Martin Mansergh (Tipperary South, Fianna Fail)

Movements in the euro-sterling exchange rate have also begun to help exporting firms. The reduction in excise duty on a wide range of alcohol diminishes somewhat the incentive to cross the Border to bring back large quantities of drink. From a constituency point of view, I am always pleased to see a reduction in the excise duty on cider.

Mortgage interest relief has been extended, primarily to assist those who may find themselves in negative equity. It is, nonetheless, to be phased out in a few years' time. It has long been recognised that, whatever about the psychological impact, the net financial benefit of mortgage interest relief to purchasers has been negligible, as the increased ability to pay has usually been more than absorbed in higher house prices. In time, the sharp reduction in house prices will be of definite benefit to young new entrants to the market, and it at last sharply corrects the grossly immoral redistribution of wealth that occurred in recent years between generations, to the great detriment of younger people, by creating large windfalls for older people, who in many cases did not really need it.

The carbon tax reinforces the message about the need to save energy, while there are incentives to insulate homes and to make greater use of public transport, in which investment is continuing. While tax relief on service charges may have initially helped us to avail of publicly or privately provided waste services, that incentive should no longer be necessary and, arguably, with waivers in limited cases, the user should pay the full service cost of waste disposal. There is a strong argument that most tax incentives, though not all, should be time-limited.

Deputy Pat Breen raised the question of the travel tax, which was debated on a number of occasions in the House. It raised €85 million in 2009 and is expected to raise €125 million this year. It is strange that when a company like Ryanair or, for that matter, Aer Lingus, puts on extra charges for baggage and so on, and adds on many charges to the basic price, there is never a peep out of anybody. The propaganda is directed entirely against the Government. Perhaps if airlines were to reduce some of the charges they have piled on, it might assist travel. The fact is the Government needs money. While I appreciate and am concerned about Shannon, I do not believe it is the correct diagnosis to consider that the travel tax is the source of the problem.

The scrappage scheme has provided a modest boost to the car industry, which has been very depressed over the past year. Certain generous reliefs that are art-related have been curtailed so as to draw a larger contribution from people and companies better able to make it. A number of measures contained in the Finance Bill are recommended by the Commission on Taxation. In conclusion, overall, the Bill implements and underpins the budget but also contains measures which are in general designed to support and to raise economic activity and employment.

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