Seán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Seán Fleming, to the House to talk about this important Bill. First, we have seen an unprecedented level of support by the State for businesses since March 2020 and throughout the Covid-19 pandemic. It has not just been for businesses, of course, but also for employees, for the protection of jobs and for the links between employees and employers. This has been important to sustain businesses throughout the pandemic.

Unfortunately, when this started, nobody realised the length of time that it would involve. Thankfully, changes were made within the European Union fiscal rules to allow for sufficient borrowing to support businesses. Those supports have been directed to keep jobs and businesses afloat, and to provide the various range of supports including the pandemic unemployment payment. I welcome this Bill, which allows for the continuation of various supports, including the EWSS, the CRSS and new schemes, such as the new business resumption support scheme. All of these schemes constitute an unprecedented level of support.

The debt warehousing initiative is important for business and corporations to provide financial security, as well as certainty for when they have to pay debts. It provides that certainty for businesses. A fixed date will provide clarity and certainty to businesses in relation to their tax liabilities for the remainder of 2021. In 2019, the VAT rate was reduced to 9% for a number of years for the hospitality sector to try to kick-start that sector in difficult economic times and to create jobs in tourism and in all areas of the hospitality and tourism sector. That rate was increased a number of years ago and reduced again as a response to the pandemic and its threat to jobs within the hospitality and tourism sector. They have gone through a difficult period over the last 14 to 15 months. This measure provides certainty out to 31 August 2022.

The stamp duty issue hit the headlines a number of weeks ago, particularly in relation to an estate in Kildare. The Government acted quickly to respond to that by making changes to the rate of stamp duty applying to certain acquisitions of ten or more residential properties. It was important to provide certainty on this because it was a great concern to many would-be first-time buyers to see properties and whole estates being snapped up by institutional investors. Therefore, I welcome the change that was made at that time and has now been put into legislation. There has been some confusion in the last couple of weeks about the coming change with regard to the 2,400 homes that are being leased back to the State. There will still be calls for clarity to ensure it relates to those with pre-existing arrangements that were made prior to the changes being implemented on 19 May 2021. This is an important area because we need homes. We certainly do not need disincentives to the provision of homes, whether they are social homes, affordable homes or anything like that. At the same time, we need to ensure this is not a sweetheart deal but is there to ensure those homes are being provided for genuine people who are on the housing list and are living in this country. I know that the Minister of State has given some clarity on that. I am sure it could be debated further on Committee Stage or Report Stage. I thank the Minister of State for being here today to discuss this important legislation.