Lucinda Creighton (Dublin South East, Fine Gael)

In the current economic climate it is important that all legislation that has come before the House now and that will come before it during the lifetime of the next Dáil is judged on the basis of two criteria - first, does it address the gaping hole in our public finances and, second, does it assist in some way in endeavouring to stimulate growth, create jobs and get people back to work? On the basis of the first criterion on addressing the public finances, I welcome the Finance Bill. It is well documented that the Fine Gael Party has committed and signed up to the target of a €6 billion adjustment over the period of four years in accordance with the four-year plan. However, I and my party disagree with some of the mechanisms employed in some of the provisions of the Bill, which set out to achieve this target.

The universal social charge has been much talked about in the media in recent weeks and it is being raised on the doorsteps, with people having received their pay cheques in the past week or two. The universal social charge is a very significant issue. I welcome the concept of a universal social charge in the sense it tidies up the various levies which were introduced in the previous two budgets. That is important as it adds clarity and streamlines the taxation system, to some extent, and this is necessary. However, I do not believe that the blunt instrument which has been used to introduce and implement it is correct. I acknowledge that the Minister, Deputy Brian Lenihan, on foot of lobbying by certain Independents, who no doubt will happily take credit for it, has made some changes in regard to medical card holders. This goes some way towards addressing some of the problems with the charge. However, it needs to be acknowledged, as referred to by Deputy Deasy, that the trade off is that the self-employed will be further penalised under the Finance Bill and that is an extremely regrettable prospect. Self-employed people will now reach a marginal rate of tax, that of 55% at a minimum. These are by and large significant contributors to the Exchequer through a variety of means of taxation, through their businesses as well their personal income tax.

Under the second criterion on which legislation should be judged, that of whether it assists growth and job stimulation, it is clear that this Bill, as with all the former legislation which has come from this Government, is basically lacking. What we have seen time and again is the complete dearth of ideas, of imagination and of a drive behind the Government and the Cabinet to start injecting a stimulus to our economy and start prioritising job creation. I look forward to the creation of a new Government under the mandate of the next Dáil. It is vital that we see new young, vibrant, energetic Ministers with new ideas and new concepts who will bring a new energy to Departments to drive forward our economy because it is clear that this tired Government has entirely run out of ideas.

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