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Seanad
‹ Order of Business

Budget measures and job creation

Summary

Government Senators defend the budget’s employment, tourism, agriculture and VAT measures, while opponents warn that details are insufficient. Senator Conway separately criticises the small tobacco-duty increase and urges the Seanad to promote confidence in the budget.

Generally speaking, the tone and emphasis of the budget has been particularly positive. There are three areas where it is very positive, including the area of job creation. Despite what Senator White has said, most business organisations have welcomed it.

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As I have said, the devil is in the detail.

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Paddy Burke An Cathaoirleach Fine Gael

Senator Mullins, without interruption.

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They have welcomed the positive job creation measures in the budget.

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The devil is in the detail.

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The devil is in the Opposition measures as well.

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One area that is very positive is the area of tourism. The retention of the 9% VAT rate has been universally welcomed and has the potential to create significant jobs.

The position is likewise in the agricultural sector, where significant investment will be made. I call on the Leader to organise a debate with the Minister for Agriculture, Food and the Marine, Deputy Coveney, in the near future to see how we can leverage the agri-food sector to create even more jobs in future.

I would also like it if the Minister for Transport, Tourism and Sport came to the House because we need to look at and build on the successes of The Gathering and see how we can leverage the retention of the 9% rate and the abolition of the air travel tax. It was significant that last night Ryanair announced that it would provide an additional 130,000 seats in and out of the country from Knock international airport this winter. There is a real opportunity for us to market our tourism product in the UK.

One area about which there has been much discussion in the media over the past 24 hours is the threshold for medical cards for over-70s. I would ask whether it is wrong for our wealthier pensioners to contribute a bit more so that the under-fives and vulnerable families can have access to medical cards. I think there is nothing wrong with that and that it is fair and balanced. One thing this Government achieved is a potentially job-rich budget that is fair and balanced and addresses many of the difficulties that have faced this country for a number of years. The real proof of its success will on 15 December when this country exits the bailout and we will stand on our own two feet again still facing many challenges but with a country back in reasonable shape after a very difficult period. We will not attempt to apportion blame this morning.

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An international crisis.

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Paddy Burke An Cathaoirleach Fine Gael

Senator Mullins is way over time.

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Our international reputation will be restored and, hopefully, people who emigrated during the past five or six years will start to flow back again.

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One element of the budget about which I was unhappy was the fact that the cost of a packet of cigarettes went up by only ten cent. The Minister had scope to increase the price of cigarettes significantly. There is a serious public health issue with cigarettes and smoking which is costing a serious amount of money in terms of health care and we must tackle it as if we were in a war with the tobacco industry. I was disappointed that the increase was only ten cent. It should have been €1.

However, all other aspects of the budget were very positive. I am delighted that the Minister took on board the submissions from the hospitality, hotel and tourism industry and retained the VAT rate at 9%. That has certainly given people involved in the tourism industry a significant shot in the arm and will help this country build on what has already been achieved through The Gathering and other important tourism initiatives.

I must also commend the Minister's actions in trying to ensure that the construction industry gets back on its feet. The tax credit system of 13.5% for people who renovate their homes will certainly jump-start the construction industry. That coupled with the fact that people with construction skills on the live register will get a tax holiday for two years if they set up their own businesses will certainly deal with the issues around the black market in the construction industry.

What has been done with the suckler cow scheme for farmers is very welcome. We are now looking at a situation where €40 million will be invested in this area. It is a good budget for tourism and rural Ireland. It is a balanced and fair budget. There are many people who will be disappointed by the fact that it has been such a good budget and that it has been so well received. Even this morning, KPMG, which is one of the leading accountancy firms in the country, wholeheartedly welcomed the various initiatives. Many other businesses and interest groups have come out in support of the budget.

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You are always good at protecting the wealthy.

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Paddy Burke An Cathaoirleach Fine Gael

Senator Conway, without interruption. Has Senator Conway a question for the Leader?

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What we need to do is get behind this budget. I suggest to the Leader that Seanad Éireann gets behind and promotes this budget and injects the confidence into our economy that this budget is clearly designed to foster.

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