Seanad debates

Wednesday, 24 March 2010

Finance Bill 2010 (Certified Money Bill): Second Stage (Resumed)

 

3:00 am

Photo of Jerry ButtimerJerry Buttimer (Fine Gael)

I look forward to Senator Donohoe's recommendation on provisions for research and development. It is important the Bill fosters innovative changes for industry and allows businesses to prosper. Senator Butler spoke about entrepreneurship, rewarding enterprise, the smart economy and employment, with which I agree. We need to look after our small and medium sized enterprises.

However, when the economy is rebalanced, with what will we be left? The Government's approach has been about cutting services, increasing taxes but not rewarding entrepreneurship or providing an employment stimulus. There is no provision in the Bill to show if we are serious about research and development or building partnerships with our third and fourth level educational institutions.

Neither does the Bill focus on restrengthening the economy's competitive position or exports. I am concerned with the cost of doing business in Ireland. Any small or medium enterprise or chamber of commerce will tell horrific stories about these costs. These businesses, which employ 700,000 people, must become the mainsail with which we navigate the economic vessel out of recession.

I am already concerned businesses in the Border counties are struggling because of the discrepancies with VAT rates and between euro and sterling. Outside of the Border area, there are very little supports available to businesses too.

According to Members opposite, worldwide factors not Government's policies are responsible for Ireland being in recession. Ireland was the first in the eurozone to get into recession and will be the last out of it.

I accept we face serious issues but yesterday FÁS was spread over three Departments and the word "employment" was removed from the name of one. No innovative policies were announced during the reshuffle while the Taoiseach said tourism, sport and culture will help us. This is from the Government which will not reduce the travel tax, will not work with Michael O'Leary on the problems with hangar 6 to deliver jobs, or separate Cork and Shannon Airports from the Dublin Airport Authority. It will be more of the same from this jaded team of a Government. While I accept a reduction in the deficit is required, at the same time there needs to be a stimulus plan and a hope of coming out of the recession. Confidence has been eroded. People are not spending and jobs are being lost. The fundamental task of Government is to create jobs and employment and opportunities for entrepreneurs to employ. The backdrop of this Bill is very bleak. Some commentators believe we have not yet hit the bottom while others say hope is on the way and the bright lights of the faraway hills are coming closer. Those in retail say they are struggling big time. Banks are not helping with overdrafts, suppliers cannot get paid, staff numbers have been decimated and people are not spending. Deputy Coughlan, the Tánaiste and former doyenne of the Department of Enterprise, Trade and Employment, as it was, said our young people emigrated for the ceol and the craic. I better be careful what I say in case I am accused of all kinds of things. I challenge the Members opposite to agree with the Tánaiste that thousands of young people have emigrated because they want to travel the world for the fun of it. They have not, as Members know well. They left because they cannot get work and they see no hope. They see no vision or policies from Government. The fundamental task of Government is to be pro-employment and pro-enterprise.

I refer to Cork city and county. The Minister for Foreign Affairs, Deputy Martin, promised the Cork docklands project would develop and evolve but there is not a scintilla of a line about the Cork docklands project in the Finance Bill. There is no reference to funding for it, nor for the eastern gateway bridge. There is no vision and no stimulus plan. Senator Mooney referred to a public works scheme. Where is it in the Finance Bill? Roads in this country are in decay, bridges are falling down and quay walls in Cork are crumbling. President Obama presented his stimulus plan to the states' governors and provided them with a chunk of money to fix roads, build bridges and create jobs. We cannot do that but we can dedicate billions of euro to bailing out banks in our failed banking system. Light touch regulation is symptomatic of Fianna Fáil's approach to Government. Every day on the Order of Business, Members opposite give out about the number of public sector workers, their pay and what they are doing yet these are the same people who embraced the public sector unions five to ten years ago, wrapped the euro note around them and threw money at them under the guise of Deputy Bertie Ahern's leadership. Last December the Government deliberately brought down social partnership, the first Government in a quarter of a century to tell decent people they would pay €4 billion. That is not what social partnership is about. I challenge the Minister of State, Deputy Connick, to tell the Government to reopen social partnership, engage with the public sector unions and workers and embrace the Houses of the Oireachtas as one of the pillars of social partnership. Public sector workers have taken a disproportionate hit.

I refer to the windfall tax and the example of a GAA club that wants to sell land, not to make money for the club but to upgrade facilities and provide services to young people. I hope the Minister will examine this. Senator Burke referred to the issue in Westport. We must examine the case of sporting clubs that sell a portion of land, without moving out, in order to upgrade facilities or build new facilities. That must be examined in the Bill.

I appeal to the Minister and the officials to re-examine the airport tax. It is a barrier to doing business. We have increased VAT on local authority services to 13.5% and we are taking away support in PRSI, dental and optical benefits. This can be an innovative Finance Bill to retrain people and reward entrepreneurs rather than pummelling public sector workers. It is a missed opportunity, the hallmark of this Government's lack of vision and policy. I wish the Government would see sense, take to the country and hold a referendum on itself because those who have lost their jobs and those in employment will speak clearly.

There is a different way, called the NewERA, which is an innovative and exciting approach to creating jobs. We should embrace it but sadly the Government has not done so.

I congratulate the Minister of State, Deputy Connick, on his appointment.

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