Mattie McGrath (Tipperary South, Independent)

I compliment Deputy Edward O'Keeffe, who is from a neighbouring constituency, and all Members who are taking the opportunity to retire. I thank them for their public service.

The legislation being discussed is most important. I believe from the bottom of my heart that it is being rushed through the Houses with indecent haste. I have sat through so many debates in recent months and years in which the Opposition frequently criticised the Government for the use of the guillotine, thereby rushing legislation. Now that the prize is in sight, there is no time for due diligence and proper debate.

Leaders of the Opposition and others have been publicising with great gusto the view that they are the custodians of the national interest. Only now, when this coincides with their own interests, are they throwing caution to the wind.

The Green Party was a partner in Government. It destabilised the Government in a major way in November, at which time it wanted to be in and out of Government. It is now appealing to the Opposition to carry the Bill. It has great responsibility and is answerable to the public for its actions.

I welcome the effective deferral into next year of the curtailment of the tax reliefs on section 33 properties. There is now a tendency to consider property as a dirty word. Anyone who speculated on or invested in property is now regarded as a rogue or crony. The reality is that section 33 provisions were availed of increasingly by some very ordinary people. The provisions were promoted by the Government and people were advised by solicitors and accountants that the section 33 scheme was wonderful. It was regarded as one of the safest schemes one could opt for because it was State backed and one entered into a contract with the State.

In many cases, people leveraged their own properties, affecting their future and that of their children, to engage in small-scale property investment. They rejuvenated many derelict areas in small towns in the process. They were not major developers. They were ordinary people in ordinary positions. They included self-employed people, teachers, doctors and others who are valued in the community. They are not connected in any way to the property moguls or the high-level speculators involved with NAMA or who engaged in reckless borrowing and lending, from Anglo Irish Bank and other banks.

These small-time investors entered into a contract and were advised by legal and financial experts to do so. They paid dearly for that advice. The section 33 scheme was regarded as guaranteed. When we enter into contracts by mutual agreement, that is fine; when one enters into a contract with the State, one believes the contract will be honoured by it. People who now wish to revisit their contract with the State are not allowed to do so. Some have taken the tax reliefs but many have not.

What is occurring is unconstitutional and it will be proven to be such. I welcome the 12-month deferral and acknowledge the serious effect the removal of the scheme will have on the trust of the people. The trust of the people has been shattered in so many ways. The people in question were willing to make an investment, enter into a contract, put their money where their mouths were to better their communities, and build for themselves and their families without trying to get rich quickly. Their plight is sad. The section 33 scheme is to be abolished in the interest of resolving the national crisis brought about by the banks and light-touch regulation, as a consequence of which nobody in the Government shouted "Stop".

I am appalled that no banker has been brought to justice to date. Everybody is innocent until proven guilty and I respect due process, which must never be questioned. I was surprised and heartened last year when the then Garda Commissioner stated he expected people to be brought before the courts before the end of the year. He has now retired and I wish him well. We are now one month into the new year and there is no sign of anyone being charged. That those responsible have not been brought to book constitutes an appalling vista for the Government, bearing in mind that we cannot interfere with investigations.

As a small businessman, I know the legalities involved. When one does one's accounts every year, one's accountant or auditor signs off on them based on the information supplied. Huge tranches of money were moved out of banks into other banks and this was basic, naked, unadulterated fraud. There is to be a huge, lengthy trawl to ensure everything is right but that is only a cop-out and excuse. People are hiding behind this trawl. They need to be charged for their wrongdoing in the courts and must pay the price.

Budget after budget, it was promised that so many quangos would be disbanded. They are a drain on the resources of the country and comprise a wasteful exercise. We have handed over power from this Parliament, to which I and every other Member was elected. I wish every candidate well in the forthcoming election. I hope the next Government will be able to sort out the issues that the people want addressed.

With regard to the property market, rent dried up for investors. There are human tragedies involved. Families with children who have mortgages will be affected and small business owners with mortgages on their properties will be forced out of business. I hope the new Government – we all have an idea of the complexion it will have – will put its money where its mouth is. After the review next year, it will have the time to ensure the measure is constitutional and revisit it.

I welcome the amendment to the universal social charge and make no apologies for lobbying the Minister for Finance to reduce from 7% to 4% the rate for medical cardholders. That section of the community cannot afford 7% and needs to be supported. However, I do not welcome the quick decision made by the mandarins in the Department of Finance and with the obvious agreement of the Minister. I am glad that my colleague, the Minister of State, is present, as he has listened to me at many meetings around our county in recent months. While €100,000 is a good income, foisting the shortfall onto the self-employed on the grounds that they can take it is wrong. They cannot take a further scintilla of tax because they already have been taxed and regulated out of existence. At a time when there was no regulation of bankers, the self-employed endured health and safety regulations, hazard analysis and critical control point, HACCP, regulations, insurance, courses and so on.

