Mary White (Carlow-Kilkenny, Green Party)

I wish to share time with Deputies Cuffe and Cyprian Brady. I am pleased to have this time to speak on the Bill. There have been many implications for the budget, which was very difficult for all of us. It was an attempt to stabilise our public finances, improve our competitiveness, give stimulus to our economy and protect our nation's most vulnerable people, while ensuring our wealthiest make a greater contribution to the financing of the country. The budget addresses several environmental challenges, to which some speakers have alluded earlier, by investing in environmental protection, the green economy and tackling climate change at national level through the introduction of a carbon levy.

Failure to take the tough, necessary and painful decisions in December would have helped no one. By tackling the tough measures now, we hope the Government is on a good track to ensure we can protect future generations from a great saddle-load of debt. This year, the interest on our national debt will be €5 billion. While many people are experiencing the real difficulties of unemployment and low incomes, the country would not thank us in the long run had we shirked our duties to confront the problem of a State living well beyond its means. The Government has worked hard to balance austerity with protection. While there were cuts in welfare, there were also protections such as the protection of child benefit rates for those with no income other than social welfare. Where a carbon levy has been introduced there has been increased spending, amounting to 11%, to protect against fuel poverty, and spending on rural transport schemes. Since education is the central to investment in the future of the country, I am pleased the Green Party has worked hard in Government to protect funding.

I refer to certain sections of the Finance Bill, including those related to the increased progressiveness of the taxation code. Such measures are to be welcomed. Section 22 contains provisions to increase the effective rate of income tax from 20% to 30% for those at income levels in excess of €400,000 or those who avail of tax reliefs. This is a step in the right direction. While some of these individuals are injecting considerable investment into the economy, that is not reason enough to indemnify them from paying their fair share. The graduated structure of the income levy is another example of the increased progressiveness in the tax code which my party has tried to ensure.

I refer to a separate section of our society that should contribute its fair share, namely, our so-called tax exiles. I spoke about this issue during the debate on the 2009 Finance Bill. It is not morally sustainable for people to fully benefit from participation in our society while enjoying the financial convenience of tax immunity elsewhere.

I am pleased to see the introduction of the income levy for Irish-domiciled citizens. The Revenue Commissioners will have to be rather vigilant because efforts to conceal the worldwide income levels of some people will be vigorous. There may be difficulties with the valuation of Irish-located properties as well, but the challenges must be met. In a time when the country has only a modest income, it is not sustainable to have people in Ireland paying no tax while living somewhere else on paper. I am disappointed Deputy Burton is not in the Chamber this evening. Contrary to what the Deputy might believe, this measure is not a product of campaigning by the Labour Party, it is because of the Green Party in government. We made progress last year with the ending of the so-called Cinderella clause related to time spent by exiles in this country, and now we have secured the introduction of the levy.

With this Bill we have made progress in developing the green economy, contrary to the remarks of some Opposition Deputies this evening. The additions to the list of accelerated capital allowances for businesses investing in renewable and efficient energy systems are welcome. We can help meet our national targets of a 20% reduction in energy use and sourcing 40% of our electricity from renewables by 2020 with such incentives, which encourage small and large firms throughout the country to make changes to their energy systems. This, in turn, increases the competitiveness of such firms.

The introduction of the carbon levy is a welcome development, as I remarked earlier, as is the increase in funding to combat fuel poverty. Other Deputies referred to the problem of fuel tourism in Border areas, a matter that must be examined. The timing of the commencement order for the levy's application on home heating fuels provides for a balance between influencing our attitudes to carbon and protection of the vulnerable. Many have spoken about this measure and its likely impact. We cannot escape the need to de-carbonise our society. If we do not de-carbonise our country, it will be done for us.

I refer to the experiences of other countries such as Sweden, where a carbon tax of 10% was introduced. The resulting reduction in carbon dioxide emissions in parallel with a great economic development with growth in excess of 50% demonstrates such measures may be a positive experience for an economy. The levy makes renewables more competitive and incentivises the use of cleaner forms of energy. I trust the Minister of State will note there is an anomaly here, especially in respect of the levy on bio-fuels. An exemption for blends of 10% bio-fuel component or more is not feasible. We need an amendment to the Bill to maintain the incentive for bio-fuels at the conventional 4% to 7% component in motor fuels. As the Acting Chairman is aware, I have been driving a pure plant oil car for years. There should not be a levy on the bio-fuel component of fuels. It does not make environmental or economic sense. By imposing it on bio-fuel blends less than 10%, we will guarantee that there will be no further investment in an indigenous bio-fuel industry because blends above 7% are not saleable in Ireland.

Speaking as a former business person, the Bill provides good supports for businesses which are struggling to cope at this critical time. The Government should help viable businesses and encourage them in the future. The extension of corporation tax relief for start-ups is welcome and will, hopefully, encourage those who are considering new enterprises at this time.

I welcome the ending of certain tax shelters and reliefs in this Bill and the new powers given to the Revenue to execute its work more probingly. In particular, section 145 is important to ensure the work of NAMA and the Revenue Commissioners is co-ordinated. The Government must ensure NAMA does not become a vehicle for people to construct tax avoidance scams.

In the context of the current and often misleading debate about the implications of the new Planning and Development Bill before the House I welcome section 24, which amends section 649B of the principal Act and relates to windfall gains. The move to apply the 80% windfall tax on any gains attributable to a material contravention by a planning authority is welcome. I refer to Deputy Rabbitte's risible comment here approximately one hour ago regarding the need to protect the Green Party. The Deputy should note we can take care of ourselves. It may be of interest to the House that a material contravention was proposed for the local area plan of Muine Bheag, County Carlow recently. The only people who voted for it were Labour Party councillors. In Government, we are reforming the planning system-----

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