Tom Shehan (Fine Gael) | Oireachtas source

In light of the proposal to bring forward the budget to 15 October, I ask that the Leader invite the Minister for Public Expenditure and Reform, Deputy Howlin, to the House so that members can impress on him some ideas for the forthcoming budget. In the interests of a stimulus package, I have one idea, namely, the refit of derelict houses. Hypothetically, a 20% grant towards a €60,000 refit would cost the State €12,000. In terms of breakdown, €40,000 of the €60,000 would go on materials and the remaining €20,000 would be spent on labour. With VAT on materials being 23% and VAT on labour being 13.5% this would yield €9,200 and €2,700 respectively to the State. As such, a spend of €60,000 grant-aided by a maximum of 20% by the State would be cost neutral because, outside of PRSI payments and savings in terms of social welfare payments through the resultant jobs created, the State would recoup the grant amount provided by way of VAT. Also, the refit of derelict houses would add to our housing stock. While some might say we have sufficient unoccupied houses, there are hundreds of thousands of people on our housing lists. I believe what I have proposed would be a cost-neutral venture.

It is important the Minister comes to the House to hear the many more ideas from Senators that could be incorporated into the budget.