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Dáil Éireann debate -
Wednesday, 15 Feb 1995

Vol. 449 No. 2

Financial Resolutions, 1995. - Financial Resolution No. 4: 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.
—(The Taoiseach).

Before the sos I was referring to the fact that the word "radical" had been used — or rather abused — by several Ministers in relation to this budget debate. I do not know if the Members who spoke about a radical budget understand the word "radical". In this present favourable economic climate it is disappointing that the Minister for Finance did not seize the golden opportunity to bring in a radical budget, particularly in relation to tax reform. A number of economic commentators said that the Minister has basically tinkered around with the system. There is nothing particularly radical or innovative in the budget and it is unfortunate that this opportunity was missed.

With regard to social welfare recipients, many people will be glad of the £7 per month increase in child benefit. However, we should examine this issue from the point of view of general income because it is not right that wealthy people should receive exactly the same amount as those who are finding it very difficult to hold their heads above water.

I am particularly disappointed that a Government which includes both Labour and Democratic Left — and particularly a Democratic Left Minister for Social Welfare — should have provided a mere 2.5 per cent increase for social welfare claimants. That is regrettable. When one considers what inflation figures may turn out to be for this year, we are perhaps talking about 3 per cent rather than 2.5 per cent. That is obviously open to argument but if we have another budget from this Government — Minister Rabbitte talked about having three more budgets — I hope I will not be in a position to say "I told you so" because in terms of pensioners it would be a terrible indictment of a Government if their increases do not even match rates of inflation for this year.

I would like to mention an area about which I am particularly concerned and that is the whole area of education. The debate on covenants is very pertinent to this area also. To a certain extent the budget saved the Minister's blushes because a promise that seemed like a good idea last July — perhaps there was talk of an election — had to be accommodated.The Minister promised free third level education at a time when she has received the de Buitléir report which investigated the area of third level grants etc. It would have been a good idea if it had stemmed from a genuine regard for those hard-pressed PAYE workers who are squeezed out of the system and need to be accommodated.However, by that announcement last July, the Minister pre-empted all discussion on the de Buitléir report. She published part of the report, for political reasons — I cannot say who was responsible for that decision. The Minister still holds that portfolio and she should have taken responsibility for this. She published only that part of the report which it was politically expedient to publish and which had to do with the question of administration of grants. We did not see at that time what the report had to say about expanding the grants system. That report makes an uncontestable argument for the taking into account of capital assets in assessing eligibility for higher education grants on the grounds that it is reasonable that those who have the wealth should finance their own children's education. In common with other Members, I have repeatedly called for a full debate to examine those proposals to see if the measures proposed would address the imbalances and inequalities that existed and still exist within the system.

The de Buitléir report recommends that the system of convenanting income to children in college should be abolished but the Government has taken a blunderbuss approach. I should like to give an example. There are many who are extremely concerned about the abolition of tax relief on covenants. I speak in particular about people who, like myself, have had the struggle of caring for elderly relatives, especially parents, in their own home if they are lucky. There are circumstances where that is not possible. I am sure many Members heard the reaction of the Alzheimer's Society to the abolition of tax relief on covenants.

I have here correspondence from a constituent which is a good example of the concerns which need to be addressed by the Minister for Finance in the Finance Bill. This letter expresses concern about the interpretation of the budget provisions on covenants. The writer goes on to say that his wife's mother, aged 92, suffers severely from senility and is in a nursing home where she receives 24-hour medical and/or nursing attention; that they have a covenant which alleviates their tax bill and all the money saved is paid, together with a substantially greater amount of their income, to the nursing home. Those of us who have had elderly relatives or parents in nursing homes know exactly how expensive that is. This practice is most certainly not a ploy to avoid income tax but is solely for the benefit of the elderly sick person.

According to an interpretation in The Irish Times it is proposed to limit such covenants, even those for the benefit of the elderly, to 5 per cent of the incomes of those covenanting. My constituent and his wife are assessed jointly for income tax purposes and such a limitation of 5 per cent would severly affect their capacity to continue funding the nursing home outlay and would have serious personal consequences for them both. There are many other couples throughout the country who avail of this method of helping their elderly parents. The letter writer goes on to say that he is sure it was never the intention of the Minister for Finance to punish the elderly and their carers in such a way because it would be so unfair. I do not think it would be the active intention of any Minister for Finance to do that. I ask, therefore, that this matter be rectified or, at the very least, if concerns such as this are unnecessary that the Minister make it obvious to people that they will not be caught in this appalling situation and, if necessary that it will be corrected in the Finance Bill.

To return to the field of education, there is no doubt that the post-leaving certificate colleges have been further disadvantaged through this budget. At the moment they provide 17,500 places. The Minister has said that next year it will be about 20,000 places. These colleges have no maintenance grants and now covenanting is not available either. The many students in those colleges will be faced with the worst of all worlds. They have secured places on reputable PLC courses which have certification but they cannot take up offers because they have no eligibility for maintenance grants. To take an example from my own constituency, Dún Laoghaire Community College which runs post-leaving certificate courses has an excellent reputation and has many courses which attract students from all over the country.Those students have to pay rent, travel and eat and they are being utterly disadvantaged by the lack of covenanting and the fact that there are no maintenance grants either. Some of those courses last up to three years and it is inherently unfair that those students should be left out of the circle. The Minister must examine the whole question of PLC colleges. Somebody told me yesterday that many people do not know what is meant by a PLC course, although vast numbers of young people are being accommodated within that system. There is good and bad in this budget. The budget is bad for PLC colleges and detrimental to many young people. The question of covenanting must be re-examined in the context of the Finance Bill.

I omitted to say at the outset that I wish to share my time with my colleague, Deputy Maureen Quill.

I am sure that is agreed.

People in business talk about trends. A radical budget does not mean knocking 2 per cent off corporation profits tax. It means doing something substantial that will make a difference.What I would look for in a budget is innovation, direction and strategy, and this is where the Minister has fallen down. He has attempted to do good here and there but in the final analysis the budget is not much good at all.

I thank my colleague for sharing her time. The 1995 budget was hailed well in advance as having the potential to be one of the most significant budgets of recent times. This Minister had a far more favourable opening position than any of his predecessors for more than a decade. Since last September the public have been assured that the tax yield from 1994 was well in advance of what had been anticipated, that all the economic indicators were encouraging and that the Irish Exchequer was bursting with good health. This created a sense of anticipation in every sector in society. To add to the spice, this was to be the first budget since the foundation of the State to be introduced by a socialist Minister and to have input from three political parties supposedly spanning a broad policy spectrum. After all the anticipation, what happened? The mountain laboured and brought forth a mouse. This budget is, by any standards, a measly, miserable budget with an aspiration for everything and a prescription for very little. We might well ask who will benefit at the end of the day in any significant way. I am sure we will be in a very good position to make that judgment long before we make our contribution on budget 1996. In overall terms, this is a threadbare budget, lacking in any strategy aimed at tackling the fundamental economic and social problems besetting our country.

The PAYE sector continues to be penalised despite very minor adjustments in the budget. This was the budget of lost opportunities where the favourable opening position gave substantial scope for tax reform and tax reduction but in spite of that, the PAYE sector continues to be penalised. A comparison with our counterparts in Northern Ireland helps to illustrate the point, where not alone is the tax free allowance higher than in the Republic but, additionally, £20,700 of income is taxed at the rate of 25 per cent whereas in the Republic only £8,200 is taxed at the lower rate of 27 per cent. In taxation terms a single taxpayer in Northern Ireland can be more than two and a half times better off than his counterpart in the Republic. Not alone does this illustrate the position of PAYE and other taxpayers, it also illustrates a difficulty that will have to be confronted in these days of increasing mobility of labour and goods between the two parts of the country — which I hope will increase and expand in time. Not only are we grossly overtaxed compared with our nearest and other European neighbours but do we get value for money for our taxes? Do we have better public services?The contrary is the case. The standard of public services here is at best patchy and, in many cases, grossly inadequate; so we end up with poor public transport, appalling road conditions and an inadequate health service, an underdeveloped system of community care, a system of education where thousands of young people leave Irish schools lacking in basic numeracy and literacy skills and without any of the skills that would lead them to a lifetime of employment and self-sufficiency. As well as that, the local authority services that determine our everyday living standards, particularly in urban areas, have deteriorated in many cases to the point of disintegration. We might well feel sour at being called upon to pay such a high level of taxation in return for such a poor level of services. In other European countries such as Denmark and Germany people pay high taxes but they have superb public services. However, that is not the case here and it is about time taxpayers began to analyse the value they are getting for money.

The budget has done nothing of significance to break the cycle of dependency and poverty which seems to be endemic in many parts of my constituency and almost every other constituency.I find that very disturbing. I had hoped that with a Democratic Left Minister for Social Welfare the budget would introduce significant measures aimed at breaking the cycle of dependency and encouraging and rewarding people who were willing and able to take on a job creating earned income to enhance the family budget. This did not happen in the budget and, as a result, I can point to examples in the heart of my constituency where women — and I use this only as an example — on community employment schemes in the Glen who, because of the policy of means testing social welfare benefits, end up taking home £8 of additional income having worked a 20 hour week. Surely that is a very poor incentive to get women to take on self-improvement courses and jobs that will enable them to earn some of the family income. Instead of being rewarded for their effort and motivated to do that, they are penalised to an extent. Is it not a scandal that a woman who works for 20 hours per week ends up £8 better off? Surely, there is something fundamentally wrong that needs to be addressed and I hoped it would have been in the context of this budget. Even at this stage I appeal to the Minister for Social Welfare to take this matter into account when he frames the Social Welfare Bill. Unless it is, casual and part-time workers, mainly women, and those on community schemes will lose heart, abandon the schemes and decide it is better to stay at home and remain dependent on the State.

I strongly appeal to the Minister for Social Welfare to take this example as not merely including a small number of people in a given area but as being widespread. I have with me hundreds of signatures from people in that position which I intend to present to the Minister before the end of the day, ask him to apply himself to this matter in the context of a Social Welfare Bill and, more fundamentally, in the context of next year's budget if he still has an input into it. The reality is that it stems from the amount of money in take home pay that any family is allowed to have before they come into the tax net. Part of the reason we have such poverty is that this figure is too low and must be addressed if we are to motivate people to break the cycle of dependency and become self-sufficient with the resultant benefits for individuals and families in society.

Another matter not addressed in the budget, which saddens me, is that the budget made no provision to pay compensation to the victims of hepatitis C. It is now exactly 12 months, February 1994, since it was disclosed that hundreds of women throughout the country, through no fault of their own, had contracted hepatitis C as a result of contaminated anti-D product. This startling revelation caused unprecedented worry and trauma for a number of women and their families. There are 90 such women in the Cork region, 51 of whom live in the city. The Minister for Health and the Programme for Government promised to make compensation available for these helpless victims. It is welcome indeed but no provision of any kind has been made in the budget to make that promise a reality. That is a great mistake because women in that position are incurring expenses by the day and have reasonable expectations that compensation moneys will be provided for and paid to them this year. The matter was first revealed in February 1994. Will they have to wait until February, 1996, 1997 or 1998 before money is provided for in the budget? I hope not. I hope a supplementary budget will be introduced this year so that the payments due to these women can be made.

The increase in social welfare benefits saddened us most particularly as they relate to the elderly and poor in society. To offer old age pensioners a miserable 2.5 per cent increase was perhaps the meanest measure of this budget, as Shakesperare said "the unkindest cut of all". Even in the bleakest days of bleak budgets there was never a figure as low as 2.5 per cent offered to recipients of social welfare. When we were in Government with Fianna Fáil and dubbed Thatcherites we never gave an increase less that the rate of inflation to social welfare recipients. I wonder who are the new Thatcherites of this Government and what difference does it make to Government strategy to have Democratic Left make its input to it?

