Darragh O'Brien (Fianna Fail) | Oireachtas source

Let us consider the budget. The highest benefit in terms of tax changes will be felt by higher income earners. Tax changes will result in a gain of 1.9% for those earning €75,000 a year and 0.8% for those earning €20,000 year. They are the figures and the facts. Senators can dispute them all they want, but that is the way it is.

I want to raise one matter which has been brought to my attention with the Minister of State, namely, the employment and investment incentive scheme, which I would like him to address on Committee Stage. It is a vital scheme for domestic firms which want to raise non-bank finance. However, changes being made will have the effect of ruling out trading SMEs over seven years old unless they can raise funding equivalent to over 50% of the average of the most recent five years' turnover. For example, an eight year old company with a turnover of €4 million cannot, under the current rules, take in employment and investment incentives unless it raises more than €2 million. This may be more than it can raise. I would like the Minister of State to examine this because it is an unintended consequence.

Growing bank funding for the SME sector was mentioned. It is still incredibly difficult for small firms to get loans from banks. This could be a very good scheme to allow SMEs to raise funding. I do not think the Government intends for an eight year old company which is growing to have to put up 50% of the finance, while a business that is seven years old or less can access the scheme. Obviously on Second Stage we cannot table amendments, but I will put forward recommendations in this regard on Committee Stage. It is worth examining the issue. I will give the Minister of State an example when he concludes, and he might ask his officials to consider it. We will have a better chance to unpick this Bill on Committee Stage.

This and any future Government needs to consider those who, in the main, are carrying the tax burden. We have to look after those who need assistance and I have always stood over a good social welfare system. The reality is that thousands of people are working simply to pay bills and see their tax burden increasing each year with water charges, local property tax, child care costs and high variable mortgage interest rates. They are the people on whom we need to focus. They feel no one is speaking for them.

I look forward to Committee Stage. It is up to Members on the Government side to commend their Minister for the work he has done. I commend the Minister, Deputy Noonan, for some of the work he has done, but in doing so one has to consider areas that have not yet been addressed and how we got to this situation. It might not suit Members on the Government side to realise that 70% of the adjustments that were required were made by the previous Government and were opposed by the Labour Party and Fine Gael at every single stage in the Dáil, yet effectively the same plan was followed. They cannot have it both ways.

People do not want to see us arguing over political points. We have to try to include those who have been left behind, something I understand cannot be addressed in one Bill. Those people who are paying for everything and getting nothing can be the focus after the next election. I welcome the Minister of the State to the House and look forward to his response. I will give him specific details on the investment scheme.