Terry Leyden (Fianna Fail)

I welcome the Minister of State, Deputy Parlon, to the House to debate the Finance Bill 2005. I commend the Minister for Finance, Deputy Cowen, for introducing this ground-breaking Bill. The Finance Bill gives effect to various changes announced in the budget, as well as introducing new measures. Among those previously announced are provisions which have the effect of taking minimum wage earners earning €7 an hour out of the tax net and reducing stamp duty for first-time buyers which will benefit many young employees. The Minister of State has spoken in detail on these proposals.

The Finance Bill 2005 contains several measures to amend and extend the tax system. One of the most important of these is the removal of those on the minimum wage from the tax net, which is a major breakthrough. The Government is working hard to counteract the destructive interaction of tax and social welfare and its corrosive effect on the motivation of the workforce. The removal of tax on minimum wages will encourage thousands of people back into the workplace.

The Bill will be a symbol of fairness and decency for all those on the minimum wage. The cut in stamp duty for first-time buyers will allow thousands of young people jump onto the property ladder for the first time. The provision of a more stringent policy on tax evaders allows for a fair balance between those who comply with and those who evade tax obligations. It punishes the evaders and rewards the compliant.

I commend the Minister for Finance and the Minister of State for initiating the facility to complete PAYE returns electronically. The Bill provides for these taxpayers to complete returns on-line and to avail of various self-service options for dealing with their tax affairs, including requests for reviews of liability, and an automated telephone system for ordering forms and leaflets and claiming certain tax credits. This innovative scheme is already in force, thanks to the Minister and the Minister of State.

I recently received an e-mail, presumably from Bank of Ireland, which I ignored, stating that there is a major loophole in the State's special savings incentive account scheme. This was highlighted in yesterday's Evening Herald. The e-mail stated, "The Government bonus given to investors in the Special Savings Incentive Accounts (SSIAs) could be lost if they fail to fill out a disclosure notice three months before their savings term ends." It added that holders of special savings incentive accounts could lose up to €5,000 when the scheme matures if they do not meet the Revenue Commissioners' guidelines. It also stated, "By incurring a 23 pc tax on both principal and interest, it would be as if they never got the 20 pc government top-up on their contributions."

The public's fears about this should be allayed. There is a scaremongering tactic afoot which makes it appear that the Government is tricking people out of their money. I hope the Minister of State and his officials can clarify this issue. Account holders are required to submit a form to the Department prior to the ending of the scheme and this should be clarified because anyone who has invested in this scheme expects his or her reward and should receive it. The benefit of the scheme should not be lost through this kind of red tape. I hope the Minister of State and his officials will examine this issue.

I am pleased that the Minister for Social and Family Affairs is providing that the returns on these accounts will not have implications for social welfare recipients. The e-mail, sent to many people, including all Oireachtas Members, raises serious concerns in this regard. I hope the Minister of State will consider this when he is preparing for Committee Stage of this Bill.

We accept that applications for planning permission under the upper Shannon tax incentive scheme had to be lodged at the end of December 2004. Bona fide planning applications had to be lodged with county councils by the end of December 2004. However, the Minister of State should consider the completion date coming up to the beginning of 2006 vis-À-vis the Finance Bill. In many areas, people could not avail of the scheme because the infrastructure was not in place. It would be worthwhile if the Minister of State and the Minister, Deputy Cowen, considered later in 2005 and early 2006 a further extension of at least one year. This would allow for the completion of projects which were granted planning permission at the end of 2004.

Local authority certification indicated that the infrastructure was not in place at the time to allow for the development to proceed. A number of small sewerage schemes have not yet been completed. I do not think the Minister of State's constituency availed of the upper Shannon scheme but it benefited from other tax incentive schemes such as urban renewal schemes. These will also be affected because the closure date is similar to that of the Shannon tax incentive scheme. I ask the Minister of State to consider sympathetically this issue. I am aware that there is a tendency to continue extending dates, which is frustrating for Departments. However, an upper limit will arise and the Minister should consider this issue.

Will the Minister of State indicate when he expects to receive the next report of the decentralisation committee? It is regrettable that the chairman, Mr. Flynn, decided to resign because he was making an excellent contribution to the committee. I hope his unfortunate resignation will not give rise to unnecessary delays in this regard. It is important that decentralisation to towns like Roscommon, where the Land Registry is proposing to locate, goes ahead, that the site will be acquired and the planning application will proceed. I hope the Minister of State or his colleague will visit Roscommon in the not too distant future to open the new offices where both Ministers dug the foundation stone in 2002. The building is now practically completed to an extremely high standard and I compliment the Office of Public Works and the architectural firms involved in the work.

The building is located on the grounds of the old Convent of Mercy secondary school in Roscommon. I recently inspected the building from the outside and it is being completed to the highest possible standard. It will be of major benefit to the town of Roscommon. For the first time, all the offices of the State are sited in one location. It is a one-stop-shop. The staff of the Departments of Agriculture and Food, Social and Family Affairs, and other Departments, the driving test centre and the public are being provided with extremely good conditions. I hope the Minister of State will visit the area in the not too distant future to inspect the work he and the Minister, Deputy Cowen, commenced by approving the project.

The design and development of the new State buildings by the Office of Public Works are to the highest possible standard. Aesthetically they fit in very well with the old convent grounds, much to the delight of the public in Roscommon, some of whom were concerned about the location in the beginning. The Minister of State's Department will be in consultation with the local authority in Roscommon to ensure there is proper traffic management leading to a free flow of traffic because the project is located beside the Convent of Mercy secondary school. As the school has more than 600 pupils, sometimes there is traffic congestion in the area in the morning.

The Minister of State might consider the refund of VAT for tourists, which is a very attractive scheme. However, I wonder if the returns justify the scheme from a tourism point of view? While I am aware that the return of this VAT to individuals results in an increase of exports from Ireland, the scheme is not reciprocated in the United States of America. I am not saying the scheme should be discontinued, but all such schemes should be reviewed to ensure they benefit the economy.

I commend the Bill to the House and thank the Minister of State for his excellent speech on Second Stage. Thank you, a Chathaoirligh, for giving me an opportunity to speak on the Bill.