Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will attempt to address as many of the points raised in this wide-ranging debate as possible. However, as I am sure Deputies will appreciate, I will not be able to respond to every point made in the course of the discussion of the Finance Bill on Second Stage.

I want to address the points made by Deputy John McGuinness in two areas, the first being about the comments I have made and the actions I have indicated today on the tracker mortgage issue and all of the hurt that has been caused. My language was not soft in that regard. I have unequivocally described the behaviour I have seen in the handling of this matter as being absolutely unacceptable. I said that today very clearly and I have also said it to all of the banks. I agree with the Deputy that, as powerful as words may be - I believe they do have power - all that is capable of responding to this issue is action. Those waiting for redress or, of whom there are many, recognition need far more than words; they need action. That is why I have indicated that if the actions to which the banks have committed or recommitted do not happen, what I will do about it.

The criticism that has been made by the Deputy and others as we have dealt with these issues in the past is the retort of what we will do about it. As a shareholder in a number of the banks and as Minister for Finance with powers available to me next year, I have outlined what I will do if the Central Bank, which also has power to deal with this matter, reverts to me and indicates that the issue has not progressed in the way it believes it should. This, alas, is a matter that the House and I will have to return to across the coming period. I am certain that this will be the case, but what I have looked to do today is outline how I intend to deal with this matter, and that is what I will be doing.

Regarding other points that have been raised on the Finance Bill, Deputy Michael McGrath welcomed the combined measures on income tax and USC. Deputy Pearse Doherty expressed concern about the impact of these changes, but I should point out to him and his party that I have retained the entry point into USC at €13,000. I have also indicated that this should be the ongoing entry point into that code, particularly if that code is, at a point in the future, integrated into PRSI.

Deputy Shortall queried the progressiveness and fairness of the budget. The budget and its tax changes have been constructed to focus as many benefits as possible on the middle and lower end of taxpayers. Overall, the total amount of funding being made available for tax reform and reduction is €335 million out of a total budget day announcement of €1.2 billion.

Deputy Michael McGrath and others have welcomed the tapered extension of the mortgage interest relief, cognisant of the difficulties that a number of mortgage holders in our State face. This is a response from the Government and the House to many of those challenges. I confirm to Deputy Burton that section 69 of the Finance Bill refers to the modernisation of the PAYE system and the preparatory measures to move to a real-time system from next January. It does not relate to a move to the universal credit system that the Deputy mentioned. Deputy Pearse Doherty raised questions about the effectiveness of the help to buy scheme. It is appropriate to retain that policy measure as it is currently available and I will continue to effect and monitor it.

A number of Deputies raised concerns and questions about the operation of the key employee engagement programme, KEEP. I confirm that my Department continues to engage with the European Commission on the deployment of this scheme. We anticipate that, when it is made available next year, it will be of help to SMEs.

A number of Deputies touched on the value and role of certainty in our corporation tax system. I reconfirm my commitment to that certainty while addressing matters that need to be, and are being, addressed within the OECD base erosion and profit shifting, BEPS, process. This was the subject of criticism from Deputies Boyd Barrett and Paul Murphy, but I ask them to acknowledge that the tax code, which they have criticised, plays an important role in the retention of jobs for more than 300,000 people by supporting and retaining foreign direct investment.

Deputy Pearse Doherty made the point that there had not been changes to the research and development tax credit scheme. The review that he mentioned, which was published last year by the Department of Finance, concluded that the tax credit provided a reasonable level of additionality and that the rationale for it was not in question. Given this thorough review, I am satisfied that the credit is working as intended.

Comments were made about some of the moves that I have announced regarding capital gains tax. Along with the changes that we have made to stamp duty, these measures are consistent with having a resilient tax base. If we want to change our tax code to create the conditions for a sector to recover, we must use opportunities like this to revert to a more sustainable taxation rate so that we have a tax base in the future that is resilient and capable of dealing with the challenges that we know we will face.

A moment ago, I acknowledged Deputies' concerns about the banking sector. During the Private Members' motion, we touched on the mortgage tracker issue and all the difficulties that it has caused.

A number of Deputies raised concerns about our Brexit preparations. The strongest economic contribution that we can make to our economy's readiness to deal with potential shocks is to close the gap between spending and taxation next year, have a credible path for the future of our national finances and use that as the bedrock for putting in place measures like the Brexit loan scheme and additional resources for various State agencies so that they are allowed to support companies in diversifying and winning business in new markets abroad.

I am aware of the wide variety of challenges that Brexit will pose, but we have put in place measures to strengthen our finances and support State bodies and we are seeking to provide clarity regarding capital investment so that agencies are better aware of the resources that they will have in future and the private sector, including our construction and development companies, can plan for the future and, in so doing, put in place the kind of investment that will be vital if our economy is to rebalance and respond to the opportunities and threats that we know will present.

Many other matters have been raised and I look forward to discussing them with Deputies on Committee Stage.

I commend the Bill to the House.

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