Seanad debates

Thursday, 16 June 2011

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

 

3:00 am

Photo of Thomas ByrneThomas Byrne (Fianna Fail)

I accept the Minister of State's rationale for the inclusion of hairdressing in the lower rate. My point was that it was something of a stretch for a Government Deputy to say on radio that it had been included because hair salons were increasingly located in hotels. Nevertheless, the Minister of State has made his point well. However, it is certainly a stretch to include the newspaper industry. The reality is that this sector is controlled by many of the people who would be in the top 20 rich lists compiled by some of these newspapers such as The Sunday Times. These are the people who will benefit from this tax break. Senator John Gilroy wondered why I was opposing these provisions. I do not oppose the section, but I wonder why, if the provision is extended so far as to include newspapers, why it could not be extended to include household fuels. I am not talking about the energy industry or motor fuels but household fuels.

The Minister of State did not fully answer my question as to whether representations had been made by the newspaper industry, including promises of jobs. In fairness to them, we constantly hear representatives of the tourism industry lobbying on this issue. They have made a very good impression as a representative body and we can be hopeful the industry is gung ho to create jobs as a consequence of this initiative. It has certainly raised expectations and played a good game and I am confident it will do a good job. However, I am not convinced that the same applies to the newspaper industry. We have not heard its representatives on radio lobbying for these changes; therefore, I wonder what form their lobbying might have taken. The sector does not have a good record in terms of employment. I raise this issue as a matter of social justice. Senator John Gilroy may criticise me for raising it, but he will have to go back to his constituents and admit that the Government gave a tax break to the Irish Examiner but household fuel prices will remain the same.

I welcome the Minister of State's indication that there may be more money for the fuel allowance scheme. He mentioned the home energy saving scheme and the warmer homes scheme, initiatives introduced by the last Government. He is correct that the best way to keep a home warm is to retrofit it. That was a very successful programme, but one of the first actions of the new Government as part of the jobs budget was to reduce the grant available to private contractors under the scheme in what was a booming industry. That has made life more difficult for them. If the provision has the effect of having more houses retrofitted, I will support it.

The Minister of State also referred to the summer works scheme. As I said before, there are fewer projects going ahead this year, certainly in my own county of Meath, than there were last year, but these measures are dressed up successfully as part of the jobs initiative.

My questions on the newspaper industry were not satisfactorily addressed by the Minister of State, but my colleagues and I will not oppose the section on that basis.

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