Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

The €160 billion has been spent on public services, social protection payments, capital investment projects and salaries. Defaulting on the €9 billion interest payment per year, as called for by Deputy Richard Boyd Barrett, would destroy many sectors of society and be a highly irresponsible policy. A wing of this House is more interested in protest than solutions. We listen to it day in and day out from the height of the back benches. Such a default would result in the loss of tens of thousands of jobs in the economy reliant on foreign direct investment, but this may suit those more interested in protest than the people. It would block Irish companies and semi-State bodies from borrowing for investment in future job creation, which would mean higher unemployment figures. Tax revenues would collapse and the State would not be able to provide a safety net as no one would lend to us on reasonable terms.

In the past three years we have slowly closed the deficit, while protecting public spending and the budget will result in a primary surplus. That is the target at which we are aiming and moving towards. This has caused grave difficulties for citizens and the Government. However, through hard work and diligence and the pain inflicted on Ireland, we are slowly coming through. Default, as Deputy Richard Boyd Barrett wants us to do, would destroy the very same services which he articulates in passionate terms that he wishes to protect. Are parties represented in the House more interested in protest than in solutions? The Government must take some credit for the renegotiation of our debt rates and promissory notes. We always hear that this would have been obtained anyway, but it would not; it was delivered through hard work and diplomacy.

Deputy Mary Lou McDonald stated she did not want to hear Labour Party or Government backbenchers crowing. I do not come to the House to crow. Deputy Timmy Dooley, the face of what happened to the country, sits there and laughs. I celebrate every additional job created in my community. I celebrate every child being taught in a classroom rather than in a prefab. During the boom years children were in prefabs 12 or 14 years old. The Government is building classrooms, which should be remembered. Deputy Timmy Dooley should take his giggle and go. Fianna Fáil promised us constructive opposition, but this promise faded very quickly with the submission made on the budget. This is not surprising, given that Deputies Micheál Martin, Willie O'Dea and Billy Kelleher put the country in hock, caused the bailout and brought the troika here; therefore, they should cost their budget submission. Out goes responsible opposition and in comes a policy of spend and bust again, one which Fianna Fáil has given to the country for decades.

I thank the Minister for Finance, Deputy Michael Noonan, for his remarks that he will consider amendments on Committee Stage to the proposed single parent child carer credit. All of the calls to my office on this issue have been from fathers, many of whom are responsible and pay maintenance week in and week out. I ask the Minister to consider a range of proposals to alleviate and improve the measure. If the partnership tax relief can be phased out over four years, there is no reason the same could not be done in this regard. Many maintenance costs are established through court proceedings. I accept the Minister's commitment to examine this issue in a favourable manner.

The retention of the 9% VAT rate for the tourism and hospitality industry is very welcome. Many people in my constituency have secured jobs in restaurants, hotels and related tourism activities. Many high-tech companies such as Facebook and Google have expanded in recent years in my constituency. Many of those who have become unemployed are unable to take up these positions.

I give a guarded welcome to the abolition of the travel tax and look forward to seeing Ryanair deliver the promised 1 million extra visitors. I ask the Minister to examine this issue next year because if the extra visitors are not delivered, we should consider reintroducing the tax. It should be conditional on the delivery of the extra visitors. The tourism industry has delivered jobs in restaurants and hotels and we have seen economic growth. If this measure works, it will be very welcome, but if it does not work and does not deliver the extra visitors, there should be no problem with reintroducing the tax. This should be put down as a benchmark.

I urge the Minister not to change the tax filing date as it will be very hard for people in small and medium enterprises to accurately forecast after six or eight months their end of year tax bill. The Department of Finance and the Revenue Commissioners have shown their ability in recent years to accurately forecast tax returns. There is always a risk that no matter what the filing date is that the outturn will be different.

Deputy Penrose raised with me that this is also quite a concern in rural Ireland, as it certainly is in urban Ireland. I ask the Minister to look at this issue. Self-employed people could be asked to submit through Revenue online an estimate of their end-of-year return to help budget forecasting but no interest or penalties should apply if it proves to be wrong. This would allow us to maintain the current arrangement and give the Department some needed data. We have moved to help SMEs with cash flow by adjusting the VAT threshold so it would be bizarre to do the opposite for the self-employed by moving the file and pay date.

I welcome the home renovation incentive. I recall my colleague, Deputy Derek Nolan, raising this issue last year. He believed we could stimulate employment in this area, particularly as there are so many people from the building industry who are unemployed. This will help to tackle the black market in the building trade, reward compliant builders, encourage people to spend and help growing families who may need more space in their homes. The move is very welcome.

The extension of the Living City initiative to Dublin and to all properties built before 1915 has the potential to transform our Georgian core and urban villages. I hope that approval can be sought from the EU under state aid rules without delay, given we need to move on this very quickly. In my own constituency, there is a glut of pre-1963 houses, which are mostly Georgian or Edwardian. This initiative will help to return them to being family units because older houses are extremely expensive to renovate. Having these homes come onto the market will help to build up a strong community in areas like Rathmines, Rathgar and Ranelagh, where families are moving back in. I will conclude on that point. I thank the Minister.

See this speech in context