Timmy Dooley (Clare, Fianna Fail)

It is a very difficult environment in which to try to support and nurture the small entrepreneur and medium-sized enterprise. The reality is that the pillar banks that have been identified by all sides are, sadly, not providing the cash. They talk about doing so. When we were in office, we put in place a certain rigorous regime that would have required the banks to lend up to €12 billion over a number of years. Sadly, based on the cases I encounter in my constituency office, much of this has been reworked. People's overdrafts were removed and incorporated into loans that were presented as new lending. The banks have played ducks and drakes with the Government and did the same when I was in government. They are continuing to do so. Unless we find a way to increase the credit available for genuine small and medium enterprises, we will be in real trouble. I wish the Minister of State well with that endeavour; it will certainly not be easy. This is the area we need to tackle.

Reference was made to the loan guarantee scheme. It is not as easy to implement as was suggested prior to the election. I take on board the comments made by a number of Government spokespersons in recent days on the difficulty in ensuring it is implemented effectively. Unless we can restore confidence among the small and medium enterprises to allow them to get over the hump, there will not be a return to growth. Without a return to growth, the economic difficulties will, sadly, continue.

A number of speakers spoke about the necessity of having a fuel rebate system. Ireland faces a very significant problem owing to the illegal sale of diesel. Recent figures suggest that between 15% and 20% of diesel sold in the country is illegal. The illegal laundering of diesel is damaging the public finances and is unsafe, and it is certainly damaging the environment. Deputy Heather Humhreys will be well aware of this because the two local authorities in her constituency experienced really difficult environmental problems, the fallout from which imposed a significant cost on the Exchequer.

I welcome the recognition by the Minister of the problem concerning diesel but he has not come to terms with its scale. In this regard, I met a number of interested parties, from representatives of the Irish Road Haulage Association and oil distributors to forecourt owners, and I noted they are at one in believing this is a significant crisis. The estimated loss to the State is between €150 million and €250 million.

The Revenue Commissioners, with the permission of the Minister for Finance, were very prompt in taking action when they discovered a potential loss of revenue to the State in the region of €45 million in respect of pensions. This was identified by the Revenue Commissioners prior to Christmas. In consultation with the Minister, there was a series of letters to pensioners. A problem was rightly identified and the authorities wanted to ensure that, in difficult times, there would not be a loss to the State. However, the potential loss owing to illegal diesel is multiples of €45 million. I am not sure this is being taken seriously.

I am a member of the Oireachtas Committee on the Environment, Transport, Culture and the Gaeltacht, which recently produced a report on illegal diesel. The committee invited before it some of the interested parties, including farmers, agricultural contractors, the Revenue Commissioners, oil distributors and road hauliers. They understand the scale of the problem and the difficulty that arises over competitors operating illegally. Illegal production is hitting the road hauliers in a big way because there are unscrupulous competitors who use the washed diesel, thus making significant savings and gaining a competitive advantage. The hauliers have sought a rebate scheme – I am disappointed this is not in the Bill – because it is cheaper for those who travel internationally to fill up their trucks overseas than it is to do so here. This represents a significant loss to the State because the oil ought to be sold here with the appropriate margin for the State included.

I appeal to the Minister of State to try, in whatever way he can, to beef up the legislative provision on the use of laundered diesel. It is fuelling a criminal fraternity that seems to have made vast sums and which can afford to take a hit regularly. It can afford to have a couple of tankers seized and to have its laundering equipment taken by the State. When it is taken, the launderers are back in business in a neighbouring warehouse or farm within a matter of days. The scale of the problem cannot be overestimated. If the State is losing between €150 million and €250 million annually, it behoves all of us to try to do something. Tackling this would remove some of the burden from the Minister for Social Protection, Deputy Burton, who must cut social welfare, and Ministers making cuts in many other areas. None of us wants these cuts but it is recognised that the Government must balance the books. Its task is not easy. By tackling the use of laundered diesel, significant revenue could be generated. I appeal to the Minister to do so.

I am concerned about the increase in the levy on private health insurance.

An increased levy applies to all health insurance renewals and new contracts entered into since 1 January. The increase is a massive 40%, or about €80 for adults and almost €30 for children. In addition, increased charges for private beds in public hospitals were announced in the budget and will be confirmed by this Bill.

Aviva has already announced an increase of over 14%, Quinn has done the same and others will follow. The difficulty is that every day people are failing to maintain their health insurance, so there will be a knock-on effect to the State. We are witnessing a steady disintegration of the private health insurance system. Between 5,000 and 6,000 people are cancelling their health insurance every month. The VHI lost 130,000 customers in the 12 months to September 2011. The Government parties claim to be progressing towards a system of universal health insurance but that approach is now in tatters. If people are no longer able to afford private health insurance, how can the Minister work towards a universal health insurance system? The Government will have to address that matter because there is a significant cost burden on all concerned.

Along with others, I saw last year's jobs initiative as a significant raid on private pension funds to the tune of €470 million a year. The Minister identified where that money would go and in 2011 some €120 million was earmarked for a VAT reduction, €95 million for PRSI reduction, and €15 million was set aside for the air travel tax. The Minister never got around to dropping the air travel tax despite what had been promised prior to the election. Even though the Minister for Transport had cosied up to the owner of one airline, more than once, the extra flights never materialised and the travel tax was not lifted. In 2012, that was projected to cost the State €90 million so there is quite a bit of money floating around that has not been utilised. Is there any provision to reassign that money or utilise it to help promote tourism here? The Government has spoken about such initiatives but has not made any money available for them. The Minister should reinvest the additional money available since the air travel tax was not abolished to assist the tourism industry.

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