Dáil Éireann debate -
Tuesday, 8 Feb 1994

Vol. 438 No. 4

Financial Resolutions, 1994. - Financial Resolution No. 8: General (Resumed).

Debate resumed on the following motion:

That it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance.

—(Minister for Finance.)

Mr. McGrath

The final contributor to this debate on Thursday last was Deputy Callely who was very upset with members of the Labour Party who had dared to break ranks in respect of the property tax debacle. He contended that as the budget was a joint effort between both parties there should be joint responsibility for it. He expressed disappointment that members of the Labour Party should attempt to disclaim responsibility in the matter. Little did the Deputy know that the floodgates were about to open. His colleague in north Dublin, Deputy Ray Burke, on Rodney Rice's programme on radio on Saturday stated categorically that the property tax would be abolished and that there would be a radical rethink within Government circles in respect of it.

In fairness to Deputy McDowell of the Labour Party, he defended largely what was proposed in the budget. However, I was tempted to phone RTE at the time and suggest to the Deputy that since he was so good at defending the indefensible he might rush out to Landsdowne Road, don an Irish jersey and go in as a defender for the Irish Rugby Team. In such event our fate on the day might have been somewhat better.

The Sunday newspapers carried reports of various Deputies disapproving of the proposed change in the property tax but the most significant development was when the Minister for Finance, on "Morning Ireland", more or less declared that the whole thing was a storm in a teacup. He said he would change the proposal in the Finance Bill. At this stage one must ask what status the budget has if parts of it can be discounted on foot of an announcement by the Minister on a radio programme? Will the Government have to go back to the drawing board in respect of the budget?

This issue raises many questions. At this stage I am not sure of the relevance of the debate considering the discussion which has taken place relating to a few aspects of the budget and the various responses from Government representatives that certain aspects of the budget will be changed.

This budget was heralded as being a budget for jobs, but it is merely a tinkering with many sectors of our economy and the taxation system and it does not contain any real reform. It gives small concessions to many interest groups who lobbied the Minister but, unfortunately, it contains no real worthwhile changes which would have any lasting effect on or for maintaining existing jobs or creating new ones.

I welcome the reduction in employers' PRSI for employees earning under £173 per week, but on discussing this aspect of the budget with employers in my locality I learned it will benefit only a small proportion of those employed. Employers with whom I spoke could find no incentive in the budget which would encourage them to take on more employees. They said the reduction in employer's PRSI would not enable them recruit additional staff. I hope my straw-poll is inaccurate and that this budget will have the effect of creating lasting jobs for some of the 300,000 unemployed.

I welcome the inclusion of Mullingar in the proposed urban renewal programme due to commence on 1 August next. Mullingar had sought inclusion under the previous programme but, unfortunately, was overlooked.

The Minister of State at the Department of the Environment, Deputy Stagg, in his speech, indicated that urban renewal has created long term jobs in many sectors. I agree with him. In Mullingar a section of the town centre is crying out for renewal. Under this new scheme I hope the property owners concerned will put together imaginative plans to avail of this scheme.

However, I would put down a marker that urban renewal schemes are so designed as to eliminate dereliction in towns and cities. They are not and never were intended to be an extra bonus for developers and speculators to enable them create alternative town centres and, with the incentives available to them, to be able to undercut the existing traders and put many of them out of business. Urban renewal is welcome where it creates new jobs but if it merely transfers jobs from one part of a town to another because of better tax breaks, and puts many traders in the old part of town out of business, it will not be welcome.

The commitment to the commencement of 3,500 local authority houses during 1994 is welcome also. Westmeath County Council is proceeding with plans on the basis of an allocation of 50 houses for the county. I acknowledge that this is a major improvement in the building of local authority houses. However, I must point out to the Minister that County Westmeath has a waiting list of approximately 330 family units and if that list was to remain static and house-building was to continue at its present rate, everybody on it would be accommodated within seven years. That is an unacceptable waiting time for housing and must be improved.

I contrast this with the position which existed in County Westmeath in 1986 when there were 70 family units on the approved waiting list and Westmeath County Council advertised in the local papers for people who wanted to take-up tenancy of local authority houses. The position has deteriorated dramatically in a short time.

The Minister referred to the purchase of existing houses by local authorities around the country. The Minister should have this matter examined carefully. The last batch of local authority houses built in Mullingar cost approximately £43,000 per house. They were well-built and well-finished houses on a green field site. However, former local authority houses are now available in Mullingar which can be bought for under £20,000 each. They are also well-built houses and are in good condition. Surely, it makes good economic sense that the local authorities should have a mandate to purchase back many of those houses to get better value for tax-payers' money.

The Minister should put more resources into improvement works in lieu of council housing. This is a worthwhile scheme and should be extended. This matter has been addressed to a certain extent in County Westmeath, but there are many more houses that could be improved in a short period. Such improvement works would be cheaper than rehousing people in local authority houses.

The Minister for Education, in her speech, placed great emphasis on promoting equality in education and outlined the measures she thought were important in reaching this goal. An increase in capital expenditure in the primary sector is welcome. However, the sum allocated for 1994 is still short of the 1986 allocation under the then Minister for Education, former Deputy Cooney. Under the 1987 Fianna Fáil Government the former Minister for Education, Deputy O'Rourke, made savage cuts in capital expenditure for education and, having regard to the large number of substandard schools and the fact that many children and teachers are accommodated in appalling conditions, we are still paying the price for those cuts. Parents groups around the country are complaining on a regular basis on television programmes about the terrible conditions in their schools. This position reminds me of the time when money was withdrawn for capital expenditure in primary schools. The Fianna Fáil Government of the day must take responsibility for this.

The Minister indicated that all present posts in primary schools were to be retained and I would like her to clarify what she means by that statement. I, and I am sure many Deputies, have in the past year been inundated with representations from schools because their enrolment number fell a little short of the retention figure for a particular number of teachers. Their contention would be that if the Minister is realistic about retaining those posts those retention numbers should be lowered to facilitate what may be only a temporary decline in numbers. It is difficult to understand how teachers are losing school posts and being transferred when the Minister indicates that she intends to retain the number of teachers. I would appreciate if the Minister would explain this position.

The Minister also referred to resources for disadvantaged schools. Will she clarify what she means by "disadvantaged schools"? What criteria are used for measuring a school as disadvantaged? How important is the level of attainment of the pupils and the numbers in need of special attention in designating a school as being disadvantaged? Is the quality of the school building important in designating it as being disadvantaged? How important is the socio-economic profile of the parents of the students in designating a school as disadvantaged? How and by whom are those factors measured?

It is disheartening for rural primary schools to find that, despite their best efforts, they still do not have the service of a remedial teacher. I carried out a survey of primary schools in the midlands some time ago and revealed that rural primary schools are severely disadvantaged in relation to the appointment of remedial teachers. Educational and social disadvantage exists in primary schools in rural areas just as in large urban schools. Will the Minister also outline to us her criteria for the appointment of remedial teachers? Are they based on meticulous records and testing carried out in the school and assessed by her Department? What role does the local inspector have in the appointment of the remedial teacher? Are those appointments made in a politically expedient manner? A review of the allocation of remedial teachers per county certainly points to such political interference.

The Minister referred in her statement to increased capitation allowance for special schools. I look forward to receiving details on this allowance and would remind the Minister of a submission I made in relation to St. Brigid's special school in Mullingar. At that time I pointed out the anomaly which existed in relation to special primary schools.

In relation to second level schools, I was disappointed that the Minister did not refer to the optional transition year from September 1994. What resources has she put in place to make the transition year a real option for students? Will money be available for extra materials and accommodation so that schools will be in a position to say to their pupils that they will or will not have the option of availing of a transition year? How many schools will have to decline on this option because of lack of availability of resources from the Minister? For how many pupils will there be no option due to lack of resources? We are all aware of overcrowding in many of our secondary schools and if the option of a transition year is to be real we must improve the resources to make it available to pupils.

I am very disappointed the Minister did not address the major problem of the inequalities which exist in terms of the allocation of third level grants. This system is totally inequitable and militates very severely against the PAYE worker. I recently spoke to a couple in my area who, on a salary of merely £22,000 per year, had put their four children through third level education at a cost of £52,000, with no tax relief and only a partial grant for one year for one of the students. The remainder of the total outlay was raised through a series of loans and remortgaging their family home. Is it reasonable to expect a couple in that position to put their children through third level education with no help from the State?

This budget is anti-family. There are marginal tax reliefs for everybody. However, it has failed to recognise, by way of tax relief for children, the tremendous expense incurred in having and maintaining a family. When one considers that mortgage interest relief and VHI relief is to be reduced to the standard rate, this will quickly wipe out any marginal tax relief which might have been available for families. Coupled with those changes, the proposed residential tax will, even on modest houses, impose a further tax penalty. These measures are very hard to take when one recalls an advertisement in the national press on 25 November 1992 headed "An important message from Dick Spring". This advertisement gave absolute promises that Labour had no plan to introduce a new property tax or house tax. The advertisement went on to say that Labour would not reduce mortgage interest relief and VHI tax relief. Is it not ironic that, within 15 months of making that commitment, the Labour Party, in Government with Fianna Fáil, has reneged on its promises? Then we listened to Deputy Jim Kemmy, that great guardian of all that is right, say on "Morning Ireland" recently that these promises were made in the "white heat of an election" and hence were not to be taken seriously by the public. A statement such as this is pompous in the extreme and demonstrates the disdain with which Deputy Kemmy treats the public.

Is it not a demonstration of his pomposity that, despite all this, he is now presenting himself before the electorate to be their representative in the European Parliament? How can he have any credibility? Will he use the Labour phrase "Put trust back into politics" on his election literature for the European elections in June?

