Leader’s budget responses
The Leader responds to Senators’ concerns by citing government efforts on adoption, enterprise, elderly protections, medical cards, jobs, alcohol regulation and pupil-teacher ratios, and undertakes to pursue requested ministerial debates.
The acting Leader of the Opposition, Senator Mary White, spoke about the Irish-Russian adoption crisis. I know that the Minister for Children and Youth Affairs, Deputy Frances Fitzgerald, is doing everything possible to try to resolve this sad and regrettable situation. She has met her counterparts in Russia with a view to finding a solution and I know her heart is in the right place. I am sure anything that can be done in this case will be done.
Senator Mary White highlighted the need to support businesses and create jobs. She suggested the 25 new measures we were introducing to support entrepreneurs were practically non-existent. I tried yesterday to outline some of these supports for businesses, but I was shouted down by Senators on the other side of the House. I will try to do so again now.
The 9% VAT rate that applies to the tourism and hospitality sectors has led to the creation of jobs and will continue to do so. Members of the Opposition and people in various sectors of society asked us to retain that rate and we are doing so. It will provide meaningful support for small businesses, hotels and those involved in the hospitality sector.
As has been mentioned, the air travel tax rate has been reduced to 0%. We have heard that Ryanair plans to increase the number of passengers to Ireland. We have also heard about the wonderful airports at Shannon, Cork and Knock. I hope my own little regional airport in Waterford will gain some business as a result of this measure.
Under the other home renovation schemes, incentives of up to €4,050 will be made available for renovation and maintenance works. The Living City initiative has been mentioned by several Senators.
The capital gains tax exemption in respect of commercial property has been extended to 2014, while the trade finance initiative will support Irish exporters. The farmers' flat rate addition is being increased to 5%, while farmers' retirement relief is being extended. It has been decided to include non-EU talent in the film relief scheme. Small and medium-sized enterprises will benefit from a mentoring programme and seven anti-fraud measures.
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The two-day mentoring programme is needed.
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The threshold that applies when making appeals to the Credit Review Office has been increased to €3 million. The build-your-own business initiative will promote entrepreneurship and support small and medium-sized enterprises. The long-term unemployed will be able to avail of a two year income tax exemption if they start businesses, while the VAT cash receipt threshold is being increased to €2 million. The higher earners' restriction that applies under the employment and investment incentive is being removed, while improvements are being made to research and development cash credits.
I have listed some of the 25 new measures being introduced to help entrepreneurs and small businesses. We will not take lectures from Fianna Fáil in that regard.
Senator Ivana Bacik spoke about the promotion of women in business and political life. She has complimented and congratulated the two new Supreme Court judges who have been appointed. We would all like to join her in congratulating the two ladies in question.
Senator Mary Ann O'Brien has congratulated those involved in the new Walsh distillery that is to be developed on the banks of the River Barrow near Leighlinbridge. She spoke about the differences between the financial grant arrangements offered by Enterprise Ireland and its counterpart in Scotland. We are coming up against such difficulties with regard to grant aid, etc., as we fight with other countries to create jobs here. That is why it is of paramount importance that we maintain our corporation tax rate of 12.5%.
Senator Aideen Hayden called for a debate on the Living City initiative. I will ask the Minister of State, Deputy Jan O'Sullivan, to come to the House for such a debate.
Senator Sean D. Barrett referred to the merger of the industrial relations agencies proposed in the report of an bord snip nua. He called on the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, to update the House on whether the merger would happen. We will certainly correspond with the Minister on that matter.
Senators Cáit Keane and Deirdre Clune spoke about the valuation Bill. It had been indicated that the Bill would be before us next month, but I understand there are further delays in that regard. Therefore, I cannot say for certain that it will be before the House next month. I hope the problem will be rectified. I understand other amendments will be made to the Bill before it is brought to us. I hope it will be introduced next month, but I am not confident in that respect at this stage.
I understand the local government Bill will be introduced in the other House. It will certainly be before us before Christmas.
Senator Marc MacSharry and many other Members called on the Minister for Health to come to the House to discuss the issue of medical cards and the service plan. I am sure the Minister will accede to our request in that regard.
Senator Susan O'Keeffe spoke about the many positive measures in the budget, including the references to investment in research and the development of the Wild Atlantic Way.
Senator Trevor Ó Clochartaigh raised the issue of the telephone allowance. It has not been an easy budget, given that €2.5 billion has had to be taken out of the economy. If anyone says it has been an easy budget, I will refute it. Many cuts have had to be made. Senators on this side of the House would have preferred if we had not been required to make such decisions. We must get the economy working again and deal with the deficit. It is our intention to do so .
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There is another way of doing it.
