John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I commend the Minister, Deputy Noonan as others, including some Opposition Members, have done for his stewardship of the economy over the past four and half years and in extraordinary times. It is not by accident that Ireland's economic growth figures are the envy of most other countries. It is through the efforts of individuals, businesses and members of the Government, not least the Minister for Finance, that we now find ourselves in a position to introduce a favourable budget.

I echo the sentiments of Deputy Breen and others on the primary medical certificate. I had not intended to speak about it but the current criteria are too rigid and not particularly fit for purpose in this day and age. It is admittedly a complicated area but does merit some intense consideration.

The Minister's decision to introduce the 9% VAT rate in the hospitality sector in his first budget has arguably been the best decision he and the Government have made in the course of their time in office.

It has stimulated significant economic growth across the country because the hospitality sector is in every town and nearly every village. It has had a dramatic effect on economic activity and the numbers of people employed in that sector.

I wish to raise another issue about which I have not had a chance to have any real discussions because I received an e-mail on the matter late in the day. Perhaps the Minister's officials might be able to examine it at some point. It concerns VAT on certain medicines. Deputy Twomey will probably have a more detailed knowledge of this than I have but I received a communication from individuals who suffer from skin conditions like psoriasis and eczema and related illnesses. They probably contacted me because I am a psoriasis sufferer so I should confess a vested interest in that regard. They maintain that the existing rates of VAT on certain medications that are necessary in this area should be looked at with a view to removing some of them in the future. I hope this can be examined. My only regret is that I received the communication too late to be able to examine it in any great detail.

I welcome the fact that the budget and the Finance Bill include substantial provisions for the reduction in the USC. Perhaps many economists would argue that the USC is a very equitable tax but, rightly or wrongly, the public is understandably of the view that this was a temporary measure that was introduced at a time of economic crisis. The fact that we have seen the first substantial step in reducing it in this budget and this Finance Bill as part of a plan to phase it out completely over the next number of years if economic growth continues is to be greatly welcomed. I cannot commend the Minister enough in that regard.

I join Deputy Eoghan Murphy and others in praising the Minister's measures concerning the earned income credit for the self-employed with a view to levelling the pitch for self-employed people. This is a welcome inclusion in the Finance Bill and the budget. Like tourism and hospitality, agriculture is probably the other sector that kept the country moving in the right direction through the worst of the recession. I welcome the extension of various reliefs the Minister announced to the end of 2018. In particular, I welcome the new measure concerning succession and transfer of partnerships. It has received positive feedback from the agricultural community and is to be welcomed.

I wish to raise some other issues in advance of the next round of budgetary measures that must be discussed. I welcome the fact that this week, there are reports of a surge in corporation tax receipts and the changes relating to the knowledge development box, which were announced in the budget and included in the Finance Bill. I would ask that emphasis in the future be placed on looking at the reduction of capital taxes, particularly DIRT. There were understandable economic reasons for increasing DIRT at a time when we sought to promote economic activity. From an economic development perspective, perhaps the Government wanted people to spend money. We are now entering a different zone and perhaps more encouragement needs to given to citizens to save for their futures. This is why I believe the current level of DIRT is prohibitively high. I have received a lot of communications from constituents who have fairly modest savings and who are not receiving the return they might have expected. They are rightly looking to the Government for a reduction in that tax in the future. I welcome the provisions of the Finance Bill and I am glad to have had the opportunity to raise a few points.

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