Seán Kyne (Fine Gael)

The Minister of State is very welcome to the Chamber. Over recent years, particularly since 2011, on and off, we have had debates about VAT. The VAT change for our hospitality sector that took place back in the dark days of 2011 was used as a stimulus for that sector. When the then Government tried to find measures to stimulate the economy and to boost job creation, it looked to that to boost jobs, and it worked. I certainly do not see it as being elitist to protect jobs in every town, village and region of our country. Over 99% of the businesses that will benefit from the reduction in the VAT rate are small businesses. That is important. It also supports about 190,000 jobs. The increase in the minimum wage is, of course, an added cost to businesses. You cannot have businesses without employees and you cannot have employees without businesses. It is important to reflect that as well, so I welcome that initiative.

Research and development is so important for continued investment in this country. We know that the IDA and Enterprise Ireland do tremendous work in selling Ireland, supporting businesses and start-ups and growing jobs. We have all been to jobs announcements across our country, thankfully. They are so important for those communities and as a driver of the tax take to the country. Research and development is hugely important. It is a key driver of economic growth and high-value employment. I welcome the initiatives taken by the Minister and the Government today in relation to the rate of credit increasing from 30% to 35% and increasing the first-year payment thresholds from €75,000 to €85,500 to support smaller research and development projects.

Some other changes have taken place. I welcome the changes to the USC such that those who benefit from the increase in the minimum wage will not be caught in relation to the USC. I also welcome the renter's tax credit being extended for a further three years, to 31 December 2028. Again, that is hugely important, as is the mortgage interest tax relief being extended for a further two years.

As regards gas and electricity, again, we have reduced the VAT rate. That was due to expire on 1 November of this year. It has now been extended to 2030. That is a benefit. Sometimes, when a change is made one year, people forget that that continues. The extension is a real cut for our consumers up and down the country.

I welcome as well the VAT cut for new apartments. This is about stimulating construction. It is not about rewarding anybody. It is about looking at those apartments where planning permission has been granted and how to encourage those developers to build the apartments we need up and down the country, whether for private sale or for rent. We need more homes and we need to increase the supply of homes. This is an initiative not to reward anyone or any sector but to try to encourage building of apartments, which is high cost. I welcome that. In relation to the living city initiative, I welcome the changes made. Five towns around the country have been included. The initiative previously applied only to properties built pre-1915. That has now changed to properties built pre-1975. That will increase hugely the scope of eligible properties to benefit. That is an important initiative. The scheme has been extended to the end of December 2030, which will ensure greater flexibility is afforded to those claiming the relief.

It is to be hoped the derelict property tax, also being collected by Revenue Commissioners, will act as an incentive, or a stick, as it were, to force development of derelict properties. We see them up and down the country and there have been initiatives like the croí cónaithe scheme. This is the carrot, but we need to ensure the stick is also used. With that, I commend the initiative on the part of the Department of Finance.