Dáil debates

Wednesday, 14 October 2020

Financial Resolutions 2020 - Financial Resolution No. 7: General (Resumed)

 

3:15 pm

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent) | Oireachtas source

I am sharing time with Deputy Fitzpatrick. I was in the House earlier this morning broadly welcoming many of the outlines of the budget but highlighting to the Taoiseach the need to make sure that we see fairness and equity in it. Before I go on to other parts of my contribution, I too will reference the Debenhams workers. I heard the Taoiseach's comments earlier this morning. We need to have some de-escalation of the situation. I am on the record here previously as saying that it appears a tactical insolvency was arrived at. This Government probably needs to atone for the mistakes of the previous Government, which did not close the door after Clerys, probably did not implement the Cahill Duffy report fully and did not look at legislation that would stop companies from moving assets out of the reach of workers who had a pay agreement. Unfortunately, it was not provisioned in the accounts. That is something the trade unions should have a look at in the future. Had that been done, maybe there would be security for the workers there now. That being said, in my own city of Waterford, people gave huge support to Debenhams and to the workers and we still do. I feel very sorry for their situation and I feel very sorry for the escalation that is putting them up in the High Court and is basically criminalising their just call for some redress to their situation. I would ask that senior Ministers would look to try and see, as I say, some de-escalation and some exceptional activity for this one. I know we do not want to create exceptions for everything, but in this case, I think we should do it. It is the right, moral and fair thing to do.

In general terms, I welcome the provisions of the budget. I think most Deputies in the House would have to welcome the general breadth and scale of the budget announced yesterday. I would agree it is a wartime budget. On that basis, we have to do exceptional things.

In terms of some of the exceptional provisions of the budget, I welcome the €900 million commitment to local authority rates. That will be a big help to local authorities in the coming year. It certainly helped those who have had the rates waiver. It will help to straighten out the accounts of some of the local authorities as they try to plan for the coming year in dramatically different economic circumstances.

The €10.1 billion capital fund is a certain game changer but I asked the Taoiseach here this morning whether the south east would see its 8.89% pro ratacapital share of it because we have not seen it previously. I would again put on the record of the House that the previous capital tracker from 2018 to 2022 of large capital infrastructure projects in the State saw the south east get €97 million, Cork-Kerry get €902 million and Dublin get €5 billion - a per capita share 15 times greater than that of the south east. Such disparity in funding on capital infrastructural investment cannot continue into the future, particularly if a programme for Government will speak about regional rebalancing and fairness.

I welcome also the €100 million for disability services. Those who have been in particularly dire circumstances this year include parents with children who have special needs and those who are looking for respite and cannot get it. I welcome the funding that the Government has agreed to.

In terms of some of the contingency funding for business, I would point out that this year in the restart grant, the Government announced one restart grant funding date and subsequently announced a second tranche of money. When it did so, it moved the goalposts on the first application date which meant that many companies which had intended to apply for the first one had not submitted their applications in time and were only able to claim the second tranche. I do not want to say it is a little devious, but it is bordering on that area. This is something we must not do in the future. We must signal that if we are to make grant moneys available to businesses, it must be clear and straightforward how they are to claim them.

In terms of Revenue filings, there should be a deferral on some of the strictures of filings this year. The Companies Registration Office, CRO, is not exercising discretion in the implementation of filing accounts. For instance, companies that must do a CRO filing before 13 September will have to file their accounts before 31 October. There is pandemonium out there among experts in this area who are doing the filing of accounts, such as accountants, but the failure to file on the date means one loses one's exemption from audited accounts. In other words, for the following two years the CRO requires one's company to provide audited accounts. That imposes extra costs on small businesses at a time when they are prostrate at what has happened them in terms of the economy. I am asking that some exemption be given for those companies this year in order that they do not lose their exemption from audited accounts the following year in terms of late filing.

The same is also true in terms of tax office deadlines in October where companies that claimed the temporary wage subsidy scheme, TWSS, must show Revenue how they arrived at their turnover being down. In fact, Revenue gave them an opportunity of five days - not even five working days - in which to make those returns.

Forbearance must be practised by the Department.

I refer to the tax warehousing scheme and those with a 31 October filing date. Will the surcharge be waived for those filing for income tax who apply for the next tax warehousing? That has not been made clear. Corporation tax liabilities do not appear eligible for debt warehousing which should be looked at.

I generally welcome the announcements of funding for health and education, particularly when we are so challenged in healthcare. Recently, I raised industry getting access to NPHET. We can do much more to implement different protocols for fast testing and tracing. That could be the game changer in keeping our economy open and not having to use a circuit-breaker lockdown. Unfortunately we have wasted months when peer countries are implementing these initiatives. We should implement them too.

The 9% VAT rate in hospitality is very welcome and I expect it will do something. I ask that the Government also consider a voucher scheme for the many businesses that are not trading at the moment and cannot benefit from the reduction in VAT. A voucher scheme would incentivise people going out and spending and supporting local businesses.

On balance, I welcome the budget. I hope to see equity and fairness in the capital allocations and service budgets. As one member of the Regional Independent Group, I support and welcome what has been done.

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