I, like many other Deputies, got a very worthwhile briefing from the Society of the Irish Motor Industry concerning the difficulties encountered by the motor trade. They set out very clearly the declining job opportunities within that trade and they made an excellent presentation on how new vehicle registrations could be dramatically increased, with more job opportunities in the motor trade and increasing revenue to the Exchequer. I welcome the reduction in vehicle registration tax and the consequential cheaper car prices. I also welcome increased capital allowances for companies buying new cars. However, the Minister has failed to take the decisive action which was needed to put the motor industry back in a strong commanding position. We had 33,000 imports of second-hand cars last year. Some of those cars had failed the MOT test in Northern Ireland or the UK. In reply to a parliamentary question by me, the Minister for the Environment dodged the real question and put the blame on the garage industry for allowing defective vehicles on the roads. This is not the case, because many vehicles are imported by individuals rather than through the motor trade and hence the garages have no role to play in the matter. A vehicle testing procedure for imported second-hand cars would certainly be a step in the right direction. It would improve the quality of vehicles on our roads and would provide much-needed jobs in the motor industry. The further increase of 7p on a gallon of petrol and diesel is an unwelcome step in terms of the motor trade.

I welcome the commitment by the Minister to increase social welfare payments by 3 per cent. Within the last hour I met a delegation of widows who visited this House. They talked about the £1.50 increase they would get in their pensions next July. These ladies' husbands had served in the Defence Forces and because their husbands had opted out of the pension scheme, unknown to them, those ladies are now confined to social welfare pensions of only £62 per week. A 3 per cent increase for them is not very much. The point has been validly made that these increases should take effect immediately, as is the case in the UK, rather than having to wait for a number of months before the increases are put in place. The Minister should indicate clearly to the House why the July date has been chosen for the increases to become operative.

Whereas everybody in this House would welcome the introduction of a widower's contributory pension, many of us abhor the small print in the Minister's speech which indicates that widows' and widowers' pensions will henceforth be means tested. This is a very serious proposal by the Minister which will have far-reaching consequences. No doubt there will be a court challenge to it and I believe the courts will overturn the decision of the Minister. It is surely a dramatic break with precedent that people who have contributed towards a pension find that this pension is to be means tested. This is totally at variance with natural justice and is something which we in Fine Gael will fight at all costs to have reversed. This is just another indication of the anti-family budget with which we have been presented. It seeks to means test a contribution made by a spouse for his or her partner for a pension after his or her death.

The state of county roads has reached an all-time low. This results from the failure of successive Governments to allocate sufficient funds to local authorities to maintain county roads to a reasonable standard. The resurfacing programme runs in a 25 to 30 year cycle and the damage caused to county roads in the meantime is beyond estimation. Compared with other counties the roads in County Westmeath are in a reasonable condition, although many of them are poor. We have a serious problem with pot holes and there is an urgent need to strengthen and resurface many of our roads. The £15 million allocated in the budget, when divided among all the local authorities, is a mere pittance.

There are of course many sectors which received no assistance under this budget — I refer specifically to the clothing trade. This sector experienced a huge hike to 21 per cent in VAT charges in the last couple of years. We saw the loss of a staggering 1,140 jobs in this sector in the past 12 months. The Minister has not done anything to maintain the existing jobs in this industry. The reduction in the level of employer's PRSI for employees earning less than £173 per week will be of some help, but much more needs to be done. There is a strong possibility that upwards of 1,600 jobs will be lost in the clothing industry during 1994. The Minister needs to take cognisance of these figures, which have been produced by the industry, and to examine what can be done.

The Minister has once again ignored the confectionery industry which is facing huge competition from its counterparts in Northern Ireland and Great Britain. The products produced by this industry in the North and Great Britain have a zero rate of VAT, thus giving them a decided advantage over the products produced by our home-based industries. Jobs in this industry are being eroded steadily, yet the Minister has again decided to ignore the people working in this sector and to let them fend for themselves. The newspaper industry has also once again been left out of the equation. The continued imposition of VAT on newspapers gives imports a decided advantage over our national papers. These imported papers are continuing to increase their foothold in the Irish market.

The budget was a major disappointment. The Minister had room for manoeuvre with the amnesty windfall of £230 million but he failed to avail of the opportunities presented to him and has done nothing to create much needed jobs.

Minister for Justice (Mrs. Geoghegan-Quinn)

I welcome the opportunity this debate on the budget affords me of speaking on certain aspects to the Votes for which I have responsibility.

One of the commitments in the Government's Programme for a Partnership Government was to draw up a five year corporate strategy for the Garda Síochána to enhance its capacity to fight crime in present day conditions. In making this commitment, the Government's aim was to provide the citizens of this country with the level of security they need to go about their daily lives without fear for their person or property. I am happy to say that this commitment has been honoured in full with the publication last year by the Garda Commissioner of a corporate strategy policy document for the years 1993-97. The Commissioner's objective is to improve the performance and effectiveness of the Garda Síochána. I welcome this move.

As the House will be aware, recorded indictable crime increased by 1 per cent in 1992. Final figures for 1993 are not yet available but I am aware that they will show a further increase on the 1992 figure. Crime in our modern society is a very complex matter and is multi-faceted in origin. If we are to tackle crime successfully, it is necessary to have regard to its wider socio-economic causes. This means that we must, increasingly, take account of the inter-relationship between the economic and social policies that are pursued and the criminal and anti-social behaviour that is manifested in our community today. Law enforcement policies can only be part of the Government's response to that behaviour.

For my part, Deputies will be aware that I received the approval of the Government last December for a package of law and order measures which I am confident will make a very significant contribution towards tackling the existing crime problem. The package will cost almost £66 million in the period up to 1997. These measures, which, by any standard, amount to a major initiative by the Government against crime, are essential to confront the criminals in our society who prey on law abiding people. On the Garda front, the package will provide for accelerated recruitment of gardaí this year; further recruitment of gardaí during the next three years; an increase in the number of civilian staff employed on clerical work in the force; recruitment of civilians of certain specialist-managerial posts in the force; replacement of the Garda fleet on a five year basis, and increased use of information and voice technology.

In line with the commitment in the Programme for a Partnership Government to accelerate Garda recruitment, the Government has approved my proposal to complete the intake from the current recruitment campaign by 1994 rather than 1995, as originally planned. This will result in 407 gardaí being recruited this year. This will represent the highest intake of recruits in any year since 1983. The present recruitment campaign will now end in December 1994.

The present strength of the Garda Síochána is about 10,900. In addition, the employment of almost 700 civilians to perform clerical duties has led to the release of gardaí to perform the outdoor operational duties for which they were specially selected and trained. I will shortly be announcing details of another campaign to recruit 350 members in each of the years 1995, 1996 and 1997. This should ensure that there will be no decrease in Garda numbers when the current campaign comes to an end and that Garda numbers will be maintained up to the end of 1997 at a level of approximately 11,000.

The package provides for recruitment of 200 civilian staff for the Garda Síochána between 1994 and 1997 to undertake clerical and administrative work. This will increase the number of clerical civilians in the force to 900. By releasing an equivalent number of gardaí from administrative duties to outdoor police duties, this measure will also increase the operational strength of the force by 200.

This is a key strategy to obtaining greater effectiveness and policing presence on the beat from within existing Garda numbers. The operational strength of the force is now at its highest level ever and the further civilianisation of administrative posts that will take place will boost the operational level even further over the next few years. In addition, I propose to recruit civilian staff for certain key areas within the Garda management structure where special qualifications are required. The areas involved include personnel, financial control, organisational development, and press relations.

I am committed to improving the organisational structure of the force. It is important that the available resources are deployed in the areas where they are most needed. I know that Garda management shares that view, and is studying the issue. It is my intention to establish a research unit for the Garda Síochána shortly. The purpose of this research unit will be: to establish the best practices for response to particular crime situations; to analyse the causes of crime, and to identify ways in which crime can be reduced. Arrangements are already at an advanced stage to recruit civilian staff to fill the senior positions in this unit, those of head of research and civilian researcher.

The package provides for the purchase of approximately 80 additional vehicles, including specialist vehicles, for the Garda fleet during 1994. This is over and above the normal fleet replacement requirements and will ensure optimum replacement of vehicles in the Garda fleet over the next five years.

In line with the commitment in the Programme for a Partnership Government to use the most modern technology to combat crime, the package provides for the installation in 1994 of closed circuit television cameras in two areas of Dublin to combat crime in the city centre. The operation will be totally under the control and management of the Garda Síochána.

As Minister for Justice, I have made traffic law enforcement a priority for the Garda and I have endeavoured to see to it that it has the necessary resources in terms of personnel and equipment to carry out this essential and vital task. In particular, I am anxious that the Garda is in a position to fully exploit modern technological developments in this area. For instance, the use of in-car cameras by the traffic cops has had a major impact in the fight against speeding and reckless driving. There is, of course, no room for complacency, as the accidents which occur on our roads all too frequently show. It is a sad and disturbing thought to recall that no less than seven persons died on our roads last week-end, a statistic which I find unacceptable. I assure the House that the Garda remains committed to maintaining the ongoing and rigorous enforcement of road traffic laws.

The Garda Síochána is involved in two very successful youth diversion projects in the Dublin area — the Killinarden Engages Youth project — the KEY project — and the Give Ronanstown A Future Today project — the GRAFT project. Funding is provided by my Department towards the running of these projects. I consider these projects to be a very worthwhile experiment and I am delighted to say that there has been a substantial decline in crime in both of these areas since the community-based initiatives were introduced.

In line with the thinking outlined in the report of the Inter-Departmental Group on Urban Crime and Disorder, I have received increased funding for such initiatives in the period 1994-97. This will allow a further four or five new projects to be set up in the kind of deprived urban areas which were the subject of that group's attention. In another initiative, a pilot scheme involving juvenile liaison officers and professional social workers will be introduced to concentrate on the drug problem among juveniles at risk in Dublin.

