Peter Fitzpatrick (Louth, Fine Gael)

I welcome the opportunity to speak on the Finance Bill, the first of its kind I have encountered since being elected to the House a couple of months ago. I support the Bill because I agree with its main objective of creating much needed jobs in our faltering economy. I listened with interest to the Opposition speakers, in particular the far left socialists - People Before Profit, Sinn Féin and Deputy Higgins of the Socialist Party. The far left socialists in the House have learned nothing from history. Socialism was tried and tested and failed miserably 20 years ago, when the USSR threw in the socialist towel and knocked down the wall it had built in an effort to stop its citizens from evacuating a failed system. Socialism failed because it stifled initiative and creativity and denied people the right to earn a living according to their skills and talents. We live in a modern republic, the hallmarks of which are, as largely defined by the late Dr. Garret FitzGerald, liberty and equality. Equality emphasises that each person is entitled to reap the rewards of his or her skills and talents. Our socialists would drive everyone down to the lowest common denominator. The enterprising people in a society who use their initiative, creativity and hard work to develop products and services and, therefore, create jobs for their neighbours would be smothered by our socialists. Their capital would be smothered and the far left socialists would burn bondholders and send the European Central Bank, ECB, packing from these shores. They would impoverish the people, stifle the private sector and force the poor to eat grass.

Opposition Members claim the jobs initiative does not go far enough. They conveniently forget that this is just the beginning of the Government's jobs strategy and that we are working in a fiscal straitjacket. Later this year, the Government will roll out the NewERA investment, which will give an additional stimulus to our economy. I am happy with the Minister, Deputy Noonan's analysis of the economy. He has clearly identified our strengths and weaknesses and the Government has a clear vision of how to exploit our job creating potential.

Section 1 of the Bill sets out to improve and enhance the research and development tax credit to be used by companies to offset operating costs. This change will make the scheme more attractive and, therefore, will lead to increased research and development activity.

Section 2 will set aside the air travel tax subject to agreement being reached with the airlines that they will bring additional passenger numbers into the country. I welcome this initiative because it will increase tourism earnings in all parts of the country. Section 3 will introduce a new 9% rate of VAT on tourism-related goods and services until 31 December 2013. This will complement the change in section 2 and, if we include the effects of the new marketing budget, we can expect a substantial increase in tourism activity, leading to the creation of jobs in this labour-intensive sector.

Section 4, which provides the funding for these new measures, has been accompanied by a great deal of scaremongering. The Opposition is trying to convince people that their bank account savings will be raided. This is nonsense and the Minister, on behalf of the Government, has firmly scotched the suggestions. The pension fund managers have agreed that a small increase in stamp duty is preferable to a reduction in tax relief. Why then have they done an about turn and added to the scaremongering? Is it possible to do a clinical review of the amount of profit being skimmed off by the pension fund managers? It should be done. Some noises from the industry suggest that the stamp duty of 0.6% could be absorbed by the management without affecting individual savings. We must have this matter clarified, as many people are worried that their pension savings will be adversely affected.

The new Government has brought a measure of hope and stability to the country. The jobs initiative is a further indication that everything possible will be done to get Ireland working again. The initiative is just the beginning. The NewERA policies will be rolled out later. The banking system has been restored and is now fit to support our economic activity. Negotiations will continue with our EU partners, the IMF and the ECB. Our Government will pursue a programme of radical reform of the labour market to make it more responsive to changing market conditions.

The private sector is the engine of the economy and pays the bills. We must do everything possible to prime it. The Minister, Deputy Noonan, is right to single out tourism for a quick response in respect of job creation. I welcome the reduction in VAT, the abolition of the air travel tax, the setting up of a marketing fund for Fáilte Ireland and the reform of the visa application system for entry into Ireland. I welcome the increase in road funding for this year and the additional investment in the fabric of our schools. These imaginative and practical initiatives will breathe new life into our tourism provision. They will be welcomed by the people of the Cooley Peninsula and the beautiful seaside town of Carlingford as well as by the other seaside resorts in my constituency. Our hotels, restaurants, bars and every other business that supports tourism will get a major boost, inevitably leading to the employment of additional staff. We can expect a spin-off effect right across the economy.

I want the Minister to do his utmost to carry out a clinical review of the amount of profit being skimmed off by the pension fund managers. The 0.6% stamp duty can be absorbed at the pension fund management level.

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