Seanad debates

Tuesday, 7 December 2021

Finance Bill 2021: Second Stage

 

10:30 am

Photo of Ollie CroweOllie Crowe (Fianna Fail) | Oireachtas source

I welcome the Minister of State to the house. In fairness he has been here on a number of occasions at this stage. I welcome the tax changes in the Bill. With inflation and rising prices in many areas it is essential that the Government reduce the tax burden for people, as this Bill does. The budget is also progressive in that those on the highest incomes will gain the least while the most vulnerable 30% of families gain the most. Fianna Fáil said before last year's general election that any budget with it in government would prioritise the most vulnerable from an income tax standpoint and I am proud to see that commitment is being honoured. We must continue to do that.

Senator Casey raised the hospitality sector earlier. We are concerned that the 9% VAT rate is in place until September while naturally we need it for all of 2022 at the very minimum. As the Minister of State is aware, that rate is applied in many countries across Europe. Removing it would impact our competitiveness against European neighbours. Following the restrictions today the hospitality sector will need every support possible as it looks to rebuild over the coming 12 months. As I noted earlier, a long-term task force needs to be set up to examine the viability of our industry. It is unique in respect of tourists across the world and attracts tourists to our country. It is absolutely paramount. I know the Minister of State is not far from the Cabinet table. I ask him to use his influence to ensure that a long-term hospitality task force is established at the earliest opportunity and by early February at the very latest.

We hear all parties and none in this House and the Lower House saying that they cannot understand the position that is being taken in respect of the EWSS. Employers in Galway, which is the capital of the west and a tourism city, are begging me in respect of the EWSS, which is reduced from €350 to €203. I have asked those working in the highest office why it cannot be sector specific. If it cannot be, we should be told the reason. When I am going back to owners and managers who are significant employers in Galway I cannot explain it to them. I do not have the information and they cannot understand the information. If there is a 40% reduction in the wage subsidy scheme why are we not told exactly? It is very frustrating. I am sure the Minister of State is getting it in all parts of County Laois. It is a significant reduction of €147 per employee per week. It is causing consternation. It has been raised by all Members. It is absolutely vital. The restrictions have increased and the support has decreased. It is just not adding up.

The introduction of the zoned land tax is welcome at a high level. Its purpose is to encourage the timely activation of zoned and serviced residential development land for housing rather than to raise revenue. We must make every effort to ensure that land is developed for housing with the greatest speed possible. I also welcome the extension of the help-to-buy scheme in its current form for a further year. No more than any other Member of either House, I have been contacted by many young couples in Galway. I am trying to give them hope and show them that there is opportunity down the line. The scheme is very welcome. I have concerns in respect of cities and rising inflation, Brexit, the cost of materials and the cost of properties. I wonder how we are going to address all that. It is a double whammy really because if they go over the threshold they lose the incentive. It needs to be looked at.

I welcome the introduction of the pandemic placement grant, PPG, a payment of €100 per week for full-time student nurses and midwives on clinical placements as a supplemental financial support in carrying out this placement during the pandemic. We all welcome that. I expect and hope that the payment will be maintained following the pandemic as acknowledgement of the valuable work that all student nurses and midwives do.

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