During the course of successive election campaigns we were told service charges would be abolished and other benefits would accrue to the electorate but what do we find? Not alone are service charges copperfastened but they will be introduced in other areas as a result of budgetary measures. This is a bad budget for every sector of the community.I expected more from the three parties who make up the Government. Instead of getting more everyone got less. The parties in Government will rue the day they did not seize this opportunity which may never again present itself as economic factors may never again be as favourable as they were on this occasion. They are condemned for failing to grasp the nettle and put in place a budget that will benefit the country.

Is mór agam an deis seo a fháil chun labhairt sa díospóireacht seo faoi cháinaisnéis 1995. Ar ndóigh, ba stairiúil ar mhórán bealaí an cháinaisnéis seo. Sa chéad áit, ba í an chéad cáinaisnéis ariamh a cuireadh i láthair ag Aire Airgeadais de chuid Pháirtí an Lucht Oibre agus ba mhaith liom glacadh leis an deis seo chun comhghairdeas a dhéanamh le mo chomhleacaí, Ruairí Quinn, TD, dá réir. Sa dara háit, ba Cáinaisnéis í a d'aithin go bhfuil íobairtí móra déanta ag na mílte daoine agus teaghlaigh le blianta beaga anuas chun ár n-eacnamaíocht a láidriú agus a raibh sé mar aidhm aici cuid den bhforás sin a thabhairt ar ais do na daoine.Bhí sí stairiúil freisin sa mhéid is gur tugadh an méadú is mó ariamh i sochar leanaí agus go ndearnadh an leathnú is mó ariamh ar na bandaí cánach. Tógadh na deicheanna mílte daoine as an líonra cánach agus aistríodh líon ollmhór eile go dtí rátaí cánach níos ísle.

Ba mhaith liom rud eile a rá ag an bpoinnte seo. Is é sin, tar éis a bheith ag éisteacht leis na hargóintí éagsúla, go gcaithfear glacadh leis go bhfuil daoine ag iarraidh freastal ar an dá thrá. Ar láimh amháin tá siad ag iarraidh orainn an ráta cánach a laghdú agus ar an láimh eile an caiteachas a laghdú. Caithfidh siad a n-aigne a dhéanamh suas.

Ach, bhí dea-scéalta sa cháinaisnéis féin agus sna Meastacháin a foilsíodh roimhré do na réimsí áirithe a thagann faoi choimirce mo Roinne-se agus ag an bpointe seo ba mhaith liom tagairt a dhéanamh do roinnt acu sin.

Deputies will be aware from the newspaper columns among other sources, of the extremely lively debate which has taken place in recent weeks in connection with funding for the arts in the context of the Estimates in the 1995 budget. I welcome the emergence of a strong and coherent voice which articulates the rationale for Government funding of the arts and overall, the recent high level of media attention given to this topic has been beneficial in advancing the debate on this important subject.

The House will by now be aware that, in line with the commitment in the Programme for Government of the previous administration, I requested An Chomhairle Ealaíon to prepare a three year plan for the Arts in late 1993. I enjoyed the support of Cabinet colleagues in so doing. Indeed, the significance of this initiative in that Government should not be lost to the House. Only once before has any Government committed itself to a planned approach for the arts when, in 1987, the White Paper Access and Opportunity was published by the then Coalition Government in which my party was a member. That White Paper held out the hope that the arts would move from the margins of Government's concerns by means of a planned and structured policy programme. Unfortunately, a change of Government very early after the publication of the White Paper put paid to those optimistic expectations and relegated arts activity to what might be called the relative doldrums once again.

The publication by An Chomhairle Ealaíon last week of The Arts Plan 1995-97 represents only the second commitment by a Government in the history of this State to approach both the promotion of the arts in Ireland and arts funding on a planned basis. In this context, I would like to place on the record of the House the fact that there has been an important qualitative shift in the commitments made towards the plan in the programmes of the previous administration and that of this Government.While the 1993 programme for a Partnership Government stated: the Arts Council will be asked to operate on a co-ordinated three-yearly plan for funding of the arts.

I believe there is even stronger commitment in the document A Government of Renewal, which is the policy basis of this Government, since it states clearly that The Arts Plan 1995-97 will be a basis for a programme of action for the arts. I welcome this qualitative shift in emphasis in this Government's programme.

I also welcome the fact that The Arts Plan 1995-97 has been prepared by An Chomhairle Ealaíon in close consultation with my Department and I am already on record as saying that the emergence of this strategic alliance between An Chomhairle Ealaíon and my Department will represent an important element of how we can achieve the plan's goals in the minimum time possible.

The House is by now aware that the 1995 budget, in providing an additional £2 million for An Chomhairle Ealaíon to bring its total allocation this year to £16.25 million, presents a clear signal that the commitment in the Government's programme is already being generously responded to. As for the future, The Arts Plan 1995-1997 contains proposals which have both funding and policy implications for other Government Departments — for the Department of the Environment in the case of its implications for local authorities; the Department of Education in the case of its impact on the educational system; the Department of Enterprise and Employment in the case of its implications for FÁS and the cultural industries sector; the Department of Foreign Affairs in the case of the plan's recommendation for a new independent international arts agency and the Department of Social Welfare in the case of possible implications for the social welfare code. I am awaiting the detailed observations of these Departments and I expect to submit The Arts Plan 1995-1997 to the Government for consideration in a matter of weeks.

Will that plan be debated in this House?

I am totally open to having it debated in this House. In fact, when asked a question about this, I indicated my willingness to have it presented to the House. Members will be aware that I have already arranged to have it circulated to all Deputies and Senators, which is the way it should be.

I thank the Minister.

To answer another question posed by somebody with a connection like mine, within the historic county of County Clare, I noted that Deputy Síle de Valera and the press said that there will be dismay at the amount I have provided for the arts. However, having moved arts funding from £10 million to £16.5 million in just over two years since assuming office, I predict there would have been dismay if the public and the Arts Council were dependent on the £11.7 million which the interim Government had planned for the arts.

As the Minister will know, the arts plan was for a sum of £19 million for 1995 alone whereas, as he has said, we are now talking about £16.25 million. Therefore, I hope the Minister will be able to make up the shortfall of almost £3 million in 1995.

Taking up that point, I am sure the Deputy will agree that, when I left in November, with the Arts Council having agreed £14.25 million, it is getting nearer to £19 million to move it to £16.25 million than to revert to the figure of £11.27. Therefore, I am happy to allow the public to judge in which direction I and that interim Government were moving.

In my introductory remarks on funding for An Chomhairle Ealaíon, I adverted to the welcome emergence of an arts lobby. I would emphasise to the House that, for such a lobby to prove effective, it is important that it remains strong, cohesive and coherent. As I already stated, the recent media attention on arts funding is broadly welcome. However, I have a problem with one aspect of that lobby which criticises funding for one aspect of the arts on the rather spurious grounds that this implies less funding for the particular arts activity in which they are involved.

In launching The Arts Plan 1995-1997, I stressed that the arts and cultural areas will not be well served by a politics of envy. I repeat here that each project for which I have responsibility has an importance and logic of its own. One does not succeed at the expense of the other; all will contribute to an enriched arts and cultural landscape. I did not ask Government to choose, nor did I choose, between the importance of Teilifís na Gaeilge and the arts plan, or film, or any of the other areas for which I have responsibility. They are building blocks on a future cultural landscape which will be comparable with what preceded it.

Maidir le hÚdarás na Gaeltachta, tá soláthar de £19.45 milliún á thabhairt don eagraíocht i 1995, rud atá cothrom, geall leis, leis an gcaiteachas iomlán don bhliain 1994, nuair a bhí suim bhreise speisialta de £3.3m san áireamh a cuireadh ar fáil trí Mheastachán Forlíontach i mí na Nollag seo caite.

Is mian liom an deis seo a thapú chun tagairt ar leith a dhéanamh do na torthaí a bhain an eagraíocht amach i 1994. Bhí bliain rathúil ag an Údarás arís anuraidh i dtaca le deiseanna fostaíochta breise a chruthú do mhuintir na Gaeltachta. Ba í 1994 an tríú bliain déag i ndiaidh a chéile ina raibh glanmhéadú san fhostaíocht i dtionscail faoi scáth na heagraíochta sin.

Cruthaíodh 1,072 bpost nua lánaimseartha ar an bhfód i 1994 i dtionscail a fuair cúnamh ón Údarás agus, tar éis caillteanais de 630 phost — an líon is ísle post a cailleadh ó 1985 — a chur san áireamh, bhí méadú glan de bheagnach 450 post sa bhliain sin. Ba é sin an méadú glan ba mhó in aon bhliain ó bunaíodh Údarás na Gaeltachta, rud a fhágann go raibh buaicphointe de thart ar 6,300 post i dtionscail faoi scáth an Údaráis ag deireadh 1994. Tá ardmholadh tuillte ag an Údarás dá bharr. Ar ndóigh, tá fostaíocht shéasúrach antábhachtach don Ghaeltacht freisin agus tháinig méadú de 160 ar líon na bpost sin le linn 1994 go dtí 3,072 dhuine.

Is í straitéis an Údaráis béim a chur ar uasghrádú scileanna lucht saothair na Gaeltachta agus uasghrádú a dhéanamh freisin ar theicneolaíochtaí d'fhonn cumas iomaíochtaí chuideachtaí na Gaeltachta a threisiú. Leanfar leis an obair sin in 1995. Maidir le teicneolaíocht eolais, tá an tÚdarás gníomhach i gcónaí sa réimse sin ar mhaithe le forbairt na Gaeltachta. De bharr dul chun cinn maidir leis na saoráidí sin, ní féidir a rá feasta go bhfuil an Ghaeltacht ar an imeall. Tá sainaitheantas tugtha ag IDA Ireland do theileasheirbhísí mar cheann de na réimsí is mó fáis do thionscadail infheistíochta nua. Táthar dóchasach go bhfuil an Ghaeltacht sa staid anois gur féidir léi a cion féin den fhorás sin a bhaint amach dá muintir.

Maidir le forbairt fhisiciúil na Gaeltachta, ní miste dom a lua freisin gur suim £3.86 milliún a bheidh ar fáil i mbliana le caitheamh ar Scéimeanna Feabhsúcháin sa Ghaeltacht. Bainfear feidhm as sciar maith den soláthar sin chun an mhórscéim muiroibreacha ar Inis Meáin/Inis Oírr a chríochnú. Beidh airgead substaintiúil ar fáil freisin le haghaidh muiroibreacha eile, bóithre áise, forbairt chomharchumann, hallaí agus Coláistí Gaeilge agus saoráidí ilghnéitheach ar nós páirceanna imeartha, cúirteanna leadóige agus mar sin de.

Caithfidh mé a rá go bhfuil áthas ar leith orm go bhfuil soláthar dóthaineach déanta le haghaidh tithíochta sa Ghaeltacht — in ainneoin iarrachtaí a rinneadh sa tréimhse eadar-Rialtas chun deireadh a chur leis na deontais feabhsúcháin tithe sna ceantair sin. Is deacair a chreidiúint gur ghearr an Páirtí a bhí ag gíomhú mar Rialtas ag an am sin £800,000 — breis agus 63 faoin gcéad — as na meastacháin tithíochta don Ghaeltacht ar 29 Samhain 1994 tré dheireadh a chur leis na deontais feabhsúcháin tithe. Ghearr siad na putóga den scéim. Bhí ormsa, mar thoradh air sin, cuid mhór ama agus oibre a chaitheamh, ó d'fhill mé ar an Roinn roimh Nollaig, ag iarraidh an t-airgead sin a fháil ar ais, i dtreo is go mbeadh dóthain airgid ar fáil do na deontais tithíochta Gaeltachta i 1995.

In relation to the operation of the cultural institutions for which I am responsible, I am pleased to refer to the increased amounts which will be made available to them under this year's provision to enable them to continue their vital work in educating, informing and conserving the diversity of our cultural heritage.

