James O'Connor (Cork East, Fianna Fail) | Oireachtas source

This Bill is a key part of the July stimulus package. The State is investing in key projects and supporting workers and businesses on an historic scale. The size of the response underlines our commitment to protecting jobs and communities. The State will spend €87 billion in 2020 to provide more services to citizens than ever before. The stimulus package contains more than 50 measures and is worth over €5.2 billion, or €7.4 billion if the credit guarantee scheme which passed through the House last week is included. As part of the package, a further €500 million will be injected to bring capital spending in 2020 up to €9.4 billion, which is another historic record.

The fundamental objectives of the measures contained in this Bill are to boost economic activity, to back businesses and to get as many people as possible back to work. The introduction of the employment wage subsidy scheme is a welcome move. It will ensure that we can continue to have as many people as possible returning to work. It reinforces the key relationship between employers and employees. I have walked the main streets of towns in east Cork and have spoken to many business people. No business owner wants to shut down his or her business permanently. No employee wants to remain out of work. Both want to be able to do an honest day's work and to get on with their lives.

The past few months have been extremely difficult for people and businesses up and down the country. I am happy that the TWSS, and the employment wage subsidy scheme will run in parallel from 31 July until the TWSS concludes at the end of August. This provides extra flexibility to employers with new hires and seasonal workers to ensure that as many people as possible will get back to work.

Businesses also need breathing space. They need the time to get back on their feet, reopen their doors and get back to business. I held a clinic in the past few weeks in Cobh, where I met several business owners who expressed not only the need to reopen but to have breathing space once reopened. Businesses are playing catch-up on all fronts and they require the full support of the Government to help navigate their way through this crisis. To borrow a great phrase from Bill Clinton. It is about giving people a hand-up not a handout.

I welcome several tax measures in this Bill that give businesses this breathing space such as enhanced corporate tax loss relief and income tax relief for the self-employed, which will provide additional liquidity supports for business. This is alongside the introduction of the legislative basis for the warehousing of tax liabilities. This will allow for businesses affected by Covid-19 to delay payment of their PAYE and VAT debts for a set period with no additional interest or penalties. There is no point in getting people back up on their feet with the expectation that they will recover by 100% straightaway. It takes time to recover and this is a sensible and necessary move.

I welcome the several measures intended to boost demand in the domestic economy. I will borrow the famous phrase, "Your spending is my income". It is about ensuring people are spending in their local communities, protecting businesses and ensuring we have balanced regional development across the country. The stay and spend incentive for the accommodation and food sector is hugely important. These sectors are immensely important across the constituency of Cork East. Cork East is home to many famous tourist destinations from Midleton Distillery to Fota Island zoo to the historic towns of Cobh and Youghal. Sometimes we forget what a beautiful country we live in and this is a great opportunity to explore it and to spend locally and help the local economy.

The decrease in the standard rate of VAT from 23% to 21% from September until the end of February 2021 will add to the boost to the domestic economy. We want to ensure the recovery is broad-based and measures such as the reduction in VAT allow the Government to provide relief to the widest sections of society. It is also important that no one is left behind in this recovery.

Finally, I welcome the enhancements to the help-to-buy scheme for the remainder of 2020. This will provide necessary support for first-time buyers by either increasing the support available by €10,000 or reducing the criteria of the 10% deposit to 5%. This will stimulate demand for first-time buyers for houses, encourage house completions and assist first-time buyers in accumulating a deposit for a new home. We cannot let this pandemic stop people from getting on with their lives. We cannot afford to have another lost decade in the economy. I believe that this Bill, alongside measures such as the July stimulus package, will ensure that does not happen.

See this speech in context