Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein) | Oireachtas source

This Bill implements budget 2013, which I can only describe as being thoroughly reprehensible. It punished individuals and families on low and middle incomes, cut social welfare, cut health and other essential public services, and has clearly deepened the recession.

Austerity is not working and our economy is stagnant, despite all the public relations efforts of the Government to convince people otherwise. There are some 440,000 people unemployed in this State and emigration is back to the level of the 1950s - well over 1,500 people per week are leaving our shores to find work overseas.

The economic policies of this Fine Gael-Labour Government are virtually indistinguishable from those of their Fianna Fáil and Green Party predecessors. It is quite remarkable that the Government now presents as a triumph its so-called deal that for years to come will continue to saddle the people of Ireland with a massive burden of toxic bank debt, which is not and never has been ours.

The electorate was led to believe before the general election that the two Government parties were for burning bondholders and that it was Labour's way, not Frankfurt's way. When they got into office, however, they simply continued the policies of their predecessors and forced the people to pay for the misdeeds of Fianna Fáil.

Hope was raised again with last year's Eurogroup declaration that banking debt and sovereign debt would have to be separated. However, far from following through on that declaration and standing up for Ireland, the Government, in its recent deal, has turned banking debt into sovereign debt as never before. With the comments of Mario Draghi this week, it appears that there is a major question mark over the deal from the point of view of the European Central Bank. The ECB retains the right to compel the Irish Central Bank to sell bonds swapped for promissory notes when it chooses to do so. By forcing this State to dump its bonds early, the ECB would be forcing us into a situation worse than before this month's deal.

This is yet another reason for the Government to push for implementation of the Eurogroup's decision of last June to separate banking and sovereign debt. I do not believe it is too late to do so. The Government must insist that the Eurogroup's commitment of last June is followed through. If this Government does not make a radical change in its economic strategy, we are condemned to more budgets such as the one reflected in this Finance Bill. Approximately €3.5 billion is being taken out of the economy by budget 2013, mainly from front-line public service cuts and taxes on those who can least afford them.

A range of tax measures under the Bill is aimed at business. We judge each of them on its merits or otherwise, but I want to reiterate the point made by our finance spokesperson, Deputy Pearse Doherty. He contrasted the access given and attention paid to business interests, especially multinationals, with the access given and attention paid to some of the most vulnerable in society who were punished in the budget.

The Minister for Finance, Deputy Noonan, was bare-faced about it when he refused to countenance his Labour partners' proposal to increase the universal social charge for the highest earners. He said he was told by multinational CEOs that they did not like it, so he did not proceed. At least we know who really calls the shots. Little wonder then that there is no question of this Minister introducing in this Bill a third rate of tax for those earning over €100,000 - as we and others have advocated - even though this would bring in an additional €1 million per day, requiring the wealthiest to pay their fair share and thus alleviating the burden already on the shoulders of the weakest.

Instead of a higher top rate of tax and a wealth tax, the Government is imposing the so-called local property tax which is really a family home tax. If the Government believes its so-called deal with the ECB is of such great benefit, then let it scrap this tax. It should be scrapped anyway; it is grossly inequitable and will place a further heavy burden on those who are least able to afford it.

The excise duty relief for hauliers and transport providers is welcome, and I am happy to record so. Relief for hauliers is something that we in Sinn Féin have advocated, including in our jobs plan published towards the end of last year. In the constituency I represent, there is a large number of hauliers, most of them independent small businesses, and they have been badly hit by the recession. Extension and improvement of start-up tax relief is also welcome for small businesses in particular.

The increase in VRT is bad for individual motorists. It is another tax hike on top of so many others. It is also bad for business, especially small rural businesses that rely heavily on road transport. In addition, it is bad for the motor industry itself. Combined with continuing rises in fuel prices, this is clearly a bad move and I urge the Minister to reconsider it.

Those are the comments I would offer on the Finance Bill, despite accepting the validity of some of the measures contained therein, which I have welcomed. Tragically, however, for the greater number of our people the Bill spells further penury and ongoing distress.

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