I stated in the House on numerous occasions the priority which I give to dealing with the drugs problem. The Garda authorities also treat drug law enforcement as a priority. In this respect, all members of the Garda Síochána deal with law enforcement aspects of drug misuse within their operational area and there are now gardaí specially trained in this area in every Garda division. In addition, specific Garda drug squads operate in Dublin, Cork, Limerick and Galway and small specialised units are in operation in various parts of Dublin. It is apparent from the reports I am getting that these squads and units are having considerable success in the fight against drugs.

In order to deal with the drugs situation as effectively as possible, it is of course important that we have the highest degree of co-operation and liaison between the relevant agencies involved. For this reason, I have requested a senior official of my Department to prepare a report on the matter. The report will examine various aspects of the drugs problem, including the organisational structures that are needed, and will address the optimum way of achieving a cohesive and co-ordinated response by the law enforcement agencies to the drug trafficking problem. In preparing the report, discussions are being held with senior management of the other Departments and State agencies involved in the area, including the Revenue Commissioners. I expect to have the report very soon and I will then consider it as a matter of priority.

In October 1993, the Garda authorities set up a divisional task force to combat and stem the worrying number of armed raids on financial institutions. The unit, which has become known as COBRA, operates under the auspices of the serious crime squad at Harcourt Square. The general function of the unit is to prevent and detect crime by the building up of intelligence and the targeting of known suspects. I am glad to say that the unit has had a number of notable successes to date.

At this stage, I would like to mention the vital work of the forensic science laboratory in bringing successful prosecutions against criminals including drug cases. Since coming into office, I have been detemined to ensure that the laboratory has the necessary funding to carry out its essential task in helping the gardaí in their investigations and in the presentation of evidence in court. The laboratory plays a central role in the criminal justice system. In order to fulfil this role the laboratory requires highly specialised equipment and I am pleased to state that £270,000 will be allocated this year for this purpose. This will allow the laboratory to continue providing the gardaí with the quality service that it has provided since its establishment in 1975.

Two areas deserve special mention. The role of the laboratory in the fight against drugs is pivotal. In drugs prosecutions, the State must show that the accused was in possession of the items seized and that the items seized contained a controlled substance. The number of drugs cases dealt with by the laboratory has risen from 1,285 in 1988 to 4,914 in 1993. This has placed a tremendous workload on the laboratory and I am happy to report that the director and the staff have more than risen to the challenge.

The other point I want to mention is that of DNA testing. This technique will greatly increase the amount of information that it is possible to obtain, particularly in sexual assault cases. In order that we can fully benefit from this advanced scientific development, the laboratory has been provided with the necessary state-of-the-art equipment at a cost of over £100,000. Following the building up of the necessary data bank of blood samples, testing is now being carried out here in criminal cases. Prior to this, it was necessary to send all samples to Britain for testing. Accordingly, the number and range of offences to which the technique can be applied will be greatly extended.

Finally, in relation to drugs, two social workers will be employed to coach selected juvenile liaison officers in drugs counselling and related work, under the special law and order package.

An issue which is very much to the fore these days is that of violence against women, both within and outside the home. Indeed, all of us will be familiar with some very serious cases which have featured prominently in the public domain in recent years. I am encouraged that the level of reporting of this terrible crime is on the increase and that as a society we now appear to recognise that violence against women in whatever form, or wherever it occurs, is completely unacceptable behaviour which must be reported to the appropriate authorities. The gardaí have made tremendous efforts in this area lately, in co-operation with the public, and are continuing to devote considerable resources to addressing the problem.

In this respect, a new woman and child unit in the Dublin Metropolitan Area Headquarters, Harcourt Square, was established last March and is staffed by gardaí who are highly trained and experienced in dealing with domestic violence and sexual assaults. The functions of this unit include overseeing the investigation of offences of domestic violence, child sexual abuse and other violent and sexual offences committed against women and children in the Dublin Metropolitan area. Enforcement practices in respect of protection and barring orders are also carefully examined.

Arising from the recommendations of the Government Advisory Committee on Fraud, the package of law and order measures provides funding for the recruitment of two additional detective inspectors and three professional accountants for the Garda fraud squad and to purchase specialised fraud related information technology equipment. These measures form part of plans to establish a national bureau of fraud investigation headed by a chief superintendent. I also intend to introduce legislation this year which will comprehensively amend the law on fraud and dishonesty.

Information technology has the potential to make a significant contribution to the work of a police force. This has been long recognised by the Garda Síochána but their existing computer systems, which served them well in the past, are now very old and are based on the more rigid technology of previous decades, which severely limits their usefulness. A comprehensive information technology plan for the Garda Síochána has, therefore, been drawn up with the assistance of outside consultants.

Total expenditure on this plan will be in the region of £26 million and, as I announced in December when unveiling my comprehensive package of law and order measures, £2.4 million has been made available this year to start the implementation of this plan. This information technology plan will make a substantial contribution in the years ahead to the effectiveness of the Garda Síochána by enabling gardaí to spend more time on out-door policing duties and less time on paperwork; increasing the crime detection rate through improved quality of crime intelligence information and computerised fingerprint identification facilities; providing faster and better quality information to improve overall Garda responsiveness; providing improved management information to enable more effective deployment of manpower; providing information to enable the gardaí identify people at risk and keep in touch with them; and providing traffic accident patterns and information essential for the enforcement of road traffic legislation. Work on implementation of the plan is already underway. For example, tenders have been sought for a major consultancy project which the plan identified as essential and tenders for this project are due in by 15 February.

The need to up-grade the Garda communications network is also being addressed. A sum of £0.5 million has been provided this year for this in the package of law and order measures in addition to the normal provision for Garda communications equipment. The increased provision will enable a more modern communications system to be provided for Cork city and Garda radio hand-sets and car-sets purchased in the early and mid eighties, to be replaced with modern equipment.

All of these initiatives in the Garda area, including further recruitment after 1994, increased civilianisation and the implementation of the information technology plan, will significantly increase the operational strength of the Force in the years ahead. This will mean more gardaí on the streets in our cities and towns throughout the country, providing a more effective service to the public. I want to take this opportunity to reassure Deputies from all sides of the House that this Government is committed to winning the fight against crime.

I would now like to turn to the question of prisons and accommodation for offenders. The package of law and order measures outlined a significant decision by Government in terms of prison accommodation — the provision of 210 additional prison spaces at a total estimated cost of £25 million. A total of 150 spaces will be allocated to male offenders; the other 60 spaces will cater for females. The women's facility will meet a long-recognised need in the prison system — a self-contained women's prison designed to meet the specific needs of women prisoners. The intention is that the project will also involve the provision of adjacent hostel-type accommodation to meet the needs of women prisoners who do not need the secure facilities of the prison. The initial planning work on the provision of the new spaces has commenced. It is anticipated that construction work will commence later this year.

A provision of £12 million has been made in my Department's 1994 Estimates to cover the portion of the costs of providing the additional spaces which will fall due this year and also to continue a programme of ongoing major improvements to our existing prison stock. Apart altogether from the essential improvements in our prison system which these developments will bring, there is the important bonus of a boost for the construction industry stemming from the level of moneys being made available. The impact which this will make in terms of jobs is something which every Deputy in the House will welcome.

It would be appropriate to say a few special words about the proposed new women's prison. I am determined that it should be designed and organised with an ambience, activities and facilities which will give women prisoners maximum help to cope with their personal difficulties and every assistance and encouragement to lead them to a more constructive lifestyle. The first step in this process has been my setting up an expert steering committee to advise me on the best options to take in relation to the design of the women's prison and I look forward to receiving their considered advice as quickly as possible. The steering committee has, by way of public advertisement, invited views from interested parties and I am most anxious that we have as broad a consensus as possible on the type and design of the facility to be provided.

It is the intention that the new women's prison will be complemented by the provision of adjoining hostel accommodation and that special efforts will be made to develop and extend the range of community-based sanctions for women prisoners. The House will also be aware of my support for the "New Opportunities for Women" project under which a specialist training and education centre will be set up in the community for the benefit of women offenders. The project is being supported by European Union funds. It represents a very positive development in the overall treatment approach to women who come in conflict with the law and will also, in a way, complement the development of the new prison.

I now turn to our efforts to reduce offending in the community. I am pleased to say that the number of probation and welfare officers will be substantially increased over the next four years. Not only have I secured Government approval in the context of the package of law and order measures to employ an additional 50 probation and welfare officers, but I have also obtained approval to fill 20 vacancies. Thirty probation and welfare officers and three clerical staff will be recruited this year alone. The total of 70 represents an increase of more than 40 per cent in the level of the service by 1997.

I have every reason to be satisfied with this development. I am confident that the service will be well placed as a consequence to meet the additional work load which it is being asked to undertake. The increase in staff numbers will improve the probation and welfare service's capacity to deal with offenders in a non-custodial setting and improve the range of alternatives to custody available in the criminal justice system.

My overall strategy is to increase prison spaces and, at the same time, develop a system whereby planned and programmed releases can be resorted to under the close supervision of the probation and welfare service. Half of the extra 50 staff will be charged with the task of closely monitoring and supervising prisoners on release in the community. Assignments for the remaining staff will include development of the treatment programme for sex offenders being set up in Arbour Hill Prison; improvement of the response to requests from the courts for pre-sentence reports; provision of after-care for long term offenders returning to the community and provision of an enhanced probation and welfare service to prisoners while in custody.

