John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute on the Bill which implements the roll-out of the changes as a result of budget 2014.

I welcome the measures in the Bill that are pro-business, promote growth and are supportive of job creation, for example, the abolition of the air travel tax which had an immediate positive effect that saw one of the air carriers, Ryanair, rolling out a series of new flights at various airports around the country. Last week I attended the launch at Ireland West Airport Knock of the numbers of new flights which will bring 80,000 passengers into the region. Even if each of them only spends €100 while in the region, it will generate €8 million which would have a knock-on effect on tourism and jobs. The challenge is for other air carriers to respond as well. No doubt the abolition of the travel tax, together with the 9% VAT rate on the tourism sector, will generate further growth in tourism numbers where there were solid foundations laid down by the multitude of Gathering events this past year. The growth of tourism is something that spreads right throughout the country. The large cities, such as Dublin, get a significant amount of it, but the most scenic and tourist-orientated areas are rural areas. In that regard, there is an equal playing field.

One unwanted and negative result of a recession is the increase in the black economy. As well as losing millions of euro for the economy, it undermines and seriously impacts those business which fully comply with tax regulations and other charges. For that reason, I very much welcome the VAT rebate for homeowners who carry out renovations on their residence. This measure not only will act as an incentive to carry out renovations at a lower cost but will generate activity in the construction sector and re-employ workers in that area who lost their jobs when the crash came in 2008. It was important that this measure came into effect immediately and I welcome the Minister's immediate response when there was a problem or there was cancellation of some works until 1 January. As regards the shadow economy, this measure illustrates what can be done.

I welcome the extra powers that have been given to Revenue to combat the illicit trade in fuel and cigarettes and the unlicensed trade in alcohol products. I raised this issue on many occasions. I welcome ongoing measures, not as a penalty but because they will bring millions of euro into the economy, they will allow less severe budgets and they will also reward those who are living legitimately and paying all their taxes.

All of these measures to which I referred - the abolition of travel tax, retention of 9% VAT, the home renovation scheme and measures to combat the black economy - will have a beneficial effect. While I welcome all those measures, I have concerns about one issue in the budget relating to the tax relief on private health insurance, and I ask the Minister to look again at it.

This tax relief was always used to encourage people to take out private health insurance. More people taking out private health insurance means less pressure on the public health system, which is stretched to the limit. The Minister in his budget speech referred to gold-plated health insurance policies. However, with the tax relief restricted to first €1,000 per adult and €500 per child, the vast majority of policies will be affected.

I recently met a single person in his mid-30s who is paying €1,128 per year for a policy but who had to pay an excess because a procedure was not covered by the policy, and that excess of €128 was not covered in the tax rebate. This is not a gold-plated policy, yet it is affected by this measure. Another case is that of a 69-year-old woman whose Plan B policy with VHI costs €1,489. This is a basic, no-frills policy but she will lose some of her tax relief. I accept that the provision is aimed at those well-off people who can afford expensive policies, but some people are on the fringe and I ask that the Minister reconsider the provisions.

I very much welcome and endorse the many measures that are pro-business and will provide additional jobs in many sectors of the economy, such as tourism, agri-food and construction. I welcome the positive news about the recommencement of Garda recruitment. The ending of Garda recruitment by the previous Government a number of years ago signalled the crash of our economy. This announcement signals the recovery of that economy. I know a bit about the education sector as I worked in that area for many years. The preservation of the pupil-teacher ratio will be possible with the recruitment of 1,400 new teachers in 2014.

This country has travelled a long and difficult journey over recent years. Certain groups in society have endured much sacrifice and pain since 2008. The troika arrived in 2010 and under its oversight many difficult decisions and choices were necessary. I wish to compliment the inch-by-inch progress achieved by the Minister, his officials and the Government in bringing the country to a point, on 15 December, at which we will be able to exit the bailout programme. While there are still many challenges ahead, at least we will have more control over our own destiny. It is acknowledged in Europe and internationally that this country has stabilised and controlled its economy. In the two years remaining in its term of office, the Government will continue to focus on job creation and the measures necessary for growth and for getting people back to work. This will be the ultimate payback for the people who have had to suffer pain over recent years.

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