Dick Roche (Wicklow, Fianna Fail)

Yes. Notwithstanding the occasional run-ins we have in this House, I still recognise a good idea when I see it. This is a very good idea, which I welcome in general.

Of course, one could argue that the last thing we need is another savings scheme because savings are at an extraordinarily high level and we need to encourage people to spend, although perhaps not as profligately as they did in the past. The provisions of the Bill which will facilitate the introduction of the bond are positive. At present, as Deputy O'Donnell said, people are saving at unprecedented levels. While this has had the effect of depressing demand, if savings are available, they must be used to enhance the productive capacity of the State. A solidarity bond, managed by the National Treasury Management Agency, would be clearly more beneficial to society as a whole than a speculative investment by banks or financial institutions whose sole focus is private wealth rather than the public good. I look forward to the details of the bond being published, and I particularly hope they will focus on enhancing the creation of infrastructure. As the Minister of State, Deputy Calleary, said, we already have a substantial capital programme, but if a bond were to be used to enhance that, we would all welcome it.

A second novelty in the Bill which should be mentioned is the introduction of the domicile levy of €200,000 on all Irish-domiciled individuals who are Irish citizens. This will ensure that the super-wealthy make at least some contribution to the operations of the State. Persons liable to the levy will have to pay it regardless of where they live or where they are tax resident. This is an interesting innovation and I would be very interested to see the detail as it comes through. We will all be interested in assessing it in a year.

The third novelty in the Bill which I welcome is the provision which would allow for the introduction of a statutory scheme for providing for voluntary deductions for members of the Judiciary. I have never taken the view, nor do I believe many people in this House share the view, that the general provisions in the Constitution which were aimed at protecting judges from oppressive activity by the State were ever intended by the drafters of our Constitution to exempt judges, who after all are citizens, from the general taxation provisions or other levies or impositions that the State must from time to time place on its citizens. Taxes are the price we pay for living in a civilised society. That price has to be paid by the most powerful as well as the most junior.

Having said that, I want to acknowledge that the bulk of judges have made their contribution to the pension levy and have come into it in a voluntary way. However, while that is good, it is not good enough. All citizens, whether they are in the Judiciary, in this House, the other House, the Presidency or otherwise, have a responsibility to make their contribution.

I have always taken the view that flexibility is a sign of strength and it is never to be taken as a sign of weakness. I particularly welcome the decision of the Minister to reverse the decision on the 21.5% VAT rate. It takes a strong person to say "No, that was not a good decision", which is what the Minister has done.

I welcome the Minister's decision to remove the life assurance levy on pensions products. During the past 12 months, I became aware of concerns that the levy could discourage investment in pensions. It is critical that investment in pensions be encouraged. Ireland, like the entire world of developed nations, faces the reality that population aging is increasing. The Minister's change and flexibility in this area is welcome.

In general, finance Bills tend to be dusty. While this Bill too has its share of dusty corners, it meets all of the requirements which I outlined at the outset. Is it perfect? Probably not. Few pieces of legislation that come before this House are perfect. The Minister for Finance, Deputy Lenihan, has shown that he is more flexible than has been any other Minister for Finance in recent times. He is flexible, willing to listen and willing to pick up a good idea and run with it.

The Bill reverses a number of previous policies and prudently extends others. It is a good Bill, on which I commend the Minister. I commend the Bill to the House.

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