Regulating our best and brightest, those who have the courage to invest in business and create money to pay their own wages, provide for their families and create employment, has become an industry. These people are our future, but they are not receiving help from Enterprise Ireland or the IDA. Nor do they ask for it. In some cases, they get good support from local authorities and county enterprise boards. This has been acknowledged on programmes like "The Frontline". These are the people Ireland needs to get out of this mire, not us. They have ideas and the courage and initiative to run with them. They are our brightest and best. Some might not be our brightest and best, but they are hard workers. Sheer hard work has got them to where they are and kept them there for many years. Crucifying them by regulation must stop. I welcome Deputy Timmins's comments to this effect.

An army of officialdom has crippled our State and grown up around the political system. My former party has been in government for the longest time. I lobbied my party to call a halt to matters, but no one wanted them to stop as they were going well. Instead, people wanted to make money. Rightly or wrongly, we became associated with big developers and builders. This is our taint and we must pay the price. We need to rebuild and revert to the ideals of de Valera and Lemass by setting up a country in which people can be proud to be in business and to have property. Without such people, we will not have a country.

I will address the bringing forward of the deadline for self-assessment tax returns from 31 October to 30 September. This is another dream by some bright spark - there are many good officials in the Department - who has never been self-employed, needed to file accounts or understood the difficulties involved. It is a nonsensical proposal for a number of reasons. First, cash flow has dried up. Traditionally, people are paid quarterly or at the end of year. One needs money to pay one's self-assessment, but many businesses do not have it. Banks have been of no help, seeing as how they have removed overdraft facilities and refused to provide loans despite the fact that some of the businesses in question have track records of 30 or 40 years. They are a safe bet for the banks, but their lifeblood is being drained away.

August and September are holiday months for the House and others, so we know that finding an accountant in that period can be difficult. Accountants would tell one of how their staff are on holidays, meaning there is no one to do the books. As such, the new deadline is a nonsensical, ill-conceived and ill-judged idea. Those who dreamed it up have never created a job. Instead, they will put people out of business. The new deadline must be reconsidered, as the people who will be affected promote enterprise and are those to whom we must turn.

Although we are attracting some multinationals and I compliment all involved in Intel's announcement last week, we are not attracting enough. Small indigenous businesses must be encouraged and supported. Banks are not helping them despite last year's budget promise that they would each lend €3 billion. The Minister told us the banks would submit plans in this respect, but we never saw any plan or money. The only money we saw was what they took off business people.

I welcome the review of the curtailment of tax relief on student fees. PAYE workers had legitimate complaints in this respect. The idea that the self-employed could do what they liked led to mistrust, so we must tread with caution. No tax relief will be afforded on the first €2,000 in charges for full-time students or on the first €1,000 for part-time students. Among the unemployed of all ages, there is a considerable need to up-skill or retrain to meet the needs of industry and to create growth. We must support them because they are our brightest and best. From the figures, we can see how many people have been forced to emigrate. We want to keep them at home. To do so, they must be up-skilled and reskilled if they are to be able and willing to create jobs, get work and attract companies to Ireland. This measure must be examined.

I am disappointed about the tax on the bankers' bonuses. I negotiated with the Minister, Deputy Brian Lenihan, on making changes to the cuts in allowances for the disabled, blind people and carers. He decided to introduce the 90% tax on bonuses, but it has been forgotten. I do not want to penalise those people, but "bonus" is a dirty word. Why has it been forgotten? Departmental officials were allowed their bonuses two weeks later, yet there was not a word about that. There is no fairness.

This Bill ignores an area that has been crying out for reform. I have consistently argued that, in the interests of fairness and accountability, a maximum wage needs to be introduced. I was with the Minister until he walked into the Chamber with the budget. He told me he was introducing a €250,000 cap. For many years, I had lobbied for €200,000, which would be a fine sum for anyone. He introduced the measure, but we have not heard a word about it since. It was tokenism to get the likes of me on side. The situation is unfair. A couple of days later, we decreased the minimum wage. No questions were asked; it was just slashed. The ordinary people who want to work are being leaned on again. Worse still, the message being sent is that working is not viable. One must always have a system in which it is rewarding to work. It cannot be more rewarding to stay at home. This is the problem with our lengthening dole queues.

The reduction in the minimum wage was an attack on the weakest. I am an employer and 99% of the employers I know were not troubled by the minimum wage. They were willing to pay it. If one has good employees, they are entitled to good pay. In smaller businesses in particular, there are good relationships between employers and employees. It is quid pro quo, in that one cannot work without the other.

Ordinary people, be they business people or workers, who want to get on with their lives without looking for handouts are being crucified while the rich are getting away with it. This is the saddest indictment of our outgoing Government and it is something on which I, as someone who was a part of it, must face the public. However, I reject out of hand an accusation levelled against me. The Opposition has a responsibility. If it so wishes, it is ready to do some governance by passing this Bill.

I voted against the so-called EU-IMF bailout. It was a clean out.

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