In addition to the normal operating costs involved, this year will also see specific sums being allocated in respect of the equipping of the new facility for the National Museum at the former Collins Barracks site. The initial phase of this project — which I see as a flagship project for Dublin — saw an investment of £10 million in 1994 and is now nearing completion. Detailed work will now be put in train to transform this 18th century building into a facility which will propel the National Museum into the 21st century.

I am confident that this transition will be greatly assisted by the report of the Interim Board of the Museum I appointed last year to advise and make recommendations on the future of the museum and which I understand will be presented to me very shortly.

Planning will also be facilitated in the allocation to the Chester Beatty Library to assist it in preparing for its move to better, more accessible, prestigious new home at Dublin Castle, in 1997. I look forward to continued co-operation with the trustees of this library to bring this work to a satisfactory conclusion.

Capital sums are also included to provide for major developments, not only in Dublin, but also at regional locations throughout the country, for example, in Limerick, Cork, Galway and Longford. I also welcome the allocations provided in the budget for a number of specific cultural projects. Deputies will be aware that I recently invited applications in relation to cultural capital projects which would attract funding under the operational programme for tourism. Over 150 applications have been received by my Department which are currently undergoing initial appraisal. Although the funding available for the programme is certainly limited, I am confident that a number of significant cultural projects will be completed over the remaining five years of the programme.

Recent media attention on the level of funding to be provided for An Comhairle Ealaíon, the Arts Council, under "The Arts Plan 1995-1997" has sometimes failed to acknowledge the existence of separate substantial funding for the contemporary arts which is being directed at Bord Scannán na hÉireann, the Irish Film Board, this year. I emphasise to the House that the £16.25 million I have secured for the contemporary arts through An Comhairle Ealaíon in this year's budget must be viewed in the context of additional funding of £3.25 million which I have secured for Bord Scannán na hÉireann in this year's Estimates and even these figures ignore the annual funding which is provided by my Department for the Irish Museum of Modern Art and the National Concert Hall. Staying with film, I should say that one of the purposes of this increased funding to Bord Scannán na hÉireann is to make the point that my commitment and that of my Department is for the development of cinematic technique and expression throughout the country on the part of our own community and Irish practitioners. The film industry, which sometimes receives more attention, is but one part of that cinematic expression.

In 1973, with the amendment of the Arts Act, 1951, film was given recognition by the Oireachtas as an art form in its own right, one that was worthy of support by An Comhairle Ealaíon. Since the enactment of that amendment, the State's response to the promotion of film as an art form has been rather patchy.State support for the National Film Studios of Ireland in the 1970s was replaced by rather modest funding for Bord Scannán na hÉireann in the period 1980-87. This, in turn, was replaced by section 35 incentives in the Finance Act, 1987, which limited investments in films to corporations and at relatively low levels.

The implementation by me of the recommendations in the report of the Special Working Group on the Film Production Industry, which was presented to the Taoiseach in December 1992, has witnessed a radical shift in the Government's policy towards the promotion of film both as an art form in its own right and as a central element of economic and social strategies.The re-establishment of Bord Scannán an hÉireann; the substantial improvement of the section 35 incentive scheme, notably to include investments by individuals; the amendment to the Broadcasting Acts which links RTE statutorily to the independent production sector; the establishment of Teilifís na Gaeilge; the continued funding by An Comhairle Ealaíon of film and video awards as well as the provision of funding for important European-wide initiatives such as EURIMAGES, Eureka Audiovisual and the EU MEDIA desk here in Dublin — all these measures are now in place to ensure that Ireland's film and audiovisual production industry can be developed to its full potential. An idea of the significance of the change is illustrated by the fact that last year we finished 15 films and up to 11 television series, in the previous year too, the number of films completed was 15 while in the previous 14 years only 11 films were made in Ireland. That gives one an idea of the dynamism these measures have released. They are providing an art expression and jobs while the economic and social benefits are spread nationwide.

The report of the special working group on the film production industry recommended funding for Bord Scannán na hÉireann rising to £3 million in the third year of operations. It is a matter of particular satisfaction to me that I have succeeded in exceeding this funding target in 1995, which is the third year of the board's operations, by securing an overall allocation of £3.25 million for Bord Scannán na hÉireann.

For the information of the Deputies, and many contact me, the support offered by Bord Scannán to Irish film productions is in the form of development loans and production loans. Development loans are given up to a maximum of £25,000. They provide for feasibility studies and preparatory work which are necessary before the production of a film can commence and are repayable on the first day of principal photography. Production loans are awarded on the basis of repayable equity participation of some 10 per cent of the total production budget. In some cases of indigenous projects of exceptional quality, the board may go above this figure. The board appoints an executive producer to each project, whose role is the monitoring of progress on the production of the film and the preparation of a report for the board.

In assessing projects for assistance, the board considers a number of factors, the principal of which are: the creative strength of the project; the track record of creative team, particularly its ability to handle larger projects; in this context, the board is also committed to promoting something very important, new emerging talent; another criterion is Irish employment at all levels, particularly at Head of Department level and among the cast; the spend on the production in the Irish economy; the commercial potential of the proposed production and the recoupment of the board's investment.

In 1993, Bord Scannán na hÉireann provided development and production finance of £1 million. In 1994, the corresponding figure was £2 million and the projection for 1995 is £2.85 million. In 1995, it is anticipated that some £14 million will be spent in Ireland in the production of films supported by the board. It is likely that other projects may come through before the end of 1995 and the figures could be higher. The board will also co-fund with RTE a new short films scheme for new Irish talent called Short Cuts and these six half hour films will be transmitted in the autumn of this year. The board is providing 50 per cent of the £200,000 budget for 1995 towards this scheme.

Cúis mhór áthais dom go raibh ar mo chumas, i gcomhréir le cinneadh Rialtais den 20 Eanáir 1995, cead a thabhairt do RTÉ tús a chur leis na hoibreacha caipitil i ndáil le Teilifís na Gaeilge. With regard to the funding of the new channel, the Government decided that the total capital cost of the Teilifís na Gaeilge project, estimated at £16.1 million will be funded by the Exchequer and the moneys accumulated by RTE in excess of the revenue limit imposed by the Broadcasting Act, 1990, estimated to be £6.4 million including accumulated interest to date; to make provision in the 1995 Estimates for my Department which will enable RTE to expend £10 million on capital works associated with the project; that the balance necessary to complete the construction of the technical infrastructure necessary for the project, estimated to be £6.2 million will be made available from the Exchequer in 1996; to make provision in my Department's Estimates for 1995 of £2.5 million for running costs in the current years together with a contribution of £10 million towards running costs in 1996; and in 1997 and the years thereafter to make an annual contribution of £10 million from the Exchequer towards the running costs of the station.

Is é atá i gcinneadh seo an Rialtais ná mór-gheallúint poiblí do sholáthar Theilifís na Gaeilge le seirbhís dhá uaire an chloig in aghaidh an lae mar thús. Ní bheidh aon bhac ar an gComhairle, i gcomhairle le hÚdarás RTÉ, moltaí a chur os comhair an Aire a ghinfeadh cistíocht le haghaidh cláracha breise. Tá mise ag súil leis go mbeidh an stáisiún nua ar an aer roimh deireadh 1996. Teilifís na Gaeilge will be perhaps the most significant development in supporting the Irish language as a living language in over 20 years. The new station will provide a national service to Irish speakers and those with an interest in the language. The decision to fund Teilfís na Gaeilge without recourse to an increase in the television licence fee is evidence that the Government recognises the essential position occupied by the Irish language at the heart of our culture.

I welcome the decision to introduce a special tax relief for donations to national collections of important heritage items, including paintings. The purpose of the provision is to assist our national collecting institutions in acquiring important items of our moveable cultural heritage. This decision is an important milestone in the development of our major cultural institutions as it represents Government acceptance of the principle that important items of our heritage should be retained in the country and be accessible for the enjoyment of all our citizens whose heritage it is.

In the cultural sphere one of the most regrettable failures of the Irish State since its birth has been its seeming reluctance to put in place a mechanism to prevent important heritage items being lost to the country. Our Statute Book provides us with some limited measures that mitigate the disincentives but collectively they represent a minimalist, even token response.

We think of the many irreplaceable pictures, archives, books, collections of books, archaeological objects with rich and resonant associations with Ireland that have ended up in auction rooms of Sothebys and Christies, sold to the highest bidder, usually to someone based outside of Ireland, because this State did not muster the will not the capacity to act. Were it not for the generosity of so many selfless donors, who in the past have filled the storehouses with records and examples of the genius of the Irish people in every field of human endeavour, our storehouses would be depleted and bare. The losers are the Irish people who have been denied access to crucial facets of their social, spiritual and cultural development.

It is not right that we must forever rely on haphazard circumstance and individual benevolence to protect our moveable heritage. We need to craft a systematic way of retaining our heritage so that never again can we be accused of not caring. Much more needs to be accomplished. A provision for tax relief on donations of heritage items as proposed in the budget represents but one facet of the overall equation, an equation which needs a more comprehensive response. In the forthcoming Bill relating to the national cultural institutions I will be bringing forward proposals in this regard. Within this broader context, the provision for donations represents a not insignificant step in the right direction. My colleague, the Minister for Finance, is to be commended and I thank him for his initiative.He can be assured of my full assistance and support in the run up to the Finance Bill as we engage in the process of devising a structure that will I hope result in a sound foundation for the protection of our moveable heritage, a foundation which I hope will stand the test of time and last for decades.

Cuirim fáilte roimh an gcáinaisnéis seo — ar bhonn ginearálta, ar ndóigh, ach go háirithe i ndáil leis an sochar speisialta a thugann sí do na healaíona, do thograí cultúrtha agus don oidhreacht.Tá fianaise dearfa sa cháinaisnéis seo ar thacaíocht láidir an Rialtais do na réimsí a thagann faoi mo chúram agus tá bród ormsa, mar Aire Ealaíon, Cultúir agus Gaeltachta, gurb amhlaidh atá an scéal.

Is cáinaisnéis í seo a dhéanann infheistíocht thábhachtach inár dtodhchaí uile. I measc na gcéimeanna suntasacha atá glactha againn chun é sin a chinntiú, tá na cláracha atá curtha i bhfeidhm againn do dhaoine atá dífhostaithe ar bhonn fadtéarmach; an bealach ina bhfuil deimhin déanta againn go bhfanann ár bhfiacha náisiúnta inláimhsithe; agus, thar rud ar bith eile, an mhór-infheistíocht atá déanta againn in oideachas tríú leibhéil dár ndaoine óga.

Is cáinaisnéis í seo a bhfuil aghaidh daonna uirthi — ceann a spreagfaidh dóchas agus muinín ar fud ár bpobail uile — agus tá bród ormsa a bheith bainteach léi.

The Government would have found it much more difficult to prepare the budget if the national economy had not been handed over to it in such a sound financial state. I welcome aspects of the budget which are a continuation of some Fianna Fáil policy. Last year, for example, Fianna Fáil increased child benefit by 25 per cent, the Government continued this policy and increased it again this year.

The widening of the standard rate income tax band was part of Fianna Fáil policy also. During the last few years Fianna Fáil made many changes to the income tax system. Last year the Minister for Finance, Deputy Ahern, now leader of Fianna Fáil, introduced a new low rate of PRSI on incomes below £9,000. I hope the media will take note of these facts so that the public is aware that this Government is not the first Government to make reforms in these areas.

It is relevant that it is not a people's Government that introduced this budget. This Government was not elected in a general election. It was not formed as a result of party policy agreement but rather as a result of party political demands. That is the reason this is an overspending budget which, in the short term, makes it attractive but in the long term means increased repayments for servicing our national debt.

One cannot live on what one has not earned. Borrowing does not solve problems as most people would agree. They know it is much more difficult to repay a debt than receive a loan. Other people would say it is much more difficult to keep a car on the road than to buy one. In this budget there is provision for overspending and this will help increase our national debt.