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Senators Trevor Ó Clochartaigh and Paschal Mooney spoke about the elderly.
For example, as has been noted, the State pension, carers' schemes, the free travel scheme and the free television licence scheme have not been touched. Recognising that fuel poverty is a big issue for the elderly, the fuel allowance has not been changed. The excise rate on fuel has also been left unchanged. The tax treatment of the elderly remains unchanged, with no change in net income for pensioners, as a result of the budget. Those aged 65 years and over will continue to be treated more favourably under the tax system than all other taxpayers. This favourable treatment of pensioners has been protected. While there have been negatives such as the withdrawal of the free telephone allowance, all of these schemes remain the same. One would think it was all one-way traffic in that regard; it is not.
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Senator Trevor Ó Clochartaigh dwells on the negatives, irrespective of what happens. If he were to win the national lottery, I do not know how he would sell it to people.
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What about the Sinn Féin alternative? The Leader should have read it. The Government should have tried out the Sinn Féin alternative, which is fairer.
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If the Sinn Féin alternative worked.
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Senator Deirdre Clune spoke with authority about supporting businesses and called for a debate on the new Action Plan for Jobs. We have asked the Minister for Jobs, Enterprise and Innovation to come to the House to debate it.
Senator Terry Leyden spoke about the withdrawal of the free telephone allowance. When one looks at what Fianna Fáil had planned in the area of social protection - the €1.5 billion in cuts - far more than the free telephone allowance would have been deducted. The Senator also spoke about the plight of the vintners, as did Senator Imelda Henry yesterday. We note the points made.
Senator Michael Comiskey spoke about the seniors alert scheme. Senator Martin Conway also addressed the problems with landlines which I hope will be addressed in the seniors alert scheme that will be announced. Senator Michael Comiskey rightly called on telephone companies to introduce some initiative in this regard.
Senator Feargal Quinn pointed to an anomaly in the third level grants scheme for a particular individual which I am sure can and should be addressed. He also outlined the dangers of the nuclear programme in Iran and the need to keep pressure on that country.
Senator Catherine Noone spoke about the below-cost selling of alcohol and pointed out that the Minister for Finance would take action on this issue as soon as the Scottish case was dealt with in the European Union. She pointed to the lack of joined-up thinking in the HSE, which was a very good point. The HSE has staff who deal with death certificates and the registration of deaths. Surely it should be in a position to marry this task with that of dealing with medical cards.
Senator Labhrás Ó Murchú spoke about the Constitutional Convention. On the last weekend in September the convention held a session on votes for Irish citizens outside the State and recommended by a large majority that votes be extended to all such citizens in presidential elections. A report is being submitted to the Government. I hope we will have a debate on the convention. Perhaps we might be able to get the chairman of the convention to update us on the report.
Senator Michael Mullins spoke about the importance of growing the economy and job creation and pointed to the money allocated for the Garda fleet, recruitment to An Garda Síochána and the money for Cork Prison.
Senator Fidelma Healy Eames spoke about action by members of the ASTI and school capitation grants. I am sure we will have a debate with the Minister for Education and Skills on these matters.
Senator Michael D'Arcy spoke about the need for an informed debate on medical cards. A figure of €113 million has been mentioned. At a time of increasing demand for medical cards, it is the responsibility of the HSE to ensure all those who need a medical card receive and retain one and that those who are no longer within thresholds allow their medical cards to be passed on to somebody in need. Let me set out what the review of the 365,200 medical cards in 2013 concluded. This must be set in the context of the Comptroller and Auditor General's report published last month. Of the 365,200 cases reviewed, over 301,100 or 82% confirmed existing eligibility or upgraded the person from a GP visit card to a full medical card; therefore, 301,100 people kept their medical card or had it upgraded. In 7,100 cases death notices were received. A total of 5,400 cases had their eligibility downgraded to a GP visit card,12,700 people lost eligibility, while 38,900 or 10.6% did not respond. What this demonstrates is that the vast majority of those in receipt of medical cards kept them. It also shows that there are medical cards not in use when the HSE is paying approximately €1,000 per medical card.
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This issue must be addressed. I am sure everybody on the other side of the House would like to see medical cards being issued to the people who need them and I hope this matter will be addressed. That is what the Government is about.
Senator Jim D'Arcy spoke about maintaining the pupil-teacher ratio and protecting the Protestant ethos in schools. I am sure the Minister for Education and Skills will come to the House to discuss that matter with us.
Senator Terry Brennan spoke about the new visa arrangements for Chinese nationals, in particular, and argued that this could be a catalyst for us to increase tourism figures. I certainly agree with these sentiments.
Senator Martin Conway spoke about the seniors alert scheme and the problems with landlines and argued that they could be addressed under that scheme.