Michael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I understand the legislation relating to benefit in kind was brought in in 2019. It has affected companies, particularly companies in the Duhallow region that I represent. We recently visited a number of small indigenous companies who have people travelling and have bases in Dublin and everywhere else. They spoke of how the benefit in kind impacted on key people they have, particularly on sales but also in meetings and so forth.

It is fine to look at the public transport system into and out of Dublin but many companies travel the length and breadth of the country and they are being penalised. The companies we visited with MEP Billy Kelleher a number of weeks ago explained to me that it incentivised doing more mileage to go over a certain threshold to kick in. It was having a negative impact on what was the idea behind it.

I welcome the initiative and that the Minister has provided in the Bill that the change to benefit in kind will not kick in but we need to look at it in its entirety. With all the things we have to look at from a national point of view, particularly for rural communities, we have to make sure that every place is encouraged to grow industry and that there is industry all over the island. The benefit-in-kind change particularly negatively impacted rural communities.

Cutting-edge and leading companies provide top-class employment in our region, including the likes of Munster Joinery, Avonmore Electrical and others. They are at the cutting edge of the products they produce but they have to go to the market to make sure their product is sold and they have to engage with their customers daily and weekly. It was put clearly to me that the benefit in kind would impact them and the people they employed. It was put to me that a wealth of knowledge had been built up in recent years and, if it is not financially beneficial to employees, they can, in the current market, go elsewhere for employment. It is hugely important for indigenous companies to be able to retain the huge bank of knowledge they have.

7 o’clock

In welcoming what has been done to date on benefit-in-kind, I ask the Minister to look at it going into the budget process for 2024, which is probably already starting. Will he make sure this is looked at in its totality, including the negative impact it will have? I believe what the Minister has done to the end of 2023 should be extended beyond this. It will not do what the Minister or the Government intends it to do. It will be a retrograde step because people will have to clock up more miles to get the benefit of it rather than looking at the option in some circumstances of taking public transport. It certainly was not fully thought out and given the effect of it that became clear at the end of last year and early this year it is welcome that changes have taken place.

I ask the Minister to take a more rounded view of benefit-in-kind. It is there to incentivise people and for companies to keep the best people possible who are out there selling their wares, selling their companies and selling what we are producing in abundance. I only speak for rural Ireland because I come from a rural constituency. Small indigenous companies produce top-of-the-range products and they should have no disincentive to being able to make sure they can employ the best people, keep the best people and keep the wealth of knowledge they have in their companies. Benefit-in-kind had a negative impact.

On the wider scheme in terms of going electric and electric cars, people's mindsets have changed. It has to be incentivised but there must also be an assurance that the facilities and services are in place the length and breadth of the country. I welcome the initiative to extend it to the end of 2023 and I appeal to the Minister to look at it in the negotiations and in the documentation he will be collating in the run-up to the budget to make sure it is extended beyond it.

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