Tony McLoughlin (Sligo-North Leitrim, Fine Gael) | Oireachtas source

In the short time available to me I propose to comment on a number of significant proposals in the Finance Bill, as set out by the Minister for Finance, Deputy Noonan. These measures will create opportunities, particularly in the tourism sector. The inclusion of hotels, guesthouses and self-catering accommodation under the employment and investment incentive scheme is one such example. The Bill provides for an extension of the scheme until the end of 2020 and as part of this extension, hotels, guesthouses and self-catering accommodation will be allowed to qualify on a temporary basis where they meet the conditions of the incentive. This will cover investments in this sector, help sustain current jobs and potentially create additional employment.

Recent budgets have introduced sharp increases in the overall tax burden. It is vital that we maintain a tax system which encourages investment. Targeted measures which support construction are welcome and provide, in a small way, a stimulus for the domestic economy. The higher VAT threshold, which will increase from €1 million to €1.25 million, will give companies with a small turnover more time to pay VAT bills. This measure will improve cashflow for many smaller businesses.

Like many of my colleagues, I warmly welcome the return of a fuel excise rebate. This is a welcome measure for hauliers and bus and coach operators, all of whom have been badly hit by the high cost of diesel. It will also support job creation and growth by reducing the cost of moving goods and give a further stimulus to tourism in the year of The Gathering. I am pleased to note the rebate of 7.5 cent will only be available to properly licensed and tax compliant operators. This requirement will help to prevent legitimate operators from being undercut by non-compliant operators. Currently, bus and coach operators cannot reclaim VAT on fuel, which creates major difficulties for them and impacts on their profitability.

While the Minister had few options available to him in framing the Bill given the current budgetary position, he has introduced some welcome initiatives with regard to small and medium sized businesses and certain property tax incentives.

I urge the Minister to examine options to encourage greater investment in the economy in the Finance Bill 2014 through tax reliefs that will direct investment towards areas where it is needed. We must avoid the previous approach where tax incentives drove a false economy and contributed to the boom and bust disaster in the property sector. As with incentives introduced in the mid-1990s and driven by the rainbow Government, any new initiatives must have advantages for taxpayers and investors and act as a stimulus in sectors that require a stimulus. I look forward to some imaginative proposals in the 2014 budget when the budgetary position will, I hope, be better.

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