Additional probation accommodation and day attendance facilities at a capital cost of £2.5 million are also to be provided. These centres will facilitate more effective supervision of offenders in the community. Offenders will be engaged in constructive activity at these centres and receive counselling about their offending behaviour. Approaches of this kind can be very successful in diverting serious offenders from a criminal lifestyle at a cost which is considerably less to the tax-payer than that of custody. Provision of these new facilities and upgrading of existing facilities will take place in Dublin, Cork and Galway.

I should also like to mention the intensive supervision scheme under which more than 100 offenders have been taken from prisons or referred by the courts to be intensively supervised in the community by the probation and welfare service. The scheme will be expanded in 1994 with the purchase of premises in Dublin and the recruitment of additional staff. Under the scheme, there is a concentration of effort on occupying offenders and engaging them in constructive activity during their time in the community. Offenders are required to attend a centre on a number of days each week for 18 weeks and to accept supervision thereafter. They are encouraged to discuss, in a group setting, ongoing difficulties and issues arising from their offending behaviour, awareness of dependency on alcohol or drugs, health issues, lifestyle and stress issues. I am satisfied that the scheme is working well and that it can play a useful part in the overall alternatives strategy.

I would now like to refer to the courts and their vital role in the administration of justice which, in turn, affects the maintenance of law and order. In the recent package of law and order measures, provision is made for the appointment of three additional judges — one to the High Court, one to the Circuit Court and one to the District Court — to address the present delays in the hearing of criminal cases in the Central Criminal Court, the Dublin Circuit Criminal Court and the Dublin Metropolitian District Court. Delays in the hearing of criminal cases, in effect, means that defendants released on bail, whose cases cannot be heard for lack of a judge, are free to commit further crimes because of the excessive delay in the disposal of their cases. This is very serious and could not be allowed to continue.

I welcome greatly developments in the courts whereby procedures have been put in place which facilitate victims appearing in our courts as witnesses and which emphasise the impact of crime on the victim. A video-link system has been introduced on a pilot basis in the Dublin Metropolitian District Court, the Dublin Circuit Court and the Central Criminal Court. This audio-visual system is used in cases involving sexual offences and offences involving violence. It enables witnesses under 17 years of age to give evidence and be cross-examined outside of the courtroom setting while allowing court proceedings to be conducted as if the witnesses were giving evidence in the court itself. I have also signed the necessary regulations allowing witnesses to give evidence through a live television link at the preliminary examination of cases involving physical or sexual abuse before a District Court and also allowing for the transfer of proceedings to those District Courts which have the necessary technical facilities. It is proposed, depending on the volume of business, to introduce the video-link system in two provincial courts at a later date when the system in Dublin has been fully monitored and assessed.

I wish to inform the House that permanent accommodation has been made available to the Irish Association for Victim Support in the Four Courts in Dublin and facilities are made available, as required, at other venues. Special consideration is being given to similar facilities in all courthouse renovation projects.

In the context of sentencing, I am pleased to hear that more judges are seeking reports on the impact of crimes on victims before imposing sentence. This very welcome development is one which I wholeheartedly support.

The efficiency of all aspects of the courts is of great concern to me. A review of the District, Circuit and High Courts to assess both the impact of the altered civil jurisdiction of the courts introduced by the Courts Act, 1991, and to look at the hearing of family law cases in the courts has just been completed in my Department. I am at present examining the results of this review to ascertain what additional resources must be made available to the courts to eliminate undue delays in the hearing of cases.

I am also actively addressing the problems of court accommodation. Much of the court accommodation around the country is seriously inadequate and does not provide the facilities necessary for persons coming before the court, members of the legal profession or court staff. Budgetary constraints in recent years meant that limited funds only were available for courthouse projects. I am glad that this year I have secured an increase in the allocation for expenditure on court accommodation with £4.25 million being provided for capital works and a new allocation of £1 million being made available for maintenance projects in provincial courts. This increased funding will allow new and refurbishment projects to proceed this year on a number of courthouses, including Galway, Cork, Donegal, Athlone, Clonmel, Carrick-on-Shannon, Carlow and Longford.

In addition, other courthouse projects are being identified and a planned maintenance programme will be put into operation which will include, for the first time, maintenance of provincial court accommodation. I am in the process of recruiting a building officer with relevant architectural or engineering qualifications who will be responsible for implementing the courts safety, health and welfare at work policy and for advising on the courts building programme. I intend to seek a substantial improvement in the standard of court accommodation through the country during my term as Minister for Justice.

I am happy to mention a major initiative in the courts designed to ensure that the service provided is effective and accessible to all. The small claims procedure — which was established on a pilot basis in four District Court offices in 1991 — was extended nationwide in December last following a full review of its operation. This extension will enable persons in all District Court areas to avail of the small claims procedure. The procedure, which is consumer orientated, provide people with a means of processing small claims cheaply, speedily and informally. Following the review of the pilot scheme, I decided not only to extend the scheme nationwide but to extend its scope to include rent deposits and minor damage to personal property. In addition, I propose to increase the monetary limit on claims from £500 to £1,000 by annual instalments of £100 over the next five years.

My Department is also watching with interest the operation of pilot multimedia systems in other jurisdictions such as developments in court stenography and the use of closed circuit television linking courthouses, prisons and hospitals which may contribute to more efficient use of court time and resources.

I am committed to providing an efficient and effective court service. I will continue to take whatever measures are necessary within the resources available to me to maintain and improve the service provided by the court system.

As Deputies will be aware, I have indicated on a number of occasions my strong support for the Irish Association for Victim Support. I was delighted therefore to be able to inform the association that I secured approval from the Government for the 1994 funding to the association to be increased to a sum of £110,000. Provision for this amount is made in the Vote of the Office of the Minister for Justice. The association has plans for the development and expansion of its services to the victims of crime and the sum of £110,000 will assist these plans. I also take this opportunity to compliment the association on the very important and vital support it gives to victims of crime. This is a matter of great concern to me because of the serious consequences crime, particularly crimes involving violence towards people and to property, has for the vulnerable sections in our community.

During 1993, I pressed ahead with this Government's programme of criminal law reform. The record speaks for itself — in my area of responsibility five Bills were enacted, and a further three have been published.

Of the five Bills enacted, perhaps the one that will have some of the most far-reaching and beneficial effects on the operation of the criminal justice system is the Criminal Justice Act, 1993. This Act was designed to make the criminal justice system more victim orientated and to redress the balance towards the needs of oft-forgotten victims. The Act focuses on the rights of victims. It enables unduly lenient sentences to be reviewed by the Court of Criminal Appeal at the instance of the Director of Public Prosecutions. It places an obligation on sentencing courts to take into account any effect a violent or sexual crime has had on the victim. It also authorises criminal courts to require offenders to pay compensation to their victims for an injury or loss.

A second major reform was the Interception of Postal Packets and Telecommunication Messages (Regulation) Act, 1993, which places on a statutory basis the conditions under which the power of the Minister for Justice to issue warrants authorising the interception of postal packets and telecommunications messages is to be exercised, and regulates the procedure for the issue of those authorisations. The Act also introduced a number of important safeguards against any misuse of ministerial power.

The Criminal Law (Sexual Offences) Act, 1993, repealed the old laws that made homosexual acts between consenting mature adults a criminal offence and thus, among other things, brought our laws into compliance with the European Convention of Human Rights. The Act also offers protection to neighbourhoods where prostitutes, their pimps and clients cause annoyance by their public soliciting and loitering and it provides protection to prostitutes against being coerced or compelled into prostitution by others.

The fourth Bill enacted relates to suicide. As a result of the Criminal Law (Suicide) Act, 1993, it is no longer a criminal offence to commit suicide or attempt to commit suicide. It is, however, still an offence to aid, abet, counsel or procure the suicide of any person.

The fifth Bill enacted was the Criminal Procedure Act, 1993, which provides remedies in cases where it is alleged that a miscarriage of justice has occurred and the existing appeal procedures have been exhausted.

In the summer of 1993, I presented the Criminal Justice (Public Order) Bill which was passed by this House last November and is now before the Seanad. The Bill contains proposals on the updating of the law in relation to public order offences, an offence specifically aimed at racketeering, and the implementation of certain recommendations made by the Committee on Public Safety and Crowd Control. It will go a long way towards equipping the gardaí with the necessary powers to deal with the problems of public disorder which, understandably, have given rise to such concern in our communities.

In December last year, I published the Criminal Justice (No. 3) Bill, 1993. That Bill provides for the seizure and confiscation of the proceeds of drug trafficking and other serious crimes, the creation of an offence of money laundering and gives effect to various international instruments on drug trafficking, money laundering and mutual assistance in criminal matters. A measure of the comprehensive nature of the approach being taken in the Bill is that, when enacted, Ireland will be able to ratify three international conventions in this area as well as give effect to the EU Directive on money laundering.

The large volume of criminal law reform measures brought before the Houses last year is probably unprecedented. Much of the credit must surely go to the members of the Select Committee on Legislation and Security, without whom so much progress simply could not have been made and also to the many diligent employees in my Department who have worked hard to enable me to produce this legislation.

Turning now to legislative proposals in 1994, I should like to assure the House that the progress made in 1993 will not be a once-off. I propose to continue at this pace throughout, and to put in place the legislation to which all of us are committed by virture of the Programme for Government.

Already this year I have published the Extradition (Amendment) Bill, 1994. I will shortly be publishing the long awaited Solicitors Bill. I say "long-awaited" because I am only too aware of the acute need for a Bill of this nature. The Bill will afford greater protection to the clients of solicitors in line with the commitment in the Programme for a Partnership Government and ensure that the profession maintains the highest standards of conduct. It will contain a substantial revision of the disciplinary and complaints arrangements for solicitors. New powers will be given to the Law Society to intervene in the practice of solicitors in the interests of clients and the High Court's supervisory powers over the profession are being increased. The Bill will also update the Law Society's functions in relation to the education and training of solicitors and promote competition in the provision of conveyancing and probate sevices.

