John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to this debate. The country has been on a difficult roller coaster of a journey for the past seven years and every citizen and family has been affected by the economic collapse, the hundreds of thousands of job losses, emigration, mortgage difficulties and negative equity, etc. In 2010, with the arrival of the troika, we lost control of our destiny. Following this we had the introduction of USC, wage cuts, the abolition of the Christmas bonus, a ban on the recruitment of gardaí, teachers, nurses and doctors which were consequences of the recklessness of the previous Fianna Fáil-led Government. Thanks to the sacrifices of the people and the difficult decisions taken, we are now in a much different space. Some 130,000 new jobs have been created; we have had a restoration of Army and Garda recruitment and a massive increase in tourist numbers through the stimulus of the 9% VAT rate and the abolition of the travel tax. Our exports are at record levels. Agriculture which has been the mainstay of the economy for hundreds of years has come to the rescue once again and the Government has supported it every step of the way and has fought for it at European level in the CAP negotiations. The net result of the prudent decisions taken by the Government is that for two years now Ireland's economy is the fastest growing in Europe. More importantly, this growth is more widely based and on a firmer footing than the shifting sands of the construction bubble in the early noughties.

In that context, the budget was about the restoration of the supports and services that had to be suspended because of the economic collapse. It was about the reversal of difficult decisions that had to be taken because of the state of emergency in which we found ourselves. It is, however, only part of the journey because it is in the interests of all the people that our recovery not be put at risk. We must never again gamble on the future of the country and its children. It would be great if we were able to restore everything immediately, but we cannot. It was important that the budget put some extra money back into everybody's pockets. This was particularly important for those on low and middle incomes and the most vulnerable on social welfare payments. The reduction in USC rates has helped to achieve this, with 42,000 low paid workers being taken out of the USC net altogether, amounting to 700,000 in the past few years. USC is also being significantly reduced for middle income earners. Tax cuts are good for the people and the economy. They lead to the creation of jobs and bring benefits to every family. Social welfare recipients have been assisted by a range of measures, including the restoration of 75% of the Christmas bonus and increases in family income supplement, carer's support, the old age pension and child benefit, etc.

As somebody who was involved in education for many years, I am very aware of the effects the recession has had on this sector of the economy. I welcome the additional recruitment of new teachers and the proposed changes in class sizes. I also welcome the announcement today of the multi-annual funding for the summer works and minor works schemes for primary schools.

As Chairman of the Joint Committee on Transport and Communication, I am especially delighted to see the significant reduction in motor tax for hauliers across the country. In the past four years the committee has heard presentations from those involved in this sector about the serious disadvantages hauliers in Ireland faced compared to their counterparts abroad. I commend the Minister for taking action on this matter as otherwise we would have lost many jobs and livelihoods. Transportation costs are a major issue for every business in Ireland, both large and small. In budget 2016 there are major reductions in commercial motor tax rates. The number of rates will be reduced from 20 to five and they will range from €90 to €900 per year, down from a maximum rate of €5,195. These changes will benefit over 28,500 commercial vehicles and come into effect in January 2016.

This budget also addressed self-employment, beginning the equalisation of tax treatment between the self-employed and PRSI workers. There is still a way to go on this and it should be continually addressed. Self-employed people are risk-takers. We are at a stage of growth in the economy where they could take on extra workers. It is important they have some safety valves and guarantees if they become sick or their business goes into difficulty.

See this speech in context