Simon Harris (Wicklow, Fine Gael)

I very much welcome the opportunity to contribute some brief thoughts on the Finance Bill. It is important we do not consider this Bill in isolation as to do so would be to miss the point. The Bill before the Dáil is the latest piece in the large jigsaw that must be assembled by this Government, the State and its citizens in order to bring about the economic recovery that Deputy Tom Hayes spoke about so passionately and to restore fiscal autonomy to this country.

As a Government we recognise that job creation will be at the core of any sustainable recovery in this country. Since coming to office we have introduced the jobs initiative, which Deputy Fleming almost sneered at earlier. That was the same jobs initiative which restored the minimum wage that his Government so cruelly cut and which brought in targeted lower VAT measures for a number of our businesses and small firms involved in the tourism area and the provision of services. We recapitalised the banks, as difficult as that was, as every functioning economy needs working banks. We have been involved in intensive ongoing negotiations with our partners in the European Union and the IMF.

This week we launched an action plan for jobs; this is not just rhetoric and lovely glossy document rather 270 specific proposals that will be overseen by the Department of the Taoiseach, the highest Department in the land. There is a timeframe and oversight mechanism and this will give real hope to small businesses, entrepreneurs and employers throughout the land that this Government is committed to working with them.

Specifically, I welcome in the Bill the special assignee relief programme to reduce the cost of employers in bringing in skilled individuals from abroad to take up key positions. The Minister of State, Deputy Brian Hayes, has already debunked a number of the myths surrounding this concept, of which there have been a few in the media. As Deputy Kieran O'Donnell stated, there is no cost to the Irish State in this measure rather a potential gain if we bring in more skilled professionals. The existing employees of companies in this country will be able to develop their own skills and gain further expertise from these highly specialised areas. The initiative will enable the country to compete, and the country must become more competitive. We must be able to stand shoulder to shoulder with other nations across this European Union in trying to bring new business and investment to the country.

The Finance Bill also provides further incentives to small and medium enterprises to engage in research and development, and I welcome that Opposition Deputies have joined with Deputies on this side in welcoming this initiative. We must do everything possible to encourage small and medium enterprises to play their full part in bringing about economic recovery. We must support and encourage them in every possible way and the ability of companies to use this tax credit to reward employees central to research and development will encourage skilled workers to remain in Ireland, which is an important point. We cannot afford a brain drain in the country and we need highly skilled people to stay and play their part in restoring our economic sovereignty.

It is important to note this Bill is not just about business, tax or technicalities. It is also a Bill about people, and it gives a clear intention about where this Government stands when it comes to Irish citizens, fairness and helping struggling homeowners and those on lower income. When we came into office people argued that we would not restore the minimum wage. I sat through Leaders' Questions when Opposition Deputies time after time accused the Taoiseach of reneging on the promise to restore the minimum wage but it was restored.

Another key commitment in the programme for Government was to review the universal social charge. We cannot abolish it as the State needs the revenue but we wanted to take the lowest earning individuals out of the charge's catchment. We have done so and that should be welcomed by people as it is a key commitment in the programme for Government that has been fulfilled.

I come from the commuter belt county and I know the introduction of the 30% mortgage interest rate relief for first-time buyers who purchased homes between 2004 and 2008 is a particularly welcome development. In my home town of Greystones, in Bray and throughout County Wicklow we saw massive development during the boom years, with many people, including first-time buyers, purchasing apartments and homes at extremely exorbitant prices. They were enticed and seduced by banks convincing them that they could afford these homes but many now face unemployment or live in negative equity. The 30% mortgage interest rate relief is a key commitment and sign that this Government is listening, will help and will acknowledge the problem being experienced. We would all like to see it extended but within the limited available resources, it is a targeted measure and the Government should be commended on it. We must follow up on that initiative with the personal insolvency Bill, which will allow people a way of working out their debts so they do not feel like prisoners in their own home. An implementation plan for the Keane report is also important.

A matter I should raise with the Minister of State is an unintended consequences of the introduction of VAT on admission to stately homes, gardens and tourist destinations. I understand there is an EU directive mandating this change but there is an anomaly in the rate of VAT being levied. In my own constituency there is a well known tourist destination which has seen its VAT rate jump from 0% last year to 23% under the new proposals, which is obviously a severe hit for any business. This Government has put so much attention on the tourism area that this anomaly must be considered. The Finance Bill already acknowledges the need to address the anomaly on page 141, when it refers to open farms, and I have written to the Minister for Finance about the issue. On Committee Stage I ask him to consider rectifying the anomaly beyond open farms to take in tourist destinations, as tourism will play a crucial part in our recovery.

We have all heard in this House and in the media that Ireland is the "good boy" in Europe. We are playing our part and the Finance Bill is the next stage in the State doing everything possible to restore our economic sovereignty, repay our debts and create employment. It is now time to recognise our being the good boy or girl in Europe and I call on the Government do everything it can - as I know it is - to seek concessions in Europe.

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