Chris Andrews (Dublin South East, Fianna Fail)

The Minister for Finance, Deputy Brian Lenihan, last week published the Finance Bill 2010 which gives effect to the measures announced by him in his Budget Statement on 9 December last. The Bill contains measures that, though clearly difficult, are necessary to stabilise the economy. It is important to highlight that this Bill also contains many pro-enterprise measures, which have been welcomed both at home and internationally. As Deputy O'Connor noted, listening to the difficulties being experienced by the Greek economy in particular, and the reluctance of the Greek Government to face up to those difficulties, its position is in sharp contrast to the Irish experience, which has shown we are capable of making and willing to make very difficult decisions. The Irish Government is being held up in many circles as an example of best practice in tackling the economic difficulties.

All parties accepted that savings of €4 billion had to be found in this budget. Obviously, people will have very different opinions about how this was to be done. The Government was as fair as it could be and has tried to ensure to the best of its ability that the most vulnerable are protected.

The domicile levy of €200,000 was a correct measure, which will see the wealthiest of our society contributing more to help the economy through this difficult period. Some measures have undoubtedly been difficult for many people, including an unfortunate but necessary reduction in public sector pay. Overall, while those measures were and are difficult for the people experiencing them, we in this House included, I welcome the decisive action taken by the Cabinet and the Minister for Finance in dealing with the current economic crisis.

I am also pleased to point out some very positive initiatives contained in the Bill. As I said, there are many sensible pro-enterprise measures that will make Ireland a more attractive place to do business. One of those measures amends the remittance basis of taxation so it will be easier to attract highly qualified managerial or technical people to Ireland to ensure Irish industry operates to world class standards. Furthermore, the simplifying of the processes to pay dividends and royalties and expanding the tax regime to facilitate international companies locating their headquarters here should increase Ireland's attractiveness to large corporate companies.

For small and medium-sized enterprises in operation here in Ireland, a credit system review scheme is to be established which will give SMEs, farm enterprises and sole traders the right to appeal, where an application for credit is refused by a financial institution participating in NAMA, after the bank's own internal process has been finalised. Under this new scheme, if it is recommended that credit should be granted, the participating institution that refused credit must comply or provide a written explanation for its refusal. In recent months, I have been contacted by countless SMEs which have informed me of the difficulties they are experiencing in accessing credit. However, banks have been telling a different story in claiming that they are open for business. While this new credit system should prevent the banks from fudging the facts, more needs to be done to free up credit to the SME sector.

The Tánaiste recently indicated that she might put in place a bank guarantee scheme. I have previously called for this measure to be implemented and I again put on record my support for the scheme.

The Minister for Finance, though having had to find savings, has attempted to do so in the fairest way possible and has also implemented many smart and welcome measures which will benefit Ireland in the long term. I again commend the Minister for Finance on his hard work and dedication to rectifying Ireland's economy. I commend the Bill to the House.

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