Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

I want to use this opportunity to raise a number of key issues this country must consider. This year's budget will be tough, but despite the measures we must take, the deficit will remain 7.5% of GDP in 2013. This is well above what we can afford to borrow on a continuous basis. Unemployment remains far too high, at almost 15% and we are continuously working to implement measures to reduce it. The hard reality faced by many people I represent who worked most of their lives in the construction industry is that their jobs are not returning. Therefore, we must invest in retraining, reskilling and innovation.

Unfortunately, Deputy Adams has left the House. He mentioned many programmes, but he failed to mention the €2.5 billion stimulus package being invested in infrastructure and projects we need. He should have mentioned this. This programme will help some of the unemployed in the construction industry, but we need to do more. We need to examine and concentrate on how we can develop jobs for young people. The recent NESC report on climate policy identified retrofitting as a key measure to help us meet our emission target of a 20% reduction by 2020 from that of 1990. We can meet this target by making our buildings more efficient.

We need a large nationwide programme urgently for the retrofitting of insulation and upgrading of housing stock. Investment in retrofitting pays for itself through reduced energy costs, makes us less dependent on fossil fuels, reduces imports and is a good investment overall. The save-as-you-go is a good programme, but it will not deliver the reductions we need. We should consider a retail bond or public private partnerships to fund a programme, using long-term savings on energy costs to refund the money invested, whether from domestic savers, pension funds or companies. A huge stock of public buildings is in need of retrofitting in every corner of Ireland, schools, Garda stations, libraries, public offices, social housing, hospitals and care centres. Getting a retrofitting programme under way would provide work for many people.

Funding is key to this. I believe there is a digital dividend of over €200 million to be gained from the sale of spectrum frequencies freed up due to the end of the analogue television signal. That money could be ploughed back into the development of next generation broadband infrastructure. We also need to ensure that taxation measures we implement are fair and that all sections of the economy contribute to our recovery. The recent stories of extensive oil and gas finds off the Irish coast are good news, but perhaps we should consider a 10% levy on profits.

As the Minister for Finance is in the House, I would fail in my obligations if I did not raise the issue of the financial transaction tax. Some ten EU countries are going ahead with the measure to enhance co-operation. We should consider supporting this as we need some return following the havoc the financial markets have wreaked on Ireland. I believe we could raise up to €500 million in this area alone. Stamp duty on financial transactions raises some money from shares and bond sales, but more transactions are exempt from stamp duty than must pay it. Financial transactions are also VAT exempt and the taxation burden on them currently is low or non-existent. All sectors should make a contribution. I believe ESRI studies on this area are flawed. I also believe the example cited of what happened in Sweden is flawed, because it was just one country standing and acting alone. I believe it is possible we could introduce a financial transaction tax without affecting employment. However, we must be careful in choosing a mechanism for such a tax so as to ensure we do not lose the 15,000 jobs in the sector.

I would like to touch briefly on the issue of reducing pension reliefs. The Minister could raise up to €470 million by removing pension relief from high earners and this must be considered in the upcoming budget.

What the Minister, the Tánaiste and Taoiseach have done in negotiation on the separation of the legacy banking debt must be commended. I urge the Minister to continue negotiating hard for the country. However, we should also put out the message that if we cannot make a deal with the ECB or with our colleagues in Europe, we do not rule out reneging on the promissory notes.

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