Joe McHugh (Donegal North East, Fine Gael)

I want to highlight a couple of Border anomalies the Finance Bill had the chance to address, but unfortunately did not. I had highlighted these issues with the Minister for Finance prior to the budget. One is the VAT on coal, together with the extra carbon tax on coal. I am glad there is a Member present from the Green Party, Deputy White, to hear what is happening and will continue to happen. We are going to get an influx of coal with higher carbon content from Northern Ireland, and we need to know what measures the Minister will put in place to enable the necessary powers to police this. It is all right to introduce a tax, but what will police the importation of coal from Northern Ireland?

A second opportunity was missed in regard to tax administration. The issue of tax harmonisation in terms of people who live on one side of the Border and work on the other will be difficult to address. However, if specific issues have to be referred to a complex cases team at a European level, should there not be a more localised solution to such problems? It is not difficult to appoint somebody on either side of the Border to look at the different taxation anomalies that arise for people living on either side. That was another opportunity missed.

In terms of the Finance Bill and what it is trying to achieve, my colleague, Deputy Connaughton, has hit the nail on the head. The philosophy behind NAMA, for instance, is to get liquidity moving and finance flowing within the economy. From the Minister's perspective this would amount to a knight in shining armour in terms of kickstarting the economy. On the other hand we have increased taxation in virtually every area, not forgetting the increased insurance hikes people will have to face as a result of the flooding. Everyone is fearful of more and more taxes being imposed on them. It baffles us on this side of the House. Even the smallprint of the Finance Bill sets out how every single service in the local authorities, not just dustbin charges, but everything from photocopying to housing applications will incur administrative charges. All people see are increased taxes. These will have a knock-on effect on people's psyches. They are starting to hoard and considering what moneys might be available to them in a year, say, in case they lose their jobs. People are in a saving mindset and this is happening among those fortunate enough to have jobs.

That gives rise to the paradox of thrift, namely, the more people save, they less they spend. The less people spend the less money there is in circulation. The less money in circulation the more businesses will close down. The more businesses that close down the more people on the unemployment register. It is a negative spiral that can be stopped by this Minister, but the opportunity was missed in the Finance Bill because he is ignoring unemployment in deference to putting his energies into getting the banks to lend.

In this regard, in my constituency National Irish Bank is pulling out virtually every single branch in the Inishowen peninsula. The peninsula is bigger in area than County Louth and has a larger population than County Leitrim. In the two or three remaining branches everybody has to apply for new jobs. All those losing their jobs in the different peripheral regions of the county all have to apply for a job, including those working in the office in Letterkenny. That is a travesty for people who have bought into this idea. Unfortunately, there are good people within the banking sector who are getting labelled. One meets them on the street, their heads are drooping and they feel almost embarrassed in meeting the public, because they have all been categorised into that grouping.

On the question of international confidence, why is NAMA not being rolled out fast enough? Why is the simple transaction of moving loans from one balance sheet to another taking so long? It is raising a sinister question in the minds of many people, namely, whether there are reasons for the delays in moving these loans. It happened quickly enough in other countries where banks were bailed out and loan books moved. While it does not happen expeditiously international investors will ignore this country. This does not inspire confidence. The banks are being left in a vacuum. Deputy Connaughton pointed out the reality, namely, that they are not lending. They are not even lending to good customers with 40 years of seamless credit behind them, who never reneged on a loan or a repayment. It is a disaster, as the Minister of State appreciates, coming as he does from a constituency such as Clare. When commerce grinds to a halt it is disaster. Commerce is not happening. There is no movement of any kind. In fairness to the auctioneers they are trying hard to talk up the economy, saying it is bottoming out and so on. Perhaps it is, but commerce has ground to a halt and local economies are in trouble.

While I should have preferred if the Minister for Finance were present, I am glad the Minister of State, Deputy Killeen is here. He has a good name in the fishing sector because he has met the different fisheries representative groups. The Minister of State, Deputy Killeen, has gone to Greencastle, Castletownbere and various places throughout this island nation. He has travelled to such places and he is aware of the issues. I call on him to use his influence to get rid of the regulation grid lock in terms of quotas and days at sea. We should consider small ideas in the shellfish and marine sectors, where people have ideas about how to get back to work and what we should be doing at coastal level. It may be of interest to the Green Party to note the need for a review of the whole philosophy at a European level. We went down the road of bigger boats, smaller nets and bigger catches. We should try to facilitate the small men and boats traditionally involved in the marine sector. Let us consider the small options and start to work from the bottom because to get this country out of the logjam in which it finds itself, we must get back to basics very quickly.

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