Dáil debates

Thursday, 5 November 2015

Finance Bill 2015: Second Stage (Resumed)

 

1:40 pm

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael) | Oireachtas source

I wish to draw attention to the amateur theatrics we had here less than an hour ago and to the false indignation and so-called concern in regard to the Finance Bill and the time allocated for this debate. Neither the Sinn Féin nor Fianna Fáil spokespersons on finance, nor anyone from either party is present now. They will come in and huff and puff about the level of debate on this Bill but it is not important enough for either of their spokespersons to be in attendance. As the Minister for Public Expenditure and Reform said earlier regarding the discourse on Second Stage, he would encourage Members to get into more detailed discussion on Committee Stage. They, of course, went through the motions of their false indignation and outrage but now when push comes to shove, they do not even turn up here.

I welcome the opportunity to speak on the Finance Bill and the provisions announced in the budget. Much of what was in the Budget Statement has carried over into the Social Welfare Bill and the Finance Bill. There is not doubt that this is a bad day to be in Opposition. Anybody who would have said four and a half years ago that we would be presenting a budget and set of financial measures now that reclaim many of the difficult impositions enforced on people following the mess the country was landed into by the previous Government would have had to be forgiven for engaging in wishful thinking. However, that is what we are doing. We are in a situation where the hated universal social charged introduced by the previous Government is being reduced and where the effective rate of tax is less than 50% for the first time in a long time.

Other tax measures are also being taken, for example, measures regarding taxes that affect the self-employed and farmers. Farmers play an important role in my constituency and the Irish Farmers' Journalsummed up how the budget would be perceived in rural areas with its banner headline, "Farmers' Budget".Farmers are the backbone of many of our constituencies and some Members bemoan the constant running down of rural communities. The economy of rural communities is being driven very effectively by what is happening inside the farm gate and this has had a knock-on effect in recent months and years outside the farm gate.

I only need to look at my native town of Newcastle West to see this. Following State and private investment in the past 12 months, confidence is returning to the area. This is mirrored in towns across the mid west and is driven by the large urban centre in Limerick. It is no coincidence that the Minister for Finance has his eye very much on the ball in regard to the work being done in the mid west, particularly in regard to Shannon Airport and Foynes, and is aware how the economy can be driven forward with investment through the capital plan.

This is probably a bad day from the point of view of the Opposition, because the Bill contains none of many of the measures it sought, such as flat taxes, land taxes, tax on work and increases in the USC and employers' PRSI. None of this was needed. Instead, in simple terms the Minister delivered a budget that provides that everybody who works will be better off to the tune of an additional week's take-home pay.

2 o’clock

That is a lot and will be welcomed by anyone who has looked back over the last four years. Previous speakers have alluded to the Bill itself. I compliment Fianna Fáil Deputy John McGuinness, who summed up the value of the Minister for Finance and the legislative end of the Bill. He was very positive, unlike some of his colleagues who were engaged in opposition for opposition's sake.

There is an issue for disabled drivers which needs to be examined. Several people have referred to it already. I had a case recently of a blind civil servant who was relying on his parent to take him to work, until the point at which the parent was no longer in a position to drive him. He works in County Clare. Under the current rules, a blind person is not eligible for the disabled drivers' tax exemption. Through his good offices, the Minister for Finance was able to accommodate a very important issue in this but more needs to be done to flesh it out. What greater disability could one have in terms of getting to work than not being able to see? If people are to be encouraged to have an active, normal role in the community and a full life, they should be encouraged to work. In the case of a blind person who needs a car to get to work, the exemption should be available for a family member, carer or trusted driver. I ask that this measure be considered.

There are now 700,000 fewer people paying the USC. Deputy Pringle was right in welcoming this, but then decided he was going to have a go at it. Maybe he would prefer the people to be back paying the USC. He might have an issue with the current Government exempting them. Government measures such as the Low Pay Commission, the increase in the minimum wage announced by the Minister for Public Expenditure and Reform, the Action Plan for Jobs and the 1.5% reduction in several bands of the USC will make a real difference in houses where there are low-paid people. Like the measures for the self-employed and hauliers, on whom we all depend to transport goods around the country, these are real, tangible improvements.

I do not want to take any more time from Deputy Mulherin. I welcome the Bill. Its provisions show that the recovery is working. I challenge all of the representative organisations - farmers, employers, unions and everybody who meets us over in Buswell's hotel in the weeks running up to the budget - to start looking at everybody's proposals. They should look at those of the Fine Gael and Labour Government and those of the Opposition with its land taxes and everything else and do an honest appraisal. They should then advise their members as to what should and should not be done to continue the recovery. It is fragile, very open and susceptible to outside shocks. The biggest outside shock the recovery could get is from the Opposition benches.

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