Dáil debates

Tuesday, 24 May 2011

Finance (No. 2) Bill 2011: Second Stage

 

6:00 pm

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)

I will be voting against this Bill for reasons I will outline, including how it is being funded, which is questionable and how, if we manage to get our hands on it, the money will be spent.

On the way to Dublin this morning, I listened to an interview on RTE radio with Mr. Eddie Hobbs, who was praised by the Government when in Opposition for barracking the previous Government. It now appears he has issue with the current Government in that he believes this legislation could be unconstitutional. Who knows? Perhaps he is right; perhaps he is wrong. Earlier I heard Deputy Ross being abused for not being perfect in the past. Perhaps the Government recalls what he had to say on the last occasion we spoke about this issue, namely, that there is another way of extracting this money from the pensions industry.

This afternoon I received a letter from the Irish Nurses and Midwives Organisation in relation to the pension levy. In the letter the INMO appeals to me to use my vote to prevent any attempt by the pension fund administrators to pass on a 0.6% job creation fund tax levied by Government to their customers. The INMO confirmed that it has raised the issue with its staff pension fund administrators and with AVC providers. According to them, the levy will be imposed on the trustees or administrators, which in the majority of cases is not the insurer or life company. The levy is not imposed directly on the member or members' fund and the Government must not provide for any such option. The following sentence of the letter was underlined: "The industry, based on a previous levy imposed in 1998, are presuming they will be given such an option and have run a slick campaign suggesting no other choice."

The letter goes on to say that since the announcement of the Government's jobs initiative the pension industry, through highly articulate spokespersons, has managed to convey the impression this payment towards the nation's recovery must be extracted from contributors to pension funds. The INMO believes the levy should be taken from the profits of the pensions industry or, more appropriately, their marketing and hospitality budgets, which are wholly unnecessary in the current climate. I do not know if that is the perfect answer. However, I do know that it is going to be very difficult to get this money. Whether or not it is difficult to get we must be careful about how we spend it.

I do not propose to put forward solutions to the lack of jobs countrywide. However, I can propose solutions for my area, which can be replicated in other parts of the country. I agree with Deputy Higgins that the tourism industry cannot be grown by that much in places such as Galway, Dublin, Killarney and other parts of Kerry. However, there is massive potential for growth in my area and similar areas. On the day the jobs initiative was announced I said in this House that reducing the price of a bag of chips by 5 cent will not encourage people from England, if they can get over Deputy Higgins's barriers on the east coast, to come to places like Roscommon and south Leitrim. Perhaps it might. I cannot imagine it encouraging them to visit other areas. What would make tourists come to my area and other similar areas would be a tourism product. I do not believe it too ambitious that places like south Leitrim and Roscommon could reach one third the level of tourism enjoyed by Galway. This would mean €90 million in extra revenue. Taking industry figures that for every €30,000 spent on tourism one job is created this would mean an extra 3,000 jobs for my area. When canvassing during the recent general election I put forward this proposal and was told it was unrealistic. If it is unrealistic then we will have to rely on some big company to locate in the area if we are to solve our jobs problem. That is not going to happen and as such we will have to make my proposal work.

Roscommon-South Leitrim has all the ingredients, including an able workforce, excellent transport and an abundance of self catering accommodation, something I could not have said a few years ago. In other words, the many empty houses throughout the countryside. We also have the attractions to bring people to our area. One reason people might like to visit the area is that they may not meet too many tourists, thus enjoying a little tranquility. They could then, when they leave, tell other people what a wonderful area it is. I am not being parochial. There are many other areas around the country that could develop tourism. If the product is put together correctly people will come. I agree with most of the other ideas behind the initiative although they will not change everything. Instead of reducing the price of a bag of chips in south Leitrim or Roscommon, can we have the €17.8 million to develop a tourism industry? The vehicle is already in place, in the form of the Leader companies, to distribute that money. We will be able to create jobs. I reckon in the region of 3,000 jobs could be created in an area as small as the one I come from. That would have a massive effect.

What the Government is planning will drive my neighbours, friends and relations to leave my town and my county. If the Government's figures are to be believed, nearly 30,000 people have left the country since it came to office.

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