Tom Fleming (Kerry South, Independent)

I welcome the main thrust of the jobs initiative. I hope it will create an environment that will invigorate and give positivity to all the areas of job creation targeted by the Government.

I have reservations and concerns about some aspects of the Bill. The Finance Act that followed the last budget contained a measure to oblige an employer to pay the 10.75% employer's PRSI on shares issued to an employee as part of remuneration. This made perfect sense as the shares were income, like all forms of remuneration. In this Bill, it is proposed that in the small number of companies that are in a position to give share options to employees as remuneration, the shares should be exempt from PRSI. This measure is geared towards taking care of the elite, who constitute about 3% of employers and employees in the country. This is inequitable and unethical. It is a devious measure that has been slipped through under the impression that it could be beneficial to employment as a whole. It is geared towards the very small minority of companies that are in a position to grant share options in remuneration packages to their employees. This would have to be paid for by the others who pay tax, directly or indirectly. It is appalling that it is being slipped through as a concession to the fat cats, who I estimate make up approximately 3% of the population. This elite group will gain from this measure while the huge majority of the citizens will pay for it. Money spent on this aspect of the scheme would be better spent on restoring cuts to the incomes of the blind, the disabled, carers and widows, who were affected in the last budget.

With regard to the 0.6% pension levy, many ordinary people, whether workers or small business people, have put aside a small nest-egg in an annuity that will return approximately €16,000, prior to tax, in 12 months.

It is shameful that these people are being hit indirectly as a result of the proposals before us. In many cases we should have a tiered system. Sums up to €500,000 should be exempt from the pension pot because it can take many years to accumulate such a sum. Beyond that amount, we could introduce the 0.6% rate up to €1 million, 1% from €1 million upwards and, on a progressive basis, 1.5% for €1.5 million and 2% for €2 million. There is a lot of money which could be targeted by amending this scheme, which would be fairer and more equitable as it would be a progressive tax and would not penalise the poor pensioner to compensate the fat cats.

I welcome the interim scheme, although the figure of 5,000 could be more ambitious and up to 30,000 workers could eventually be included in the scheme. As an incentive, there should be retention of medical cards and perhaps some of the rent allowance for up to three years from the time people participate in the interim scheme. This was previously done in 1994-95 by Deputy Joan Burton, who was Minister of State at the time. We should consider giving such an incentive to encourage participation in that scheme.

I strongly welcome the measures on tourism and the airline tax. If anything, we should give more in order to get as many people as possible into the country. We should do a special deal with the airlines to encourage low-cost fares and maximise the opportunity to bring people into the country to spend their money. There is good value at present in hotels, bed and breakfasts and other accommodation and in the general tourism industry. The only issue to which I take exception is the hiking of prices recently for the visits of the Queen and the US President as well as the European championship match. There were exorbitant and shameful prices here in the capital city, taking advantage of those visiting the country for a week, which created a bad perception on the international stage. This should not be tolerated and controls should be introduced. I ask that these matters be addressed in the context of the Bill.

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