Finance Bill 2022: Second Stage
Seanad Éireann — 2022-11-29
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Sean Fleming (FF), Laois-Offaly

I thank the large number of Senators who contributed on this debate. I will touch on as many of their points as I can in the short time available to me.
Senator Maria Byrne and a number of others mentioned general cost-of-living measures that were not specifically budgetary or Finance Bill matters but were part of the package announced on budget day and, therefore, it was reasonable that they were mentioned in this debate. They might be connected to social protection legislation, but they were part of the overall budget package.
Questions were raised about how long this package would last. The Government has made it clear that this budget will take us to the spring, at which point we will need to see what the situation is. There is no commitment to introduce new measures. Rather, there is a commitment to review the situation in the spring and see what needs to be done.
We in Ireland are fortunate and every cent of the €11 billion in budgetary measures is being paid out of current resources. Not a single euro of it has been borrowed. We will still see a surplus. According to figures from last month and this month, the surplus for this year so far is €7 billion. Much of that is being held aside for a rainy day fund should the need arise in future. It is important that we are in a position to do so without needing a recourse to borrowing.
The issue of energy companies' super profits is being addressed. We want to work on it at European level. The ESB is a fully State-owned company that can pay a dividend to the Government. When the need arises, the Government can request and receive an additional dividend from it without having to go through a legislative process.
Senator Maria Byrne mentioned the living city initiative, which must be close to her heart in Limerick city. The former Minister, Mr. Michael Noonan, introduced the scheme on a pilot basis in Limerick. I am pleased to hear that it is still going and that more work remains to be done.
I was asked whether shops could increase the price of tobacco as a disincentive to smoking. I am informed that, under the tobacco products tax directive, importers and manufacturers of cigarettes are free to determine their maximum retail selling price. It is up to the manufacturers and importers to set the price, not the retailer. As such, a retailer has no extra flexibility in this regard.
The vacant home tax was mentioned. I listened carefully to what was said. This is a new tax and the Government has to consider every possible option for dealing with the situation. We must see how the tax operates. The Revenue Commissioners will be able to give a clear position on the matter within a reasonable time. If changes are necessary because the tax is not proving effective, they can be considered. This tax is just one element of an overall package dealing with this situation. If it is looked at in isolation, all the points that have been raised are valid, but it needs to be looked at in conjunction with the other measures.
Many Members share the concerns raised about landlords selling their properties and the balance that is required between their rights and the rights of tenants.
Agri-relief was mentioned. The extension of the five agri-tax reliefs referred to by Senator Casey will be for six months and take them up to the end of June 2023, as the position has not been fully clarified with the European Commission. When the situation has been resolved, the Minister, Deputy Donohoe, has announced that the intention is to provide for the extensions listed by the Senator. Some discussions have to happen at EU level, which is a regular feature of finance legislation.
The TBESS was raised by a number of Senators. It is to run until the end of February, but there is provision in the legislation that gives the Minister the flexibility to extend it by ministerial order to the end of April. Through ministerial order, there is also the flexibility to amend the legislation's cap of €10,000 to €30,000. As such, there is flexibility by way of secondary legislation to address some of the points raised.
The issue of short-term letting platforms and Fáilte Ireland's role in that regard was mentioned. In the short time I have been a Minister of State, I have seen that the only way to get things done at Government level is usually to take a whole-of-government approach. A job does not get done if Departments do their own thing and say that something is a matter for another Department.
The job does not get done that way. It is only if the Cabinet sets up a subgroup, chaired by a senior Government figure, the Taoiseach or the Tánaiste, and brings together the three or four relevant Ministers that three or four Departments work cohesively. For that to happen, somebody at a senior level is required to chair a particular group. I take the point but my suggestion is it can work only if the relevant Ministers are sitting around one table about that one particular issue. I appreciate the comments that were made in respect of the zero VAT rate for defibrillators.
The special assignee relief programme was mentioned and the most important thing relevant to this Finance Bill is that we are introducing restrictions. There was no mention of that whatsoever. We all know we are competing to get senior people to come to Ireland to manage multinational companies. The more senior people from those multinational organisations living and based in Ireland, and committed to staying, the better chance we have of holding onto those jobs if there is a global downturn. It is important for very senior people to be here and not in other countries with lower level staff here. It is important to have those senior people here and that is a priority. It is in the long-term interests of the 250,000 people who are employed in those sectors.
This legislation increases the threshold for eligibility for the scheme from €75,000 to €100,000. That is a 33% increase in the threshold. I want to put that on the record because it was not mentioned during the discussion of that particular issue.
I will take on board all the points that have been made and bring them back to the Minister. The issue of VAT on periodicals was raised. EU VAT legislation deals specifically with newspapers. I have taken careful note of the other points that have been raised. When we come back for further discussion at the next Stage, we will be able to respond further.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2022-11-29/debate/main
Retrieved: 2026-08-14T04:51:20+00:00
Sitting date: 2022-11-29