Seanad debates

Thursday, 10 December 2009

5:00 am

Photo of David NorrisDavid Norris (Independent)

I fundamentally disagree with some of my colleagues, including one in particular whom I will not name because he is not here. Of course FÁS should get €56 million in funding. We have to make sure it is properly spent. That should be a matter of course, particularly after the recent scandals. It is vitally important that people are retrained and up-skilled. I do not mind if some people are cleaning graveyards or doing the kind of work which greatly benefitted the James Joyce Centre in North Great George's Street. They were superb. I have come across scheme after scheme in deprived areas of this city. The Minister of State has my full support for the allocation of €56 million to FÁS. We should be spending money in such areas during this kind of economic crisis.

The area of mortgages is very difficult. Senator Butler provided me with some information which I have not had time to digest. I heard him put it on the record so there is no need for me to do so. I note the Minister, Deputy Lenihan, said in the other House that it is important to remember that only 20 homes have been repossessed by the institutions covered by the Government guarantee scheme in the first three quarters of this year. So bloody what? It is a disgrace. Not one single home should have been repossessed by the institutions which are fuelled by taxpayers' money. I would like a further explanation on this, which banks were involved and the circumstances of each case. Some people may have been grossly irresponsible and thumbed their noses at the authorities and so on, but it is questionable. This situation does not cover the fact that many hundreds of homes have been repossessed by companies such as Start Mortgages, which is the heart of the sub-prime market. It is a point which must be taken into consideration.

I welcome the fact mortgage relief for those who find themselves in negative equity has been extended to 2017, which is a humane, decent and good gesture. I do not think it is good that the tax on booze had been reduced. It is madness. I heard the Minister, Deputy Hanafin, speak on this issue and she was completely wrong. She said this morning that there was no correlation between the accessibility and price of drink and alcoholic disease. That is nonsense. Not a single international scholarly paper supports that view; they all go in the other direction. The rate of VAT should have been reduced because of the movement in the other direction by the United Kingdom, and the fact we have a land border which cannot be patrolled.

I would like to address overseas development aid. It is a pity it has been cut by, I understand, €25 million. The Government solemnly declared on several occasions in various international fora that it would meet its target but it shows no sign of doing so. There is a lot of pain, which one listens to, understands and empathises with, as people are being squeezed by the budgetary measures taken by the Government, but there is a difference between pain and mortality. For some people in Africa and other countries which are marginalised, to be hit by the effects of climate may be a death sentence. I would like the Minister of State to go back and consult urgently with all the voluntary agencies, of which we can be enormously proud, to make sure no fatalities are caused by this measure.

I am in favour of the carbon tax. I have said for years that the polluter should pay. It is a much better idea than increasing the cost of licences and vehicle tax, but the large energy generators have been let off the hook, which is daft. I am not crazy about the car scrappage scheme because it also contains a concealed pollutant element. I welcome the provision made for retrofitting homes and the relief on the purchase of electric cars, which is the direction in which we should go. The car scrappage scheme will have a momentary effect with regard to some garages, but that is all it will do.

On the issue of the windfall tax, I have communicated with the Minister of State, Deputy Mansergh, or his senior colleague. I received communication from Lord Altamont, the owner of Westport House in Sligo which is in danger because he took on board an investment regarding some of the land which might fall under this provision. The Minister of State made some interesting comments about tourism in his contribution. It would be a tragedy if this house and estate collapse because of an unintended consequence of the windfall tax. I ask the Minister of State to examine its impact on heritage houses, many of which are threatened once again. The Knight of Glin put a very brave face on things recently, but he is under some difficulty.

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