Another 14 Bills are at various stages of preparation in my Department. These include a new Juvenile Justice Bill, a Bill to provide a statutory framework for applicants for refugee status, a Bill to allow qualified applicants for citizenship who applied prior to 31 December 1986 for registration but who were not registered by that date to be registered as Irish citizens, a Miscellaneous Provisions Bill designed to achieve savings in costs and Garda time, a Bill to amend the law relating to criminal insanity, and a Court and Court Officers Bill.

I am giving special priority to the publication of a modern Juvenile Justice Bill. In that Bill, I will give particular attention to defining the role and responsibilities of parents.

The time available has enabled me to outline to the House the broad thrust of the policies which will apply in 1994 in relation to the activities falling within the ambit of my Department. These policies and other aspects of my Department's Estimates can, of course, be more fully examined by Deputies when, in the coming months, individual Votes for which I am accountable come to be examined by the Select Committee on Legislation and Security.

The budget, being the starting point for the Government's economic policies each year, is the subject of today's motion and I accordingly commend to the House the Government's policies set out in the budget.

Mr. Connaughton

The Fianna Fáil and Labour Parties will remember the 1994 budget for a long time. Coming up to budget day there was not a cloud in the sky or criticism from any quarter. The budget figures were better than anticipated, income from direct taxes had increased, the basic infrastructure of the economy was sound and, generally, we were conditioned into believing it would be a good give-away budget. According to the spin doctors this budget would achieve something which no other budget ever aspired to. The present low interest rates together with low inflation, taken in conjunction with the lower level of day to day borrowing requirement, would form the launching pad for an attack on unemployment.

The Minister for Finance said he would restructure the tax code, ensure that the provision and take up of jobs was made easier and tilt the balance towards getting people off the unemployment register and into a jobs economy. Having studied the figures, I am afraid the budget will not work that way.

Because of income derived from the tax amnesty the Minister could do things which were not possible previously. However, the innate begrudgery that consumes Labour in regard to people who own anything raised its ugly head. The Labour Party wanted to stamp its authority on the Government and this budget appeared to them to be the perfect vehicle. They decided that a new and insidious twist was required to the existing residential property tax so that middle income house-owning families would pay the piper. The Minister for Finance thought when the electorate heard of the anticipated income from the new levy — only an additional £5 million — there would be little hostility and it would be soon forgotten. How wrong can one be? The Government has forgotten that the people who live in 95 per cent of these houses are up to their ears in loan repayments. They are the people who have family members at university or at secondary or national school level. They have to pay for everything. They are not prepared to be beaten into the ground. Furthermore, because of statements by the Minister for Finance in regard to ongoing discussions about broadening the tax base it became apparent to many house owners, whose houses were valued at only half the £75,000 threshold, that their day for paying the residential property tax was not far off. There was more bad news for such householders. It became apparent that all income, irrespective of the source, from family members would be computed for tax purposes. This could have an appalling effect on the family structure. Family members would not return to their home and this would put pressure on rented accommodation.

Not content with the residential property tax, the Minister said he would restrict mortgage interest relief. This was yet another attack on the middle class house owner. The Government was fully aware once it decided to reduce dramatically the threshold from £91,000 to £75,000 and reduce the income threshold from £28,100 to £25,000 that the public would see this was rates by another name and they have reacted accordingly. The Government should not be surprised by the ferocity of the opposition to the residential property tax. The pleas for help, and, more importantly, the plea for recognition of their particular circumstances from the middle class group is understandable.

Taxes should always be sought on the basis of ability to pay. The fact that a person lives in a house worth £75,000 in a certain area and the family income is in excess of £25,000 does not mean there is surplus money in that household. There is a huge difference between a family who are entitled to a third level education grant over a three to four year period and a family which has to fund a member, at a third level institution, at a cost of £4,000 to £6,000 per year. I acknowledge that many families in the lower income group could not possibly allow their sons and daughters to attend third level institutions without a grant. Many householders shuddered at the interest rates they were paying only a year ago. Who is to say that high interest rates will not recur in 12 months' time and stay with us for five or ten years? Nobody can tell us that, and still the new residential property tax will bite. First time purchasers or builders of their own houses will get mortgage interest relief for the first five years but it is a case of "live horse and you will get grass" after five years, irrespective of interest rates. How can anyone know what unemployment will be like? Will many more people lose their jobs as they have done over the last three years, and then mortgage interest relief will assume a new importance?

The Government has disgraced itself in trying to nail people who are trying to make a living and not depend on handouts. It is a typical Labour response to the people who try to make their own way. This will not be easily forgotten by the people of Dublin who are obviously in the forefront or by people throughout the country who have gone to the trouble and expense of trying to build their own homes. This is a bad signal from this Government and it does not augur well for what it might do in the future. Let us be realistic. The Government can do whatever it decides, by virtue of its parliamentary majority. This tax represents pure arrogance.

The Government has skidded on another banana skin in this budget in deciding to rape the social insurance scheme. This is not the first time a Fianna Fáil dominated Government has done this. This insidious tendency was started by Deputy McCreevy as Minister for Social Welfare when he had the brilliant idea that if a redundant person got more than £12,000 redundancy he would not be entitled to employment benefit for the following nine weeks. This was an attack on the social insurance scheme because that worker had joined the scheme on the understanding that on becoming unemployed he or she could call on the social insurance scheme.

There is now an earnings limit of £16,000 above which a widow will not be entitled to her widow's contributory pension, even if she has paid PRSI contributions for the last 30 or 40 years. This is a lousy mean trick and when it is considered that a person has no alternative but to pay into the social insurance scheme, it means that it is taking money from citizens by sleight of hand. The woman has the huge personal disaster of losing a husband and if she happened to have a job which paid more than £16,000 a year, irrespective of her family commitments, she will not be entitled to a widow's contributory pension. The Government will pay dearly for this.

The Government has recently been putting great emphasis on the 36 county enterprise boards as being vehicles to generate economic recovery in the regions. I always maintained that it was vitally important to keep the old county development teams. If the new beefed up county enterprise boards deliver on the ambitious targets originally set for them, I will be delighted. However, I do not share the optimism that the boards are in a position to deliver jobs in the numbers required. I have a number of questions for the Ministers for Finance and Enterprise and Employment about these bodies as a result of the budget. The boards were first conceived in August 1992, the day after the worst jobless figures announced for years were announced. The Taoiseach and the Government panicked and within a few hours the county enterprise boards were born. They have gone through a tortuous journey since — a change of Government, a change of emphasis, changes of personnel in many cases— but at the end of the day not many more jobs have been created than would have been created by the old county development teams. Unless the new county enterprise boards are able to help financially in the service industry sector which has the greatest job growth potential in the regions, particularly in the west, we will not progress. If the county enterprise boards cannot deliver cheap loan facilities without security to individuals who want to start new projects on a small basis, there will not be a sizeable increase in the number of jobs created under this heading.

Great play was made prior to the last election of the importance of county enterprise boards for local employment. It was suggested that millions of pounds were available from banks and other lending institutions. Will an individual with a good idea be able to walk into a bank on the recommendation of the county enterprise board and get a loan covering a pre-determined length of time at a pre-determined low rate of interest without security? The day I see that happen is the day that I will believe that the county enterprise boards have more power and influence than the old county development teams.

I acknowledge, as do all those who comment on agriculture, that 1993 was a good year for agriculture, not because of anything the Government or the EU did. A variety of factors worked in a certain way to influence market prices, particularly for cattle and sheep and to some extent for milk. There is no doubt that once the ship sails with live cattle, one will see a brisker trade for cattle throughout the country. I put down a benchmark. There is a lobby which believes that neither cattle nor sheep should be exported live in any circumstances. However, competition is the life of trade and the day that factories gain control of the meat industry I will worry, but not half as much as farmers will worry. It is very important that that live trade be left open. It does not seem to matter whether or not huge quantities are being exported. It is the fact that there is another purchaser at the ring or at the factory and this is what keeps prices up.

The devaluation of the Punt in early 1993 contributed to an 11 per cent increase in farm incomes in that year. This is not something that will happen in 1994. As well as that, compensation was made available following the reform of the CAP and this helped to boost prices. However, cattle and sheep prices are artificially high and it is only when prices begin to tumble towards world prices that we will begin to see the knock-on effects of the CAP reform and the GATT agreement.

Farmers are being treated to a circus with the announcement of EU schemes that are coming on stream. The Government is making full use of the spin doctors.

Minister of State at the Department of Agriculture, Food and Forestry (Mr. Browne,

Wexford): Good news every day.

Mr. Connaughton

Every day you open a newspaper, a new scheme is being announced but when you read further you realise you have heard it 20 times before. The Government spent a year and a half introducing the farm retirement scheme and only God knows how long it will take to introduce the environmental scheme.

Many farmers are led to believe that all they have to do is to open the door and the £5 notes will flow in. That is nonsense. I am afraid the Government is over-selling what is available. No doubt some of the schemes being implemented are very good. The farm retirement pension scheme is good but I believe its uptake will be very slow after the initial phase. This will be due to the enlargement clause which will militate against small farmers in particular because the son or daughter on the farm will not have the option to buy or lease extra land on a long term basis. Indeed, we could have a rerun of the debate on long term leasing of land — this was a matter of importance to me in the 1980s. Now more than ever we need to put the emphasis on the necessity to have five, seven or ten year leases instead of 11 month leases. There is a fundamental flaw in the scheme as it will affect part-time farmers. In the west there is a great deal of off-farm employment and many of the families who believe the scheme is tailor-made for them will be very disappointed because seven out of ten of those who believe they are eligible to avail of the scheme will be blocked by bureaucracy.

In more recent weeks we have heard about the environmentally friendly scheme.

