Luke Flanagan (Roscommon-South Leitrim, Independent)

I will start with what is positive. I welcome the change to the threshold for the universal social charge. However, no more than knocking on a person's door to sell him or her something at a good price while someone else is kicking in his or her back door and robbing him or her, it is not a lot of good. The Government changed things for people on the low end of the income scale in terms of the universal social charge but unfortunately it increased VAT, which will affect the poorest the most.

According to Social Justice Ireland, the increase of 2% in the top rate of VAT will have a disproportionate effect on the living standards of households with low incomes. The poorest 10% of Ireland's population spend 14.9% of their income on VAT and more than three quarters of that was paid through the 21% VAT rate. In effect, the increase in budget 2012 will reduce their disposable income further. I thank the Government for giving a few quid back but it is taking it from people again.

By contrast, the richest 10% of the population paid less than 7% of their total income on VAT. It is a regressive tax which is bad for the economy. We should forget about the idea that the budget is fair because it is not if it affects the poorest the most. From the point of view of local economies, the budget will take more money out of the pockets of people, on top of the €100 bondholders charge. As a result we are going nowhere with the budget.

The Government has a habit of getting what is in essence a good idea, such as local or carbon taxation, and dirtying it. Local taxation does not end up in local economies and services, rather it goes to bondholders. The money raised through carbon taxes should be ring-fenced to retrofit houses to mitigate against the increased cost of fuel and do something about global warming without affecting people's pockets. The Government has used it to raise more money for the bondholders. People no longer believe in carbon or local taxes. How will the Government get over that hump? It will not.

There is one interesting element in the Bill. People are crying out for money and compensation. However, the only people the Government seems to want to listen to are those who do not want it and are not looking for it. I did not think turf cutting would ever be mentioned in a finance Bill but it is. The Government will not charge capital gains tax on turf compensation, which is great. However, we do not want compensation. Some people do, but as the Government will discover in time the vast majority of people who take it do not actually cut turf and are codding the Government. The money is not going to people to get them to stop cutting turf. No matter what 99% of turf cutters are offered, they will not take the compensation, whatever is done about capital gains tax. It was spun by the Government as a wonderful thing and described as a great deal for turf cutters.

If I went to a mart in Carrigaline or Castlerea in Roscommon and bought a beast next Saturday for €800 I would not go back the next week and offer the seller €900 because I got the deal at €800. However, this brilliant deal, which everyone is taking up, is so good the Government is improving its terms. It will not charge capital gains tax and now the rumour is that it will double the amount of compensation and time involved. We do not want it. The Government should realise money does not solve everything and not everyone can be bought off.

I do not know whether the Government has seen the film "The Field". If it had not charged Bull McCabe capital gains tax would he have sold the field? He would not. We will not get rid of our field. We will not be bullied into anything. The Government could give us €1 million an acre but we would not to take it. Some people are not for selling their heritage.

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