Where does the Deputy want the cutbacks?

The Minister for Finance had a deficit of £107.2 million before compiling his budget. Tax and non-tax revenue was £11,557.8 million as against Central Fund service costs plus non-capital supply services of £11,665 million, leaving a deficit of £107.2 million. He reduced taxation, and PRSI, and increased social welfare and so on, all of which cost £364.8 million. This left a budget deficit of £472 million. He decided to borrow £310.2 million to pay off 65 per cent of the £472 million deficit. He then had to find £161.7 million.He got 23 per cent of £161.7 million by increasing taxes on cigarettes, etc., abolishing relief on covenants and increasing DIRT tax and he said the balance of 77 per cent would come from savings estimated by Departments analysts, net affect on spending changes and tax revenue.

I am concerned about this budget because there is a certain amount of doubt or chance about it. If the Minister cannot achieve savings as set out in the budget we could end up with a much greater budget deficit than the £310.2 million stated. This is the position as I see it.

Following many years of good financial planning by the former Minister for Finance, Deputy Bertie Ahern, the budget deficit was brought down to zero level. This was not an easy target to achieve. I said earlier you cannot live on what you have not earned. However, this Government has decided to do just that. It has budgeted for a deficit of £310 million in its first budget but the deficit could be greater at the end of the year. Capital spending has been increased to £800 million. It is clear the national debt will be in excess of £30 billion at the end of 1995. It is obvious the three party Coalition Government has availed of the good work done by Fianna Fáil during the past six or seven years and has satisfied the wishes of the different political parties in Government by overspending in the budget.

Economists will advise that capital overspending will help increase inflation and interest rates. If this is so, the 2.5 per cent social welfare increases will lose their value and pensioners, the long term unemployed and others will suffer. Instead of getting a 2.5 per cent increase they could end up with only 1 per cent or less. Pensioners and the long term unemployed assumed they would get a minimum annual increase of 3 per cent. As far as these people are concerned they got a decrease in the income they expected.

Fianna Fáil has worked hard to keep interest rates down, inflation under control and to slow down capital spending. People would be much better off this way and business people could plan. That is Fianna Fáil policy. The danger is that this three-party Coalition Government will continue over-spending and in the long term will reduce the standard of living for our people rather than improve it. As our national debt increases, so will our annual repayments.As a result of this budget, we will have to pay £2.14 billion to service our national debt. That is a huge amount of money to have to pay for past borrowing before one penny is spent on services such as health, education, social welfare and environment. The last Fine Gael-Labour Coalition doubled our national debt from £12.7 billion to £25 billion in four and a half years. The taxpayers are still paying back that money and will do so for many years.

Some Government will have to tackle this problem because we cannot go back to borrowing more money again. Fianna Fáil had the courage to get the budget deficit down to zero and to take proper control of capital spending because we knew in the long term this was the correct thing to do in the interest of our people. We reduced Exchequer borrowing from 12 per cent to 2 per cent of GNP. Will this Government reverse that position and go back to its old policy of over-spending? I hope the national economy will continue to flourish and that the revenue estimates which are a very important part of this budget will be achieved.

I welcome the decision of the courts in favour of social welfare equality for women and I hope the Government will provide the finance for this purpose in future budgets — £240 million will be needed, a substantial amount. The Government was able to provide only £60 million this year, £50 million of which was taken from the successful social insurance fund built up by Fianna Fáil. I hope the Government will continue these social welfare payments each year for the next few years until they are completely paid.

Unless some Government seriously tackles the problem of our county roads the country will be faced with a massive repair bill in future years. I speak for most if not all county managers, county engineers, councillors of all political parties and people who are fed up, as I and Deputies opposite are, with the disgraceful condition of many county roads. It is unacceptable to expect people with families, pensioners and others to use such roads. EU funding and motor tax goes towards new motorways, national and regional roads, and I accept there has been much improvement in that area, but county roads are left to local authorities to look after.

I acknowledge the successful negotiations undertaken by the former Minister for the Environment, Deputy Michael Smith, with the European Union to set up a new funding scheme for county roads. Meath County Council will benefit this year from that fund, thereby releasing extra cash to spend on other roads. I assume the same applies in other counties. Local authorities find it most difficult to raise the extra money needed to provide all the services expected of them.

I have been a member of Meath County Council for the past 15 years and am aware that the financial allocation for county roads is usually left until last, when all other services are provided for. Some Government must come up with a new policy for county roads, which are as important to trade and commerce as other services. The present position is very serious. People find it difficult to pay local taxes to the county councils. As far as they are concerned, they are paying enough tax at national level.

It has been claimed that an extra £8 million will be provided for county roads this year, but that is completely misleading. In this budget, including the so-called £8 million extra, the total allocation for non-national roads will be a little more than £100 million. Is the Minister saying that all this money will be spent on county roads? The total allocation in 1994 was £107 million, greater than the provision in 1995, and it helped a little. I hope the media will inform the public that there is a shortfall of money in this budget, that although £8 million was provided, £7 million was taken from the overall figure. This financial juggling is very misleading.

Let us look at where the so-called extra £8 million will come from. A sum of £4 million will come from revenue and the other £4 million will be transferred from community initiatives, as outlined in the principal features of the budget. This is a hidden cutback of £4 million for community initiative. I heard the Minister for Social Wefare, Deputy De Rossa, say on radio this morning that an extra £50 million has been provided to train unemployed people and get them back to work, but I hope the £4 million will not be taken out of that fund.

The £8 million seems to be earmarked specifically for county roads, but when it is shared among the various local authorities I doubt if it will be half enough to repair fully the damage done to county roads as a result of flooding. It is clear that there will be less money available in 1995 for county roads than in 1994, and this is unacceptable. I challenge the Taoiseach, a constituency colleague of mine, and the Minister for the Environment to give up the codding and do something constructive to assist local authorities with the serious county road problem. Something must be done about this national crisis. Meath County Council is no different from any other local authority in that we struggle year in year out to find extra cash, but it is not available.

In recent years local authorities have been obliged to provide new services which come under EU regulations. The funding required is increasing each year. The Government has a responsibility to finance these costs, which take from county roads funding. The Government should make a strong case to the European Union for special funding for all county roads which are vital to trade and commerce. There is also a social side to this problem. If residents were willing to subscribe to assist local authorities to repair county roads, such subscriptions should be deemed tax free. Every pound subscribed locally should be matched by the Government and the local authority. Responsibility for implementing European Union regulations should lie with the Government rather than the local authorities.

For the three years 1992-94 Meath County Council spent an average of £2.5 million on county roads each year. Whereas for the three previous years, 1989-91, it spent a total of £3.3 million. The reason for the reduction in spending was that the council had greater commitments and liabilities.

There are 2,000 miles of roads in County Meath, 1,500 miles of which are county roads. In 1987 the budget for the maintenance of these roads was £783,000. It is estimated by economists that the budget for the maintenance of these roads today should be a minimum of £4 million, £1.5 million more than the current budget of £2.5 million. Heavier traffic and increased rainfall have done untold damage to these roads, yet the budget is £1.5 million less than it should be. The Government has said it is making more funds available under the budget but I am sorry to say this is not the case.

I mean no disrespect to the local authorities who have been doing their best to repair county roads with limited resources, but the reality is that the condition of county roads is getting worse and will continue to get worse unless some radical action is taken. Filling potholes is much more costly than putting down surface dressing, most local authorities are forced to fill potholes as they do not have the funding for surface dressing. If a national roads plan is not formulated then money will continue to be wasted.

The first job which must be carried out is reconstruction so that there are proper foundations. A sum of £15 million is required to reconstruct all the county roads in Meath. I am sure the level of funding required to upgrade the roads in other counties is the same, if not greater. There is no point in wasting money by filling in potholes. Meath county council requires £15 million over the next ten years to do a proper job, thereby saving money in the future. There are 100 Land Commission roads in County Meath. When the Land Commission laid these roads in the 1940s and 1950s they were regarded as great roads but they are out of date. Meath County Council is faced with the problem of finding extra funding to reconstruct these roads.

The Government provides block grants for the maintenance of regional roads but not for county roads. I found this very difficult to understand even when my party was in Government. Ninety per cent of the funding for county roads comes from local sources while the remaining 10 per cent or less comes from block grants. In order to get the remaining 10 per cent the local authority must nominate the county roads which require improvement and get the approval of the Department for the spending of that money. If one were to judge the budget on the basis of the funding made available for county roads one would have grave doubts about it.

I have reservations about the National Roads Authority set up by the Government last year because matters relating to national roads are no longer the direct responsibility of the Minister. The authority was set up to ensure value for money, and I have no doubt that it is carrying out its task. I ask the Minister The authority was set up to ensure value for money, and I have no doubt that it is carrying out its task. I ask the Minister for the Environment to inform the National Roads Authority about the traffic chaos in Navan. I have already written to the Minister about this problem and I know he will do his best to solve it. Will he ask the National Roads Authority to tell Meath County Council to appoint immediately a consultant to carry out a survey and draw up plans for the new bridge and spur road? Meath County Council has commenced work on the new bridge and spur road with funding out of its own pocket in order to speed up the work. Meath County Council and Navan UDC are conscious of the damage being caused by this problem to trade and commerce in the town. The traffic chaos causes great inconvenience for business people, families, pensioners and children. The Garda Síochána has tried to ease the traffic chaos but it has found it very difficult to do so as there is a constant flow of traffic on the bridge. There is a new town on the north side of the river but all the important services are on the south side. Some day soon the fire brigade or ambulance service will not be able, due to traffic chaos, to cross the bridge to save the lives of people involved in accidents or fires. Will the Minister ask the National Roads Authority to inform Meath County Council to appoint a consultant to carry out a survey and draw up plans? Otherwise funding for the new bridge and spur road cannot be included in the 1996 Estimates.

I wish to refer to the serious accidents which have occurred on the Slane bridge in County Meath. Recently a bus carrying 40 to 50 children overturned on the bridge and it was only the grace of God which prevented a tragedy. Motorists using the bridge are afraid that the drivers of heavy trucks will not be able to stop as they come down the hill towards the bridge and will sweep them off the road into the river. I appreciate that there are similar problems in other areas but I am fighting my corner. The National Roads Authority must give serious consideration to these two problems.A large number of trucks from Northern Ireland use this road on their way to the south-east. This is another major concern for Meath County Council and I hope the National Roads Authority will give it serious consideration.

This is a very interesting budget and it is not possible to refer to all the provisions in it. There have been large handouts in a few areas and ten or 15 Mickey Mouse handouts of £500,000 or £250,000. I do not have enough time to refer to these.

I wish to refer to subhead A.7 of the Estimates. The cost of consultancy services has been increased from £9.77 million in 1994 to £13.477 in 1995, an increase of 37 per cent. It appears that the Civil Service system is being eroded — the advisers hired by the Government check up on the civil servants, argue the case with them and come up with what they believe is a better conclusion.I accept that Fianna Fáil hired consultants when in office but the Government parties, who criticised the hiring of consultants when in Opposition, are being hypocritical in increasing the cost of this service by 37 per cent.

I want to give a few examples to illustrate this point. I hope the media will not just take note of these points but will inform the public about them.

Front page news.

The budget for the office of the Tánaiste and Minister for Foreign Affairs is being increased by 733 per cent while the budget for the office of the Comptroller and Auditor General is being increased by 98 per cent and the budget for the Department of Transport, Energy and Communications by 247 per cent.

(Carlow-Kilkenny): It is a pittance when compared to the cost of the beef tribunal.

The budget for the office of the Minister for Justice is being increased by 61 per cent, the budget for the Garda Síochána by 72 per cent and the budget for the Land Registry and Registry of Deeds by 159 per cent. The budget for the sections dealing with Defence is being increased by 233 per cent. The public is entitled to know about these massive increases, which I am sure will alarm them. Much of the money used to fund these increases could have been given to voluntary organisations, people looking after children in crisis etc. However, the Government seems to think that consultancy services are more important.

