Feargal Quinn (Independent)

I believe this Bill is not welcome as it imposes even greater hardship on people but Members must take a longer-term view and from that perspective, they do not have a choice. The reason it is not welcome from my point of view is that I dislike Bills with such a tight time constraint. While this is not the Minister's fault, I believe that good legislation requires a second or third look. I was highly impressed by the contribution today of the Minister, Deputy Brian Lenihan. He came into the Chamber without his notes, unfortunately, and spoke for ten minutes without them. I would like to think I could do the same when I speak because he certainly demonstrated to Members how much in control he was.

There is a real need to get the economy back on track and there are good signs in this regard, some of which were mentioned by the Minister. The ESRI has stated that the economy will grow at a reasonable rate of 1.5%, which admittedly is a little more slowly than had been thought previously. The institute has also predicted that the number in employment will fall but there also were some good signs the Minister mentioned today. In particular, I refer to how well our exports are performing.

I was somewhat surprised by certain Independent Members of the Lower House who voted for the budget measures a few weeks ago but who now appear to have backtracked with an election in sight. I believe a little politicking is taking place in this regard. Cuts must be made and there is no choice. Unfortunately, those on low incomes must also take up a burden through the universal social charge, although I believe one must protect some of those who are worse off. I note that widows, who previously were not subject to the universal social charge, must now contribute. The Sinn Féin proposal that we should raid the National Pensions Reserve Fund this year and then go to the bond markets next year appears to make no sense and really must be exposed. Some of these suggestions are simply way out of line.

As I noted, I am concerned by the speed of passage of this Bill and refer to an interesting article by Brian Keegan of Chartered Accountants Ireland. He has argued that because tax law can be complicated and is so extensive, it is notorious for producing unintended outcomes and that consequently, Members should give it far more time than they normally do. I am concerned by the social charge changes in the Bill, which I believe will affect small and medium-sized enterprises in particular. The Small Firms Association has expressed concern in this regard and has stated that the raising of the universal social charge for the self-employed owner-manager is not encouraging for small businesses. However, when asked about tax, etc., the association stated that a reduction in red tape would be of much greater benefit. Can something be done to remove such burdens? In this case, it appears as though such burdens are being increased in many cases. It was interesting to hear President Obama's recent speech in which he stated the aim is to find a way to reduce the amount of red tape in which small and medium-sized businesses - I believe a different term is used over there - are involved. This also applies here in Ireland.

I refer to an issue that I introduced into the House last week and which really incensed me. Ireland has a great opportunity to do something about wind energy in particular. However, although there have been 300 applications for wind generators in the last three years with huge investment potential, not one has been brought to fruition. I do not know the reason for this and I gather the delay is caused by the involvement of different Departments. I will repeat the example I mentioned previously of an Irishman who was involved in wind generation here and who spoke to a group of Oireachtas Members last year but who has gone to the United States. He proposed to build a wind farm somewhere in Texas of 100 or 130 windmills - I cannot recall the exact number - and asked how long it would take to get permission. He was told that as that day was Wednesday, he should have permission by the following Wednesday. In other words, he got permission within one week. There is a concept underlying this anecdote to the effect that one can do things. It is not simply about taxes, income or charges but is an attitude asking what can be done to remove red tape from small businesses in order that they can get to work. Retail Excellence Ireland has also produced some interesting figures on the number of retailers. It expects 400 retailers to go out of business in the month of January because it is so difficult to operate a business in the face of a loss of public confidence and something must be done in this regard.

I seek answers in respect of three aspects of the Bill. At a time when innovation is so high on our list of priorities, I am concerned that we have removed the benefits that encouraged patent income. This has been removed since budget day and is a matter of real concern because we should be encouraging patents. Second, I must be the only Member who does not share the concerns of others in respect of bank bonuses. If one is running a business of any kind, one will want the best people to do it. Admittedly, if we own the banks ourselves, we can decide what to do about bank bonuses, as we would not wish to overpay people. However, in the case of someone who owns a business or a bank and who wants the best person for the job, it seems to be simple begrudgery to state that owner will not be permitted to get the best person because the State will levy tax at 90% or whatever is the solution. In this regard, I worry about the IFSC and whether there is a danger that the centre will be less attractive to investors than it otherwise would be.

My third point of concern arises from a letter I received, as perhaps did other Members, on the removal without warning from first-time buyers of the benefits pertaining to stamp duty. The aforementioned person who wrote to me stated that he had saved all his life for a house and together with his partner had decided to buy a house. They were ready to conclude the deal when the stamp duty changes were introduced. He wrote about how the stamp duty increase and general tax increases imposed a fairly heavy cost on him. Can something be done in this regard? My correspondent suggested the introduction of a transitional period which would delay the implementation of that measure until perhaps next June, to facilitate people who already had made a decision to buy a house for the first time.

I am concerned that in the first year of operation of a new tax system, that is, this year, a taxpayer with income tax and capital gains liabilities could have as many as five different dates for filing returns to meet their tax liabilities and pay their pension contributions. This is a time when one should be trying to simplify such obligations and should be considering how to make the tax system much more simple. However, it appears as though the present system is very different to the pay and file system that was initially intended. Such simplification should be encouraged and were we to manage to find an easier system, we would increase the revenue available to the State. I notice the Cathaoirleach is signalling that I should make way for Senator Harris.