Kieran O'Donnell (Fine Gael) | Oireachtas source

Brexit presents a huge challenge for us. Common sense dictates the United Kingdom should consider a form of referendum because Brexit does not benefit the United Kingdom or anywhere. The European bloc needs to have strength to deal with the United States, Russia and such countries. It looks like common sense will not prevail so I believe we need to determine, given that the measures are being planned, precisely what we can do to ensure that mobile businesses, particularly in the financial services area, locate in Ireland rather than Frankfurt and Amsterdam. They should come not only to Dublin but also to Shannon Airport and Limerick. There is no reason this could not be considered in terms of balanced regional development. It is key. There is uncertainty in this area. Many SMEs are struggling because of sterling weakening against the euro. We have to be vigilant about this.

The budget dealt with housing, an issue of concern to all Members. For all of us working at the coalface, housing is probably the number one issue raised by constituents. I welcome a number of the measures. I will highlight them and then make a comment. I welcome the extension of the home renovation scheme for another two years. I welcome the fact the rental income for the rent-a-room scheme is being increased. I note that the mortgage interest relief for landlords of rental properties will systematically increase by 5% over the next five years. The rate is currently 75%. The key point is that we must be vigilant to ensure this does not give rise to an increase in rent. This is the underpinning control mechanism we must have in place.

I welcome the income tax rebate for first-time buyers. The Central Bank has referred to this recently. People are putting it out that a 97% mortgage is required. That is not correct. Effectively, banks can now give a 90% mortgage. If, for instance, there were a €200,000 house, the mortgage would be €180,000 and a deposit of €20,000 would have to be provided. This deposit can be produced in a number of forms, including the income tax rebate, the 5%. In some cases, some mortgage companies are giving money back but the loan-to-value ratio is still is 90:100. The loan-to-income ratio is three and a half times one's earnings. Many affected couples and single people are in their 30s. Ten years ago, people in their 20s were buying homes. Buyers are now in their 30s in some cases because they got caught in the rental market prior to the crash in 2007. In many cases, they were encouraged to buy apartments to step onto the property ladder.Many of them have had families and have had to move out of the apartment and rent a house, perhaps for the past four or five years. The rent received from the apartment is paying the mortgage but in some cases it does not cover the full amount. They may pay upwards of €1,000 a month for a family home. If people are able to afford it there should be some flexibility in how mortgages are given, but we must be vigilant to ensure it does not bring about the unintended consequence of increasing house prices.

The earned income credit for the self-employed is becoming consistent with the PAYE credit and this is to be welcomed. The start your own business scheme has been extended for a further two years. CGT relief for entrepreneurs has a limit of €1 million and they can pay 10%. Perhaps we can look at increasing this limit. Entrepreneurs to whom I have spoken feel it should probably be higher.

Many disability organisations have told us they should be able to claim back the VRT and VAT in respect of vehicles purchased for disabled people. They are not able to qualify for this. I would be interested to know the cost to the Exchequer. It should not involve a huge number of vehicles but it could improve the quality of life for people residing with the organisations and service users.

I welcome the Living City initiative which has been expanded. It has been extended from Limerick's Georgian quarter to a range of other buildings. The Living City initiative should be exactly as it reads, namely, about getting people back into the city to live, particularly in the heart of Limerick city. I welcome the fact that for a building to be let it does not have to have been originally used as a dwelling. This will yield dividends. It is a positive measure and will bring people back into our city. I encourage people to take it up because we want a vibrant city that is working for the people. I commend the Bill to the House and I thank the Minister.