Frank Feighan (Roscommon-South Leitrim, Fine Gael) | Oireachtas source

I am delighted to speak on the Bill. I congratulate and thank the Minister for Finance, Deputy Noonan, the Minister for Public Expenditure and Reform, Deputy Howlin, and most importantly, the staff in the Department of Finance. A few months ago we reached a deal on the promissory note. I again wish to put on record the work done by those who work in the Department of Finance to restore the public finances. I commend their vocation to service. The work they have done behind the scenes has been second to none.

There has been much talk about austerity. It is a word that is often abused. In effect, it is about living within one’s means. It was not the case that everyone did not live within their means but we are paying the price now. We must achieve a balance. The Government is a coalition of the Labour Party and Fine Gael. It is not the Fianna Fáil Government that effectively held power and sway. I remember coming to this House for ten years from the Seanad when Charlie McCreevy was effectively carried shoulder high from the Chamber. At times we had a sing-song in the smoking area of the Members bar where it was a case of whatever you are having yourself and we will do what we have always done, namely, deliver, not worry about the consequences. As a country, Government and individuals we are paying the price now.

I welcome the scheme of tax relief for home renovation work. The relief will be granted at a rate of 13.5% on qualifying expenditure up to a maximum of €30,000 excluding VAT. The minimum expenditure must be €5,000 excluding VAT. The scheme is most welcome. It will kick start the economy for registered builders and contractors. It is particularly welcome in my area where we do not have many large industries. I urge the Minister to extend the provision to landscape gardeners. The Department of Finance has confined the scheme to the interior of the house. The black economy is active in the gardening area and registered landscape gardeners find it difficult to compete. I ask the Department to look favourably at such an extension. What we are trying to do is kick start the local economy and get people back to work.

The 9% VAT rate for tourism-related services, which was due to expire at the end of the year, is to be retained. This is important and very welcome. The measure was very innovative and it helped to kick-start the tourism economy along with the Gathering.

Once again, there was considerable speculation before the budget. Backbenchers rely on the Government but they are not told the content of the Finance Bill until the day of its announcement. That is how governments work, which is fine, but I find it unbelievable that newspapers and other media outlets engage in forecasting on the budget for weeks and claim they know the facts for sure. I am delighted they got it wrong on this occasion. The retention of the 9% VAT rate is very welcome because it is a huge boost for small businesses in the tourism sector. I was out last night and met tourists and learned that prices are still too high by comparison with those in Germany and in the United Kingdom. We must try to get more tourists into the country.

I welcome the Bill. I thank the staff of the Department of Finance for their vocation and commitment to restoring the country's finances.

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