Deirdre Clune (Fine Gael)

This budget is about getting the country to a position where the economy can recover. We have seen the difficulties the Government has had in the attempt to take €3.8 billion out of the economy. Next year there will be further attempts to rectify the fiscal situation.

I will focus on jobs and job creation and how they are dealt with in the budget. We need to get people back working. Only then will we be in a situation where we can move towards recovery. I am glad the Minister of State with responsibility for small enterprises is present for this debate. The importance of the 12.5% rate of corporation tax should never be underestimated. It is very important and there is a commitment in the programme for Government that it will be retained. The Minister for Finance, Deputy Michael Noonan, mentioned its importance in his Budget Statement today. It is very important for the multinational sector and many Members would have been lobbied about it, particularly those who have representatives of that sector in our constituencies. I welcome the renewed commitment to it. Indeed, when the Taoiseach addressed the country last Sunday night, he restated the importance of the 12.5% corporation tax rate for investment in this country.

There is also the proposal today to introduce the special assignee relief programme which will allow multinationals and indigenous companies to attract key personnel to facilitate development of their businesses. That was a proposal from both the multinational and indigenous sector and I am glad it has been addressed in the budget. Companies which wish to export to Brazil, Russia, India and China, or the BRIC countries, and South Africa were also mentioned today and a facility has been developed whereby an Irish-based company that spends 60 days developing markets for Irish products in those countries will get additional tax relief.

The International Financial Services Centre is also important. The Taoiseach launched a strategy statement on that last summer. We should not underestimate its contribution to the Irish economy in terms of the €1 billion taxes that are paid and the 30,000 people who are employed there. It is a strong part of our economy and continues to perform very well, but it must be protected.

Indigenous industry should not be neglected; the economy is not all about foreign investment. Last week, the Minister of State, Deputy John Perry, produced a report which I hope we will get an opportunity to discuss in this House. The loan guarantee, the fund that was announced last week and the changes in the research and development tax credit will be very important. Targeting credits at research and development has generated a very positive response, as I am aware from the sectors involved. The corporate tax exemption for new start-up companies has been extended to 2014. These are all small measures to ensure that we protect small business and encourage the development of more business. Of course, there was also the jobs initiative announced in the summer which saw the VAT rate and PRSI contributions reduced. That initiative has been acknowledged by the tourism sector as being very important in attracting business to this country.

The agrifood sector is one of the shining lights in the economy and the Minister, Deputy Noonan, announced various measures today to facilitate the transfer of land to the next generation to encourage and tie-in the young people who are involved in the agriculture sector. It is well known that agricultural colleges are inundated with applications and do not have enough places for applicants.

There are positive aspects for the jobs market. The funding for the IDA and for community enterprises has been maintained. The property activation measures are very important. The mortgage tax relief measures will be phased out from the end of 2012 so if people do not buy next year, they will not benefit from mortgage interest relief. It is a very clever initiative and is welcome. I hope it will be a kick start in terms of getting us to the point where there is a floor for the property market so it can move to recovery.