important that we send out a clear message. The 12.5% corporation tax rate will not change. It is here to stay.

Over the last two years, I have significantly enhanced the incentives for research and development and intellectual property. I look forward to receiving the report of the innovation task force and I will explore its recommendations in the context of the finance Bill. In budget 2009, I introduced a three year corporate and capital tax exemption for start-up companies in 2009. I propose to extend this scheme to new start-ups in 2010.

Significant opportunities exist in the international financial services sector for centralising high value added activity in Ireland as this sector restructures itself around the world after the global financial crisis. Big opportunities also exist for Ireland to become the European hub for the international funds industry following recent European legislative changes. I will bring forward changes in the finance Bill which will strengthen Ireland's competitive edge in this important sector.

Boosting Energy Efficiency to Stimulate the Economy

Boosting energy efficiency is good for the environment and for the economy. It is a growing area of innovation with huge commercial and employment potential. We are allocating about €130 million for energy efficiency measures which will include a new multiannual national retrofit programme in 2010. This will build on the success of existing schemes delivered through Sustainable Energy Ireland and has the potential to create up to 5,000 jobs next year alone.

Some €50 million of the carbon tax yield will be used to fund measures such as help for households at risk of fuel poverty to make their homes warmer. The local authorities will receive additional funding to retrofit the social housing stock. This represents a significant boost to the plan to retrofit over 1 million houses by 2025. In addition, the scheme of accelerated capital allowances for energy efficient equipment is being enhanced to include refrigeration and cooling systems, electro-mechanical systems and catering and hospitality equipment. This measure will improve energy efficiency while also helping companies under strong competitive pressure in sectors such as food and drink, retailing and distribution.

Supporting the tourism sector

The tourism sector is a critical, labour intensive indigenous sector. The overall tourism budget will be increased in 2010 to enable a marketing drive with the objective of increasing tourism numbers and revenue by 3%.

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