It is indeed very easy for any Member on this side of the House to speak on this Budget, more particularly having listened to the reiteration of the tales of woe that have been cast and forecast time and time again by the Opposition speakers. Their lack of conviction in their contributions only emphasises more clearly the many benefits of this Budget. It also highlights the work of the former Minister for Finance and the present incumbent of the office. These men, by taking appropriate action at the proper time, have ensured the nation's welfare, have ensured that the financial position of the nation is well under control and that the maximum benefits are being distributed as equitably as possible.
Last year we were told that the country was "bust". We were told we would never live to see another Budget and that the nation would degenerate into economic chaos. This was nothing new for us to hear. We have been hearing it almost constantly for the past 30 years. The many new housing schemes, the road improvements, the hospitals, and the rising standard of living of our people are evidence of Fianna Fáil policy and, contrary to the speeches and the reiterations of the Opposition, these are realities. There is no mirage there, and certainly the intelligent public cannot and will not accept the Fine Gael propaganda on this matter.
I sympathise with the Opposition in their task because they seemingly think their duty is to criticise the Budget and nothing more. They must find it rather hard to do so because this Budget is one that looks after practically every section of the community without putting any great strain on anybody. There are only two slight increases in taxation and these are infinitesimal when weighed against the benefits accruing to the majority of the people. The deficit of £8 million which was a relevant factor last year has, by the cautionary and necessary measures of the Taoiseach, the then Minister for Finance, been reduced, and in fact the estimate which he made at that time has resulted in a surplus this year of four-fifths of £1 million. When one considers that the Budget was over £250 million, one realises that four-fifths of £1 million is a very small margin of error; indeed estimates being what they are, it was as near to accuracy as any human forecast could be. It is beneficial to the weaker sections of our community in that the small farmers, the social welfare classes and the less well-off generally in our country will receive reliefs of various kinds.
In many spheres, and particularly in the medical sphere, this Budget brings great relief to many people. The allowance of between £50 and £300 for certified medical expenses is something that is appreciated and welcomed by those less fortunate people who have had constant illness as a visitor to their homes or who have had their next-ofkin hospitalised for long periods. We would hope that within the capacity of the economy to pay for them, such benefits as these will be increased in the future. That is and has been the practice and the policy of Fianna Fáil, to be realistic socialists. There is very little good in publishing pamphlets calling for just societies or anything else, if one is not in the position to make these wishes reality. It is very little consolation to people to have an abundance of ideas but a poverty in regard to the means by which to implement them. Despite the freedom of action the Opposition have, they have been singularly bereft of any new ideas in their contributions so far on this Budget.
Income tax, which many referred to as "the burden of taxation," is in fact our common contribution to the welfare of the State and towards the amenities we enjoy. It is our common duty to share with the less well-off sections and to permit them, too, to enjoy some portion of what the State regards as a just share of the tax allotment. The Minister has quite rightly stated that there is too much emphasis on this cliché, the common burden, and not enough on the common interest we all have, or should have, in our fellowmen. I am not saying that any of us enjoy paying income tax, but I think the incidence of income tax on us is overstressed in many instances. Indeed the people who benefit most, and who will continue to benefit most under this Budget, are those most entitled to benefit, namely, the parents of young families. The allowance in respect of children under 11 years of age has been increased to £135. Last night, Deputy Ryan wondered why there should be a differentiation between children under 11 and those over 11. He obviously had not read the Minister's statement or, if he had read it, was deliberately trying to evade the issue. Children over 11 years of age are in receipt of an allowance of £150 per annum free of income tax. Added to that is the fact that free post-primary education will become operational this year and that will ease the strain on the finances of parents in regard to schoolgoing children over 11 years to a degree so far unprecedented in the history of this State.
Social welfare now stands at a figure of £42½ million. There is a 5/increase for widows, old age pensioners, blind pensioners and social welfare recipients generally. This increase has been denigrated by Fine Gael. I wonder why. Deputy Ryan spoke about the last time Fine Gael were in office. I am at a loss to know whether he was referring to 1931 or whether he meant that Fine Gael were alone in office in 1956. The record, of course, was one of a 10d per annum increase in social welfare benefits; indeed, 2/6 was the highest single sum ever awarded by them in a Budget. It is interesting to note that under the last Coalition Government the old age pensioner had 25/- per week. Prior to this year's Budget, the figure was 52/6, more than double. As a result of the recent Budget increase, it will stand at 57/6. This to me is real progress. Not that we are satisfied with that figure or complacent about it; we never accept any increase we can give as the optimum. We never regard any increase as bringing the less well-off sections of our community to the zenith of what they should get but, at all times, we are quite prepared to ensure that they will suffer no diminution of their incomes and, as far as we can, we will improve their lot by direct taxation or by any other method open to us.
Free electricity may seem to some not very significant, but to the ordinary old age pensioner, living alone, it should prove most beneficial. I am quite certain it will be welcomed by them. It will enable them to maintain warmth and provide them with cooking facilities in their homes without fear of a bill for 15/- or 18/- being presented to them at the end of two months, or perhaps £1. Perhaps £1 is not a great deal to those who have money, but it is certainly a great deal to those who have no money. It was in that light the Minister viewed the plight of the old age pensioner and took action to alleviate the hardships that would be theirs, were it not for the fact that he has taken steps in this Budget to improve their position.
