I spoke about the enormous national debt the previous Administration got this country into and the problems that put on the shoulders of the incoming Government in 1987. Frederick I said that the surest way to destroy a State is to have it governed by professors. It is clear to us who have been following the state of our economy that a professor leading a Government from 1982 to 1987 did his best to destroy this State. The restrictions, the actions, malpractices and the inability of the Government of 1982-87 placed on the incoming Government from 1987 are still with us today. The manoeuvrability of any Minister has been severely restricted. We have heard calls in the last hour or so for more money to be put into the health services; more money has been put into the health services. This Government would like to give more money to the health services but we can refer back to the Government by that professor from 1982-87, which is restricting the manoeuvrability of our Minister for Health today.
Despite this enormous handicap Fianna Fáil have, since 1987, faced the reality of the bankruptcy facing this country. They took the problem by the scruff of the neck and administered the corrective action needed to bring the country back from the brink. Fianna Fáil took this action in 1987 when we were a minority Government because we saw it was necessary to ensure that in years to come we would be in control of our own destiny, that we would have money to put into education, environmental projects and health care. We needed no push from parties of the Right or Left. We did what was necessary and will continue to do what is necessary.
During that period there were three main areas to be targeted — social welfare, taxation and budgetary discipline. In the tradition of Fianna Fáil since 1926, we looked after the less well off in our society. The increases in social welfare since 1987 have been consistently above the rate of inflation. We gave increases higher than the inflation rate to people in the lower wage bracket and those in receipt of unemployment assistance. We gave lump sum increases which did not relate to inflation, because if people depended on getting pro rata increases they would never be any better off. We have seen the necessity for giving lump sum increases in order to give a decent level of benefit to those on the lowest rung of the ladder.
We also recognised the children of the country by giving increases in the monthly rate of child benefit. We widened the qualification this year for the carer's allowance. This allowance has been misunderstood and misrepresented. It is clear that there were many people in our society who were not receiving any benefit. They were not getting unemployment assistance because they were not available for work and they were not getting unemployment benefit. Deputy Woods as Minister for Health decided to introduce a carer's allowance. Some people, for political reasons, tried to misrepresent this allowance as being something it was not and consequently it was misunderstood. It is now clear that it benefits people who had not been receiving any benefit. The Minister and the Government extended to 21 years of age the qualification for children of long term social welfare recipients in full-time education. This is a welcome decision because many people were not able to afford education. I welcome this decision to increase the age limit again.
I would like to congratulate the Minister and the Government for improving the family income supplement scheme. This is an excellent scheme which ensures that people will go out and work rather than stay at home and draw the dole.
I now turn to the area of taxation. I have listened to the Leader of the Opposition on numerous occasions in the last week or two saying that there has been no change in the income tax area and that there has been no movement in income tax rates, income tax bands or income tax allowances. This is not true, as the facts show. In 1987 the income tax rates are 29 35 per cent, 48 per cent and 58 per cent. In 1991-92, the income tax rates are 29 per cent, 48 per cent and 52 per cent which represents a change downwards. Income tax bands in 1987-88 were £4,700 at 35 per cent, £2,800 at 48 per cent and the balance at 58 per cent for a single person. The income tax bands in 1991-92 were £6,700 at 29 per cent, £3,100 at 48 per cent and the balance at 52 per cent. The rate for married couples are doubled with £9,400 at 35 per cent, £5,600 at 48 per cent and the balance of 58 per cent in 1987-88 and in 1991-92, £13,400 at 29 per cent, £6,200 at 48 per cent and the balance at 52 per cent. There have been significant increases in the rates and in the tax bands over the years Fianna Fáil were in power.
There have been minimum increases in allowances. There have been increases from £2,000 for a single person's allowance to £2,100 in 1991-92 and in 1987-88, from £4,000 for a married couple to £4,200 in 1991-92. There have been improvements in tax rates, bands and allowances over the years Fianna Fáil have been in power. To put it into context, we have to remember we are fighting a debt of £25 million and we are still improving income tax as well as reducing the debt placed on us.
One area that has concerned me is that of widowed persons. I would like to congratulate the Minister for Finance, Deputy Albert Reynolds, on introducing a special allowance this year for widowed persons. It shows that the Minister and the Government realise the great pressure which widowed persons experience. I hope this allowance will improve as the years go on and as the Government have more finance available.
However, I would request the Minister to look again at the BES scheme. There have been abuses of this scheme over the years but there are genuine people who in the last six or nine months made plans, in good faith, and now find themselves in great trouble. I would ask the Minister to look again at this scheme and at the hardship cases and allow some relief between now and the Finance Bill.
The third element of the budget relates to budgetary discipline. Since 1987 Fianna Fáil have worked wonders with the budgetary position. Foreign debt has fallen, and, more importantly, the debt-GNP ratio has fallen from 131 per cent in 1987 to 111 per cent in 1990. However, when one considers that the debt-GNP ratio in developed countries is in the area of 35 to 40 per cent, it puts into perspective the task that is ahead for this Government and for future Governments.
I commend the Government on the excellent budget they have prepared. It was prepared in a time of great strife and great difficulty, with negotiations in Europe, war in the Middle East, GATT negotiations and CAP negotiations. It was a time for battening down the hatches and keeping the ship on a steady course and I congratulate the Government for steering along the right course.