Terry Brennan (Fine Gael) | Oireachtas source

Ar dtús cuirim fáilte roimh an Aire ar ais go dtí an Seanad. While there are six Parts to the Bill and 108 sections, I can assure him I do not wish to speak on the 108 sections. He will be pleased to note that I wish to refer to three, in particular, the sections dealing with SMEs, the local property tax and the rebate to HGVs and bus operators.

The Bill builds upon the SME supports introduced in the budget and includes a number of new measures to support SMEs. These are welcome. The SME sector is close to my heart. I believe it will be the driver of economic recovery in every county across the country and the Government is committed to supporting this key sector. I am delighted to acknowledge this fact. The SMEs are the key provider of jobs across the country and with more than 250,000 private sector jobs lost between 2008 and 2011, it is this sector that will lead the recovery in the domestic economy and will create the jobs to make the serious inroads into our all too high unemployment levels. Our unemployment figures are still far too high as I have stated on a few occasions.

Each of the measures included in the Bill is designed to help this critical sector to trade, to grow in new products and in new markets, to sustain existing and, most important, to create new jobs. If each of the SMEs was to create one job - I am not sure of the total number of SMEs in the country but it is in the region of 200,000 - that would be 200,000 or if 50% was to create one job, it would be in the region of 100,000, one can imagine what that would mean to the economy.

These initiatives will build on the supports that are available through Departments, agencies and the measures introduced to support credit flow into the SME sector. The Minister's initiatives to improve credit flow are to be applauded. It is fitting that the Government should do everything in its power to support small and medium enterprises to grow and develop. The Minister is doing so. The ten-point tax reform plan introduced and announced in the budget includes measures to make a real difference to the SME sector such as reforming the three-year corporation tax relief for start-up companies, increasing the cash receipts basis threshold for VAT, amending the close company surcharge to improve SME cashflow and extending the foreign earnings deduction for work-related travel to certain additional countries, including countries in Africa. The key employee provision of the research and development tax credit regime is amended to reduce from 75% to 50% the proportion of time such an employee must spend solely on research and development activity to qualify for the credit. The amendment should assist small and medium enterprises to avail of the provision.

The Bill includes a small number of amendments to local property tax. The changes apply in specific circumstances. The local property tax as it applies to the vast majority of taxpayers is unchanged. An amendment to provide an exemption for properties affected by pyritic heave is being finalised. It is proposed that where a property has been certified to standards specified by the National Standards Authority of Ireland as having been affected by pyritic heave, an exemption from local property tax can be claimed. That is rightly so. The deferral of local property taxes will be permitted in circumstances in which the personal representative of a deceased person's estate is responsible for payment. The deferral is for up to three years to allow for the administration of an estate without causing cash flow issues for personal representatives. The deferral is for a limited period to avoid creating an incentive to deliberately delay the administration of an estate to avoid the payment of local property tax. Any increase in the chargeable value of the property arising from expenditure on modifications to accommodate a disabled person may be disregarded, which is welcome. Properties owned by local authorities and approved housing bodies will be deemed to be valued in the lowest valuation band for the first valuation period.

The Bill also gives effect to the auto diesel excise duty relief for licensed and tax compliant hauliers which was announced by the Minister in his Budget Statement. Following further consideration, the relief will be extended to bus and private tour operators. Will it apply to the national carrier, Bus Éireann, from 1 July 2013? To be parochial, I come from the most scenic part of the country, the Cooley Peninsula, where there are a number of HGV and private bus operators. Having made several representations and been on delegations, I commend the Minister for listening to us at an early stage. The provision is of great significance to HGV and bus operators. More than 300 people in my part of the world work in heavy goods and bus operations. The provision will be a great boost and create jobs for HGV and bus drivers and bring more tourists to the most scenic peninsula in the country.

I acknowledge the significant contributions the Minister for Finance, Deputy Michael Noonan, the Minister of State, Deputy Brian Hayes, and their departmental officials have made to the compilation of the Bill. Cúpla mí ó shin, dúirt an tAire liom go mbeimíd "all right" agus sin mar atá sé. Go raibh maith aige.