Eugene Murphy (Roscommon-Galway, Fianna Fail) | Oireachtas source

It is important to state, as Deputy Calleary mentioned, that this is the third budget under the confidence and supply agreement. Some Members laughed and sneered and said it would not happen. Others abdicated their responsibilities as elected representatives and did not do what they ought to have done. I compliment the Minister, Deputy Donohoe, who is always straightforward and trustworthy. I also compliment those on my side of the House who took part in the difficult negotiations on the three budgets under the confidence and supply agreement. A deal was made in 2016 which, on the whole, has been honoured in so far as we have reached the third budget and, it is hoped, will soon see the passage of the Bill.

In the light of Brexit, it would be wrong not to attempt to have a budget passed considering the crisis which may exist very shortly. It will be a huge challenge for us one way or another. Quite frankly, very few people seem to know what will happen, but if Brexit occurs I have no doubt that it will cause many changes and be a significant challenge for the State. It is to be hoped that the ongoing negotiations will successfully lead to agreement, which is what all Members want. We must not have a hard border. If that occurs, we will be left with many serious challenges, as the Minister will agree.

All budgets involve give and take. I often wonder whether the big build up and presentation of the budget is the correct way to do it. That is not directed at the Minister personally. Obviously, books must be balanced and the figures must be right but in some regards we must modernise the approach to the budget. Perhaps it should not be such a big day in the year but, rather, should be a more relaxed process.

On housing and health, Fianna Fáil has made some progress. I acknowledge the role played by those on the Minister's side of the House who were prepared to listen to and work with us for the betterment of the country. Of course, although those concessions have been agreed, they do not solve everything.

An issue mentioned by many Members which causes me concern is the increase in the VAT rate for the hospitality sector. As I often stay in Dublin, I am familiar with the price of hotel rooms there. They are shocking. The prices being charged by some hotels in Dublin for a night's bed and breakfast are morally wrong. However, that is not the case all over the country. I accept that the drop in the VAT rate to 9% was of huge benefit to the sector, whether in counties Roscommon, Galway, Mayo or elsewhere. That is acknowledged by those in the industry.

From talking to them, I fear there will be some job losses. It will be a challenge because they do not have the footfall.

Running a hotel in a rural area where there are fewer people is very difficult. Insurance costs are colossal. I know that hotels in Dublin can easily state that they have more costs. That is a fair point but hotels in rural areas do not have the footfall. I am coming up against this in the context of a number of restaurants and hotels which, I acknowledge, did well in recent years but which now feel that what is proposed will be a spanner in the works. I know about the Minister's interest in tourism. There was a great sense of enthusiasm among politicians, those in the sector and community groups when the Hidden Heartlands brand was launched. However, much of that enthusiasm has ebbed away and that is a cause for concern. We can look at the promised €35 million fund. I would love to know when the Minister for Transport, Tourism and Sport will be able to reveal how that will work and how it will help hotels, restaurants and people in the sector who are going to face a challenge. The fund might save some businesses from going under. Could the change to the VAT rate not have been done in respect of turnover? Perhaps not and perhaps there are financial reasons for that. If it was done in respect of turnover, we could assess certain businesses at that higher rate and some at the lower. We will see how matters develop in this regard.

There are some measures in the budget to deal with Brexit, which is the big elephant in the room, and its aftermath. There is some appreciation of this in the Finance Bill but I worry about matters such as the collection of VAT on imports from the UK. If the UK leaves the EU, where do matters stand in this regard? That VAT is a significant consideration. I wonder whether this matter has been examined. If the UK leaves, will we experience difficulties and will it cost us money?

In the context of income tax, here are some benefits for taxpayers. I welcome the fact that the USC rate for low and middle-income earners is being reduced.

The budget is not perfect but it is the hand we have been dealt. It was important to allow this budget to go forward, particularly in the context of the country's stability at a time when it faces probably its greatest ever challenge, namely, Brexit.

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