Tom Fleming (Kerry South, Independent) | Oireachtas source

This budget is a mixture of polarised extremes, further austerity for the lower and middle classes, the elderly, the disabled and young jobseekers, in contrast to the positive measures such as the retention of the 9% VAT rate for the hospitality sector, which is welcome. Hotels, restaurants and allied services will receive enormous benefit from the retention of that rate, which will allow the upsurge in the sector continue. So far, the measure has had a positive impact on many struggling small businesses and ensured their viability, with a spin-off for other businesses in local towns. This aids the recovery of communities and offers our talented young people an alternative to emigration.

On the downside of this good news is the ten cent increase in duty on beer and spirits. This is a devastating blow for the licensed vintners and will undo much of the good achieved through the 9% VAT rate. We are all aware that the public house trade is on its knees. This is exemplified by the closure weekly of several small businesses which up to now have provided a viable livelihood for families and other workers involved in the pub trade during the years. The traditional Irish pub was identified as a major asset for the country in a survey carried out by The Lonely Planet, a publication recognised worldwide. Tourists visiting Ireland seek the genuine article, but this hike in prices will add to the demise of such pubs. It will also turn off the many loyal customers who have kept these businesses afloat and viable during the years.

The abolition of the air travel tax is a positive move. Mr. Michael O'Leary of Ryanair has stated it will lead to 1 million extra passengers being brought to the country in the next 12 months. The initiative will also help regional airports. I am sure Kerry regional airport will benefit from this measure, as well as from the retention of the 9% VAT rate.

I welcome the provision of €8 million for the development of the Wild Atlantic Way on the western seaboard. It is a good move by the Minister for Finance and the Minister for Transport, Tourism and Sport to promote it, as this area is probably one of the most panoramic and picturesque in the world. It is important that we maximise the potential of the terrain and countryside along the western seaboard and the development of the Wild Atlantic Way will bring significant benefit to the public and communities located along the route. We must promote it to the best of our ability in the coming years as it will add significantly to our tourism product.

The budget proposes a 13.5% tax rebate for home renovation works.

This is most welcome to the householder and the construction industry. There was a great opportunity to introduce this immediately to kick-start the building trade coming into the winter season when there is normally a lull. I encourage the Government to review this and consider introducing it immediately. Many skilled people are dependent on the building industry and this would give them an opportunity. As it would also take people off social welfare it would be a win-win situation.

The reduction of social welfare for the younger generation will certainly accelerate the flight of this category of people which we have seen in recent times. They are our greatest resource and a major factor in our efforts to reinvigorate the economy of the country. There is certainly huge negativity attached to these people at present and they are just about coping. I know from anecdotal evidence and listening to these people on the ground they pursue jobs on a daily basis. They call to firms with their CVs to try to promote their opportunities. They are trying to achieve something which will keep them more or less viable over the coming years until they move on to something better, but in many cases they do not even receive an acknowledgement of their applications. This is very demoralising for these people, many of whom are well educated and qualified. Perhaps it will help them if they can live at home, but many of them must find other accommodation, and many of them have family responsibilities. Some of these people have told me they are caught in a trap and cannot save enough money to get out of the country. I call on the Government to examine and review the measures introduced in the budget. Very good incentives exist to go on courses and upskill, but it is not the answer because these people are looking at a cul-de-sac and see no future or light at the end of the tunnel except to get out and see what is available in Australia, Canada, England, the United States and elsewhere. The reductions in social welfare will have a huge detrimental effect on this category of people.

It was stated probity will save €113 million with regard to medical cards. No matter what name we use it will certainly affect access to medical cards. This will be a minefield for people with existing medical cards and those who will make future applications. Very worthy people are at the end of their tether trying to retain medical cards, including people with various disabilities and long-term illnesses. I ask for restraint and that we take cognisance of the hardship and show compassion to this particular sector of society. The surcharge of €2.50 will mean extreme hardship for many people. We are well aware of the fact they are on their knees.

I welcome the retention by the Minister for Education and Skills of the pupil-teacher ratio.

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