Michael Mullins (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Harris, to the House. As the Minister, Deputy Noonan, stated in his Budget Statement, the economy is recovering and the country is moving in the right direction. On budget day, it is appropriate to acknowledge the contribution and pivotal role played by the Ministers, Deputies Noonan and Howlin, in rescuing the country from economic ruin within three and a half years and in getting the country to the position today whereby one can discern an end to the austerity measures with which one has become familiar over the past six budgets.

The budget has been strongly designed to create jobs and to sustain economic recovery. A ten-point package, including an enhanced research and development credit and a knowledge development box for intellectual development was outlined by the Minister today. These measures update Ireland's tax offerings to keep us ahead of the curve internationally and will attract foreign investment and jobs. The package provides certainty for international investors for the next decade and will facilitate long-term investment in Ireland that provides high-quality jobs. Significantly, the Government has protected the 12.5% corporate tax rate, about which there has been much discussion recently. In his speech today, the Minister confirmed firmly that the 12.5% corporate tax rate is here to stay. I greatly welcome the doubling of the number of JobsPlus places from 3,000 to 6,000, as well as the provision of the working family bonus to assist low-income families to move into work by retaining child income supports in the workplace. Moreover, the increase of €5 in child benefit will help in a small way with child care costs and hopefully will enable many low-income people to return to the workforce in the near future.

In his Budge Statement, the Minister, Deputy Noonan, recognised the largest indigenous industry, namely, the agriculture industry, which employs 170,000 people and has an annual turnover of €26 billion. A decision to introduce measures that will make additional land available to young and active farmers will reap a rich dividend for the economy in the future and the end to milk quotas in 2015 hopefully will see much more investment in the agriculture sector. I acknowledge Senator Barrett is not that happy with the further investment in the bloodstock industry but it is a highly significant part of the agricultural sector and this modest investment is welcome. I welcome in particular the retention of the 9% VAT rate for the hospitality sector, for which I campaigned strongly, which created more than 24,000 jobs since its introduction in 2011. I am particularly pleased by the highly positive reaction from that sector this evening to the decision to retain the rate.

While I would have desired more investment in education, the net increase of €60 million is to be welcomed and I also welcome the 1,700 new jobs in the form of teachers, resource teachers and special needs assistants who will be recruited in the near future at a cost of €88 million. However, I am disappointed that no decision was taken to review class sizes, particularly as they pertain to one, two and three-teacher schools and to rural schools in particular. This is a subject on which Members will have further discussions with the Minister for Education and Skills. I welcome the investment of €7 million for the human biology building in NUI Galway, as well as the €10 million for the University of Limerick and €3 million for UCD.

On the taxation side, the tax changes made today are modest but constitute a start in reducing the additional measures imposed on people as a result of the economic downturn. I welcome in particular the reductions in the universal social charge, USC. It is a tax that was introduced because of the austerity and I seek a further dismantling of this charge over forthcoming budgets. The USC will forever be associated with austerity and the economic crisis in which we found ourselves and it is to be hoped that in future, there will be further dismantling of that charge. Finally, I welcome the €2.2 billion that will be invested in social housing over the next three years. It will address the major housing crisis we face and will put a lot of people in the construction sector back to work, which is badly needed.