Seán Barrett (Dún Laoghaire, Fine Gael)

Let me quote an e-mail by a self-employed constituent of mine. It was also sent to my Government colleagues in my constituency:

As a self-employed constituent of yours can you please tell me the logic of increasing PRSI payments from the self-employed when the benefits we are entitled to are nil?

Add in reduced pension contributions relief, a new universal social charge, end of the PRSI ceiling, reductions in tax bands and credit plus increased security tax and I think you have got me in just about every way possible. And that is before I have to put up the VAT I charge my reducing band of clients!

Enterprise culture? You must be joking.

That sums up this budget. The individual is self-employed and summed up in one short e-mail what it is like to be starting one's own business in this country. One starts with a noose around one's neck.

I was so disappointed by the con trick carried out in respect of the new universal social charge. I believed the Government would reform the whole PRSI system so as to specify clearly what one gets from one's contribution. Instead, the health levy and the income levy were added together permanently and put under a new title. What a con trick. At the same time, we have done nothing to reform the PRSI system, especially for those who should have a separate charge for a fixed rate of old-age pension. Everybody should contribute and there should be no non-contributory benefit. Everybody who starts work should contribute towards a fixed amount. In such circumstances, one could specify the health services and other benefits one would receive. Instead, we engage in another money-raising enterprise.

With regard to my portfolio of foreign affairs, I am extremely upset over the cut of €35 million to the overseas development aid budget. We signed up to a target of 0.7% of GDP, to be achieved by 2015. For the past two years, the Government has cut the budget. Some €35 million has been cut on those who are hungry.

The Government also made a big issue of signing up to the hunger target of 20%. The Minister for Foreign Affairs attended a UN meeting and sat beside the Secretary of State of the United States to sign up to the relevant agreement, yet the first effort to achieve this target resulted in the cutting of the budget by €35 million. If another couple of cent had been added to the price of a bottle of wine that same amount of money would have been raised.

There was a proposal to increase betting duty paid by bookmakers from 1% to 2%. This has been postponed. I regret this but note that legislation has been introduced to tax offshore operations that are not contributing anything by way of betting tax. I ask the Minister to increase the betting duty in shops from 1% to 2%. At present, a 1% tax is levied on the bookmaker. The easiest approach would be to levy 1% on the punter. One cent in the euro would produce an extra €38 million approximately for the industry. All betting operations, be they on-line or in exchanges, should be licensed. I hope the legislation will be introduced very shortly.

Let me outline the importance of the betting industry. Over 2,000 jobs were lost in the past 18 months as a result of the lack of funding in the industry. The Minister of State at the Department of Finance, Deputy Mansergh, will be well aware of this because he represents a constituency with a very significant racing and bloodstock industry. Most racecourses are facing financial problems. The number of foals produced has dropped from 12,500 to below 9,000.

For every three foals born there is one full-time job. Horse trainers are running into difficulties and the prize money for owners has dropped considerably. All race course developments have halted. We have an opportunity now for more employment and having jobs in rural communities throughout this country. I ask that the Government do something in the finance Bill to increase the levy from 1% to 2%. No punter would object to having to pay €1 in every hundred for placing bets. It will result in jobs in rural Ireland. It will restore the bloodstock and greyhound industries to their rightful places but most of all it will provide jobs in this country, particularly in areas where it is difficult to get employment. It will also retain our image as the leading bloodstock country in the world.

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