Finance Bill 2022: Second Stage
Seanad Éireann — 2022-11-29
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Seán Kyne (FG), Cultural and Educational Panel

The Minister of State is welcome. I said previously that everything we did in this budget, we did because it needed to be done and we were in a position to do it.
We were in a such a position because of the way the finances were thanks to the stewardship of the economy, the strong rebounding from Covid and the supports put in place when we were in a position to do so. There was the impact of ensuring the link between employees and employers was maintained, ensuring employers were able to keep going through Covid and maintaining the level of near full employment we have, as well as the strong showing of our corporations. All of that is important to say.
We are a long way from the budgets when this Government first came to power and what we had to deal with. The finance Bills on those occasions were not as pleasant as this one, other recent finance Bills and, I hope, those finance Bills to come. There are a number of very positive initiatives. One such initiative is the changes to the personal tax bands to ensure we keep pace with wage growth. If we stood still and did not change the thresholds and bands, everybody would eventually end up paying the higher rate of tax, and that makes no sense. It is important and welcome to increase the threshold for the higher rate to €40,000. It will benefit so many people, especially those in the squeezed middle. There was a debate on proposals to introduce a 30% rate and the Minister referenced them in his budget speech. There is probably work being done in the Department on the possibility of that for next year. Perhaps the Minister of State will give us an update on that as well. It is an issue that has gained some popularity because it is deemed to be the right thing to do to ensure people have more of their take-home pay.
On some of the other changes, the extension of the help-to-buy scheme has been very much welcomed. It has been so important in allowing people get onto the property ladder. I welcome also some of the other initiatives that have taken place over the last number of months, including the Croí Cónaithe towns scheme and its extension to rural areas, which is hugely important.
The changes to the income tax bands will increase people's take-home pay, as will the changes to the USC. It is important that when the minimum wage increases, we keep pace with the thresholds for USC. It ensures the 2% rate of USC is the highest rate a person on the minimum wage must pay. This is the ninth increase in the minimum wage since Fine Gael came into government and that is to be acknowledged as well.
The €500 rental tax credit, which will go to 400,000 people in 2022 and 2023, is another important initiative, as is the extension of the rebate on petrol and diesel. The latter is something people may not see because it is taken off the price they pay but it is hugely important. They would see it if it had not been reduced but it is obviously a cost and must be acknowledged as well.
The doubling of the expenditure limit for deductible pre-letting expenses for landlords of vacant properties is also of benefit because, unfortunately, we have seen landlords exiting the market. Incentives are needed to ensure we maintain the majority of landlords currently letting. Most of them are accidental landlords with one or two properties. They are the foundation stone of the rental sector and supports are needed to ensure there is not a wholesale exodus of landlords from the market.
I welcome also the extension of the living city initiative until 31 December 2027. It is a popular and positive initiative. I again thank the Minister of State for attending the House.

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Retrieved: 2026-08-14T04:51:20+00:00
Sitting date: 2022-11-29