Seán Kyne (Fine Gael) | Oireachtas source

Cuirim fáilte roimh an Aire Stáit. The debate on the Finance Bill is a very important annual process. Last Christmas we had balanced books, near full employment and obviously success on Brexit. This Christmas the landscape unfortunately is quite different. We are running a deficit. We have unemployment officially of 7% but if all those on the pandemic unemployment payment are included, it could be up to 20%. We are also in a make-or-break week on Brexit. Whether there is a deal or no deal, Brexit will have an impact on our fundamentals for a number of years. If there is no deal, it could have an impact for a long period of time. We are in a weaker position now vis-à-visa year ago because of the Covid challenge that all economies, including ours, are facing.

The State agencies, IDA Ireland, Enterprise Ireland, Údarás na Gaeltachta, have been preparing for Brexit and are supporting businesses by encouraging them to diversify markets, and avail of online trading vouchers and schemes. The July stimulus scheme and the budget increases for those organisations have been very positive. The investment in our ports to ensure we have alternatives to the land bridge through Britain is also very important. There could be an impact on getting raw materials and exporting goods from Ireland. Thankfully due to Government stewardship over many years, lenders have the confidence to lend to Ireland to get us over the challenges of Covid.One can imagine where we would be if we had defaulted and not repaid our debts.

I welcome the commitment in the Finance Bill to retain the section 481 reliefs. The film sector is very important. Our technical ability, our language and the scenery here make Ireland an attractive place in which to make films. These tax incentives are an added bonus.

I acknowledge the commitment to increase carbon tax as a method to change behaviour. This is a commitment the majority of political parties made before the general election and have made for a number of years. However, I have often asked the Minister for Transport about alternatives to cars in certain parts of Ireland if we keep increasing carbon tax. There are alternatives in Dublin. There are plans in Galway and other cities for greenways and commuting. However, will more rural areas really have a bus that passes by people's door in Cleggan, Claddaghduff, Tully or Tullycross every 15 or 20 minutes? Without such a service, how can we reduce the reliance on cars in rural areas? I am particularly concerned about the issue and as we continue to increase carbon tax, it is a challenge we need to face.

I welcome the reiteration of the commitment to the 12.5% rate of corporation tax the Minister mentioned in his budget speech in the Dáil. It is disappointing that some commentaries refer to Ireland as not being transparent on our corporation tax. Foreign direct investment, FDI, corporations are very important to employment, PRSI and rates for local authorities. As people paying tax like to know that all companies are also paying, we can understand why this issue is continually raised. The contribution of FDI to the tax take is important in any year and more so in 2020 because of the impact of Covid on other sectors of the economy.

I welcome the range of supports provided to businesses, the pandemic unemployment payment, the employment wage subsidy scheme and the CRSS. Certain businesses have expressed concerns over the CRSS, including supply chain businesses. For example, wholesalers supplying the pub trade have been unable to sell because pubs were closed for a period. They are not included in the CRSS because they are not regarded as a bricks and mortar-type businesses and do not have a front door through which customers come in. However, they are supplying to businesses that have that front door. That aspect of the CRSS needs to be reviewed.

While again not being bricks and mortar, betting pitches are permanent positions individually purchased at racecourses. They are bought and sold similar to real estate, but bookmakers have received no supports over the past year. A relatively small number of people are involved. They have no package of reliefs and are not eligible for the CRSS. The on-course betting sector has been decimated this year.

On section 17, I join Senator Casey in welcoming the farm safety and disability adaptation equipment scheme. Farms are dangerous places owing to equipment, livestock and farmers being outdoors in all weathers with the hazards of slips and falls, etc. Unfortunately, fatalities are all too common. I commend the Minister of State with responsibility for farm safety, Deputy Heydon, on his involvement in championing this scheme. It provides capital allowances for equipment to prevent accidents and also helps get people back to work after accidents. Obviously, the severity of accidents varies, but people ending up in a wheelchair may still want and need to carry on their farming businesses. I welcome the scheme that has been put in place and commend all who were involved in it.

Section 36 deals with the primary medical certificate for the disabled drivers and passengers scheme, an issue that was taken to the Supreme Court in the summer.It is one of the issues that affect people who, all of a sudden, found they were not able to proceed because the scheme was in limbo. This change will allow the maintenance of a status quoin the scheme for a period. That is to be welcomed because all Members, as politicians, have come across cases of people who have applied for a medical certificate on their own behalf or that of a child with a disability. It is certainly welcome that that has been looked after, albeit in the short term while there is a review.

I welcome the provisions of section 39 relating to the 9% VAT rate for the hospitality sector. Some people may point out that 9% of zero is zero, but it is a reduction in the rate in the course of what has been a tremendously difficult year for many businesses in the hospitality sector across the country. Small businesses rely on seasonal trade from tourism, good weather and people going to some of the most rural parts of the country to spend a few euro. Those businesses are vital to local economies, as well as to rural and urban Ireland. It is to be hoped that this measure will have a positive impact in terms of keeping the doors open and the lights on for 2021, when we hope the vaccine will be available and we can get back to business again.

I thank the Minister of State for his contribution. I look forward to the remaining Stages of the Bill.