Transport facilities are being made available for the first time to old age pensioners. That is welcomed. Possibly old age pensioners do not use public transport to any great extent but we would like to think that, whatever use they make of it, they will have it free, gratis and for nothing.
Many categories of public service pensioners were mentioned by Deputy Ryan. The only category he did not mention was the Old IRA. These veterans are in receipt of military service pensions and special allowances. Under this Budget they will receive a 12 per cent increase. While this is not a tremendous sum, the fact that they know they are appreciated by the Government will be a cause of satisfaction to them. Many of these are now in the winter of their lives and, as a nation, we would be less than national-minded if we did not keep them prominently in the forefront of our thoughts at all times, and particularly at Budget time, the time when we can do something positive to help them.
I am glad to note the farmers will now receive £60 million by way of direct Government contribution. Many people have been vociferous in decrying the Government for lack of action on behalf of the farming community but these same people have been as silent as the walls of Tara during this Budget on that very aspect, and with good reason. In 1956, assistance to agriculture stood at a figure of £17.19 million. This year it is £60.2 million, almost four times as much. There is assistance for small farmers. Those under £20 valuation will be completely derated and those up to £33 valuation will pay rates only on that portion of their valuation in excess of £20.
I am sure the figures for the provinces will be of interest to Deputies. The number of farms of under £20 valuation in Leinster is 62,000 out of 103,000, or 60 per cent; in Munster it is 76,000 out of 117,000, 65 per cent; in Connacht, it is 73,000 out of 91,000 or 80 per cent; and in the three Ulster counties, it is 36,000 out of 48,000 representing 75 per cent. These farmers are completely derated now as a result of Government action. It will undoubtedly help the small farmer to keep his costs down. It will give him an added incentive and, by direct Government action, has in fact increased his income by that amount of rates that he would normally have been paying. The national figure for this will be something in the breakdown of £16 million being paid by the Exchequer and £7 million by the farmers generally in rates.
The employment allowance will be operational on all scales. Therefore the £17 that farmers can claim for their sons working with them will be operational as well for those at every scale and will mean a further relief to those farmers under £33 valuation and indeed to all other farmers as well because we must not forget the fact that the State will continue to pay four-fifths of the first £20 valuation of all farms.
Another big development is the extension of pilot areas. There will be a pilot area in each of the 12 counties which are loosely grouped and classified as the West. The Minister has shown not merely concern, not merely sympathy, but positive sympathy in this respect because he has tackled the problem. A recent television interviewer said the Government would have either to put up or shut up. The Government do not intend to shut up and so they have put up. They intend to save the West, despite the tactics of some of those who would try to do otherwise.
As and from 1st April, there will be 2d a gallon on quality milk. This will be of benefit to the dairy farmers throughout the country. The small farmer has figured prominently in Government action in this field. A special fund is being set up to enable the small farmer to purchase milk coolers and, as far as is practically possible, to give him every opportunity to avail of the quality price in milk. The Minister has laid aside £100,000 for this specific purpose. This, again, is proof positive of our concern for the small farmer and our concern for agriculture in general.
The association of Erin Foods and Heinz Ltd. offers tremendous potential to those farmers whose type of land or acreage would not allow them, or indeed whose capital might not permit them, to participate in other types of farming. By participation in vegetable growing, the farmer can be assured of cash crops. We would hope for an expansion in this field. Full credit must go to the Minister for Finance on his strenuous and successful efforts in bringing about this association of Erin Foods and Heinz Ltd. It is the first time that Heinz have ever associated with any other company in the history of their foundation. Against that background, we can appreciate the difficulties that presented themselves to the Minister when participating in these proposals and in bringing them to a successful conclusion.
The abolition of employment period orders will be of benefit to smaller farmers particularly those in the West and will give basis for further hope of expansion in this area.
Pigs, which have been the subject of much comment in recent times, have significantly practically not been mentioned by the Opposition. The positive step taken by the Minister for Finance in announcing, and the implementation by the Minister for Agriculture, that from 1st May an increase of 6/- per cwt. dead weight will be given at a cost to the Exchequer of £200,000 this year towards the support and the encouragement of the pig industry. At the same time, the headage grants scheme for farrowed sows which was due to terminate in September is now being extended to June, 1968, at a further cost of £200,000, bringing a direct contribution of £400,000 as a result of this Budget to the pig industry and to the earning capacity of the nation in this particular field.
Mining, which is a relatively new development in this country, has received further incentives from the Government and from the Minister. These are very worthwhile. The recent experience in my own constituency where Gortdrum mines, although not yet fully operational, have commenced shows very clearly the economic injection and the employment content this type of development brings with it. Gortdrum is now a big employer of labour in the Tipperary area and, please God, with further encouragement and stimulus from the Fianna Fáil Government the confidence of outside mining interests will be won. The hidden assets of this country which have remained dormant and hidden for so many hundreds of years will be exploited to the full to the benefit of all.
During last night's debate Deputy Ryan at one stage either promised or threatened—I do not know which—to burn himself. I gave him a match on the way home last night. I hope he did not take me seriously.