I cannot understand why the Government has decided to increase the rate of DIRT from 10 per cent to 15 per cent. Many old age pensioners have deposited money in these accounts to cover funeral and other expenses. This is a disgraceful decision, although I am aware they may apply for a refund if they qualify for one.

Child benefit is to be increased by £7 and is not taxed, even though millionaires can receive it.

The Deputy can also receive it. Will he give it back?

The Minister receives it. I do not receive it as my children are older than his. If the Government wanted to provide for an increase it could have provided for it on a sliding scale with those at the lower end receiving the greatest benefit.

During the past eight years Fianna Fáil has had excellent financial policies. It sought to keep the budget deficit under control and to achieve a surplus. It also sought to maintain strict supervision of capital expenditure at the proper proportion and a low inflation rate to keep the cost of living down. It pursued policies to keep interest rates as low as possible, achieved the highest growth rate in the OECD and looked after our senior citizens and the long term unemployed properly. I hope when Fianna Fáil takes over from this three party coalition Government after the next general election the national finances will be in as good a shape as when we left office.

(Carlow-Kilkenny): In 20 years' time.

I welcome the increase from £80,000 to £100,000 in the allocation to the British-Irish Inter-Parliamentary Body which is doing excellent work in the interests of peace.

Is the Deputy declaring an interest?

I acknowledge the outstanding achievement of our former leader and Taoiseach, Deputy Albert Reynolds, in bringing peace to Ireland. I hope the British Government will have the political courage to lead the way in achieving a permanent peace.

I wish to refer to a number of the matters raised by my good friend, the Deputy from County Meath. He mentioned county roads, a subject which has received a good airing during this debate. As I am sure he is aware, a substantial extra allocation was provided last year and again this year. The Government is conscious that we will not be able to tackle the problem unless it is done in a co-ordinated and concerted manner. That is the reason the Minister for Finance, in conjunction with the Minister for the Environment, has asked for a report from all county managers on the condition of county roads. Otherwise we will attempt to provide £10 million to £20 million per annum without seeing any results.

The two main priorities of this Government in this budget are simply stated. First, we must translate the growth in our economy into jobs and a secure future for our people. Second, we must help in every way we can to build a lasting agreement among the people who live on this island.

Those two priorities dominate everything we do. They represent both an exciting opportunity and a daunting challenge. They have to be approached in the knowledge that no one politician or political party has a monopoly of all wisdom, that every Member of this House has a contribution to make and that many of the best ideas that will help us to secure those priorities will come from within the wider community we seek to represent.

The 1995 budget was one of the many instruments available to us in setting out to achieve the first priority I mentioned. In the time available to me I want to commend that budget to this House for what it does and to deal with one or two specific areas of the budget of direct concern to me as Minister for Foreign Affairs.

First I want to refer to the other priority — the task of building agreement on this island.

Yesterday, the Secretary of State for Northern Ireland and I had a very productive meeting which overcame a number of complex issues that had been delaying completion of the Joint Framework Document. In the next few days, I hope to be in a position where the document can be sent to the Taoiseach and the British Prime Minister for their consideration.The aim is to publish it as soon as possible and to invite the people of these islands to consider it. Especially we want to invite the political parties of Northern Ireland to examine it closely.

I do not expect anyone to like everything they find in the Joint Framework Document. Anyone, on either side of the divide, who expects to find a victory for their point of view in the document is going to be disappointed, but my strongest hope is that anyone who expects to find betrayal of their hopes and aspirations in the document will be relieved.

This document is no sell-out, neither is it a magic wand that has been waved over the divisions of years, to make them disappear. It is no more and no less than we have ever said it was — a framework for discussion and negotiation, representing the best effort of the two Governments to provide impetus and focus for those negotiations.

The Joint Framework Document, complex as it may seem, is based on a simple premise. The cease-fires of last year were a start. As I have said many times, the cease-fires took the violence out of the conflict, but the conflict goes on. It will not end until mistrust is replaced by co-operation and until people are prepared to work together for commonly agreed objectives. The ending of the conflict does not require, and cannot spring from, victory or defeat for either set of passionately-held beliefs.

The last Irish Government knew, just as the present Government knows, that the ending of the conflict cannot come either from the maintenance of any perceived threat over the population of Northern Ireland. Our purpose and determination is to remove any sense of threat, territorial or otherwise.

We want to help in achieving a new dispensation, where the future development of Northern Ireland is a matter for the people of Northern Ireland, free of any threat or the perception of a threat, and underpinned only by principles of fairness and equality. We want to arrive at a point where the issue of sovereignty is no longer an issue that drives people apart.

The process we are engaged in is not about forcing either side to settle for whatever it can get. It is about encouraging both sides to settle with each other. The essential principle that has underpinned our approach — the approach of the last Irish Government just as much as the present one — to all these talks is the principle of consent. That means no more or less than it says. There will be no change in the constitutional position of Northern Ireland, and no Irish Government will seek to change it, without the consent of the people of Northern Ireland. For many years now it has been recognised that we cannot solve the problem without addressing all its dimensions. Nobody will ever persuade Nationalists to give their allegiance to a state that denies their fundamental aspiration to Irishness and no one can successfully coerce Unionists into a state that denies their fundamental aspiration to Britishness.

That is why approach to the problem must recognise that there is a complex set of relationships involved. The North-South relationship is a difficult one for Unionists to address, but relationships within Northern Ireland present fundamental difficulties for Nationalists. Everyone has to face those difficulties in their own way.

The Joint Framework Document seeks to challange, not to appease. It is not based on the comfortable assumption that no one needs to compromise. That assumption is a receipe for disaster.The truth is that everyone needs to compromise — the Governments, the parties, the traditions.

That is why our only appeal, in relation to the Joint Framework Document, is to ask people to read it: "Don't look for victory — you won't find it. Don't look for betrayal — you won't find that either. Look for a new way forward, through agreement and better relationships — that's what is on offer." That is all that is on offer — no secret deals, no hidden agendas. All the cards are going to be put on the table and they are all going to be dealt face up.

Turning now to the budget, it is widely accepted that our economy is in a very strong position. That strength would not have been possible without sacrifice on the part of thousands of families. Now that the economy is growing strongly, those families are entitled to share in that growth.

That is what we have tried to do in this budget. We are giving people a dividend, a share of the growth they have helped to generate. The decision to approach the budget in that way reflected the concerns and policies of each of the parties in Government. Every Minister, from whatever party, played a full role in putting forward ideas and arguing for them, and the process of putting the budget together involved frank and serious discussion, conducted in the most constructive atmosphere in which I have ever participated.

The budget will help every family in Ireland. The increases in child benefit, widely recognised as the most essential weapon in the struggle against family poverty, are the biggest ever. The tax reliefs are more than three times the rate of inflation, and will be felt in every single pay-packet in April. I am particularly proud of the fact that the balance of resources devoted to this area has clearly favoured the hundreds of thousands of Irish workers who are in low-paid jobs.

The jobs impact of the budget will be very substantial and positive, especially for the long term unemployed. We are putting special measures in place — measures they have campaigned for themselves — to help them make the breakthrough. We are trying to gear all the approaches we make to business and enterprise towards encouraging more and more investment in jobs.

I am delighted with the progress we have made in one area in particular. 1995 will be remembered as the year we began to make education free at every level. The abolition of third level fees is a huge psychological breakthrough for thousands of young people. It is a very important start on the investment in education that is a crucial part of our future.

In overall terms, this is a budget with a human face, a budget for people. We have put it together while at the same time maintaining a strong and careful approach to the management of peoples' money. We have achieved a budget that will encourage even more growth in the economy, and a better future for everyone. My prediction is that those critics and commentators who have ignored the potential for stronger growth in our economy, and the contribution that the budget will make towards that, will be forced to eat their words by the end of the year.

Before concluding I want to refer to two issues arising from the budget, of direct concern to my ministry — the forthcoming Presidency of the European Union and the further moves we have been able to make to improve Ireland's contribution to the developing world.

The main obligation on any Presidency is to ensure an efficient and effective approach to the discharge of the Union's business. Ireland has a good record in this respect in the conduct of past Presidencies, achieved through timely planning, preparation and the adequate allocation of resources.

However, there are a number of new challenges facing our Presidency in 1996 and which will have to be taken into account in the planning process. In addition, our Presidency will take place against the background of a view among some members of the Union that the smaller member states are no longer capable of adequately carrying out the responsibilities of the Presidency. Our performance as Presidency of the Union will be judged, therefore, not by our performances in 1975, 1979, 1984, and 1990 but against the standard set by Germany, France, Spain and Italy, countries that immediately precede us in the Presidency.

The major development since the Presidency in 1990 has been the adoption of the Maastricht Treaty. The main features of the Treaty which will have an impact on the work of our Presidency in 1996 are as follows: the move towards economic and monetary union; the strengthening of procedures for systematic co-operation in common foreign and security policy; matters coming under the justice and home affairs or third pillar of the Treaty on European Union including immigration, asylum aspects of judical co-operation in civil and criminal matters, the fight against drugs, fraud, customs co-operation and police matters; new policy areas of the Union and those expanded by the Treaty on European Union including education, public health, culture, consumer protection, industry, development co-operation and trans-European networks and the expanded role of the European Parliament, particularly the co-decision procedure which allows the Parliament to reject legislation in certain areas.

While it is too early to predict the issues that will dominate our Presidency in 1996 the issues facing the European Union, and likely to provide at least part of the framework for our Presidency, can be identified broadly. These include the Intergovernmental Conference due to start in 1996 and likely to be in place for the duration of our Presidency; the issue of growth, competitiveness and employment and action for economic recovery; the decision on the move to the third stage of Economic and Monetary Union which must be taken not later than 31 December 1996; implementation of the Common Foreign and Security Policy; immigration, extradition, organised crime and drug smuggling seem likely to remain dominant issues on the justice and home affairs agenda and the further development of relations with the countries of Central and Eastern Europe with a view to accession.

It is appropriate that the budget and the Estimates for 1995 should contain a number of measures aimed at assisting the peoples of the developing world. People in all walks of life in Ireland have gone to great lengths to support those living in poverty and deprivation in the Third World.

Crises such as that which struck Rwanda last summer bring out the best in the Irish people. Their generosity is second to none. Not only did they contribute in cash and kind to help the Rwandan people, many of them went out to that country and to the refugee camps in Tanzania and Zaire to give direct assistance, often at considerable personal sacrifice.

These concrete examples of commitment and solidarity with the disadvantaged both at home and in the developing world highlight the fact that, within the limits of our means, we in Ireland recognise that our collective responsibility for the alleviation of poverty and disadvantage in our own society does not eliminate our responsibility to assist those in greater relative need in other countries. I strongly believe we are generous enough in our approach to accept that action for social justice and human rights at home is complementary to action on these very same issues internationally.

The budget contains two provisions designed to recognise and support the public's efforts to assist the Third World. First, the Government has decided to give a tax rebate on private donations of between £200 and £750 to designated Third World charities. The effect of this will be to make a donation of £750 worth over £1,000 to the charity concerned. I believe this measure will be a strong incentive to people wishing to contribute to the Irish NGOs which are making such an effective contribution to the developing world.

Second, my colleague, the Minister for Finance, has announced that he intends to introduce measures to protect the pension rights of public servants doing voluntary work in developing countries for the Agency for Personal Service Overseas. I very much welcome this initiative. Those who carry out voluntary work in the Third World should not be at a disadvantage because of their humanitarian actions. I hope the private sector will be encouraged to introduce similar measures for their employees in the light of the Government's initiative on volunteers from the public sector.

The Irish people have clearly demonstrated their wish to help those in need and it is right that the Government should match this private generosity by allocating an appropriate level of public funding to official development assistance.This year's allocation for ODA is 26 per cent higher than last year's. It means that for the third year in a row funding for ODA has substantially increased. The total to be spent on ODA in 1995 will be £89 million; this is more than twice what was spent in 1992.

