Ann Phelan (Carlow-Kilkenny, Labour)

I would like to remind the Deputies on the far side of the House that Mark Twain, a very wise man, said that there are only two certainties in life, death and taxes.

Great strides have been made in recent years to combat the once rampant black economy in Ireland. Likewise, the Minister for Social Protection, Deputy Joan Burton has made great progress in recent months to combat social welfare fraud. When one studies the established practice of hiding black market cash in foreign bank accounts in the past, one wonders how this small island ever survived. I am pleased that in spite of the huge challenges inherited by the Government, these challenges are being met head-on with fairness. It is interesting that as soon as Revenue closes off one tax avoidance or evasion loophole, some genius comes up with an alternative. Agency locums, phony self-employed status and abuses of company law are replacing expert cash exporters. Under-reporting or non-reporting of income will always be with us.

Tax collection will always be unpopular, but most people accept that if everybody pays fairly and according to their means, their contribution to the common good is worthwhile. Nobody likes paying taxes, but like social protection, taxes are a noble and humane concept of supporting those who, through no fault of their own, must rely on the generosity of their fellow human beings when they fall through the net of hope. For that reason, I agree with ISME that the shadow economy now costs the State €5 billion in lost taxes. Moreover, with tax-compliant firms being undercut by rogue operators, ISME says hundreds of legitimate businesses are under threat.

As one who campaigned in the last general election on the three platforms of jobs, reform and fairness as a priority, it is fitting that I should show my support for this Government's initial effort to put those noble aspirations into practice.

The programme for Government aims, as expressed in the budget of the Minister for Finance, Deputy Noonan, are a commendable first attempt to correct the shameful misuse of governing power over the past decade. In this time of public demands for instant answers, fuelled by simplistic pundit demands in the media and elsewhere, the Irish economic vessel has sometimes resembled a battleship. I agree with the Minister's comments that "this Finance Bill is a further step towards economic recovery and regaining our fiscal autonomy".

The primary purpose of the 2012 budget is to support the creation of jobs in the short, medium and long term while reducing the deficit to support a sustainable economy. The Government has already restored the minimum wage but not increased taxes for working people. It has reduced the VAT rate applied in the tourist sector, ring-fenced €20 million for long-term unemployed initiatives, maintained core social welfare, including pensions and jobseekers' allowances, and kept family income supplement, carers' and disability entitlements. Key decisions were made in the reform area, such as reducing the pay of the Taoiseach and Ministers, changing pay and conditions for senior civil and public servants and tackling the thorny issue of reforming the public service.

With regard to fairness, the recovery burden must be shared equally, which is why I welcome the maintenance of current social welfare payments and having the biggest budget spend on health, education and social protection. I am also glad that 330,000 people have been relieved of paying the universal social charge, which puts social solidarity at the forefront of the budget process.

Personally, I am delighted the Government is to tackle the murky business of fuel laundering. I am delighted that the Revenue Commissioners will be given more robust powers to combat attacks on the livelihoods of those threatened by unfair competition. I note from the list of Finance Bill measures that a comprehensive strategy will now be applied by the Revenue Commissioners to the subversive element who operate illegally here and in Northern Ireland. Their activities have not only ended legitimate family businesses but have also threatened water tables and public health while compromising the environment and endangering the food chain, agriculture and other industries. I strongly commend the Finance Bill 2012 to the House.

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