Pat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I want to focus on the many positive aspects of this Bill. For the first time in many years there is a recognition that SMEs will be crucial in getting the economy going again. The ten point plan includes measures that will make a real difference for the SME sector, such as reforming the three year corporation tax relief for start-up companies, increasing the cash receipts-based threshold for VAT, amending the company surcharge to improve cashflow for SMEs, and assisting foreign earning deductions for work related travel in certain additional countries. These are important measures for our economic recovery. Jobs are what this is all about and the Bill's measures will bring long-term dividends.

The Bill's provisions for the agricultural sector are also beneficial. In the past, agriculture was not highly regarded. When we were concentrating on bricks and mortar, agriculture was looked upon as second class. For the first time in many years, however, agriculture is now seen as the sector that will get the country up and running again.

There are a number of important initiatives in the legislation, including capital gains tax relief, which will enable restructuring. The Bill also extends the general 25% relief for young farmers. It is important to get young farmers back on the land. In Europe, Ireland has one of the lowest percentages of young farmers. We need to increase that number in order to achieve agricultural production targets in line with Food Harvest 2020. Prior to now, there was discrimination in farm partnerships in that they were confined to dairying. However, the beef and sheep sectors have now been included.

I welcome the Bill's provisions on auto diesel which have been extended to hauliers. The haulage industry has been on its knees in recent years, yet it provides an essential service to all sectors in society. The extension of these provisions to bus and travel companies is also welcome, particularly when we are trying to encourage more tourists to come here.

Agricultural contractors have been left out, however, and I would ask the Minister to reconsider the issue. They currently play a key part in agriculture and without them the sector would not be able to exist. Agricultural contractors are finding it very difficult due to the carbon tax that is being levied on them at the moment. The Minister should re-examine the matter and see if some relief can be made available to them.

I also wish to address the property tax element of the Bill. For the last two days, I have listened to the hypocrisy on the Opposition benches, in particular from Fianna Fáil and Sinn Féin. The latter party has no problem with having a property tax up North. They say they are an all-Ireland party, but if so, why not have the same on both sides of the Border? The average house in Northern Ireland pays £1,500 or £1,600 in property tax. We are introducing a property tax down here which is only a fraction of that.

Yesterday, I listened to my constituency colleague, Deputy John McGuinness, saying that it was the wrong tax at the wrong time. Was it the wrong time to introduce the universal social charge two years ago? Was it the wrong time to reduce the minimum wage two years ago? We all know the answer. We have got to be realistic.

Twice in my lifetime the country has been brought to the brink of economic disaster. In 1977, the problem began when the Government of the day did away with domestic rates on houses. That is where our problem began and since then we have been struggling to make up the difference. We must now bring certainty to the equation. Even though it is difficult to introduce any new tax at the moment, the property tax will bring certainty. People will know exactly what they will have to pay and there will be no change until 2016. The property tax will take pressure off commercial rates which represent one of the biggest disincentives to SMEs starting up. In 2015, local authorities will have the opportunity to set their own property tax, which will alleviate pressure on commercial businesses. Hopefully, by then we will be back up and running, as we should be.

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