In allocating this record level of expenditure, the Government is delivering on the promise to raise Ireland's Official Development Assistance to the kind of level which our European partners allocate. We are also committed to making steady progress towards the United Nations target of 0.7 per cent of GNP. This year's increase puts us well on the way towards that target.

Emergencies in countries such as Rwanda, Angola and Sierra Leone are what we most frequently see on our television screens, and they cost a great deal of money to put right. Despite the end of the Cold War there has been no let-up in the number of conflicts throughout the world. One estimate is that there were 160 significant cases of conflict worldwide in the two years 1993-94. The international community's response has been to increase the amount of money spent on emergency assistance but, with limited resources available, this has meant a serious drop in the amount of funding being made available for long term development.

I am glad to report that Ireland is bucking this trend in that our spending on development aid, both emergency and long term, is steadily rising. The purpose of long term development is to create a culture of self-help among countries and communities so that they can take charge of their own affairs. Ireland's approach is to concentrate on meeting basic needs in fields such as health, education, water and infrastructure and we work in close partnership with the peoples of those countries which we assist. The expanded funding which is being made available in this year's Estimates mean that we can strengthen and diversify our programmes of assistance to enable countries which are suffering poverty, malnutrition and lack of basic facilities to improve the standard of living of their citizens.

Last year we added Ethiopia and Uganda to the list of countries enjoying priority status for Irish aid. This year we are increasing the level of our co-operation with Mozambique and are stepping up our programme of assistance to South Africa where we will be concentrating on education, water resources and community initiatives.

Increased ODA will also mean that we can support initiatives designed to strengthen the democratic process and observance of human rights in the developing world and particularly in those emerging democracies where these concepts are still fragile. We will, of course, continue our strong commitment to the co-funding of projects with non-governmental organisations such as Concern, Goal and Trócaire; to development education and fellowships for students from overseas and to contributing to the operations of the major multilateral aid agencies such as UNICEF, the World Food Programme and the UN High Commission for Refugees.

Nobody could underestimate the challenges which face us in our relations with the developing world. However, the extent of the needs which persist should not and cannot weaken our resolve to play our part in resolving crises and conflicts and promoting sustainable development. Our policy and approach must be developed on the basis of clearly enunciated principles — in this regard the public discussions on the White Paper on Foreign Policy is timely and welcome.

We must continue to provide increased levels of aid to countries in the south and to promote support for human rights, but I also believe that we are obliged to make every effort to ensure that the aid we give is used effectively to alleviate basic needs, to support human rights and to promote the ability of people in the developing countries to help themselves.

This year's budget was the first of three that my colleague Deputy Ruairí Quinn will introduce on behalf of this Government. Our programme, as a Government, is aimed at renewal, and the budgetary strategy we intend to follow will be a strategy of renewal. That is why the emphasis in this budget was on jobs and families, and why the same emphasis will inform the 1996 and 1997 budgets. We intend to carry on the process of making it easier to employ people, of opening up options to people who are in long term unemployment, of ensuring that resources are effectively targeted where they can do the most good.

We intend to ensure that growth remains high. We also intend to ensure that growth is channelled effectively into the areas where it is most needed — into families and into work. Our people have worked for growth — now we have to make growth work for them.

When I addressed the House on Thursday last at Question Time I expressed my sympathy to Deputy Phil Hogan on the misfortune which had befallen him. He, like others before him, had been sacrificed on the altar of moral rectitude. Irish politics is now at an important crossroads. For a number of years the real issues which concerned the decision makers and those who rely on them to deal effectively with the management of this country have been subsumed in the relentless sequence of personal witch-hunts by certain elements in politics. Politics is much the worse for the introduction and perpetuation of this personality-led culture, and I am concerned that the political system is now gravely wounded.

The stench of moral rectitude lies like a poisoned cloud over these buildings. I wonder if any of those people in this House have paused to consider that, in pursuit of openness, transparency and accountability, what may be lost is the traditional values of decency, understanding and forgiveness. These traditional values have long served the Irish people well and, in the light of what I, as a long serving Member of this House have seen over recent years, I wonder if we now have finally succumbed to what in the United States is commonly referred to as the Watergate syndrome. It seems that every political cause needs a personal sacrifice. Around every corner must exist a conspiracy and, as the upshot of all this, is a lust for public human sacrifice. We have witnessed a succession of heads on the pikes of political expediency.

To be a politician in Ireland today, one must have no past, because if one has then one will certainly have no future; one must be a Dan Quayle type person — someone who has done no wrong and no right. Do wrong and one will be hanged, drawn and quartered, like the unfortunate Deputy Hogan; do right and one is labelled a firebrand, a troublemaker or a renegade. Either way, there appears to be no place for you in his House and I hope that the architects of the high moral ground are satisfied with the creature they have created. What is not needed in Irish politics is blandness or conformity; what is needed is imagination, energy and courage. The Irish people do not need political eunuchs; they want and need leaders.

As I approach the twilight of my career in politics, I hope I have learned a little about what is right and what is wrong in politics. One thing of which I have no doubt is that there are Members of this House who should be ashamed at the way they have calmly and coldly looked the other way as the political funeral of Deputy Phil Hogan passed by. Only they know the extent of their own guilt. I doubt if they are particularly disposed to accept any advice from me, but I will say — and they may listen if they wish and ignore me at their peril — they should guard their own secrets with great care, because the people out there are waiting.The people like nothing better than to see the righteous found to be sinners and in these days, where loyalty means less than nothing in some quarters, if there is dirt there, it will come to light sooner or later and then there will be red faces for all to see. My party has had its share of troubles and we have learned a hard lesson in a hard school.

I see nothing wrong with open government. I see great merit in an informed electorate. That is not to say I accept that openness gives a licence to any politician who is in a position of trust and sensitivity to use — or, more correctly, abuse — that position for purely political ends. The responsible exercise of political office requires observance of the rule of law and a respect for the wishes of the electorate. In a coalition, as we in Fianna Fáil appreciate in the most practical sense, there is an added requirement of respect for the stance of other coalition partners.I can speak of this with some authority.The most recent example of political one-upmanship is the presentation of the contents of last week's budget to the media by one, or other, or all, of the parties which make up the so called rainbow coalition. From where I stand, the accusations of dishonesty and duplicitousness so recently levelled at Fianna Fáil by some Members now sitting across the House in Government have a strangely unreal memory. Perhaps it is now our turn to alert the Irish people to low standards in high places and when the truth comes to light and is subjected to public scrutiny, nobody on this side of the House will be either sad or upset.

I, for one, take some comfort in the old story of the dragon who required regular human sacrifice as a price for his tolerance. This mythological protection racket lasted only so long as the population would permit it. Eventually, like all bullies, the dragon met its match; in this case the people, having gorged themselves on political entrails, will seek and find other prey and the higher the pedestal, the longer and harder the fall. Ordinary people enjoy witnessing the fall. So I say to the harbingers of rectitude to beware. When the fall comes, and come it will sooner rather than later, the fall will be both swift and tumultuous. There will be few to shed tears at their political funerals.

There is a parable in the Gospel, where the poor, wretched prostitute was to be stoned by the mob for her sins. The mob, hostile and righteous, gathered around her, spat on her and collected their stones. Jesus intervened to ask anyone in the mob who was without sin to cast the first stone. In the Gospel, the mob dispersed shamefaced. It appears that in this House, among some, no such human feelings apply.

Almost every detail of last week's budget was known to the media long before Deputy Hogan's fateful faxes issued. Who was responsible for that? Who among those who normally occupy the empty Government benches across the floor ordered that these details be given to the media? Which of you briefed a favourite journalist? At least on this occasion, Fianna Fáil can take some comfort in the knowledge that none of us can be accused of breaching Cabinet confidentiality, of putting one over on our coalition partner, or of breaching the letter and the spirit of the Programme for Government.

I wonder if the three parties in Government are as happy this week with their decision to form the rainbow? I wonder if any Member of this House on the Government side believes that justice has been done over this sorry affair? Is any Member of this House on either side happy that justice has been seen to be done?

We are at a sorry pass. Is it any wonder that young people cannot be bothered to vote, when all they see is a catalogue of cant and hypocrisy, masquerading as the voice of the people? Irish people expect certain standards of their politicians, but they do not expect us to be perfect. Ordinary people have ordinary personalities and are as frail and as fallible as ordinary people are expected to be including me. In Irish politics, however, to be human is to be suspect, and to display human characteristics is risky in the extreme. Why else would we see the likes of Deputy Phil Hogan, a decent hardworking Deputy, offered up as a blood sacrifice?

I can hardly ignore the irony of the manner of Deputy Hogan's demise, given the manner in which he pursued my colleague, Deputy Cowen, over his shareholding in Arcon. I take no pleasure in highlighting the irony of what has happened, rather do I recall these events as an example of the wheel of life completing yet another inevitable turn. Sic transit gloria mundi.

The demise of Deputy Hogan as a Minister has had the added effect of deflecting public scrutiny from the budget which caused it. Enough has been said since last Wednesday about this sad, threadbare, patchwork quilt of a budget and I intend to confine my contribution to what this budget did not contain and the extent to which this rainbow coalition has betrayed the members of the three parties involved.

I cannot let this opportunity pass without commenting that, in the past, Fine Gael's sorties into Government, have inevitably resulted in a serious downturn in the nation's economy. The facts speak for themselves, and anyone with an interest in the truth will only have to look at the figures for confirmation.

On this occasion, yet again, Fine Gael, numerically, at least, the principal party of Government, are presiding over a budget which fails to grasp the basic thrust of the economic and social policy of the past eight years or so. Over that period, slowly and painfully, the national finances were rescued. Now, when the rainbow parties are barely used to sitting around the Cabinet table when sound economic management demands prudent husbandry, what are they doing? They are scattering the seed corn to the four winds, and for what?

What is the use of asking the people to brace themselves for stormy weather, as successive Fianna Fáil Ministers for Finance have done since 1987, if the new crew are dead set on running before the storm instead of facing it down? We in Fianna Fáil asked the Irish people to be patient. We doled out nasty medicine, but we promised that the medicine would work and that the cure would inevitably follow. In that task, I acknowledge the part played variously by our partners in Government.I now share the amazement of Members on this side of the House that the rainbow coalition has immediately set about dismantling the carefully and painfully crafted economic foundation which they inherited. I am particularly amazed at the part played in this by the Labour Party, having worked with them for the past two years. They were good colleagues and excellent Ministers.

What do they think they are doing? Does the Labour Party and the Democratic Left believe that their traditional constituents will thank them for the 2.5 per cent increase in social welfare payments?Does Fine Gael believe that taxpayers will say "well done", when the truth of what the budget really means is explained to them. Will our partners in the European Union stand idly by and watch our economy stop and backtrack towards the days of high inflation, punitive interest rates and soaring unemployment which will be the legacy of this budget and this Government?

By failing to recognise, or worse, to understand, that now is not the time to return to deficit budgeting, the Government has recreated the formula for emigration.In a time when we should look forward to keeping more and more of our children at home working in jobs which properly reflect on their education and ability, I fear that we are once again on the road to Ellis Island.

I am not an economist and I do not understand the difference between marginal propensities to consume and to earn, yet I have raised a family and watched my children grow over the past 25 years. I dread to think that our children will face a future more bleak than previously. All the free third level education in the world will not compensate for an overheated economy and a reducing workforce.

Inflation simply means that our goods are more expensive to export and our country a more expensive place to visit; increasing interest rates means more expensive mortgages, fewer houses being built and higher unemployment. These simple facts convince me that now is not the time to spend more than we earn.

The rainbow coalition had the opportunity to take up where the previous Government left off, but they could not resist the temptation to try to be popular and at the ultimate expense of the people whose affections they are trying to win. The quick fix for the short term gain simply shows an addiction to popularity — a very dangerous addiction in public life.

