Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this Bill. Since the announcement of budget 2014 I have been contacted by many people in east Galway regarding its various provisions. In particular, I have been contacted by three groups, trades people, tourism and restaurant business owners and separated fathers, and I will concentrate on the issues affecting them.

In recent weeks I have encountered many trades people who have welcomed the fact that the Government has finally taken action to level the playing field for tax complying trades people by incentivising the employment of those whose tax affairs are in order by home owners seeking to avail of the new home renovation incentive scheme. Initially, many of those trades people were worried that the timing of the introduction of the scheme could adversely affect their work in the final two months of this year, but this matter has since been addressed and those fears allayed in what I believe to be yet another common sense and probity measure taken by the Government. The initiative may also be the spur or incentive that some home owners need to get work carried out on their home. It is to be hoped that many people who formerly worked in the construction industry will benefit as a result of this measure.

We have to make doing business easier for small businesses which are the economic lifeblood of Ireland. That is the reason I very much welcome the retention of the lower rate of VAT in the hospitality sector. Small restaurant business owners in east Galway expressed the fear to me that a rise in the VAT rate would hamper their efforts to attract business in what remains a very difficult climate. I believe that business owners recognise the Government's unwavering efforts in terms of job creation and recognise that it is only through job creation that a stagnant economy can be brought back to life. One job can lift a family back to economic viability. That is the reason we have to continue in our efforts to support small businesses.

The catering sector is not the only one affected by the decision in regard to VAT. Hotel and tourism business owners have also welcomed it, and I look forward to seeing more tourists in the west next year, especially given the abolition of the travel tax and the pledge that increased numbers of air passengers will be brought into Ireland as a result. Tourism spending is badly needed in the west and efforts such as this initiative and the travel tax must be applauded.

I also welcome the retention of the current rate of corporation tax. It is important that the message is put out in as forceful manner as possible that this is an integral part of the Irish regime and that it is something that is not up for renegotiation.

While many of the reactions I have received on a personal level to the budget have been positive, I have been contacted in recent weeks by many separated fathers, and each has outlined to me exactly how the change in the tax credit system will impact on them. The tax implications are significant and I welcome the statement by the Minister, Deputy Noonan, that situations will be examined where the primary carer does not have a tax liability. I believe this may help the circumstances of many separated fathers. However, many fathers may well continue to be adversely affected as a result.

I believe that the issue raised by the controversy over the single parent tax credit is one that merits much greater investigation. Family break-ups are a fact of life and the Government has ensured proper provision is made for children. In cases where parents live separately, there is an added cost of two properties to be maintained in terms of property tax, lighting, heating, etc. The size of the house provided by the secondary carer, the father in many cases, has to be sufficiently large to accommodate the children in order that they can stay over. Further investigation is needed in terms of the burden that is being placed on separated families and we must examine measures needed to balance this while simultaneously ensuring families who live together are in no way disadvantaged and that no financial obstacle is put in the way of families waiting to reunite.

Borrowing €12 billion per annum to keep the country afloat is unsustainable. We have to progress to a more sustainable budgetary framework, and that is what budget 2014 achieves. The deficit is lowered and all sections of Government will have to reflect the new reality with leaner management of greater resources. Had the focus been on having a much leaner Government during the years of the boom, spending would not have spiralled to the degree it had, but there is nothing to be gained from bemoaning decisions made.

Although it marks a milestone on the road to recovery, there will be no celebrations as the troika exits the country on 15 December. It is a welcome step but one which fails to put money in the purses of householders. We have a long road to travel and the people will not rest until such time as unemployment levels have been drastically reduced and young people once again have the option of living and working in their own country.

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