Deirdre Clune (Fine Gael) | Oireachtas source

We should all remember we are in a programme with the EU and IMF and the situation is difficult for everybody, but today we are 85% of the way there and the end is in sight. It was interesting to note that both Ministers, Deputy Noonan and Deputy Howlin, made the point that the end is in sight. However, the situation remains difficult for people. We cannot take ¤3.5 billion from any economy easily, but all the major parties are agreed that it is necessary to do this in order to get our finances back on track. There have been positive signs of recovery recently. The NTMA raised ¤7 billion in the markets and the ESB, Bord Gáis, AIB and Bank of Ireland have all been successful in raising funds. We have not reached the end yet, but within another 12 or 18 months we will be a long way along the road. The record results of the IDA last year were very positive.

I welcome the focus on SMEs in the budget and the various measures announced by the Minister for Finance, Deputy Noonan - particularly his ten-point tax reform plan - and I hope we will have the opportunity to examine that plan in detail in another debate. I also welcome the various initiatives outlined with regard to supporting SMEs. The Credit Review Office has been the subject of much discussion in this House and the fact that the Minister is providing extra resources for it is welcome. The office is working and engaging with SMEs and has been a positive force. I was encouraged to hear members of both ISME and IBEC say in a media interview this afternoon that this was a positive, pro-jobs budget. This is welcome. I do not say this as a Government supporter, but because it is important. The creation of jobs is the only way to get people back working and restore the economy. Therefore, the endorsement from ISME and IBEC is very positive.

The agrifood industry has been mentioned, as well as the tourism sector. The retention of the 9% VAT rate is very important, particularly for 2013 when The Gathering is to take place. That initiative has been successful, with some 3,500 jobs developed, and both the hotel and restaurant sectors have been very supportive of it. With regard to property, some of the initiatives announced last year have been gaining traction. Stamp duty was reduced from 6% to 2% for commercial property and this is showing some benefit. The Minister announced some initiatives in this area, such as real estate investment trusts, to encourage individuals and investors to get involved in investing in commercial properties. NAMA has a fund of ¤2 billion to help with this and with the upgrading of both commercial and residential projects. We need to get to the nub of the property problem and need to ensure that properties under NAMA's remit can be moved onto the open market or developed.

I welcome the Minister's statement with regard to the regeneration of certain areas. In Cork, the docklands have been identified as an area with huge potential.

The regeneration of this area, which is close to the city centre, has not been as successful as the regeneration of other areas in terms of attracting private sector investment. The Minister, Deputy Noonan, acknowledged this factor today. He is hoping to bring forward measures to encourage regeneration projects. We would welcome that because a number of local authorities throughout the country have identified areas that could be regenerated in order to attract investment. We need to do what we can to leverage funding from any possible source.

I welcome the announcement regarding the aviation industry. When the Minister mentioned that the details which were announced for the Shannon Airport area this week could be transferred to other areas, it immediately struck me that the Cork Airport area would be suitable for that type of development.

My time is almost up. I would have liked to have mentioned other areas. I will conclude by asking the Minister of State about the capital gains tax changes, particularly where individual land owners have received compulsory purchase orders from the National Roads Authority. Will the changes in the capital gains tax regime be applied to cases in which that process is already in place? I do not know if the Minister of State can answer that question now. It has cropped up. If the process is in place and the deal has been agreed, will the higher level of capital gains tax apply? I would like some details on that.