Nicky McFadden (Longford-Westmeath, Fine Gael)

I welcome the opportunity to speak on the Finance Bill this evening. The publication of this Bill signals a positive outlook for the future. The Bill gives effect to the targeted measures announced in this year's budget. These measures are focused on improving Ireland's economy, creating a strong environment for jobs and ensuring fairness while at the same raising revenue for the State.

There are indicators that the economic outlook is improving. GDP has increased by 0.7% in the first three quarters of last year; the IDA reported a record number of new investments won last year, with exports increasing by almost 4.5% in the first nine months of 2011; and food and drink exports increased by 25% in 2011.

The budget introduced more than €1 billion in new tax measures. These tax measures will reduce the deficit to under 8.6%, in line with the programme commitments. There are no changes to income tax credits, rates and bands; take home pay will not be affected.

Maintaining a functioning property market is hugely important, not only in terms of the overall economy, but also for the well-being and stability of homeowners. One particular measure I greatly welcome, and which I am sure will also be welcomed by many young families in my constituency of Longford-Westmeath, is the increase in mortgage interest relief to 30% for first-time buyers who purchased their homes between 2004 and 2008. Negative equity has been a cause of serious worry and financial difficulty to households across the country and this Bill delivers on the Government's commitment to assist those in negative equity. First-time buyers who bought in 2008 will also be entitled to mortgage interest relief, even if they did not start paying interest on their loan until 2009.

Another positive action in this Bill is the increase in the universal social charge exemption threshold from €4,004 to €10,036. This change will benefit 330,000 workers across the country. A universal social charge property relief surcharge of 5% will apply to property investors where their income is over €100,000. These changes to the universal social charge and mortgage interest relief will help reduce the financial burden felt by many people and assist in creating a more comfortable future for homeowners and lower paid workers.

The Government's biggest challenge is creating jobs and improving the economy.

This Bill includes supports for small businesses, which are the backbone of the economy. The export sector is an integral part of the recovery process.

I have heard many stories from constituents who have applied for business loans but who were continually unsuccessful. The major problem is that banks are not providing credit, even to legitimate business.

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