Feargal Quinn (Independent)

Well done, he stayed on the bike. However, when one is cycling uphill one has no energy left. Therefore, I am concerned that we are starting from the wrong place. We should be starting from half way down the hill rather than being at the bottom and trying to come up. This is why I am deducting marks from the Minister.

I will give him extra marks, however, for introducing the carbon energy tax. I urge him to take into account that this measure should not be revenue earning but behaviour changing. I was at a conference this morning on the environment where this topic was raised. It appears the plastic bag tax did not earn much income for the State but it changed behaviour. I would like to see the same happen in regard to carbon energy. The Minister has removed the benefits which applied to investing in wind production, for which he may have valid reasons. As this will have an impact on getting electricity from natural resources, he lost marks also for that measure.

I have taken marks from him for imposing tax on cheques, credit cards and so on. As that tax does not apply in the North it is possible we will lose business to the North. As this appears like the answer to the DIRT tax, perhaps we should be setting up the tribunal because of what we will encourage people to do. On the other hand, I support the increase from €19 to €40 in tax on credit cards because that is the most expensive way to borrow.

I am pleased the Minister stuck to his guns in regard to the 12.5% corporation tax for companies. It has helped our competitiveness in Europe, even though it is now being threatened by France and Germany. I think I am correct in saying that some of the steps he has taken do not affect companies but they will affect sole traders. The removal of the benefit will mean there will be much less incentive to expand one's business. If a sole trader wishes to expand a small factory it is less likely he or she will do so because he or she will have a cash flow shortage. The same applies to the capital allowance for plant, but it does not necessarily apply to large companies because they have the benefit of the lower tax rate. If one is a sole trader and wishes to invest in plant, it will be a disincentive to do so.

I will give the Minister marks for not touching tax on essential items. He has imposed a tax, however, on new homes. The price of a new home will be increased by 1% at a time when the first-time buyers' grant is being abolished, therefore he loses marks for that.