Patrick O'Donovan (Limerick, Fine Gael) | Oireachtas source

I welcome this opportunity to contribute to this debate. This Bill, the third Finance Bill of this Government, is being taken in the context of there being 400,000 people unemployed, more than 80,000 people a year leaving the country and a massive level of national and personal debt. The Government made some strides last week in regard to the promissory note but I caution people who already clocking up ways to spend those savings. It is important to bear in mind that the money that potentially will be saved from the promissory is not new money but money we will not have to borrow. It took 14 years to wreck the country and I would caution against anybody suggesting that three years into recovery we would go down a route of wreckage - again led by the people opposite. I welcome the remarks of the Governor of the Central Bank in the media recently where he said that he was turning his attention to those banks that are dealing with personal mortgages. This is hugely important. Allied Irish Banks made an announcement last week on how it hopes to target relief for people in distress and that matter was raised earlier in the House. Any rumours or suggestions that the bank would be targeting relief while at the same time putting up interest rates is something of which the Government must be mindful and cautious.

The Bill has some good aspects, particularly the research and development tax credit, which the Minister of State will welcome. The requirement that a person would have to spend 75% of their time in research and development was an unrealistically high level and that proportion of time has now been reduced to 50%. That is very important for people in the SME sector. There may be opportunities to reduce that further, especially for people under a certain threshold, in provisions in future finance Bills.

If one passes through any town in the country one will find some element of tourism infrastructure, be it hotels or guesthouses. The extension of the incentives to cover investments in this sector will help sustain jobs and will add employment on top of what the Government has already done, which is very welcome, namely, the allocation of a 7.5 cent per litre rebate for bus operators. The rural constituency I represent is hugely dependent on rural transport, be it for social or educational purposes, and this provision is extremely important because of the cost of fuels. That measure is on top of the announcement that was made in the budget by the Minister for Finance in regard to hauliers. It is an acknowledgement of the fact that this country is greatly reliant on road transport and the commitment to the sustainability of it into the future against the backdrop of fuel costs must be welcomed.

I previously asked in the House that the application of VAT to facilities in the tourism sector that also have an educational remit, and this comes under the Minister of State's Department, be examined. If one has a pet farm or a centre to which school tours are brought, this is a small measure that should be introduced. I know that the reference to this in last year's Finance Bill was as a result of the European Commission requesting Ireland to examine this area. Given that some of these facilities have an educational remit, there may be an opportunity to review the application of VAT to them and the rate being charged.

Changes in regard to vehicle licences were announced in the budget with the introduction of a 131 registration plate for this year to try to stimulate the new car market. Those in the second hand car market would say that a simple provision of allowing cars to re-registered, which I have raised in the House previously, could stimulate its market. For example, if the Minister of State, Deputy Sherlock, was to buy a second hand car in Limerick rather than having a LK registration plate, he would have the opportunity if he wished to do on a voluntary basis-----

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