Seanad debates

Wednesday, 11 December 2013

Finance (No. 2) Bill 2013: Second Stage

 

4:05 pm

Photo of Thomas ByrneThomas Byrne (Fianna Fail) | Oireachtas source

It is good we are dealing with the Finance (No. 2) Bill now and the budget is not rushed in the several weeks before Christmas. It gives a certain amount of time to reflect on and deal with it. Some of the budget’s measures are grossly unfair, continuing a level of unfairness that has been the hallmark of the Government, an unfairness well documented by the ESRI and Deputy Stephen S. Donnelly. The Government has really taken the poor to task with its budgets while protecting its wealthy friends.

We all supported the Restaurants Association of Ireland campaign for the retention of the 9% VAT rate for the tourism sector, as it has visible benefits for this part of the small business sector. As Senator Power stated, however, there are anomalies to this measure as lap-dancing clubs and the newspaper industry benefit from it too. No justification has been given for this. Neither has there been an independent cost-benefit analysis of the measure. The Restaurants Association of Ireland has been involved in the most successful lobbying campaign in recent years to retain this low tax rate. While I compliment the association on this, a significant amount of foregone tax take is involved. Has a cost-benefit analysis been done on this? Other sectors of the economy have not benefited from a similar lobbying campaign or a lower tax rate. Notwithstanding the genuine benefits the restaurant sector gets and the jobs created, I would rather we were doing the budget on an economic assessment of what is best rather than just dealing with campaign arguments from lobbying groups.

The continuation of the pension levy is the main issue of unfairness in this Bill. A small number of pensioners have been hit hard by this levy such as the Tara Mines pensioners with whom I have met. There was an absolute commitment to remove this levy when it was first introduced as part of the so-called jobs initiative.

Do I have the Minister’s attention?

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