John O'Mahony (Fine Gael) | Oireachtas source

I welcome the major milestone of a balanced budget on our road to recovery that has been achieved with today's announcements. To have done this as well as creating the conditions in our economic climate to enable unemployment to reduce from 15% to 6.1% has to be acknowledged. In doing that, there is much more to be done but the balanced budget allows us, going forward, to look at many more things such as social welfare increases, which are welcome. Perhaps they could or should be more, but within the constraints of the financial situation, I think they are all that could be done on this occasion, but it is important to keep that going down the line. It is important to say that, looking back over the last ten years, we are way ahead of where we might have imagined we would be when the economy, depending on the way one looked at it, was pushed over a cliff or fell over a cliff ten years ago. Promoting fairness and improvements, the plight of the vulnerable and the lower and middle-income earners should now be a priority and has been a priority, but it can be done better in conditions where the budget is balanced. The reductions in USC and the changes in the tax bands are necessary and must be continued over the next number of budgets, irrespective of who is in government.

I refer to a few things in the area that I cover in the Seanad, which is transport, tourism and sport. The 9% VAT rate has been mentioned and we have heard the contrasting views on it. In the circumstances with Brexit and how tourism has been one of the pillars that has saved and helped to renew our economy, it was, on balance, probably better to retain that VAT rate. I agree that it is not acceptable that accommodation rates, in particular, have skyrocketed over the last couple of years in particular. While the VAT rate has been retained, it is important that our hotel industry now responds to what has been kept in good faith. It needs to be able to respond. For instance, part of the bid for the Rugby World Cup was based on an agreement - I am not sure if it is a signed agreement or what else it might be - from the Irish Hotels Federation not to inflate prices for the period of the Rugby World Cup if our bid is successful. The hotel industry can respond for an event like that. I am talking about large urban areas, because those prices have not been gouged up or multiplied in rural areas. One of the great secrets of our tourism industry that has further major potential is that the hotel prices have not inflated hugely in certain parts of rural Ireland.

I have not yet looked in great detail at the provisions but I ask the Minister of State when the sports capital programme and the date for applications going in at the beginning of the year are likely to be announced. Much important activity is needed in local areas around the country for clubs and regional projects. I very much support the continuation of phase 2 of the national indoor arena and the road infrastructure. The Celtic tiger and associated road development never arrived in certain parts of rural Ireland and it is important that projects like the N4 and N5 are continued and that the M18 continues to Sligo. I welcome the important incentives for electric cars since change is happening in that area.