In those areas of Government within my brief, tourism has shown a relentless growth in employment figures for the past decade; 90,000 new jobs are directly attributable to tourism and I wish to pay a sincere tribute to CERT, the training body for the hotel and catering industry for the part which they are playing. Their success in placing trainees in sustainable jobs deserves more recognition and I wonder how much they could achieve with more resources. The Government has missed the opportunity to further develop this aspect of tourism in the budget and I will pursue the need for additional support for CERT.

This country no longer lives off the cow's back. Most western counties now earn more from tourism than from agriculture and I was interested to hear the respected Teagasc Director, Dr. Liam Downey, recently admit that tourism is replacing agriculture in the life of the rural economy. Tourism, like the elephant, is easy to recognise, but difficult to define; it is at once a product, a service, a trade, and dare one say it, an industry; in addition it is a craft and one, which I may say, to which the Irish people are well suited.

In all fairness to the Minister for Tourism and Trade, Deputy Enda Kenny, I wish to commend him on what is without doubt the single spark of imagination in this budget, I refer, of course, to the pilot scheme for urban renewal in certain seaside resort towns. For too long, the charming resorts around our coastline have been mired in official neglect and apathy. I express the hope that this pilot scheme will preserve the historic core of our seaside towns and I look forward to the extension of this worthwhile scheme to other towns. The south-east and western seaboards should not monopolise this scheme and there are many towns around our coast and, indeed, throughout the country, which would benefit greatly from the recognition of their worth as an intrinsic part of the nation's heritage.

As to the manner in which the scheme is to be administered, I seek the Minister's assurance that the measures envisaged will not be confined to major tourist developments. The small B & Bs play a vital part in the renewal of local economies and the harmonious restoration and conversion of traditional buildings is essential to preserve and, where necessary, recreate, the beauty and character of towns around the country.

This scheme is innovative in the area of tourism, in that it is aimed at improving tourism as a product. Before this, most effort went into marketing Ireland to foreigners, and to the Irish people as a place to go on holiday. Too often, unfortunately, the rosy picture painted in advertising campaigns was not matched by the product. Visitors will not come back if they are not happy with what they find and I hope that this shift of emphasis is followed by further efforts to ensure that people who holiday in Ireland not only come back again and again, but that they tell their friends about us and they, in turn tell their friends.

A personal concern is that the streets of all the towns in our country should be safe for all. The Minister will need to maintain a close liaison with the Minister for Justice, to ensure that all the necessary steps are taken towards achieving this end. A visible presence of police on the streets is often enough to discourage the type of random violence against tourists to which we have become accustomed.

It is fair to say that the Garda Síochána are exceptional; the force is well trained and well motivated. In Dublin, everybody is aware that some areas are just not safe at any time. Other cities and towns are plagued by similar problems and it is now time that the gardaí were put back on the street. It is also time that, in line with scaling down the security operations in Northern Ireland as a consequence of the cessation of paramilitary violence, those members of the Garda who are engaged in security duties in Border areas should be quickly reassimilated into the ordinary duties of gardaí and used, where necessary, to bolster the drive against crime in our towns and cities.

In the area of trade, I believe that our semi-State organisations provide a valuable and worthwhile return on the public moneys allocated to them; they often operate in hostile trading and political environments and I commend them for the service they give to the people. Ireland will continue to depend more and more on acquiring new markets for our exports and, as the need arises, developing new products to meet demand from abroad. We have an official presence in many developing countries and the expansion of our international relationships generally will afford us excellent opportunities to broaden our trading horizon in the future. I am glad to see the growth of the "Ireland House" concept which means that all the areas of trade, tourism and diplomacy right across the board of Irish endeavours are incorporated under one roof. I understand that an "Ireland House" will open in Japan, if it has not already been opened and I would like to see this throughout the world, north, south, east and west.

The Minister will be aware of the need to get out and sell Ireland and our goods and services. He has the necessary expertise at his disposal and I believe he has the will, and while the resources allocated to this area are modest, much will be expected of him during the life of this Government.

I look forward to hearing that this source, or sources, of all the various leaks of the details of this budget, having been identified and that the persons who are guilty of breaching the letter and spirit of Cabinet confidentiality will display the same degree of honour as Deputy Phil Hogan. This is an issue which the House should be concerned to resolve and, in the stated standards of openness, transparency and accountability — how these words will come to haunt this House — the rainbow parties must be called to account. It is not acceptable that the standards set for Fianna Fáil in Government should not apply equally to the rainbow parties. The high moral platform on which they stand is of their own making and I, with all honest observers, want to see whether the Government can be trusted to tell the truth.

I wish to share my time with Deputy Kenny. We have heard a very fine sermon on public and political morality and the economic revisionist theory which I am sure would not stand up to scrutiny. I would remind Deputy Andrews that the increase in public spending last year was 9 per cent whereas it will be 6 per cent this year. This budget will reverse the trend in public spending since 1991 and that is welcome.

In 1977 the Fine Gael/Labour Coalition Government handed over a booming economy with a 12 per cent growthrate to Fianna Fáil. It proceeded to destroy the country and it took ten years to recover from that. Deputy Andrews should remember when chastising Fine Gael and pointing the finger at that party that Fianna Fáil's record may not stand up to close scrutiny.

I will confine my remarks to the effect of the budget on the rural and agricultural community. As the Minister for Finance announced this budget is designed to reward work, promote enterprise and strengthen social solidarity.To achieve these objectives, he introduced a number of significant changes in the tax and PRSI codes which will have the dual benefit of increasing take home pay and reducing for employers the cost of creating jobs. In addition, the measures announced by the Minister for the longer term unemployed, which are in line with the recommendation from the national economic and social forum, will help them.

I am most concerned about unemployment in rural areas where the problems of low income and lack of job opportunities are often severe. Indeed, many counties are suffering from declining population as younger people leave to find work elsewhere.

This budget offers a comprehensive package of measures which will contribute to reducing unemployment and improving standards of living: employers PRSI is being reduced; personal allowances have been increased and the 27 per cent tax band significantly widened; £6 million is being provided for the employment service for the long term unemployed and £11 million has been added to the estimate provision of £232.5 million for the community employment programme.

Some 38,500 people are expected to participate in the community employment programme. In addition, the Structural Funds in the agriculture, food and rural development areas are: the operational programme for agriculture, rural development and forestry; the food sub-programme of the industry programme; INTERREG and Leader II.

These will all contribute to significantly improving employment prospects and to creating opportunities for enterprise and development in rural areas.

The farming organisations lobbied the Government on stock relief before the budget. As anyone familiar with accounting and tax knows, money spent buying stock is not classified as an expense for tax purposes. This follows standard accounting practice where the value of stock is treated as an asset and money spent on stock is not treated as an expense for tax purposes. Unfortunately, it also means that money must be found for building up stock from net income after tax has been deducted.

This can cause severe cash flow problems for farmers. Most people accept that farm stock is expensive, grows slowly in value and the time lag between purchase and sale or purchase and production can be well over a year, a very long time relative to many other types of business. The problems this leads to are especially severe for those who have to build up stock, usually people starting out in a career in farming or those faced with the task of restocking after losing their herds.

The Government is committed to helping young people take up farming as a career and to seeing that they are well trained for the job. In keeping with our commitment in A Government for Renewal full stock relief has been introduced for young trained farmers. This will be of significant benefit to those starting a career in farming. For the first four years, a young trained farmer can effectively treat the cost of buying stock as a normal business expense. That will greatly improve cash flow allowing farmers to build up stock and to bring their farms up to maximum production as quickly as possible.

Farmers forced to destock for disease eradication purposes will be relieved to see the introduction of stock relief on the profits which can arise from the compensation paid. It should be noted that these profits are not real as the money must be invested in new stock. The introduction of full stock relief on these paper profits gives farmers the chance to reinvest the full amount of the compensation without having to pay tax on it first.

Many farmers will be pleased to see that the Minister for Finance did not take this opportunity to let stock relief lapse. The current regime of stock relief at 25 per cent with no clawback for any subsequent reduction in stock value was introduced two years ago for a period of two years. It was announced in the budget that these provisions will be continued for at least another two years. This will be of major benefit to farmers enabling them to get some tax relief for stock purchases. At the same time the absence of any clawback gives them the flexibility to dispose of the stock without having to take the tax implications into account. I welcome the further progress made in reducing the burden of capital acquisitions tax on farmers. Business relief applying to livestock and machinery, has increased from 25 per cent to 50 per cent and agricultural relief on land and buildings over the £300,000 threshold has increased from 30 per cent to 50 per cent. This will make a considerable difference to most farmers.

It is important that people realise that agricultural relief for capital acquisitions tax is necessary to ensure a farm can be transferred without incurring a tax bill which could render it non-viable. Agricultural relief is given in recognition of the fact that the earning potential of land is much lower than its capital value would suggest. Without agricultural relief, a gift or inheritance of even a relatively modest farm could result in an unmanageable tax burden.

I am sure this concession is welcomed by all sides of the House.

Efforts were made this morning to raise the de Buitléir report. Many farmers will be pleased with the budgetary provisions regarding third level fees. Some farmers have expressed their concern to me about the report to the Minister for Education on the eligibility criteria for higher education grants. The announcement in the budget that higher education fees for publicly funded colleges are to be abolished is most welcome.Of course, if fees are being abolished then the principal reason for giving tax relief on covenants also disappears.I expect most people who used covenants as a way to save the money needed to put their children through higher education will find themselves much better off with no fees. I welcome the initiative taken by the Minister for Education. Henceforth, it will mean that several middle income groups, who could no longer afford to send a second or third child to college, will be in a position to do so, which is most welcome.

In regard to county roads in rural areas, the dispersed nature of our population and its low density, mean that rural roads are very important to us. Unfortunately, I am only too well aware that many are in an appalling condition, as a result of several years of underfunding and neglect, especially within the period 1987 to 1992 or 1993 when very litle money was expended on them. Most of these roads must now carry heavy lorries transporting farm supplies and produce necessary to our agricultural and food sectors. In addition, in areas of heavy afforestation, these roads must carry very heavy loads of timber, leading to their further deterioration. These lorries and their loads are much heavier than the roads were ever designed to take and the appalling weather of last spring and this winter has rendered a bad problem even worse.

The addition of £8 million will bring the Exchequer allocation for county roads to more than £100 million in 1995. I hope local authorities will use this money to effect a significant, lasting improvement to roads in rural areas. It is my hope that this will be the mere beginning of a programme on the part of this, and future, Governments to address the matter of county roads and their attendant problems, because it is time we tackled it.

It does not constitute an increase, the allocation is a reduction on last year's.

If the Deputy considers the facts, he will see that it represents a major increase. In addition, I understand there will be other grants, allocated by other means, to county roads for their maintenance and upkeep.

One of the most significant aspects of this budget is its provision for traditional seaside resorts which are in terminal decline. I am delighted the Government saw fit to introduce a scheme, similar to the very successful urban renewal one, to address the problem of the decline of our traditional seaside resorts. Certainly it formed part of my policy when Opposition spokesperson on tourism from 1992 to the end of 1994 — it was also very much Fine Gael policy — and I am very glad that the new coalition partners decided to introduce this scheme which will reverse that decline.

The urban renewal scheme has been a tremendous success in many rundown urban areas which have been transformed.They benefited enormously from the various tax incentives and reliefs. However, many other areas suffer similar problems, especially old seaside resorts. The application of tax incentives similar to those available for urban renewal will act as a strong incentive to people to invest in these areas, the hope being that this investment will break the vicious cycle of fewer visitors, causing less investment and a deterioration in property. These incentives should lead to an improved climate for investment and improved and updated tourist amenities and facilities. It would be my hope that the communities in those seaside resorts, most without a local council, will engage in this initiative, encourage investment, thus restoring them to their former place in Irish tourism.

