Liam Twomey (Fine Gael)

It is interesting that the Bill is now going through the Seanad when the Taoiseach seems to have accepted that it is no longer unpatriotic to talk down the economy because he has acknowledged there are serious difficulties in the economy this year and into 2009. When we vote on this Bill tomorrow, we will be voting to bring an end to the period in Irish life known as the Celtic tiger era. We need to bear that in mind as we discuss the future of the economy.

When we consider legislation of this nature at a macro level, we are reminded it is regrettable that the Government has failed to make major changes to our economic structures over the last decade. The downturn in the economy is exposing the gross mismanagement of sectors of the economy which are under the control of the Government. The real changes which are needed to make a difference, such as the reform of the health services, have not been achieved. I do not accept that the eight centres of excellence for which Professor Tom Keane is responsible will bring about genuine reform. Such changes have been happening for some time, but they do not constitute the real reform that was promised to make the health service work for every patient. The reforms set out in many Government reports over recent years, relating to the benchmarking process and the health strategy, for example, have simply not happened. That such failures are having an effect on the economy is evident from the significant amount of money we are spending on a health service that is not as efficient as it is supposed to be. The structure of the HSE is not to blame in this instance — it is a question of how the health service is being managed by the Government.

After a decade of unprecedented economic growth, it is regrettable that we do not have a completed motorway between any two of our major cities. When a major infrastructural programme was undertaken in the United Kingdom in the 1960s, the whole of that country was quickly crisscrossed by motorways connecting all the major cities. We have failed to connect two cities despite enjoying a decade of substantial growth.

When the Minister, Deputy O'Dea, is summing up this debate, perhaps he will summarise the changes being made to Government expenditure on social welfare. What is happening in that sector? There seems to be a strong clampdown on paying temporary and long-term disability benefit to the customers of the social welfare service. As a general practitioner, I am often asked to sign forms on behalf of people. I have noticed that many people are now being refused disability payments and are having to appeal. Has there been a serious change in this respect?

One of the most farcical aspects of this Finance Bill is the suggestion that it forms part of the greening of our economy. Section 31, which sets out the new tax relief regime for cars used by businesses, amounts to no more than window-dressing as it will only apply to cars which have certain CO2 emissions. The Minister for Finance, and the Government as a whole, could demonstrate the seriousness of their intent by applying the section 31 limits to ministerial cars. If Ministers insist on driving cars which emit certain CO2 levels, they should have to pay the additional charges themselves, rather than having them paid by the State. That might encourage the rest of the country to choose cars with reduced CO2 emissions. When I hear Ministers lecturing the rest of us, I am reminded of a Minister in England who lectured the people of that country about the greening of the economy before sitting into a 4.2 litre Jaguar. The people of this country, similarly, should not have to take lectures from Ministers who sit in the back seats of cars which produce significant amounts of CO2. The Minister for Finance should amend this legislation at some stage so that section 31 applies to him and his Cabinet colleagues.

The tax reliefs applying to energy efficient mechanisms for business are purely restricted to businesses. I do not understand why they do not also apply to ordinary customers. If one wishes to improve the efficiency of one's home by installing solar panels or geothermal heating systems, one has to apply for a grant and then wait up to 12 weeks for it to be approved. It seems that not enough funding is available to meet the costs of those who have applied for the grant. If one starts one's building work before one applies for the grant, one will not get the grant. The Minister for Finance could make things easier by making a tax relief of this nature available to ordinary people who want to make changes to their homes. One should be able to apply for a tax relief rather than a grant. Every one of us has received a letter from the Revenue Commissioners pointing out how we might be able to claim additional tax relief on the taxes we have paid. It would be easy to slot a tax relief of this nature into the existing structure. If people can claim tax relief on medical expenses, union fees and bin charges, they should also be able to claim tax relief on the installation of energy efficient systems.

The Minister, Deputy O'Dea, has claimed that Ireland is a low tax economy. While it may be a low income tax economy, it is not a low tax economy overall. VAT is paid on almost everything in this country. I notice that the only reduction in VAT that is being made is on condoms. VAT is paid at an extremely high rate on everything else. Most medical equipment has a VAT rate of 21%. If people decide to buy an automatic defibrillator for their community, they are charged a VAT rate of 21%. Excise charges are extremely high as well.

Fuel prices have been increasing at a rapid rate, especially over the last 12 months when the price of oil has doubled. The largest contributing cost to the price of each litre of fuel that is sold at the pumps is excise, VAT and Government charges. The Government gets the largest percentage of the money paid for petrol and diesel. If it wishes to improve the economy, it should consider how much it is taking from consumers at the petrol pumps. It is fleecing people.

Any suggestion that this country is a low tax economy is rubbish — it is a low income tax economy. The Government gets tax revenues in many other ways. The high rate of VAT that is charged on many everyday things imposes additional costs on those who can least afford them. People on low incomes end up paying some of the highest prices as a result of VAT.

The Minister for Defence spoke about the changes which will affect people who are earning more than €200,000 per annum. Such people will not take much notice of the proposed vehicle registration tax and motor tax changes. It will not hurt them to have to pay an additional €300, €400, €600 or €1,000 per annum. People on lower incomes will be affected to a much greater extent. The measures in this year's Finance Bill are the subject of a great deal of spin. Fianna Fáil's new coalition partners, the Green Party, knows that if it does not go along with the farce of greening the economy, it will be seen to be achieving nothing in government. If we delve deeply into it, we will see that it is all a bit of a farce. If the Government is serious about making changes to our culture in the interests of greening the economy, it needs to make changes which affect everyone, including Ministers, who should not be exempt from the environmental changes to the economy which we will all have to endure over the coming years.