Dick Roche (Wicklow, Fianna Fail)

There are particular measures in this Bill to deal with innovation, research and development, which will be very important. I will touch on some of those measures shortly. The Finance Bill must continue the task of stabilising Ireland's public finances and do so in a way that is equitable. The Bill before us ticks all the right boxes in terms of all of these issues. Of course, as with any Finance Bill, we can always think of improvements that could be made. The Minister has shown he is willing to listen and, when provided with persuasive arguments, reverse previous positions.

I would like to turn now to some of the specific measures of the Bill. I welcome the wide range of provisions in the Bill that will assist enterprise, some of which are subtle and new. Those that will assist innovation, research and development are particularly important in terms of creating long-term and sustainable employment and of putting Ireland back on the track to full recovery. The Bill will amend the existing research and development tax credits to cover situations where a company carries out research activities in different facilities or separate geographical locations. I am pleased the Minister has taken this step. It may not seem a huge step to many, but it is critical, particularly for the pharmaceutical industry. As we are all aware, over the past two years and in the coming years, the pharmaceutical industry has and will go through significant change. It is going through a period of consolidation. It is important therefore that bureaucratic procedures which applied previously in this area should be wiped away. The Minister has proposed changes which will be welcomed by the industry, particularly in this period of consolidation. I welcome the change and the fact it indicates the Minister was willing to listen.

I also welcome the enhancements of the existing tax treatment of dividends received for companies here to increase the attractiveness of Ireland as a place for economic activity in general. The provisions in the Bill in this regard are complex, but what the Minister is seeking to do is to tap a new possibility of bringing financial services into Ireland and consolidating the grip we have in this area. The amendment he proposes here will mean, for example, changing the current tax rate of 25% on foreign dividends paid out of trading profits from countries with which Ireland does not have a tax treaty. This will operate to the benefit of Irish enterprise. The Minister has introduced further complex measures that will have the effect of simplifying the arrangements under which foreign dividends are treated as sources for trading or non-trading profits. He also provides tax exemptions to foreign dividends forming trading income for portfolio investment. I suggest these measures will have a significant effect, particularly in the financial services area.

The Bill also gives effect to an important change in the remittance scheme introduced in the Finance (No.2) Act 2008. The scheme will now cover EU and EEA nationals and the period during which they must be based in Ireland is reduced from three years to one year. This will greatly improve Ireland's ability to attract high-skilled individuals who are innovators in their own field and who will act as magnets to attract economic activity. The Bill also contains important measures aimed at enhancing Ireland's attractiveness as a base for internationally traded services, particularly financial services. The Bill's provisions are aimed at bringing clarity with regard to the tax treatment applying to foreign funds that are managed from Ireland under the recent EU directive, Undertakings for Collective investments in Transferable Securities, UCITS. The change in the Bill is both prudent and timely. This is a complex area which has not received much attention in the media. Nonetheless, it is an area that will be more significant in the future.

I would mention two measures that are particularly welcome in terms of job creation. First is the extension of the existing scheme of tax exemptions for new start-up companies over the first three years of operation. Deputy O'Donnell pointed out it is important we do something to help small and medium enterprises. This measure is aimed specifically at small and medium enterprises, which by nature are small on start up. The existing scheme is now to be extended to those who commence trading in 2010, which I welcome.

I also welcome the extension of the scope of the existing scheme of capital allowances for energy efficient equipment to cover additional technologies, including refrigeration and cooling systems, electoral and mechanical systems and catering and hospitality equipment. In this difficult period, it makes sense to incentivise the application of energy efficient and clean technologies, which this section of the Bill will achieve.

The Bill also contains a number of more down to earth provisions. We all spoke in this House in the past year of the extraordinary situation that had applied in the motor industry. An industry that had been booming during the previous five years, perhaps excessively so, had come to a juddering halt. Thousands of people all over the country were losing their jobs in this industry. I realise that one can make an interesting economic debate about issues such as the scrappage scheme and whether it would really create jobs. However, the important point about the scrappage scheme that is in place is that it will help an industry that was brought to its knees by the end of the spend. The measures introduced in the budget are already beginning to have a positive effect. While one could ask whether the scheme is wise or the best way to deal with this issue, it has called a halt to the decline in the industry and has had a stabilising effect. Therefore, I suggest that whatever shortcomings schemes like this may have, it is welcome, particularly in the circumstances of that industry.

Moving from general economic issues to more domestic ones, I also welcome the extension of mortgage interest relief for qualifying loans where entitlement to mortgage interest relief was due to end in 2010. Every one of us in the months since the previous budget will have become aware of people for whom the ending of the relief would cause real difficulty. Given the dramatic changes that have occurred in the Irish property market, extending the relief to the end of 2017 is very welcome.

On the issue of hard-pressed mortgages, the Minister's efforts to extend the provisions of the code of conduct on mortgage arrears is something we would all welcome. We have all met people who are in mortgage arrears. It is an issue that is now presenting itself for the first time in political clinics, irrespective of which side of the House one is on. Under the existing arrangements, the banks and building societies which were registered with the Financial Regulator under the code, or other lenders covered by the code, had to make every reasonable effort to agree an alternative repayment schedule for borrowers who found themselves in difficulties. They were required to wait for at least six months from the time of the first arrears before they commenced court actions.

I take the view, as would many others in this House and not just on this side, that banks and building societies, which were throwing out money at extraordinary levels, should be certainly more patient with customers. I strongly support the extension of the stay period in the code to 12 months - in fact, a case could be made for extending it beyond 12 months because it must be asked what banks, building societies or other lenders would do with any properties repossessed given the current state of the of the market.

I also strongly support the efforts that have been made recently, somewhat belatedly, by the Irish Banking Federation when it reached a protocol with MABS with regard to couples and house purchasers who find themselves in difficulties. The arrangements which are coming through in that system will provide help to people who are in real difficulties. When I was in the Custom House as Minister for the Environment, Heritage and Local Government, one of the interesting statistics that came across my desk is that the last thing on which the Irish people in general will default is the payment in regard to their houses. Given the excessive way in which the market developed, it is right, prudent and proper that the degree of support to help people to hold onto their homes should be extended.

I also believe firmly, as do other Members, that not only should the stay be extended from six to 12 months but that it should apply not just to the traditional lenders - the banks or building societies - but to the non-traditional lenders who entered the market in Ireland in recent years. I look forward to the regulation and the code extending to them because certainly some of them have behaved in a predatory way, and they should not be given any support in their activities. I am pleased that on a number of recent occasions in the courts, some of these more predatory actors have been told to put a halt to their gallop.

There are three other arrangements in the Bill to which I wish to extend a particular welcome. First, I welcome the idea of creating a national solidarity bond. Many Members of this House have mentioned this. I believe I remember Deputy Bruton referring to it, although I am not sure what he called it. I am willing to give credit to him because I have been defending him-----

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