Mr. Browne

(Wexford): A good scheme.

Mr. Connaughton

The sum involved is £231 million. It is significant that the scheme is coming on stream before the Euro elections on 9 June. There may be more details available after 9 June— but that is another story. Nobody can deny that the objectives of the scheme are very good but how it will work at individual farm level is another story.

I want to put on record that the budget, in conjunction with the funding from the Structural Funds, does not augur well for investment in the west. As Members will be well aware, an impressive document entitled A Crusade for Survival was presented by the Developing the West Together Group last week in Castlebar. This very comprehensive document calls for a huge increase in resources to stop the ebb of population from many parts in the west. I compliment the western bishops and the core groups for their outstanding report. It is an outstanding resumé not only of problems but it puts forward possible solutions.

Neither the budget nor funding from the Structural Funds will close the gap between the west and other regions not only in Ireland but in the Community. The west is in a state of crisis and unless investment becomes a reality it will be impossible to revitalise it. At the launch of the document in Castlebar last week the Archbishop of Tuam remarked that we are not speaking about depopulation but disappearance. In many parishes there has been a huge population haemorrhage. Everyone can point to thriving towns, such as Castlebar, Galway and Sligo but in many towns and parishes in between the only barometer of population is that the local GAA or soccer team is not able to field the full complement in under-age, minor or senior teams and games have to be called off. It was against that background that all the interest groups met last week.

It is not enough that the west gets its share. We got our share before but with each passing year the region has become poorer. People will say this is the result of competition between the west and the east but the problems are different. It can be argued that in Dublin there are too many people whereas in the west there are too few. When an area is denuded of its population almost all activity ceases. It is against that background that I call on the Taoiseach and the Government to help. The Taoiseach was in Castlebar to hear the pleas of the bishops and he should know what they are talking about because he was born in the region.

The cynics may say that the people in the west are always crying about something but if a person has pride and sees the population in the west dwindling he must stand up and say this far and no further; we will not allow our area to be further depopulated. I will illustrate my point by referring to statistics. In Connaught and Donegal there are 42,200 unemployed, of which 20,000 are unemployed for more than 12 months. Since 1980 the number of long term unemployed as a percentage of the total number registered as unemployed is higher in Connaught and Donegal then elsewhere: 47.1 per cent compared with 43.6 per cent. The total number of smallholders and non-agricultural self-employed people in receipt of unemployment assistance was 7,500 in October 1992. When this figure is added to the number of registered long term unemployed the total is 27,500, by any standard a huge figure.

Everyone knows that people in the west depend on farming but recent statistics from Teagasc in the national farm survey of 1991 show the average farm income in the west is only 43 per cent of the income in the east. Given that the region is losing its population in unprecedented numbers, that it is predicted that this will continue and that the normal distribution of available resources has landed the west in this predicament, it is easy to see there will have to be positive discrimination to ensure that the region can regenerate itself.

It is interesting to note that there is a huge number of small farm holdings in the west, 56 per cent of which comprise less than 30 acres whereas the national average is 45 per cent; only 20 per cent are in excess of 50 acres while the national average is 33 per cent. There are at present 6,000 milk producers in Connaught or less than 12 per cent of the national total. A total of 68 million gallons of milk are produced in the province which represents only 6 per cent of the national total; 84 per cent of producers have quotas of less than 20,000 gallons whereas the national average is 60 per cent. There is a need to ensure that quotas remain in the west and increase significantly.

I heard the Minister for Agriculture, Food and Forestry say on a number of occasions that every effort was being made to ensure that additional quotas would be made available to small producers but there is no point making them available if a person does not have the resources to buy an extra milk quota. A scheme will have to be introduced where small milk producers in the west will be able to buy available milk quotas at low rates. There is also a need to ensure that farmers in other areas are not allowed to plunder quotas in the west. This is on the cards.

We have one final chance to secure development in the west. In this regard, I could point to a number of positive trends. One of the recommendations made by the group to which I have referred is that a western development board should be established headed by a Minister to take overall responsibility for a given period to bring the various strands together at community, semi-State and national level to ensure there is a massive onslaught on the problems I have outlined. I hope the Government will give this recommendation serious consideration.

I have always believed that such a board should be established. Similar proposals were considered by previous Coalition Governments but they never came to anything. I sincerely hope that such a board will be established because it appears everybody has an answer to the problems of the west. However, nothing seems to be happening. While no one can guarantee its success, we should start from that point.

This plan contains over 100 proposals. No one expects them to be implemented within a short period but at least a framework could be put in place under which a concentrated effort could be made to solve the huge problems which beset us and which are getting worse year by year. However, given the way the Structural Funds are to be distributed during the next five to six years, I am afraid the necessary investment will not be made. Nonetheless, I hope some of our people will come up with imaginative ideas and that they will not get bogged down in bureaucracy. In this regard, I have always said that the pilot project undertaken in County Mayo under the Programme for Economic and Social Progress was a very good one. People with ideas — people in higher places would not even consider this over the years — should be allowed to draw the dole and retain benefits such as a medical card while developing these ideas. All I am saying today is that we should put this plan into action very quickly because the worst that could happen for that particular area would be for it to die a slow death. That is what is happening now.

Minister for Defence (Mr. Andrews)

I propose to share ten minutes of my time with Deputy Kirk.

An Leas-Cheann Comhairle

I am sure that is acceptable.

Mr. Andrews

I welcome this budget which has as its central theme a strategy designed to give a substantial impetus to sustainble employment.

The Minister for Finance in the budget recognises that there is no simple policy action that will resolve the problem of unemployment but that systematic and sustained effort will improve the competitiveness of the economy and create the conditions for the translation of growth into fuller employment. The budget contains a balanced set of measures which will, I believe, strengthen prospects for sustainable growth in employment in the years ahead. As well as the measures in the budget to increase competitiveness, I would like to particularly welcome the new community employment programmes which have been introduced to give the unemployed a better chance to compete for long term jobs.

This budget is a further step in the implementation of the strategy for economic and employment growth central to the Programme for a Partnership Government and is consistent with the aims and objectives of the National Development Plan 1994-1999. Furthermore, the budget has largely copperfastened the new economic and social agreement. A consensus among the social partners which has in the past proved very successful in the management of our economic and social affairs will further strengthen prospects for sustainable growth in employment in the years ahead.

I now propose to look at the budget in the context of both the Marine and Defence Votes. I continue to be convinced of the potential of our marine resources and of our capacity to translate this potential into real and sustainable jobs. The fisheries sector is important for the economy not only because it provides more than 15,000 jobs and contributes to the balance of payments in the form of about £200 million worth of exports every year, but also because much of the economic activity and many of the jobs generated are in remote or peripheral areas. I believe strongly in the political philosophy that the least well off and the more remote regions of the country should be given greater support by central Government. Therefore, during my time in the Department of the Marine I will concentrate on these regions. The fishing industry is an important employment generator and an important means of keeping communities together in these areas.

I will seek in 1994 to deploy the resources, both human and financial, which are at my disposal to achieve the maximum return in terms of jobs, full-time and part-time. The key areas for investment and expansion are fisheries— a carefully targeted investment to maintain and strengthen the fishing industry's contribution to the national economy and in particular its contribution to growth and employment in coastal communities; ports— to ensure an adequate infrastructure to facilitate the growth of industry, agriculture, fisheries and tourism and to assist regional development; and tourism angling— to improve the quality and level of facilities available to anglers thereby increasing tourism angling revenue and related job opportunities.

I would like to turn in particular to the fisheries sector. Deputies will be aware that, whereas there are certain influences which the Government can have on the fisheries sector at home, there are also constraints imposed at Union level. Decisions taken in Brussels under the Common Fisheries Policy generally have major implications for the industry here and in other member states. In Ireland's case these have not always been for the best.

Ireland's current difficulties with regard to its position under the CFP stem from two factors — the adoption of the principle of equal access by the "Six" in 1970, and the historic under-development of the Irish fishing industry at the time of the adoption of the CFP in 1983. It is fair to say that the principle of equal access has operated in a manner which amounts effectively to a traffic system with the greater balance of that traffic going in to the Irish zone.

I also have concerns about the level of our quota allocations. Quotas are allocated in accordance with the principle of relative stability. Three factors were taken into account when allocating the original total allowable catches. They are traditional fishing, populations dependent on fisheries and compensation for certain member states arising from the exclusion of their vessels from third country waters as a result of the extension of fishery zones to 200 miles in the late 1970s.

Ireland, with an under-developed industry, had a low level of traditional fishing activities and so our allocation under this key was limited. While some minor compensation was achieved under the key of local dependency on fisheries, these are the principal factors which have militated against the development of the Irish fishing industry and which I have attempted to address since taking office.

Another major development at Union level which has serious implications for Ireland is the accession of Spain and Portugal. Under the Iberian Act of Accession the fisheries aspects of the Act fell for review by the end of 1993. As Deputies will be aware, Spain and Portugal are to accede to the full benefits of the Common Fisheries Policy by 1 January 1996. However, since no final decisions were reached the review is ongoing. The terms of the Act provide that the Irish Box is due to lapse by the end of 1995. The effect of this would be full access for the Spanish and Portuguese fleets to all EU waters outside 12 miles.

This matter has been discussed at recent Councils of Fisheries Ministers where I have taken every opportunity to indicate that any significant change in the present arrangements, including any changes to the Irish Box, would have major direct implications for control, conservation and territorial fishing patterns in the Irish zone. In this regard I wish to express my appreciation of the solidarity and the unity of purpose shown by the fisheries organisations throughout that December Council which was a historic council and may be seen as a watershed in the contex of this country's approach to fisheries and fishery development.

