Dáil debates

Thursday, 7 June 2012

7:00 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)

Does the Minister agree that, despite the recent survey findings, many of the improvements in competitiveness have been cyclical rather than structural? For example, unique among the countries of Europe, Ireland has a major trading relationship with the United Kingdom and the United States. The reduction in the value of the euro against sterling and the dollar has helped to improve Ireland's competitiveness. In so far as structural issues are concerned, being areas within the Government's control, what has the Government done to reduce commercial rates? Regardless of which side of the House one is on, every Deputy knows of cases in which small businesses are being forced out of existence by the requirement to pay commercial rates. It is not sufficient to claim that some local authorities have frozen their rates. Some businesses are struggling. They are on the margins and cannot afford to pay commercial rates. Rates are not a progressive form of taxation, in that one has to pay regardless of whether one is making a profit.

The Government has abandoned all attempts to fulfil its election promise on the issue of upward-only rent reviews. It is not enough to say there is conflicting legal advice, throw one's hands in the air and walk away. Earlier, we were discussing the situation with Atlantic Homecare which is being driven into examinership due to high rents which predate the Government's recent legislation. There appears to be runaway inflation in certain areas, for example health insurance, which are directly under the Government's control. The Minister referred to the Legal Services Regulation Bill which I believe will increase rather than reduce costs. This, however, is not the time to debate that Bill. The Minister will be aware that several years ago, the then Government radically changed the insurance system which drove down costs. Some of these costs, particularly in public liability, are beginning to creep up again. What are the Government's proposals in this regard? Will the Minister confirm the Government has no proposal to increase the element of energy costs that come under its control?

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