Terence Flanagan (Dublin North East, Independent) | Oireachtas source

I welcome the retention of the 9% VAT rate, which helps the labour-intensive tourism and hospitality sectors. The reduction of the VAT rate from 13.5% to 9% has created more than 15,000 jobs, and any extension is important from a tourism point of view in my constituency, where areas such as Howth and Clontarf are tourism-oriented. It has helped employment in the restaurant and hotel industries. The reduction in the air travel tax is one aspect of an incentive for airlines to bring more people to Ireland. It is crucial that the Minister for Transport, Tourism and Sport achieves increased tourism targets.

In respect of education measures, I welcome the fact that there has been no increase in pupil-teacher ratios and that education remains as is. It is welcome news, particularly to the parents of children in my constituency, Dublin Bay North. There was concern about pressure on the pupil-teacher ratio, which would have had an adverse effect on pupils, giving teachers less time to deal with them and less help in dealing with issues such as bullying. The fact that there are no further increases in charges for fee-paying schools is very good news. There was an intensive campaign to the effect that parents are already paying plenty and that, with insurance costs, lighting, heating and maintenance costs in various schools, any threat to cut funding would have resulted in a loss of teaching jobs. This would be detrimental.

I am concerned that the pensions levy, which was supposed to be temporary, has become a permanent pensions levy. Last December, the Minister went out of his way to say the pensions levy, announced as part of the jobs initiative, would not be renewed after 2014. This was important for certainty in the pension industry, but it is no longer the case. There has been an extension of the pensions levy, with an increase to 0.75% of the pension fund next year. From 2015 on, the increase will amount to 0.15% per annum. This will have an adverse effect on people's retirements and on encouraging people to save and partake in pension provision. It was foreseen that the cost would be spread over the public and private sectors, not just the private sector, but that has not happened. The Minister's pension will not be subject to this levy, which is wrong.

I am concerned at what the Irish Cancer Society had to say about the 10 cent increase in the price of a packet of 20 cigarettes. It is a token measure and much more must be done to discourage young people, particularly young women, from taking up smoking. It is disappointing in that regard. I am also concerned about the reduced tax credit for health insurance. This will adversely affect older people, while younger people will cancel their policies. There will be a much greater drain on the public health service as a consequence. The issue of medical cards is also of concern. Hopefully, the people who need medical cards on illness grounds will retain them.

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