Seanad debates

Wednesday, 12 March 2008

Finance Bill 2008: Second Stage

 

1:00 pm

Photo of Jerry ButtimerJerry Buttimer (Fine Gael)

The Finance Bill is presented to us at a questionable economic time. As Senator Hanafin correctly stated, the US economy is in recession even though President Bush says it is not. Senator Kelly referred to it. Perhaps we would say Ireland is in neutral or perhaps moving backwards, although the Members opposite might not agree.

There are serious questions raised about the competitiveness of the economy at this time and it is against this backdrop we debate the Finance Bill. The threats are that our competitiveness has decreased and continues to do so, our rate of inflation is ahead of that of other European countries, and our market share of exports is low. The Tánaiste and Minister for Finance, Deputy Cowen, had a surplus and now there is a deficit, which begs the question about his prudence in managing the economy.

Senator Hanafin spoke of housing starts. Total house completions for the fourth quarter in 2007 were down on the same period the previous year. Unemployment, inflation and headline crime are all up and our gross domestic product growth is only half what it was last year. Let us have a realistic debate about our economy and how it is managed.

Whether we like it or not, the Government has blown the funds that resulted from the boom. It has gone berserk. An example of the net result is that in Cork South-Central there is no National Roads Authority road programme. There is a crying need for an upgrade of the N20 to accommodate movement from the port of Cork to Ringaskiddy, but nothing has been done. We have traffic gridlock as part of the Ballincollig-Bishopstown access. Promises were made by the Minister for Enterprise, Trade and Employment, Deputy Martin, with great fanfare, to the effect that new flyovers that would be included in the roads programme, but ten years later we still have nothing at this time of so-called economic prosperity. Perhaps the Minister for Defence, Deputy O'Dea, is delivering for Limerick but Deputy Martin is not giving much to Cork South-Central. Perhaps the Minister, Deputy O'Dea, will have a word with him. I know the Minister is a man of great influence in Cabinet. Given his articles in the Sunday Independent, people will listen to him. Perhaps he can talk to the Minister, Deputy Martin, about delivering the roads programme for Cork South-Central.

With regard to the Finance Bill, we have seen complete incompetence by a Minister who has been handed a cash cow. This week is national neurology week, yet there are 22 vacancies for neurosurgeons. We have waiting lists for treatment and have doctors refusing to send people for treatment because it is a pointless exercise on account of the endless waiting lists. Three reports were commissioned, but nothing has happened as a result. What does that tell people and patients?

Senator Hanafin referred to rented accommodation in his remarks. The situation now is that the Private Residential Tenancies Board has closed its full-time office and is no longer open to the public. Landlords rent out rooms, claim all the credits, there is little accountability and the public is left with nothing.

I wish to take issue with sections 69 to 81, inclusive, which deal with measures regarding off-licences. There is a marginal increase from €250 to €300 for an off-licence fee. This is very disappointing given the fact that our alcohol consumption pattern has increased dramatically. Senator O'Reilly mentioned there has been a retreat from pub drinking to drinking in the home. This has been led by growth in the off-licence industry. It is time the nation said "Enough is enough" with regard to the sale of alcohol in off-licences, shops and petrol stations. The situation has gone beyond a joke. Statistics demonstrate that between 1986 and 2006, average alcohol consumption per adult was 10.1 litres. This has risen to 13.36, which is a 32% increase. This is a staggering increase by any stretch of the imagination, yet there has only been a marginal increase in the fee for an off-licence.

I welcome the measures in the Bill with regard to palliative care. I urge the Minister, Deputy O'Dea, to approach the Minister, Deputy Martin, on another issue. This week in Cork the Minister, Deputy Martin, opposed the co-location of a hospital, a proposal which is promoted by Government policy. Section 26 of the Bill proposes tax incentives for co-located hospitals. What would happen if the Minister, Deputy Martin, were Minister for Health and Children? I would like to hear whether they would go ahead.

Senator Kelly referred to the issue of defibrillators. The situation in this regard needs to be addressed urgently. There is a 21% VAT rate on defibrillators, which is unfair. Many voluntary and community groups raise money to buy defibrillators, but they are penalised with VAT. I urge the Minister to remove the VAT on defibrillators.

I am disappointed that the Cork docklands development has not been included in the provisions of the Finance Bill. We were told by the Minister's colleagues in Government who are from Cork that it would be included. We were told previously that it would be included in the budget provisions, but that did not happen. Tax breaks are essential for this critical project. I appeal to the Minister, Deputy O'Dea, to return to the Minister for Finance and the Minister for Enterprise, Trade and Employment, Deputy Martin, to urge them to include tax breaks for Cork. Howard Holdings published its plans for the docklands this week which propose significant innovative regeneration for the city. We need further debate on balanced regional development with an emphasis on Cork as our second city. Cork is losing out as a result of the access from Dublin to Belfast. We need to redress the imbalance. I know I will be told that EU regulations restrict this but I think that is a red herring introduced because of the failure to make the required provisions in the Finance Bill.

I thank the Chair for the opportunity to speak on this. I hope those of us who seem critical of the economy are not seen as talking it down. As Senator Kelly said, pointing out the errors of the Government's ways does not mean we are talking it down, rather, we are pointing out the errors of the Ministers' ways.

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