Catherine Murphy (Kildare North, Independent)

The Minister himself described the jobs initiative as modest. It is no surprise, therefore, that the Bill is a technical one, reflecting the jobs initiative. That is the difficulty with regard to it.

The Minister has set out a number of areas where jobs might be provided. The tax credit for research and development is, in itself, a good initiative but it will not, necessarily, provide huge numbers of jobs. Research and development is a small section of any industry and manufacturing is not always carried out in the place where research and development happens. The number of jobs to be created by this measure should be quantified and the Bill should require an actual return on the tax credit from the companies that will benefit from it.

The reduction in VAT and the abolition of the air travel tax will have a positive effect on the tourism industry but the effect will be small. The primary reason why American and British people do not come to Ireland is they find the eurozone too expensive. The problem is not with Ireland but with the eurozone. They go to countries like Turkey where they feel they get value for money. Poor value for money in the eurozone and reduced income are the two reasons British and American people are not holidaying in Ireland. The UK and US economies are not doing particularly well, although not as badly as ours. As a consequence, British and American people holiday where they get value for money.

Our 12.5% corporation tax rate is seen by some countries as an unfair advantage. Is it not interesting that the same is not said about the effect of currency devaluation by countries that are in the EU but not in the eurozone, which gives them a competitive advantage?

I am concerned about halving the rate of employer's PRSI until 2013 for incomes up to €356 per week. The minimum wage is €337 per week. This measure will mean €356 will become a maximum wage. I am concerned that jobs will not be offered above that rate. This threshold is much too low and should be increased.

Construction is the sector that has lost most jobs, yet home insulation has not been targeted. In fact, grants for woodchip boilers, heat-pumps and air-space heating have been abolished and the grant for solar initiatives has been reduced from €1,800 to €800. The greener homes scheme has been abolished and all contractors must re-apply to be included in the better homes scheme. We had something ready to go but difficulties have been created by these changes.

How will the initiative be funded? The Bill is ambiguous in this regard. We are told it will be funded by the pension levy but not who will pay. Trustees of pension funds are accountable to their shareholders and will see their shareholders as more prized than savers. People who are paying towards their retirement will pay, if the choice is left to the market. At the very least, we should make it clear the levy must be paid out of the fees charged and not by savers.

Much of the pension reserve fund has been flushed away. We will face a major problem in 2025. This is the next big problem coming down the tracks and we will have to face it as soon as we have got through the current problem. There must be a commitment to a root and branch assessment of the pensions issue. The people who are stuck in Ireland in negative equity and with big mortgages are the very people who, when we reach this threshold in 2025 and just when they have got their heads above water, will be asked to pay. A major review of the pension system must happen. Otherwise we will have a serious problem.

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