I have explained to Council the importance and sensitivity of the issue to the Irish Government and Irish fishermen. I stressed that, from a control perspective, the track record of the Spanish fleet in the Irish economic zone was most unsatisfactory. In particular I pointed out that one out of every two Spanish vessels boarded is detained for serious fishery offences; nearly three-quarters of these vessels were in breach of the terms of the Iberian Act of Accession; apart from these breaches, the vessels concerned also had serious infringements relating to log books and undersized fish; since accession, 40 per cent of the vessels on the basic list have been arrested for serious offences and recently, a new problem — secret holds — had come to notice and eight vessels have been detained over the last year. I have also stressed that the capacity of the Spanish fleet far exceeds the resources available to that fleet.

The arrangements to follow the review of the Iberian Act of Accession are not yet agreed at Council. In view of the risks posed by the heavy concentration of fishing effort by certain vessels to the south-west of Ireland at the perimeter of the box and the extreme pressure on fishing resources, I am pursuing at Union level proposals to adopt specific control arrangements to ensure the conservation of stocks in these areas.

Further hard work is in hands in relation to the negotiations with the EFTA countries on the enlargement of the Union.

I have recently established a review group to examine and report on the role and functions of An Bord Iascaigh Mhara — BIM — as the principal State development agency for the sea fishing and aquaculture industries. It seemed to me that the time was opportune for such an exercise, particularly in view of the new challenges facing these industries and developments at European Union level. What I was doing was simply giving BIM a new mission, a new focus, a new direction.

I must stress that when announcing the review it was not my intention to seek to bring functions currently carried out by BIM back into the Department of the Marine. Nonetheless there appears to have been some misunderstanding on this point and I hope that my statement will clarify this matter once and for all.

As far as I am concerned the central objective of the review is to examine all aspects of BIM's operations, including its management, services, funding, efficiency and effectiveness, with a view to bringing forward recommendations for whatever changes are considered appropriate to help modernise and streamline BIM's mission.

It is clear that much will have to be done to ensure the future development of the Irish fisheries industry. For too long, successive Governments have paid lip-service to the importance of the industry to the economy of coastal areas and, indeed, the country as a whole. More recently, we have begun to act rather than talk about its development.

I would draw the attention of the House to the stances I have taken at recent Councils, to the increased discussion and liaison with the industry and the fact that it was only after the establishment of the Department of the Marine that the sector had a permanent representation in the Irish Mission in Brussels. That is a measure of the attention successive Governments have paid to the fishing industry and, in retrospect, one does not wonder why the fishing industry has been seen as the poor relation in the general economic strategy of this nation.

Let me return to the second area of my responsibility, Defence spending and Defence generally. In 1994, within my area of responsibility as Minister for Defence, the Exchequer will spend a net total of £353 million on defence, together with approximately £53 million on Army pensions. Careful management will be exercised to contain defence spending within these figures. Expenditure programmes have been reviewed to ensure that strict control is maintained over costs. The Defence Forces — with a total of nearly 13,000 personnel serving in the Army, Naval Service and Air Corps — constitute a large organisation operating in a high technology environment. The Defence Forces undertake a wide range of essential duties both at home and overseas.

I would like to again place on record the Government's deep appreciation of the work done by the Defence Forces — the Army, the Naval Service and the Air Corps. They are unsung heroes at home and abroad. They are our extra arm of diplomacy in the areas they serve in the national interest, in the interest of the UN and for the greater good of Ireland and the international community.

The Army carried out the following operational commitments in 1993: Military parties for Border operations, 8,400; Joint Garda Síochána Border patrols, 10,700; Border check-points and searches, 15,700; cash security escorts, 2,000; explosive security escorts, 380; and EOD — bomb disposal — searches, 150.

During 1993 the Naval Service boarded 697 vessels and detained 61 of them on suspicion of illegal fishing. The Naval Service also assisted the Garda Síochána and the Revenue Commissioners in anti-drug trafficking. The most significant operation in 1993 was in the recovery of £12.5 million worth of cannabis from the seabed in November and December. The Naval Service also assisted in 21 search and rescue missions. In the recent past the Sea and Air Rescue Service within the Department of the Marine has done a magnificent job as has Sikorsky Helicopters, the subsidiary of Aer Lingus at Shannon, in addition to the wonderful courageous work being carried on without too much fuss by our Air Corps. My congratulations to all of them.

Since 1990, there has been a sharp reduction in the number of personnel leaving the Defence Forces, largely as a result of the improved rates of pay and conditions of service as well as difficult economic conditions. This has reduced the need for recruitment but has had the effect of increasing the age profile of members of the Defence Forces which need a regular injection of young blood to maintain operational effectiveness.

In order to redress this situation I recently initiated a recruitment drive that will see 500 new recruits enlisted in the Defence Forces this year — 420 to the Army and 80 to the Naval Service. These recruits will be enlisted for a fixed period of five years and this will allow greater scope for regular intakes of recruits each year.

The large number of applicants for these jobs — some 10,000 — is hardly surprising as they will be entitled to the same rates of pay and conditions as other full-time members of the Defence Forces and over the five years they will be able to avail of valuable training and experience.

One of the areas of prime importance to me, both as Minister for Defence and Minister for the Marine, is ensuring that the Defence Forces are fully equipped to protect our maritime resources. Two new purpose built maritime patrol aircraft — CASA CN 235's — have been ordered and will be delivered later this year.

This project represents the largest ever investment in aircraft for the Air Corps. When the two new aircraft are delivered, the Air Corps will have an enhanced capability to conduct extended aerial reconnaissance to the edge of the 200 mile limit. This, together with our seven Naval Service fishery protection vessels, will ensure that our valuable natural resources are protected and that we fulfil our obligations as a member of the European Union.

There is more to good management than maintaining expenditure within budget. The emphasis throughout the public service must be on finding ways of achieving more while consuming less. As a result of the Gleeson commission which reported in 1990, a number of organisational changes have been implemented within the Defence Forces.

The efficiency audit group has already completed two reports in the Defence area. The first report completed in 1990 dealt with the civil branches of the Department of Defence and the second report completed in 1992 dealt with administration in the Defence Forces. Arising from the reports, the Government approved proposals to give greater financial authority to the military authorities and these proposals are now being implemented.

In 1993 the Government approved of the efficiency audit group conducting a radical overhaul of Defence Forces structures and systems based on a redefined statement of roles. This statement of roles, which was approved late last year, reflects more accurately and realistically what the priorities and functions of the Defence Forces should be having regard to the current security situation both internally and worldwide. The efficiency audit group engaged the services of Price Waterhouse, management consultants, to carry out the review. The consultants commenced work at the beginning of January 1994 and will have completed their task by mid-year.

Reports from Somalia indicate that the Irish transport unit serving with UNOSOM II is performing a very worthwhile and courageous task for the local population and the NGO's and has established excellent relations with the local community in Baidoa. It services 4,000 UNOSOM troops in an area of 80,000 square kilometres.

Section 4 of the Defence (Amendment) Act, 1993, requires that I report to the Dáil on our overseas missions. In preparation for this, I will be visiting the United Nations Headquarters in New York later this week where I will have discussions and briefings with UN personnel on all peace-keeping missions that have an Irish involvement, with perticular emphasis on the position in Somalia. Following my return I shall provide a full report to the Dáil at the first opportunity.

In drawing up the budget, the Government has had to balance a number of conflicting objectives. The desire to minimise the burden of taxation has been weighted against the need to fund adequately the whole range of essential public services which are provided for the community. Notwithstanding the difficult constraints which had to be faced, through prudent management, the Minister for Finance succeeded in drawing up a budget which provides adequate resources for essential services without resource to excessive borrowing or taxation.

Mr. Kirk

I thank the Minister, Deputy Andrews, for allowing me to make a brief contribution to this debate. It is fair to say that the process of hauling back the Exchequer finances continued in this budget. One need only cast one's mind back six or seven years to realise that the problem of the national debt was a major focus of debate in this House. Members who contributed to this budget debate accepted the problem in relation to the national debt and with the passage of time we will come to terms with the problem in its totality.

One of the most welcome initiatives in the budget is the effort to motivate small businesses here. I will briefly outline some of the provisions introduced by the Minister for Finance in that regard. The interest subsidy of 3 per cent on a special loan fund of £100 million is welcome as the cost of finance has always been a major problem for small enterprises. An £800 PAYE allowance will be made available to sons and daughters of the owners of small business firms. We tend to underestimate the contribution made by families to the well-being and proper running of small businesses. The reduction from 12.2 per cent to 9 per cent of employers' PRSI contributions on incomes up to £9,000 is very welcome. Up to now the level of PRSI has been a heavy weight for those on low incomes and a positive disincentive for employers considering investing in mechanisation, automation or much needed jobs.

The increase in the £40,000 and £20,000 thresholds will eliminate thousands of small businesses from the VAT net. We regularly hear complaints from owners of small businesses about the huge administrative burden associated with collecting taxes for the State year after year without proper compensation.

Most public representatives who are members of local authorities will welcome the £100 million payment to health boards to eliminate the debt burden that, effectively, has been an albatross on the finances of our health boards. Those are only some of the major initiatives which the Minister, Deputy Ahern, introduced in the budget. The culture of this budget is geared towards making the environment better for small businesses. If we are to tackle our major unemployment problem we will have to encourage small businesses to expand, increase output and employ more people.

The budget reflects our caring attitude towards the less well off in our community and the 3 per cent increase in social welfare payments will be welcomed by those dependent on social welfare payments. While the specifics of the changes in respect of the carer's allowance are not yet clear, a problem exists for carers whose spouses work while they take care of their bedridden relatives or those who cannot look after themselves. Changes are required in that area, but we will have to await the publication of the Social Welfare Bill to know exactly what the Minister for Social Welfare has in mind.

