Cathal Crowe (Clare, Fianna Fail) | Oireachtas source

I support the Finance Bill because I believe it reinforces the Government's support for the economy against the challenge of the Covid-19 pandemic and the continued risk of a no-deal Brexit. The Finance Bill 2020 sets out the legislative provisions to give effect to the tax measures announced in budget 2021. Clearly the pandemic continues to provide us with an unparalleled economic and social challenge, but we must also affirm our determination to support the economy and society more broadly, especially those sectors which have been really adversely hit by Covid-19, with the restrictions now at level 5. The Bill shows commitment to tackling climate change with a real course of action with carbon tax, and changes to motor tax and the vehicle registration tax regime, which are both aimed at encouraging motorists to make greener choices.

The new Covid restriction support scheme will provide much-required support to businesses that have had to close or significantly reduce trading as a result of the move to level 5 throughout the country. I note that the scheme is costing the Exchequer €80 million per week as we are now at level 5. That sounds like a lot of money but it is better to spend that kind of money to keep places trading and in some way buoyant as they negotiate these tough, turbulent weeks of level 5 restrictions.

I am delighted to see the VAT reduction from 13.5% to 9% for the hospitality and tourism sector. This will give a 4.5% margin which should be an extra take for people involved in bars, restaurants, hotels and many tourism enterprises. One person told me that if they get back to some semblance of normalcy, if could mean a margin of €8,000 to €10,000 in capital for their business per annum.

LEADER funding is administered by local development companies throughout the country. They feel that adequate provisions were not made for them in budget 2021 and they have been in contact with my office to say that no funding for LEADER projects for 2021 was earmarked in the budget, nor was funding identified for delivery and administration of the LEADER programme, which is onerous. I pay tribute to Doreen Graham and her team at Clare Local Development Company for all that they have delivered in the county over the years. The final thing they will say is that there is no interim national rural development programme in the programme for Government. They want to have more detail and it would be good to hear that.

I wish to raise two other points. One relates to aviation. I was delighted that Shannon Airport received €5 million of capital investment in the budget. It is much-needed money at a time when Shannon Airport is on its knees financially, with virtually no planes in the skies and Aer Lingus and Ryanair pulling back from the airport over the winter months. There was unassigned money in the budget relating to aviation transport and I ask that some of that be activated. We need to look at public service obligation routes, including guaranteed routes out of Shannon Airport to the mainland of the UK and onwards to continental Europe. As we negotiate Brexit and all that it will bring on 1 January, that connectivity in Shannon Airport, which is the most geographically peripheral airport in western Europe, will be all the more important. We urgently need to activate some of that funding. At the Joint Committee on Transport and Communications Networks this morning, the Minister, Deputy Eamon Ryan, said he would bring proposals to the Cabinet, and I ask the Minister for Finance and his colleague, the Minister for Public Expenditure and Reform, Deputy Michael McGrath, to do everything possible to capitalise the efforts required to save the aviation sector.

I wish to raise the issue of Moneypoint power station in west Clare. It is a giant of our economy. It contributes approximately one quarter of all commercial rates in County Clare, which shows how significant it is. When I come to Dublin, by the time I reach Naas, there is commercial premises after commercial premises.

There is quite a large spread of commercial activity, but Clare is very reliant on a number of giants. Clare wants to get more just transition funding. It has been provided to the midlands and is worth approximately €11 million, as the midlands prepare to adjust from peat burning to non-carbon production of energy. That €11 million supports employment, training and other transitional supports. Something similar must happen in west Clare given that by 2025, Moneypoint will not be burning coal any longer. Hopefully, it will be transitioning to carbon-free fuels. However, during this phase of ambiguity the west Clare economy certainly needs to see just transition funding coming to the area to equip the workforce. Some of them may lose jobs and some have already lost them. There are many other people in the local economy who will be adversely impacted by the wind-down of coal burning in Moneypoint in 2025. I look forward to hearing the Minister's reply later.

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