Brian Stanley (Laois-Offaly, Sinn Fein)

I wish to share time with Deputies Colreavy and McLellan. I welcome the opportunity to speak to the Bill. I firmly believe one cannot divorce the social from the economic, as economic decisions directly impact on people's lives. I note the previous speaker on the Government benches stated that people mattered in the Finance Bill but the problem is that they only matter a small bit.

The economics contained in this Finance Bill will have a very negative social impact and already one can see a sorry harvest being reaped in many working class communities. This Bill and the economics in it will further divide communities, fuelling the race to the bottom. With deepening cuts to the public service and growing poverty it will greatly increase the pressure on the community sector, which must now provide more services to greater numbers with fewer resources. This is a direct result of the politics pursued by this Fine Gael-Labour Government and the previous Fianna Fáil Government.

This Bill aims to put into law a regressive budget, which is clearly seen as an extension of the previous Government's policies of austerity and cutbacks. This Government came to power 11 months ago on a ticket of change, openness and hope. Labour promised to take the edge off Fine Gael Tory policies but it is now the helping hand of government; we are still seeing the iron fist of austerity. We have a coalition of forces protecting the wealthy and punishing low and middle income families. Unfortunately, the most vulnerable sections of our community are coming in for some vicious attacks, which are well recorded. They include attacks on lone parents, those on community employment schemes, home help and the fuel allowance. The list goes on.

We can see the expansion and invention of more tax breaks and the Finance Bill legalises further tax evasion. The introduction of the foreign earnings deduction will allow employees based in Brazil, India, China, South Africa or Russia from select companies a tax break of €35,000 per annum. The new special assignee relief programme allows for multinationals to operate tax relief of 30% for select employees coming to work in Ireland. Although this programme has operated previously, no evaluation has been carried out and no research has shown that this brings jobs or talent to Ireland. In reality, the opposite is true, as the contradictions are glaringly obvious. We have graduates filling aeroplane seats heading to Australia, Canada and the US for work but this Government feels it is right to fill the aeroplane on the return journey with those receiving tax breaks on earnings between €75,000 and €500,000 per year.

As if that was not enough, the Government has dreamed up a further tax break, the research and development credit for key employees. Companies can now utilise part of their research and development tax credit to pay key employees on a tax free basis but there is no evidence that this will create jobs or stimulate the economy. In addition to introducing such tax breaks, the Government is bringing people on illness benefit, occupational benefit and a range of other benefits into the tax net. This is no more than a schoolyard bully tactic, as it involves punishing and putting the boot into the weakest.

Like its predecessors, this Government is focused on protecting those who protect it. It makes sure the wealthy get wealthier and the rest of us suffer. To make matters worse, Fine Gael and Labour Party will rub salt into the wound by paying a further €3.1 billion to Anglo Irish Bank next month. There is no obligation to pay this money, but there is an obligation to look after those who are weak and to cherish "all the children of the nation equally". That is not simply a quotation from the Proclamation. It should not be seen as a mere aspiration. We should be trying to make it a living reality across the island.

The Government has choices. This Bill attempts to deal with mortgage relief, but it fails to apply relief where it is most needed. It does not attempt to solve the crisis in local authority loans, four out of ten of which are in serious distress. Many families that have fallen on hard times have been evicted. Many others face legal action and live in daily fear of losing their homes. I raised this issue on a number of occasions last year, but the Government has chosen to sit on its hands. It is time for the Government to introduce solutions, based on workable proposals, to deal with local authority loans in distress.

Fine Gael is pretending to be a job creation party. The Finance Bill 2012 will further depress the economy and impose hardship, unemployment and emigration on citizens. One cannot expect the economy to grow when one is taking money out of people's pockets. Consumer spending has decreased by 15%. Jobs cannot be created in that type of economy. The 23% VAT rate is having a serious impact on jobs. It does not have to be like this. Sinn Féin knows that different decisions can be made. More importantly, Ministers and Government backbenchers know it as well.

When Sinn Féin presented its pre-budget submission, it was serious about its implementation. Our primary focus was on protecting the most vulnerable, investing in jobs and supporting communities. We set out our plan to create jobs by means of a €7 billion stimulus package over a number of years. We outlined how we would put money into people's pockets through a household stimulus package. The budget we would have introduced would not have included increased student fees, water charges, stealth taxes or higher VAT and excise duty. We would have abolished the universal social charge. We would have made the necessary €3.5 billion deficit adjustment by taxing wealth and cutting spending. We would have narrowed the gap in the State deficit. The Anglo Irish Bank promissory notes would not have been paid. Our budget would have been good for families and low income earners.

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