Equality in the treatment of widows and widowers is welcome. Many widowers have had to give up work to care for young families following the tragic death of the mother. Those people are in a difficult financial position because, in many cases, they gave up well paid jobs to care for their families and when their families grow up it is not possible for them to get back into the workforce. An anomaly which has always existed in the social welfare code is the fact that the position of widowers has not been given due recognition.

Most Members will welcome the additional provision towards the post-primary school building programme. A total of £37 million will be made available this year compared with £26 million in last year's Estimates. The availability of additional resources will enable schools to build necessary extensions. That allocation will provide a stimulus for small contractors who depend on such public contracts.

The provision of £3 million in respect of sport and recreation is welcome. The Minister of state with responsibility for that area who is in the House will be pleased to have that sum available to allocate to voluntary organisations. Fund raising has not become any easier and the availability of grant aid under this heading will be welcome. Adequate facilities are desirable to cater for our young people who now have more time available for leisure pursuits.

Most Deputies will welcome the introduction of the early retirement scheme for farmers. The Minister of State, Deputy Hyland, who has special responsibility for that scheme has organised information meetings around the county. Judging from the large attendances at such meetings one can glean the public interest in that scheme by the farming sector. The budget provides that this scheme will commence in 1994. The process of rationalisation in the industry calls for an injection of young blood with improved management techniques. Those who had the opportunity to attend agricultural institutions will benefit the industry in that they will bring new management skills to the industry and this will lead to a more streamlined sector.

One of the major schemes in the area of rural development is the Leader programme. It was introduced on a pilot basis in the past number of years and has proved very successful. All the indications are that the Commission will agree to its introduction on a countrywide basis. I hope the introduction of the Leader programme, phase two, will add momentum and thrust to rural development.

A number of speakers referred to the process of depopulation taking place in rural Ireland. There is a need for investment in developments and enterprises that will provide a sustainable income to keep people in rural Ireland. We have a thinly spread population compared to other countries in the European Union. However, the movement of population towards the east coast is not a desirable development. It is important that as many people as possible remain in a rural setting. If the rural population decreases the financial investment in rural infrastructure, whether in schools, industry, business, etc., will be wasted.

I wish to refer to the additional provision in the budget for non-national roads. Most public representatives will have first hand knowledge of the problems of our roads having regard to the high level of rainfall this winter. Many non-national roads have taken severe buffeting. Roads carrying heavy volumes of traffic are more severely affected than the non-national roads which do not carry a similar volume of traffic. We should consider allocating increased funds to those local authorities with responsibility for roads which carry the highest volume of traffic. It is not sufficient to provide a block grant in respect of non-national roads in particular counties. Recognition must be taken of the severe strain on roads due to buffeting and the heavy volume of traffic specifically in the north-eastern counties — my county of Louth and counties Monaghan and Meath. I thank the Minister for sharing his time.

Mr. R. Bruton

Regretfully, I must give a thumbs down to a range of issues in this budget, primarily those in my areas of responsibility, namely, unemployment. A number of half-hearted measures have been introduced to deal with some employment problems, specifically those relating to employers' PRSI. Having regard to the proposals surfacing from the Government's task force on employment, that measure was weak in addressing the issue.

The task force on the service sector indicated that a radical restructuring of employer's PRSI in respect of the low paid was needed to make that sector competitive with the UK. The UK has a structure of phased levels of PRSI; the average PRSI liability for lower paid workers is 6 per cent. The budget measure only goes part of the way towards addressing the issue and leaves employers, particularly those involved in vulnerable sectors, such as the clothing and footwear industries, liable for PRSI at a rate which is 50 per cent higher than that of their competitors in the UK. During the past 12 months we have lost major employers in those vulnerable sectors and others have said it would be more profitable for them to move their operations to the UK. That was the main issue with which the Government was asked to deal. It made a move in the right direction but it is a half hearted move.

Those who looked to this budget for a first step in a radical new strategy for the service sector were dismally disappointed. The task force on service flagged what needed to be done and pointed to some areas that needed to be addressed. Few Members appear to realise the key potential role which the service sector could play in our economy. During the past six to seven years the private service sector has created ten times as many jobs as the industrial sector; it has been the employment growth area. It employs twice as many people per £1 of output spent in that sector and sources 50 per cent more of its inputs in Ireland compared to the industrial sector.

The service sector has strong linkages with the domestic economy, yet the Government, in its wisdom, has decided to single out that sector to bear four times the rate of profit tax compared to that imposed on the industrial sector. It is difficult to justify and explain that measure to people who are trying to create service employment. Many service activities pay 21 per cent VAT which represents a progressive move in recent years. Governments have increased VAT to the upper rate for various service activities in virtually all areas, including professional services, personal services and so on. Most service areas have witnessed an increase in the rate of VAT in the past ten years. Those involved in that sector are now being asked to pay 21 per cent VAT, 21 per cent PRSI and 40 per cent profits tax. If the Government takes 60p of every £1 spent by a consumer in a shop or business premises, what chance has a person of creating a thriving business? The Government's task force calls for reform of the VAT code to support the labour intensive end of the service sector, and to reform the corporation tax code to reduce the corporation tax rate for particular areas of the service sector, namely, those with potential for employment growth.

Those very justifiable calls were endorsed by a high quality group called together by the Government. It is amazing that a couple of weeks later the budget made no reference to this fact. Since it is well known that the Taoiseach had sight of the recommendations long before the budget was introduced, it was not justifiable for the Government to say it did not have time to plan these issues. We have allowed another year to slip by while the service sector will remain the Cinderella of industry.

There seems to be a perception in Merrion Street that it is much better to produce a drug than to provide home nursing, that providing a service to support people is inferior, that we should produce goods rather than services, that to produce a book is better than to teach someone a skill and that to produce an engine or a piece of equipment is better than designing a power station.

However, the reality is that in the modern world high quality, well paid employment is in the area of design, teaching and information technology, providing services based on skills etc. These are not only the highest paid areas but they are the areas in which Ireland has the competitive advantage which gives us an edge. Yet that is a critical area where the Government has missed a very valuable opportunity in this budget.

I would like to turn to the more controversial areas of the budget. As regards residential property tax, one suspects this proposal was primarily motivated by the Labour Party who included it in its programme in 1990. From the way Labour and Fianna Fáil, in the last general election, exchanged slurs, innuendoes and downright lies about one another, the public believed that neither party would dream of expanding the residential property tax. However, we only had to wait 13 months for the reality to emerge.

There are many inequities about this tax as it is proposed to be extended. No account is taken of the extent of a mortgage on a property. For example if a person lives in a £100,000 house and owes £60,000 by way of mortgage, they really own £40,000 worth of the house but they will be taxed as if they owned the £100,000 worth and the money must be paid from earned income. If a member of the family, a son or daughter is also working their earnings will be taken into account. Frequently a person on average industrial earnings with a son or daughter earning an average industrial wage will be pushed into this so-called wealth bracket and they will be liable for this tax. I see no justification for that. We all know that in most cases sons and daughters are working towards buying a house of their own. To be penalised for that and told that unless they leave the home a residential property tax will be imposed on the house is unfair to families who are struggling in very difficult circumstances to get by.

That philosophy is evident throughout the budget. The Government is withdrawing from people on middle incomes certain concessions, such as mortgage and VHI relief. People's entitlements to claims on their medical expenses are to be withdrawn, or subject to a £300 minimum contribution. That would be all right if the 48 per cent tax band applied to only a minority of people. However, the reality is that a single person on £12,000, a widow on £13,000 and a married couple on £20,000 are included in the 48 per cent band, as is a person on a very modest income with substantial child dependant allowance. To suggest that these people can afford to have these concessions withdrawn is not facing reality.

Ireland is the exception in Europe in that people on low income pay the top rate of income tax. Until we reach a stage where the vast majority of middle income earners do not have to pay the top rate of tax, we have no right to withdraw their entitlements to mortgage and VHI relief. After all, these people are willing to stay off the housing and public health lists and to provide for their own housing and health needs. They are willing to do this and we are slapping them in the face for doing so.

Another major disappointment was the tax amnesty. I believe it was unacceptable in every respect. It was thumbeing the nose at complaint taxpayers, making fools of people who religiously fill up their forms annually and pay on time what is due. A sum of £240 million was collected from people who thumbed their nose at the tax code over the years. The Labour and Fianna Fáil back-benchers who pushed this idea could have defended it to the ordinary taxpayer if, at the end of the day, the money was spent on a worthwhile project that would otherwise have gone without. If, for example, it went to meet the needs of persons with a mental handicap, if an extra £23 million was spent each year on these services, etc., Government back-benchers would have been able to say that something worthwhile was achived for some of the people who are struggling in our community. However, that is not what happened. The money went towards wiping out the overdrafts of health boards who failed to live within their allocations over the years. That could not conceivably justify an amnesty. For an amnesty that was flawed and immoral in the way it was put together, the final flaw emerged in terms of how the money was spent. The introduction of the amnesty showed little sensitivity to the needs of people who are trying to manage without relying on the State. It was a serious error.

There has been adverse reaction to the residential property tax. People feel they are being got at once again, that the Government continually relies on the same pool of resources.

As a representative of Dublin for 12 years, I know Dubliners feel particularly aggrieved about this matter which is one of a long string of decisions that seem to be anti-Dublin. Ministers seem totally unaware that in the last ten years Dublin has lost one-third of its industrial base; half the jobs in the clothing and footwear industries have disappeared. The Government, not content with the attribution of Dublin's industrial base, decided to move 4,000 public employees from Dublin under the decentralisation programme. It appears that massive job attrition is a systematic part of Government policy. Dubliners believe it is time to call a halt. We have rightly heard the call from those living in the west for proper regional autonomy whereby regions would have some control and say in the way their future is shaped. This is needed in areas apart from Dublin.

Debate adjourned.