John Paul Phelan (Carlow-Kilkenny, Fine Gael)

I am glad to have the opportunity to say a few words on the Finance Bill and welcome its introduction. There are many provisions in the Bill which I strongly support. I listened to much of the debate yesterday evening, with many contributors from the Government and the Opposition. Many in the Opposition who spoke late last night condemned it out of hand and universally failed to point out that one of the key provisions of the budget and this Finance Bill is the removal of the universal social charge from incomes under €10,036, which is a significant positive move by the Government to ensure that those on the lowest incomes are not caught by the universal social charge as it was introduced by the previous Government. I applaud the Minister for that.

There have been some difficulties in implementing the changes to the mortgage interest relief regime, which I support. It was important for the Government to include measures in the budget and the Finance Bill to try to help those who are most exposed to the difficulties in the economy. In this instance, the Government is offering increased mortgage interest relief to those who bought property at the top of the market. That is to be welcomed. We have to ensure the system is able to cope with the implementation of the changes that were announced on budget day.

I echo Deputy Harrington's comments about the changes being made to certain matters relating to property, specifically farm transfers and farm partnerships. Although the overall cost of these measures will be relatively small, they have the potential to have a significant beneficial impact on the agriculture sector, which has done better in recent years than in previous years. There is more confidence in the sector at this time. More young people are considering a future in farming. We need them to get involved. Any small incentives that promote the transfer of land between generations and the development of farm partnerships across the country are to be welcomed. I commend the Minister, Deputy Noonan, for what he announced in the budget in that regard and is enacting in the legislation before the House.

I would like to welcome another initiative that was announced by the Minister on budget day. I refer to the introduction of a foreign earnings deduction that will apply when individuals do business in any of the BRICS countries, which are Brazil, Russia, India, China and South Africa. Any promotion of business links between Ireland and the economies in question, which are among the strongest in the world at present, is to be welcomed. I ask the Minister to consider extending the operation of this initiative to the CIVET countries - Colombia, Indonesia, Vietnam, Egypt and Turkey - in next year's budget. The countries in question, which are just below the rank of the BRICS countries, have reasonably sophisticated financial systems, controlled inflation and a soaring young population. I suppose they are primed to do very well economically in the next few years. If the initiative that is being put in place with regard to the BRICS countries is successful, I do not see any reason it could not be extended over time to assist businesses that operate between Ireland and the tier of countries I have mentioned. When the Minister is reviewing the success of the BRICS initiative, perhaps he will examine the possibility of extending it to the CIVET countries at some future stage.

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