Joe Carey (Clare, Fine Gael) | Oireachtas source

The context of this year's debate on the Finance Bill is more interesting than usual, because it coincides with the successful conclusion of the 12th and final review mission of the programme with the European Commission, the ECB and the IMF. Despite what many doomsayers might say, this represents a significant milestone. The budgets for the years between 2011 and 2014 implemented consolidation measures of almost €16.4 billion. I acknowledge this has been difficult for the people and many unpalatable decisions have been taken. Nevertheless, steady progress has been made in recent budgets, which has brought about a situation in which the public finances are back in check. Moreover, jobs are being created at a rate of 3,000 per month, economic growth has returned and the State is set to emerge from the troika programme on 15 December next.

I wish to refer to some specific elements of the Finance (No. 2) Bill. I welcome the retention of the 9% VAT rate for the hospitality and tourism sectors. It has been a hugely significant initiative for the tourism industry and underlines the commitment of the Government to job creation in the sector. I believe the beauty of this initiative is that it protects the primary small to medium-sized businesses, which are the backbone of the economy and society to an extent. The continuation of this initiative has given business owners confidence in what still is an extremely difficult economic environment. While the measures remain in place, they should be used to maintain value for money and to support existing jobs and investment in further job creation.

The decision to reduce the air travel tax to a zero rate was most welcome. As a direct result, Ryanair is set to provide eight new routes at Shannon Airport. This positive announcement will create 300 direct jobs and the additional 300,000 passengers travelling on these new routes will create many indirect jobs in hotels, guesthouses, bars, restaurants, shops and petrol stations throughout the mid-west region and along the west coast. For the first time in years, there is a positivity about Shannon Airport's future. I compliment the chairperson of the board, Rose Hynes, the new chief executive officer, Neil Pakey, as well as the management and staff at Shannon Airport on their work in restoring the fortunes of Shannon. I am informed that in the first year of operating as an independent entity, Shannon Airport is set to break even and might even return a small profit, which is a highly significant achievement by the new structure there. The specific measure to reduce the rate of air travel tax to zero will help Shannon Airport to continue on a path of growth.

As for agricultural taxation, I welcome the review as outlined in the Minister's Budget Statement. It is timely, necessary and a significant component in the mixture that must be dealt with if the ambitious targets set out in the Food Harvest 2020 strategy are to be met. There is an intrinsic link between the taxation system and the full potential of Irish farmland productivity, and while this nettle has not yet been grasped, it badly needs to be. I believe the Food Harvest 2020 goals are pie in the sky and will not succeed until this issue is dealt with.

The construction industry has suffered greatly in recent years. While construction levels equating to 25% of gross domestic product are unsustainable, construction levels in the low single digits as a percentage of GDP are just as unwelcome. As a concerted effort to get to the international average of 12% of GDP is a worthy aspiration, I welcome the new home improvement initiative included in the budget.

I wish to make a final point in respect of the single parent's tax credit. Will the Minister accept amendments on Committee Stage to ensure there are no unintended consequences arising from the changes that have been made?

See this speech in context