Áine Collins (Cork North West, Fine Gael) | Oireachtas source

The Finance Bill 2013 puts into law the provisions outlined in the budget. Much of the Bill merely imposes what the Dáil has already agreed to on a temporary basis, such as the fuel rebate. The Minister has announced some new measures, but the general thrust of the Bill reflects announcements that had been made at pre-budget and budget stage last year.

This is the second Finance Bill to be introduced by the Minister. The bulk of the changes and the continued difficult, harsh and unpalatable measures which we have to implement on our people are dictated by the agreement entered into by Fianna Fáil with the troika as a result of Fianna Fáil's poor management of the economy.

Deputy Fleming seems to be very concerned about maternity benefit. Under Fianna Fáil, there was a time when full-time employees of the State were entitled to tax-free maternity benefit on top of their salary. That changed three years ago and now we are introducing measures to make maternity benefit taxable. Those who are solely in receipt of maternity benefit will not pay tax because they will have a tax credit. This will only affect women who are in receipt of other income while receiving maternity benefit. That might help Deputy Fleming to understand that the system is fair.

Also, Deputy Fleming is very concerned about the household tax so I would like to remind him this was another Fianna Fáil measure. It was Fianna Fáil that got rid of the rates in 1977 that we now have to replace - as agreed by Fianna Fáil with the troika. I know the party has a slogan "wrong tax, wrong time" but we must deal with the issues as they were agreed. It has now become apparent that while the Minister was preparing the budget he was also in deep negotiations with his colleagues in Europe to renegotiate the promissory note, which was another fine example of poor management by Fianna Fáil.

The measures implemented by this Finance Bill are another step in the right direction towards restoring our economic sovereignty. The primary objective of this government is to restore this country's independence. To achieve this we must reduce the running costs of this country. We have successfully negotiated a successful deal on the promissory note. We now have to stay on the same road and renegotiate other banking debt agreed to by the previous Government and, most importantly, personal debt which is sucking the lifeblood out of our people.

I am glad to say that 85% of the heavy lifting is now done. We have also been able to keep our commitment in the programme for Government that we would protect two fundamental principles - core social welfare payments to assist those people and families who have unfortunately lost their jobs through no fault of their own and no increase in income taxes so that we can reward work and effort and people can plan knowing that their net pay will not be reduced through tax increases.

I have stated on many occasions in this House that the only way to recover is to create new jobs. In order to achieve that, we must help existing businesses to grow and encourage people to set up new business. Fine Gael is committed to this approach and judging from the reaction to the budget and the Finance Bill, this is being recognised by business people. From the feedback I have received in my constituency of Cork North-West, this was very much evident in a recent conference on building the blocks of success that we held with the Charleville Chamber of Commerce. In Cork, the president of the chamber of commerce, Mr. John Mullins, while acknowledging the ongoing challenges facing the Government, accepted that tough decisions regarding our expenditure were unavoidable. Mr. Mullins expressed the view that the overall impact was positive from a job creation point of view and acknowledged the focus the Government has placed on the vital role of SMEs. The reinforcement of its commitment to the 12.5% corporation tax and the absence of any increase in employers' PRSI were most welcome. There was a particular welcome also from employers, who, ultimately, are the ones who take the risks and create the jobs, that the transfer of sick pay costs to employers did not materialise. Likewise, the business associations across the board welcomed the Government's efforts to recognise the potential of small businesses. It must be stated that 70% of employment comes from small businesses.

The budget introduced sufficient stimulus measures that will assist employers in maintaining or increasing employment by remaining competitive. I was personally pleased that our representation to the Minister for Finance for the implementation of an essential user rebate for the tax compliant licensed road haulage operators has been accepted. This is the first time the country has ever recognised the significant work of the haulage sector. As we are an island nation and exports are our lifeline, a viable, stable and effective transport sector is essential. Not only does it benefit our export sector, but it reduces costs to Irish consumer because of the lower costs on transportation. I am also convinced that this will benefit the Exchequer as the transport companies will now buy their fuel at home and pay Irish excise duties. No doubt they will also create new jobs.

The expansion of this fuel rebate to the coach sector is also most welcome. The initiatives the Government has already taken in the area of tourism have substantially increased jobs in this sector and the fuel rebate for coach businesses will help provide an added boost. In fact, 6,000 new jobs were created in this sector last year.

Every politician and every Member of this House would wish that the less well-off in society would not have to share in this pain. Politicians, by their nature, want to announce good news to people but it was this type of attitude by previous Governments that got us into so much trouble in the first place. We must make the right decisions now to protect the future of our economy for both our children and our grandchildren. As I stated, 85% of the heavy lifting is now done. We can now begin to see a brighter horizon. I commend this Bill to the House.

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