Tony McLoughlin (Sligo-North Leitrim, Fine Gael) | Oireachtas source

Despite the overwhelming constraints imposed on the Government, the Minister for Finance, Deputy Noonan, has thankfully been able to include several incentives and welcome initiatives that I hope will help stimulate our economy in this Finance Bill.

As part of the budget 2014 measures, the Government has announced 25 pro-business and pro-jobs initiatives which are set to cost more than €500 million. Under the Bill, the 9% VAT rate will be retained for the tourism industry. I warmly welcome this decision which is a measure that the industry had lobbied hard for in the run-up to the budget. I live near the village of Strandhill, County Sligo, a place most people would agree is one of the most beautiful parts of this island. This area has seen significant investment from local business people who provide magnificent food, entertainment and facilities for our visitors. I am glad we recognise this investment and will play our part in reducing the levels of taxation. This measure coupled with the reduction in the airport tax will bring more visitors and, hopefully, realise repeat business because the tourist visiting the north west will get value for money and not be ripped off.

The result of the reduction in the airport tax last week saw the opening by Ryanair of three new routes in and out of Ireland at Knock Airport, great news for the region I represent. Well done to the airline company’s chief executive officer, Mr. Michael O'Leary, for stepping up to the plate when asked. In particular, I thank the Minister for Transport, Tourism and Sport, Deputy Varadkar, and the Minister of State at the Department of Transport, Tourism and Sport, Deputy Ring, for their work and lobbying on behalf of this industry.

During the debate on Second Stage of the Local Government Bill 2013, my colleague Deputy Deasy made some important points on the issue of rates. The rates system was originally introduced during a different time. As Deputy Deasy stated, €3.7 billion is the estimated annual spend by people purchasing online goods. Of course, the majority of those same companies make no contribution to our local authority rates. I have received representations from a young business man, a publican based in a small town in County Leitrim, who has a rate demand more than three times those of his competitor publicans in his village because he has a petrol-diesel pump outside his door. We all know the profit margin on liquid fuel sales, yet the rates bill to provide this service is overwhelming him.

In times of economic turmoil, it is difficult to consider change but the rates collection and revenue accounts of both counties Sligo and Leitrim have shown a significant and consistent drop since 2009. Will the Ministers for Finance and the Environment, Community and Local Government commission a study by a competent organisation or Government agency to look again at the rates system? Should we, for example, consider a sales tax in each county similar to that in the United States where individual states have a sales tax and a local property tax set individually by the local council? I would welcome a genuine discussion and the formulation of a report that could be considered by the environment and finance committees in this House. It should examine all options and the systems employed in other countries. It could then make recommendations, debated by the Oireachtas committees, which would eventually evolve into legislation that would fundamentally change the rates system to provide a fair, equitable and effective revenue stream to help fund our local government sector.

In my previous career, I worked for the construction industry which every Member knows has suffered since our economic collapse in 2008. The Minister for Finance has also recognised this. Within his limited financial resources, he has set out several measures which will assist our domestic economy. He has brought forward the commencement date for the home renovation incentive to include works that commence from 25 October, providing relief at a rate of 13.5% on qualifying expenditure of a minimum of €5,000 before VAT and a maximum of €30,000. Those availing of the scheme will see the credit awarded in 2015 and 2016.

The Bill also puts in place the structure for the start-your-own-business incentive scheme, which coupled with the home renovation scheme, will give the opportunity for a young carpenter, plumber or electrician who has been unemployed to get back into the workforce with a real chance of a market for their trades. This scheme will grant a two-year exemption from income tax to people who set up their own businesses after receiving social welfare for 15 months or more, up to a limit of €40,000.

I encourage and challenge people formerly employed in construction to talk to their local partnership and social protection offices to get set up as there are real opportunities for these skilled people.

I welcome the decision not to increase the cost of diesel or petrol, which will keep the cost of running businesses down. I also welcome the decision not to increase motor tax, assisting the industry somewhat. I would have liked the Government to consider the swappage scheme proposed by SIMI, as this industry is still down by 8%, despite some positivity. The new system has brought some balance to the 12 month market. I encourage the Minister to consider SIMI's proposal on a swappage scheme for inclusion in next year's Finance Bill.

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