Noel Harrington (Cork South West, Fine Gael) | Oireachtas source

I am grateful for the opportunity to speak on the Finance Bill 2013. It is obviously not a pleasant experience to introduce property taxes and so forth but we must concentrate on the positive measures in the Bill. The SME sector has been spoken about a lot in this Chamber today and it will benefit from the Bill.

We must take corrective measures because this Government inherited a country that was practically bankrupt. The behaviour of the previous Government was reckless. The ship of State was adrift and the officers were in the mess rather than the wheelhouse. They were not in the bridge and we had a problem. I do not know of any Deputy who likes imposing these cutbacks or who does so lightly but we do not have an option. According to the estimates for 2012, we spent approximately €55 billion but only took in €38 billion. We are overspending by almost €4,000 for every person, which is an extraordinary figure that must be addressed. When my party leader became Taoiseach there were many issues to be addressed but because of the totally dysfunctional state of the country and the economy, it was almost impossible to do so.

This Bill contains many incentives to encourage job creation and economic growth, particularly in the SME sector. I also welcome the support for the agricultural sector, particularly the capital gains tax reliefs to encourage farm restructuring. The capital gains tax restructuring relief and young farmer's stamp duty relief until 2015 have been described by the ICMSA as "pragmatic". The ICMSA recognises the benefits of this Bill and welcomes it.

I also welcome the sections of the Bill relating to real estate investment trusts. It is quite extraordinary that in the time of the greatest building boom this country has ever known, the setting up of companies to develop was discouraged. It was necessary to set up syndicates, conglomerates or associations and the sector was out of control. In the United States, where similar provisions were introduced in the 1960s, there was a measured, structured approach to construction. It may not be popular to say this but we need a thriving construction sector in this country. However, we need it to be carefully regulated and sustainable. We need a construction industry that will provide employment for those men and women who do not have the skills to seek employment elsewhere. The construction industry needs nurturing, as does the retail industry and this Finance Bill will go some way towards encouraging those sectors.

I have heard it suggested that Government Deputies live in a bubble and are out of touch but I know plenty of Deputies and Senators - I am one of them - who run small businesses. I employ four staff and I know that the SMEs in this country, generally speaking, want to be left alone. They want to develop their own businesses, have access to credit and when they have an idea for expansion, they want to be able to do it without any outside interference. They want to deal with the financial institutions fairly and they want a chance to pay back any loans they get. They do not want red tape and the Government is doing a lot to remove it.

Many references have been made to rates. I pay business rates and I know that a 5% or 10% reduction would not make or break my business. However, it would be a significant torpedo to the local authorities in terms of their finances and a bonanza for the larger multinational companies who pay between €100,000 to €1 million in rates. They would be absolutely thrilled to get a reduction in rates that they have never sought. The businesses who are screaming about an increase in rates closing them down would find a drop in rates would result in an insignificant reduction in their overall bills. Rates never closed a business. It is always a combination of issues that closes a business. Regrettably, we see such closures every day. Indeed, I saw one such closure in Skibbereen at the weekend and I have also seen another in Bantry recently. Those business people need to be encouraged to get back into the market, to get back into an entrepreneurial spirit and they need credit. They know what they are about. They have employed staff and know what their markets are, and they want to be left alone to carry on their work.

Rates and the property tax have been referred to on numerous occasions today. The decision taken by the Fianna Fáil Government in 1977 to abolish rates has critically damaged local government for the past 30 years. The introduction of a new property tax has been described as punitive and grossly unfair. While it is not a pleasant measure to have to introduce, it is a sustainable charge that must be introduced to support local government. It is worth noting that in 1977 when rate collectors were calling to every household in the country, the rate at the time was around 55 old Irish pounds. It was the equivalent of a month's income. It was the greatest and toughest bill for any household to pay. Many people could only pay in instalments and the rate collectors had to keep calling back to get the money. Very few people were able to pay it all in one go in the first month of the year. That puts the new property tax in context. For many people, the new property tax will amount to €90 per year and the majority of people in my county will be paying somewhere in the region of €220 per annum. Those payments will support local government and will take some of the burden off businesses like my own which have, for the last 20 years, funded local government to the tune of 30% to 40%. What do businesses get for that? We must get real in this country about who pays for what services.

I also welcome the extension of the fuel rebate to bus and coach tour companies. The rebate will not only add to their bank balance but will also add to the confidence of those operators who are trying to formulate their business plans for 2013 and beyond. The tourism industry, while challenging, is growing and these companies want to tap into that. They need the assurance from Government that it will support them in their plans. That measure is very welcome.

I also welcome the changes announced recently to the property tax for those hard-pressed owners of pyrite-affected properties. They are in an awful situation and I am glad that the Government has acknowledged that. An exemption from the property tax will not solve their problems but it at least acknowledges the situation they are in. I also welcome the exemptions for properties owned by charities or occupied by those who are permanently incapacitated.

Between 1997 and 2007, money was spent by Government on countless mismanaged, wasted, white-elephant ego-trips. The waste and Government mismanagement at that time cost this State €10 million per annum per Deputy on that side of the House. It is an extraordinary figure. This Government has business as it focus. It is jobs oriented because that is how this country will get back on its feet - one job at a time, one SME at a time, one county at a time. That is how it will happen. The ship of State is still in treacherous waters. However, the officers are no longer in the mess but are in the bridge.

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