Alan Kelly (Tipperary North, Labour) | Oireachtas source

I welcome this opportunity to speak on the Finance Bill 2013. The Bill represents an important step for this country, one that allows us to contemplate a better time even though the country is currently in a difficult position. However, we have hope. We are beginning to build towards periods of stability. I hope in the years ahead that will help us to a great extent but we must face many harsh choices.

Recent years have been tough for Irish businesses of all sizes. They have been tough for consumers and the economy overall. Fixing the country from the previous Government's actions is much more than a sprint - it is a marathon - but growth forecasts for the years ahead are beginning to rise, our borrowing rates are coming down and, to date, we have maintained industrial peace for the most part, thanks to the Croke Park agreement. I take this opportunity to wish those involved in the current negotiations the best with their endeavours. We have removed the term "basket case" from our country, inflicted on us by those across the floor.

We are very proud of the efforts the Government has put into restoring confidence in the country and in restoring our reputation across Europe and elsewhere in the world. This separates us from many of our European colleagues who are in difficult circumstances in European countries and gives confidence to our investment community. This legislation builds on that confidence.

We should remember that when previous Government destroyed this country's economy, they did not destroy it for one or two years. They destroyed it for a whole generation and that cannot be forgotten. We got a new Government but we did not get a new economy despite what previous speakers have said. However, we are making serious progress and by the end of 2013 we are likely to have our third consecutive year of growth. That represents a very solid starting point for recovery and something that could not have been contemplated two years ago.

This Bill is heavily focused on assisting the SME community, the people who will bring us out of the recession. I accept that none of the proposals represents a silver bullet for the economy because there is no such thing. Such a thing is impossible, but the measures are targeted at key places in the economy which will drive growth. They include the three year corporation tax relief for start-up companies, tax measures to improve cashflow, additional tax credits for research and development, extending the employment and investment incentives and venture capital improvements, among others. The focus is very clear: we want to empower our small businesses to go and take on new opportunities. We are trying to reshape our economy, moving away from boom-bust, property dependent cycles to an economy where the best and brightest of Irish people are retained in Ireland making and selling world-class products to the rest of the world for a profit which is ultimately to be reinvested in Ireland Inc.

We must remember that we are an open economy that needs to allow our businesses to think on their feet and explore global opportunities as they arise. New companies need breathing space and access to credit. The corporation tax relief will give them this and it should make life somewhat easier for entrepreneurs when it comes to accessing credit.

The extension of the employment incentives allow for generous incentives specifically for businesses which are taking people off the dole and can be used in the vital services, particularly in the tourism sector. One way of getting money into this economy is through tourism. I know a great deal about tourism, having worked for Bord Fáilte and its successor, Fáilte Ireland, for a number of years, and the retention of the 9% VAT rate for this sector is hugely welcome and supported.

The research and development incentives will allow us to keep up with the world economy. We are still behind in terms of the registering of patents and generating PhDs, but we are catching up. We are developing an entrepreneurial community that is willing to create a true smart economy. We need to focus in on certain areas, including IT, clean tech, pharmaceuticals, medical devices and specialised food.

To mention one area under my remit, public transport, the extension of the fuel duty rebate to the transport sector will be applied to passenger transport, and this is very welcome. It is a very difficult time for transport operators in this country but this will ease some pressure on the many small operators throughout the country. It is a struggling sector but is a vital part of our infrastructure, our tourism sector and of the social fabric of communities across the country.

Among our other problems is that of personal and business debt that is contributing to a lack of confidence and suppression of demand. Many SMEs are focused solely on survival. Even the ones that are making money will be more likely to use that funding to pay down debt rather than maximising their profits or reinvesting in their business. This will change as we improve the business environment, which this Bill directly addresses.

The theme is very clear. We will not solve our country's economic problems with one Bill like this or even ten Bills. What we are making clear is that, as a Government, we want a vibrant, thriving small business sector to lead a new Irish economy. This Bill, together with many other reforms the Government has carried out, will help us deal with this debt and unemployment crisis, and we can look forward after three years of growth to a better three years of growth ahead. I do not subscribe to the doom and gloom merchants in the Opposition who want to monopolise misery for themselves as if they are the only ones who care.

Private sector employment is up and we want it to grow more and public servants are continuing to foster the country towards recovery. As a country we remain hungry for business and investment. The deal on the promissory note puts us in a much healthier space. Interest on our bonds is down and we are able to borrow money as a country, something the previous Government robbed from us, but it is something this Government is getting back and this Bill will assist us in bringing us forward.

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