Fintan Warfield (Sinn Fein) | Oireachtas source

I welcome the Minister to the House. I want to address the change that was made in the Bill through the amendment in Dáil Éireann that refers to the long established zero or 1 cent threshold for tax back on purchases by citizens resident outside of the EU who then export the product or bring it home with them.They then export the product or bring it home with them. The Minister is aware the scheme also concerns gifts or personal purchases made by tourists in the State. The Government proposed an amendment to its own provision on Committee Stage in the Dáil so the limit now stands at €75. I am conscious that Jim Power conducted research on the scheme and concluded that €44 million was spent by tourists under the proposed €175 threshold. The figures for the €75 threshold would surely be much better. We do not have a figure because the €75 limit is completely arbitrary. It could just as easily have been €50 or €100. Perhaps the Minister will explain how the Government arrived at the €75 figure. The measure will impact on an industry that is shut down at present and I hope the Government has taken the time over the past seven days to assess fully what impact this will have on businesses in the tourism industry who are weighing up very difficult decisions this very day.

The issue has been discussed extensively in the Dáil but there is still confusion. Most of the Opposition parties had agreed on an amendment that would have seen the Government furnish a report to the Oireachtas after 12 months on the effectiveness and impact of the scheme on the tourism sector and the Exchequer but the Government pursued its own amendment. Sinn Féin remains unconvinced by the arguments put forward by the Government parties that more revenue would be raised through the €75 threshold than would result from increased tourism and economic activity if left at the previous level. When businesses connected with tourism fail and employment ceases then all revenue connected with that business ceases, including moneys to the Exchequer, and it will then be too late. As with many other sectors, the investment in tourism needs to be now. In this case, maintaining the 1 cent threshold is the right investment to make. We can put money into a business that has folded. We look forward to tabling further amendments on Committee Stage in the Seanad to press the point again that this is a regressive measure not backed up by evidence that will impact a sector already hit hard and facing an uncertain future.

I want to speak about higher and further education and I welcome some of the measures in the Bill allowing students to carry their SUSI grant as they pursue higher education in a relevant specified jurisdiction. Equally welcome is the provision that will allow the Minister for Education to prescribe British citizens as eligible for SUSI grants to pursue courses here. Progress is needed on making it easier for those who want to carry their SUSI grant to pursue further education in the Six Counties. There is a crisis in third level education now which, if left unresolved, could have a major impact on students coming to study in this jurisdiction. The Minister for Education needs to meet the Minister with responsibility for housing to solve urgently the crisis in student accommodation, whereby students have been forced to pay for accommodation they cannot access.