Seán Conlan (Cavan-Monaghan, Fine Gael) | Oireachtas source

The Finance Bill is a very welcome development as it seeks to address in a meaningful way the difficulties being experienced by many small and medium enterprises throughout the country. Small and medium enterprises are the single most important sector in our economy and benefit every town, village and parish by creating employment and providing services in parts of Ireland where multinationals are notable only by their absence. The protection of the sector at this period, through a restructuring programme and the provision of measures capable of addressing its rising problems and needs, is the responsibility of the Government and I am delighted to see the response of the Minister for Finance in this area.

The constituency I represent depends totally on the small and medium enterprise sector for employment due to the reluctance of the IDA to engage with areas of lower population. The small and medium enterprise sector in Cavan and Monaghan is one of the most vibrant and progressive in the country. For this reason I welcome the ten point tax reform plan aimed at supporting this sector.

The agricultural sector has again come to the aid of our struggling economy. For so long that sector was the shrinking violet of a past age, and farmers found it difficult to interest their children in taking over farms. Thankfully, however, there has been an enormous change in this area and we are now seeing a new generation stepping into the breach. It is encouraging to see the Minister bringing forward packages in the Bill to smooth the transition and encourage modernisation. The introduction of a modern way of farming to this sector has had enormous potential for a country with a reputation for quality produce at a time when the world's focus is targeted on the procurement of quality food.

Unemployment is undoubtedly a major factor in today’s society and no more so than in my constituency of Cavan-Monaghan. It is a major issue for the Government to deal with. In this regard, the package of measures contained in the Bill designed to support small and medium businesses could not be more welcome.

I welcome the decision by the Minister, Deputy Noonan, to extend the employment and investment incentive and the seed capital scheme for a further seven years. The benefits of these schemes can be seen throughout Ireland and in particular in counties like Cavan and Monaghan. I hope that other small and medium enterprises will be encouraged to take up this funding while it is available.

It should also be noted that the Minister has extended the employment and investment scheme to the hotel sector. It is to be hoped this will motivate the owners of hotels and other guest accommodation to secure funding to carry out necessary repair and maintenance work on their properties.

The tourism industry is vital to the economy and currently provides 190,000 jobs or 11% of total employment in the country. The Cavan-Monaghan area has benefited from a large number of tourists coming to the area over the past couple of years to partake in numerous festivals. I anticipate that when we welcome back our returning emigrants for The Gathering, they will find reasonably priced accommodation in an excellent state of repair. This is most important for marketing the country.

The provisions of section 19 are to be applauded. The extension of stock relief until the end of 2015 will greatly benefit the farming community and especially those in my own constituency of Cavan-Monaghan. The inclusion of beef and sheep partnerships will benefit a number of farmers who had unnecessarily lost out on this relief. This also reaffirms and incentivises the benefits of education to young farmers and may encourage them to seek out grants which would enable them to pursue further education. Young farmers need to be encouraged to remain in Ireland to help secure the future of the farming sector which is an integral part of our economy. Any financial assistance extended to young farmers is money well spent.

Section 46 is also important to the farming community and deals with restructuring capital gains tax. Tax relief will now be available to farmers where the proceeds of a sale of farmland are reinvested for restructuring purposes. Exchanges of farmland are also to be included. Of course, all such sales and exchanges will be certified by Teagasc which will confirm that such transactions were made for the purposes of farm restructuring.

This provision should also assist those involved in the thriving agrifood sector who will now have an opportunity to consolidate and implement more efficient farming systems. It is vital that farmers are made aware that the scheme is only scheduled to run until 2015, so that any plans may be considered in the near future.

Sections 48 and 49 provide for repayments for auto diesel used in the course of business by qualifying road haulage and bus operators. I am pleased to see that the Minister for Finance has extended this relief to bus operators and it is to be hoped this provision will alleviate some of the pressures associated with running businesses dependent on auto diesel. This sector has suffered greatly as a result of the cost of auto diesel, which is their main input. I hope the relief may incentivise bus operators to provide new routes and in particular to provide more services to rural communities, particularly in counties Cavan and Monaghan. We hope to welcome a large number of tourists to our country in 2013 as part of The Gathering. It would be a great improvement if bus transport was in plentiful supply.

I reiterate my approval of the Bill and, in particular, my appreciation of the provisions specifically dealing with SMEs, the farming community, hauliers and coach operators. These matters have long required attention but were ignored by previous governments. Job creation and retention in small and medium businesses, the tourism sector and the farming community have been bolstered by the actions of this Government. This Bill is a vital component in those continuing efforts.

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