James Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

I welcome the Finance (No. 2) Bill 2013 and the fact that it is being dealt with in the same year as the budget statement. This is a pro-business and pro-jobs Bill in which at least 25 measures are being introduced. For example, the retention of the 9% rate of VAT for the tourism and hospitality sectors will support the increased number of jobs to be created in a quickly expanding sector.

The start your own business incentive scheme will provide for an exemption from income tax up to a maximum of €40,000 per annum for two years for individuals who set up a qualifying unincorporated business, having been unemployed for at least 15 months prior to its establishment. This is a great employment activation measure. However, we must do a better job of promoting the schemes that are available to help businesses.

The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, was in Longford on Tuesday night, at my invitation, meeting local business leaders. Businesses from all over the midlands were represented. It was a successful meeting at which the general consensus was the need to encourage companies to regionally diversify investment across Ireland, particularly in the midlands. Hopefully, IDA Ireland and Enterprise Ireland, represented at this meeting, will breathe new life into the midlands. We need to sell the employment and business advantages of the midlands abroad. Inward investment is essential and, more than ever, the lifeblood of rural areas such as counties Longford and Westmeath. The midlands has the right people with the right skills and a fine third level educational facility in Athlone Institute of Technology.

Infrastructural provision is an essential part of any development. The unfortunate curtailment of road projects such as the N4 and N55 improvement schemes has an adverse impact on economic recovery. We cannot congratulate ourselves on being to the forefront of cloud computing technology if businesses and households cannot get basic broadband services, as has happened in counties Longford and Westmeath. If foreign investors do not find the basics here, they will go elsewhere. We need more multinationals to invest and locate in the midlands, the best place to do business. Those representing Abbott Pharmaceuticals, which is based in the home town of the Minister of State, Deputy Perry, have told me they are fond of the midlands as they consider it one of the best environments in which to work.

I welcome the increase in the farmers' flat rate addition from 4.8% to 5% with effect from 1 January 2014. The flat rate scheme compensates unregistered farmers for VAT incurred on their farming inputs. The flat rate addition is reviewed annually in accordance with the EU VAT directive. The increase to 5% in 2014 continues to achieve full compensation for farmers.

I have one major concern with regard to the change to the eligibility thresholds for medical cards for those over 70. In last year’s budget, the gross income threshold for an over-70s medical card was lowered from €700 a week to €600 for a single person and from €1,400 a week to €1,200 for a couple. For some reason, however, in this budget the threshold is €500 for a single person and €900 for a couple. That is simply unfair to elderly couples, and I question the measure's constitutionality.

I very much welcome the abolition of the air travel tax and the fact that we are already seeing the benefit in jobs and new routes into the country.

Before the Government took office, 250,000 people had lost their jobs in the previous three years and our country’s sovereignty had been sold out by the previous Administration. Up to 36,000 jobs have been created this year alone. By the end of the year, we hope our economic and political sovereignty will, after many years of hardship, finally be restored.

Regulation is a significant burden on small businesses. We need to make it easier for small businesses to be set up. Will the Minister of State, Deputy Perry, take note of this?

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