Patrick O'Donovan (Limerick, Fine Gael) | Oireachtas source

I welcome the opportunity to speak. I wish to have it noted on the record of the House that the newfound interest of the Fianna Fáil and Sinn Féin parties in Dáil reform, which was reported this morning on Newstalk at 8 a.m., was shortlived because the Chamber is yet again empty of Opposition spokespersons.

For the first time since the economic collapse into which we were led by the previous Government, there is now a primary surplus in operation. In fairness to the Government, that has been one of the key measures in trying to prove that our departure from the bailout into which they so shamelessly led us can be achieved on 15 December this year. The commitment in that regard by the Minister for Finance, together with the Minister for Public Expenditure and Reform, the Taoiseach and the Tánaiste must be acknowledged. The real test is the fact that in the past 12 months, 36,000 jobs have been created, which is in stark contrast to the final three years of the previous Government’s term of office when 250,000 jobs were lost in the same period. That speaks for itself.

In terms of my constituency, I welcome sections 41 and 56 in particular. Section 41 relates to the extension of the tax credits for people retiring from farming. Section 56 concerns the retention of the 9% VAT rate which was so vociferously opposed in this House by the parties opposite. They railed against it and said it was a gimmick yet the Restaurants Association of Ireland and the Irish Hotels Federation and everyone else associated with the tourism industry welcomed it, worked with it and used it to their advantage. They also used The Gathering to good effect. It behoves the Opposition to acknowledge that was the right thing to do and to congratulate the Ministers for Finance and Transport, Tourism and Sport on the fact that so many more people are employed in tourism now than when parties in opposition so disastrously led us into an economic collapse.

Also in the tourism area, I welcome the abolition of the Fianna Fáil travel tax which was introduced in 2009 as a disincentive for people to visit this country. The manner in which the airlines, in particular Ryanair, have reacted to the abolition of the Fianna Fáil travel tax is a good thing. I would encourage other airlines servicing this country to do likewise, in particular the flag-carrier, Aer Lingus. Shannon Airport has benefited in my part of the world not only in terms of the 300,000 extra passengers that have been promised following the abolition of the tax, but also from the independence that has been given to the airport which has been driven by the presence of the Minister for Finance in the region. Let us imagine what could have been achieved had the current Minister for Finance been at Cabinet when there was so much money in the economy and some people were more interested in doing other things than delivering to the mid-west.

The home renovation initiative is a good idea. It will encourage people who have heretofore been outside the system to come on board. The Minister for Finance is keen to include various parts of the economy on a sector-by-sector basis. We have seen initiatives in the agriculture and tourism areas. I welcome the home renovation scheme, plus section 21 which deals with research and development tax credits. Deputy Boyd Barrett believes that is a bad idea but I think it is good having worked in a foreign direct investment company.

I am pleased the Minister is examining the single-parent tax credit. He has committed to address the matter on Committee Stage. In my constituency recently there was a significant announcement about the creation of jobs in a biomass company in the Port of Foynes. The intention is to blend biomass material with coal. I would encourage the Minister to consider an extension of the relief to indigenous biomass material produced in Ireland. Perhaps it cannot be addressed in this Bill but if there is proof that this incentive has been used to create jobs then it could be further extended.

One other noteworthy issue is the fact that in section 73 the Government has exempted from tax those who will receive compensation under the Magdalen laundries redress scheme. It is good that such people have been singled out. It is another legacy the Government was left by its predecessor and it deserves credit for it.

The Government and commentators state continuously that governments do not create jobs but they create the environment in which jobs can be created. The backdrop to the Government’s term was 250,000 people losing their jobs in three years and a shameless sell-out of our country’s sovereignty by the previous Government. The fact that we have created 36,000 jobs this year and that we are looking to 15 December to restore our economic and political sovereignty in this country again will for many undo the legacy of the previous Government, but we should never forget the situation into which it led this country. This Bill is part of the recovery process.

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