Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

As others have pointed out, this is tax forgone. The total tax liability is about €400 million. If matters went unchecked, it could be €1 billion by 2020. Having regard to the position of the public finances, the State has to taper the tax credit in a fair way and we have done on our best in a difficult decision that had to be made.

Senators Michael D'Arcy, Darragh O'Brien and Brian Ó Domhnaill raised the question of supermarkets and low cost selling. Any policy related to minimum units of pricing would have to be dealt with on an all-Ireland basis.

Senator Michael D'Arcy raised the question of increases in the rates of alcohol product tax. Excise rates for beer, cider and spirits, as a percentage of the average retail price, are lower than they were in 2003. I welcome the Senator's comments in acknowledging the changes we are introducing on international tax issues which will help the reputation of the country on the question of residence.

Senator Aideen Hayden welcomed, as did others, the home renovation initiative. I welcome all of the comments made. The objective is to stimulate growth in the construction industry. Some 60% of the people who have lost their jobs during the crisis were directly or indirectly attached to the construction industry. Doing something that will help people's homes, while also getting the construction industry back on its feet, is important. Landscaping and works to upgrade septic tanks are covered by the home renovation initiative. I think it was Senator Michael Comiskey who raised that question.

I agree with Senator Sean D. Barrett's remarks on research and development. That is why one of the papers we issued as part of the publications on the Minister's Budget Statement was a specific cost benefit analysis of the research and development tax credit. We need to keep these issues under constant review and have some evidence based policy. This paper was published on budget day and we might have a chance on Committee Stage to deal with it in greater detail because it will help to inform the debate.

We will certainly look at these issues on Committee and Report Stages when I think the Minister will be here. In circumstances where there is very little money around the place, we have to be creative and innovative with schemes. This is the Minister's third budget and he has attempted to bring forward schemes that will help to provoke domestic demand and get people get back to work, while not imposing huge additional tax liabilities as a consequence. As we exit the bailout programme, there is an opportunity to generate much more growth in the domestic economy. While the economy will go up and down based on exports and the position of the international economy - we are very heavily dependent on exports, unlike the Mediterranean economies - we need to start talking about the position of the country post the bailout, getting our confidence back and believing in the country again. I hope the positive comments colleagues, collectively, can make in that respect will help in the process, be they on this or other finance Bills.