Seanad debates

Thursday, 3 December 2020

Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020: Committee Stage

 

9:30 am

Photo of Jerry ButtimerJerry Buttimer (Fine Gael) | Oireachtas source

I apologise to the Minister of State for drawing out the debate. I welcome that he is committed to a review, which is what we want and which gives me heart.I know I am not a mathematician or a genius but why are we fundamentally changing this now in 2020, going into 2021, when there is no need to change it? The change could happen if the Minister and the Government are of the disposition to make that change in 2023 or 2024, when we will have a proper indication and the world has returned to some type of normality, whatever that normality will be in a new Covid world. For the life of me, I cannot comprehend why we are introducing the change today. I know and understand it is in the context of Brexit. As Senator Chambers said, we are inserting it in a section of a Bill about Brexit. The Finance Bill will come to the House before Christmas and I am sure Senator Casey and I can discuss this issue while discussing the Finance Bill. I have not heard a convincing argument or presentation on the position of the Revenue Commissioners and the Department of Finance. If it was explained in the Dáil I apologise because I did not see it or read it. This is about tax-free shopping. We hear about abuses. I would love to know the volume of abuse of the scheme. From a scant look at Dr. Google and checking Revenue or the Department of Finance, I cannot find it anywhere.

Let us just look at the whole issue of balanced regional development and products, including fashion, crafts and clothing. People living in Matunuck in Rhode Island see their neighbours with a piece of Waterford Crystal. People living in Allegheny County in Pennsylvania find their neighbour wearing an Aran sweater or people over in Cape Cod have a piece of Belleek china. This is an incentive and a marketing campaign that attracts other people to go and buy. I do not want to see us tying the hand of industry. I go back to my fundamental point. I rarely come to the House to speak this in-depth on matters of legislation but I am very exercised by this, not because I have a vested interest but because it makes no sense. We are taking jobs and creating an impediment to the development of jobs and, more important, the marketing of Ireland.

I go back to my early comments with regard to what Niall Gibbons and Paul Kelly spoke about when they came before the tourism committee this week. They said it will take five years to recover the tourism industry and a large-scale marketing campaign is required. It has been a catastrophic year and there has been a rapid acceleration of insolvencies, excepting the huge support given by the Government. I do not know we why we cannot take the suggestion of Senator Chambers and pause, have a review and then come back. This is what makes sense.

We are known for our tax-free shopping. We are known for our artisan creations and designs. We are the country that founded the duty-free shop and the whole duty-free experience. Look at what that has led to with the creation of jobs and the positivity around it. We have an opportunity to win here. I would love to hear the analysis of Revenue and the Department of Finance on this. With regard to the retail exports scheme, this is a mistake. The customer experience is about the products and marketing our country.

I thank the Minister of State for his engagement and I really appreciate it. However, we are making a fundamental error with the imposition of this tax change now because of the desire to align the tax codes, or whatever the rationale is with regard to Brexit. The UK visitor will not spend money excessively on hospitality or consumer goods. The return from UK tourists will be low. I am concerned about tourists from North America and other places, with regard to incentivising them to come back to our country. Yesterday, the dollar was €1.20 or €1.19. It was at its lowest point in a long time against the euro. I would love to have a joined-up conversation on the selling and marketing of our country and the preservation and retention of jobs.

Senator Casey said it much better than I did because he has the experience and I do not. What I do have is engagement and conversations with people working in the industry. As a member of the transport committee I read, listen to and watch its proceedings. We cannot but get a sense that this does not make sense. I am disappointed. I know we have made a change from €175 to €75. As they say, we are where we are. It goes back to the Minister of State's fundamental point that if the UK did not decide to leave the European Union we would not be here but we are. I hope that as part of Government policy in future that there will be engagement, and that it is not just consultative in a passive way but that there is meaningful engagement. There is a reason we have engagement. It is because people who work at the coal face and take the risks and who are entrepreneurs understand and know what is going on. Sometimes, and I do not mean to be condescending or fight with anyone, people behind a desk do not know what is happening. The Government will not change its mind and that is fair enough and I appreciate that but it is a pity because we could have made the Bill better by not having the change the Minister of State is bringing in.

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