Seanad debates

Thursday, 16 June 2011

Finance (No. 2) Bill 2011 (Certified Money Bill): Committee and Remaining Stages

 

1:00 am

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)

It is a general enough amendment which allows us to discuss something. In fairness, there are regular debates in both Houses. Presumably, when the committee system to which Members in this House will be party gets up and running, those reports by Government to those committees, and to both Houses, will provide an opportunity to discuss these issues.

No one makes the claim that one tax change or a group of tax changes will automatically lead to X number of jobs. What is important is that we have made tourism a key aspect of our jobs initiative. There is an acceptance of that. Built into that is the reduction on VAT from 12.5% to 9% for a number of key areas as a means of boosting demand within the sector, and also reductions on the PRSI side. Another key aspect of the jobs initiative, which is not in this Bill but is in the forthcoming Social Welfare and Pensions Bill, is the reversal of the decision on the minimum wage taken by the previous Government.

In the round, it is the view of Government that we can stimulate the domestic economy. We cannot disaggregate all of the jobs created from this initiative from jobs in the general economy. Our purpose here is the same, namely, that we will have an opportunity on a regular basis, whether bimonthly or not, in this House, the other House or in committees, to have a debate.

If one looks at the clear proposals we are setting out on the airport tax, as Senator O'Brien will be aware, in the first instance it only comes about when we have new deals with the airlines. Second, by the end of 2012 we can change tack on passenger numbers if we have not seen those numbers increased. That is a specific area where there is real live data. Perhaps Senator O'Brien's point is well made, that we need to improve the way in which the data for other aspects of the economy is governed and is brought to the attention of the CSO and the Department of Finance.

There is no great difficulty with what Senator O'Brien wants. We will have those debates. It will also be patently obvious, come the end of the year and halfway into next year, whether or not we are seeing improvement in the tourist numbers. That is the key aspect of what is at the heart of this proposal.

Senator Byrne asked about the newspaper issue. I am not aware of that specifically but I will to get an answer to that later in the debate.

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