I should like to deal with the farmers' charter of rights. Like all other citizens, farmers have a right to top quality service from Government Departments. The advent of the CAP reform resulted in an increase in the number and complexity of schemes administered by the Department of Agriculture, Food and Forestry. Various constraints, many imposed by the European Union but including inadequate resources and structures, have militated against the efficient and effective delivery of payments to farmers. The delivery of a top quality service from the Department is one of the priorities of this Government, to which end a charter of rights for farmers will be announced by Easter.The commitment of the Government to the implementation of that charter is evidenced by the provision of an allocation of £5 million in this year's budget. I am sure Deputy Leonard would agree that farmers deserve a better service and, hopefully, that service will be delivered to them by this Government through that charter of rights. I look forward to it being put in place soon and to its effective operation.

The farmers' charter will address a number of specific issues, including upgrading accessibility to information on farmers' entitlements, particularly at local level. I am concerned, that farmers be informed as soon as possible of any problems in regard to their applications. In addition, the charter will provide for more flexible departmental office opening hours. The existing opening hours, from 9.30 a.m. to 12.30 p.m., fail to cater for farmers' needs, especially those who must travel long distances. In Kerry farmers from areas like Waterville and Caherciveen must travel to Tralee before the 12.30 p.m. closure. That is very difficult for those who must work from the early hours of the morning. Therefore, the matter of opening hours must be addressed and resolved.

The matters of departmental office accommodation and farmers' right to privacy and confidentiality are most important and will be addressed also in the proposed charter of rights. Farmers will not have to conduct their business in public and that is another welcome departure. Some departmental offices have inadequate accommodation and facilities for staff, clearly inhibiting their ability to provide farmers with an efficient and confidential service. It is proposed to upgrade all offices to cater for staff needs, thus enabling them accord the normal courtesies to individuals calling to their offices. Ideally, departmental local offices should be centres where farmers can obtain information on their entitlements, assistance when completing application forms and information on their compensatory and premia payments, ultimately, rendering them "one stop shops" for farmers. The charter will also overhaul the payments system to diminish anonymity, thus giving a more personalised, user-friendly service.

The new Minister for Agriculture, Food and Forestry, Deputy Yates, is committed to seeking changes in European Union rules to facilitate the earliest possible payment of compensatory and premia payments, there being many stages to the overall achievement of this goal. For example, there is need for the Department to improve and enhance existing information technology in addition to improving the layout or design of application forms, rendering them more user-friendly, while complying with European Union requirements.Progress has been made in the Department on a simplified application form with easily understood language, so that there will be no confusion about its terminology.

Of immense importance to farmers also is the establishment of a formal right of appeal, to include provision for oral hearings and an opportunity to have a claimant's chosen representatives present, much the same as applies in the case of social welfare.

The ultimate aim of the charter is to enhance the service for farmers by the Department, to give an effective and efficient, streamlined service to all requiring it, which should be personal, user-friendly and transparent. Needless to say, this type of service should be available also to farmers in the agri-food and forestry sectors. It will take time to achieve this goal but I know that the will and enthusiasm of departmental staff can be relied on fully in this task.

If nothing else, this budget will ensure that, at last, farmers will receive their entitlements on time, that when they go to their local offices they will be received with the utmost courtesy — as has always been the case — with additional facilities improving existing arrangements. This should remove the tension that has developed over delayed payments and the treatment of farmers whether on the telephone or when they meet departmental staff. This charter of rights should be welcomed by all parties in this House.

I welcome the opportunity to contribute to the budget debate. As a Labour Deputy, I believe the 1995 budget is an historic one. It is the first budget in the history of the State to be presented by a Labour Minister, my colleague, Deputy Quinn. Nineteen-ninety-four was a good year for Ireland. The economy's performance was one of the best in the European Union. Employment increased by 36,000, average unemployment fell by 12,000, investment in our economy grew by over 7 per cent, consumer spending increased by 5 per cent and exports increased by an estimated 10.5 per cent. All this was achieved while maintaining an average inflation rate of 2.4 per cent. The outlook for 1995 is also favourable. Employment is projected to increase by 31,000 jobs and the number unemployed set to fall by a further 16,000.

The Minister for Finance, Deputy Quinn articulated the four fundamental beliefs of the Labour Party, the principles of freedom, equality, community and democracy. Those fundamental rights can only be enjoyed by all our citizens if they are underpinned by a fair and just system of economic reward. This budget will boost job creation and redistribute wealth in our society. The budget reflects a strong determination to provide a strategy which will improve the living standards of those in low paid employment and at the same time keep social welfare payments in line with inflation.

The combination of PRSI and income tax changes is to be welcomed for tackling the tax wedge which has been a barrier to employment growth. The disregarding of the first £50 per week for full PRSI contributors together with the change in the existing income tax-PRSI allowance will result in gains of £2.75 per week for those exempted from income tax or on marginal relief, under £2 per week for those on the 27 per cent income tax rate and £1.40 per week for those on the 48 per cent tax rate. I welcome the widening of the standard rate income tax band by £1,400 to £17,800 for married couples and by £700 to £8,900 for single persons — those increases are three times the rate of inflation. The increase in the threshold for payment of the employment, training and health levies from £173 to £178 per week is in line with the commitment given in the Programme for Competitiveness and Work. The impact of the tax-PRSI package on a family with two children with one spouse earning £15,000 per annum on full PRSI and PAYE will be to leave them better off by £3.56 per week.

I particularly welcome the introduction for the first time of tax relief for all tenants living in private rented accommodation, the cost of which will undoubtedly be reduced by an additional tax yield from landlords.

The main goal of this year's budget is to get people back to work as job creation is the greatest challenge facing our country. Through the budget the Government of renewal is creating economic conditions which encourage the development of enterprise and job creation. For the first time in many years we are beginning to see the fruits of such policies. This budget will make it financially more attractive for young people in particular to take up a first job and take the all important first step of entering the labour market.

During the past two years the rate of unemployment has been falling steadily and the measures taken in this year's budget will ensure that this trend will continue. The £6 million committed in the budget for the introduction of an intensive guidance and placement service for the long term unemployed is especially welcome. That initiative will give real hope to those people who have been out of work for long periods.

The social welfare improvements in the budget are a clear signal of the commitment of the Government of renewal to social solidarity. The increases in all personal weekly payments and adult dependant allowances will come into effect six weeks earlier than usual. It has long been argued that the timelag between the start of the tax year in April and the increases in social welfare benefits made much later in the year should be shortened and I welcome the narrowing of that gap. The increase of £7 per month in child benefit is the largest ever. It is a targeted approach to help alleviate the employment and poverty traps inherent in the social welfare system and will be of great benefit to families. For example, a mother with three children will receive £86 per month or just over £1,000 per year. I welcome the extension of the child benefit scheme to include 18-year olds in full-time education or on FÁS courses. The increase from £10 to £25 in the minimum unemployment assistance benefit paid to single people living in the family home is welcome. It may slow the trend whereby young people are forced to move out of the family home to qualify for unemployment assistance and to qualify for a further rent allowance from a health board if they move into private rented accommodation. I welcome the Government's commitment to payment of the entitlements of married women to social welfare equality payments.

As a member of the Labour Party delegation to the Forum for Peace and Reconciliation, I particularly welcome the extension of the free travel scheme to pensioners North and South for cross-Border journeys. That will help underpin the peace process and will promote greater understanding between people on this island who will have an opportunity to meet without the worry of travel costs. I pay a tribute to the successful negotiations by the Tánaiste, the Government and the Northern Ireland Secretary and I hope a Joint Framework Document will be presented shortly which will bring a lasting peace. An economic dividend will be gained from peace which will enable us improve tourism and trade and allow a redeployment of gardaí now engaged in Border security. Those gardaí are badly needed in our towns and cities, particularly in Dublin where there is a serious drug problem.

Last summer the Minister for Education, Deputy Bhreathnach, gave a commitment to the establishment of free access to third level education. She has delivered on that commitment. The removal of fees in publicly funded third level institutions will be implemented in two phases. In addition, the Minister is providing £2 million to remove charges for post-leaving certificate courses. The abolition of fees will encourage all students to remain and participate fully in the education system. It aims at ensuring universal access to third level education and providing as a right an education system which aspires to be inclusive of all the needs of its community.A further wide range of initiatives and improvements has been implemented at first and second level education targeted at areas of greatest need. Those include additional home school links and remedial and guidance teachers, as well as trebling the number of early-start pre-schools and a major increase in the disadvantaged fund for primary schools.

The 1995 budget is an indication that the parties in the Government of renewal can work together and I look forward to two further budgets to build on what has been achieved so far.

I wish to share my time with Deputy Leonard.

I am sure that is satisfactory and agreed.

In this budget there was a little for everybody. That is not a bad thing, but we all knew in advance because of the unfortunate leaks to the newspapers before budget day. Those leaks were regrettable. The people directly affected by the budget were very disappointed, particularly pensioners.The farmers and the self-employed were also unhappy with the budgetary provisions. A scenario painted in one newspaper indicated that a non-smoking married couple living in rented accommodation with seven children in the tourist resort of Ballybunion would benefit under the budget, but for the majority of people the budget did not mean very much. I hope the Government will be able to include Salthill in the next pilot programme as the people there were very disappointed that this major tourist resort in the west was not included in the package.

I accept the Minister for Finance was in a difficult position because he had to allow the three parties in Government to have some input to the budget. Obviously he was trying to appease the three parties in the rainbow. Fianna Fáil and Labour which provided sound Government since 1992 left the economy in a strong position and credit is due to those two parties which contributed a good deal to the peace process.

The first real test of this Government has been the manner in which it tackled the problem of flooding which was particularly severe in the west. I am disappointed only £2 million was made available for a specific project to help farmers who lost fodder or livestock. Householders in County Galway and elsewhere who suffered great losses will not benefit from that measure. Constituents have told me that they would like to build a wall to protect their properties, but there is no indication that any grant assistance will be available to help people who want to take such remedial action. Such minor issues should have been considered because householders have suffered. The flood damage in County Galway was so severe that the £2 million allocation could be spent in that county alone.

An anti-rural aspect of the budget is that the roads allocation was reduced from £108 million last year to £100 million, despite the extra money available. The social welfare increases of 2.5 per cent are disappointing. During the last seven years Fianna Fáil led Governments have given a 3 per cent increase to social welfare recipients. There is no increase in child dependant allowances or in family income supplement. Old age pensioners also deserve better treatment from this Government.

I was interested to hear the Minister of State at the Department of Agriculture, Food and Forestry, Deputy Deenihan, on the charter for farmers. I welcome it and I hope it will include a charter for smallholders — the farmers in receipt of unemployment assistance who are not getting their rights. The Department of Social Welfare does not accept the income of a farmer as assessed by the Inspector of Taxes, neither is a balance sheet from the Teagasc adviser acceptable. I pointed out to the Minister for Social Welfare yesterday that where a Teagasc adviser assesses a farmer's income at, say, £2,500 and the Department of Social Welfare assess his income at £5,000, no consideration is given to the Teagasc assessment. That is ridiculous. I have documentation, which I will give to the Minister, to show this is happening in rural Ireland. The sad fact is that if a smallholder makes £1 he loses £1 and that is not the way farming should progress in the west.

I am also disappointed with the provision for group water schemes which are a basic requirement of modern life. I tabled a question on this to the Minister when the Dáil resumed but increased grants were not announced. Last year £3 million was provided, this year it is only £4 million. Last year £1 million was returned to the Department of the Environment as people could not use the money because the grants were not increased and schemes only operate on the basis of obtaining supplementary grants, through the Department of Finance.For that reason there is major disappointment in that area.

I was further annoyed when I learned the Government proposed to give income tax relief of £150 to group water schemes where the water is supplied by the local authority. It is unfair that people who set up voluntary group water schemes will not get the £150 income tax relief. The Government do not realise the work involved in setting up and maintaining a voluntary group water scheme. In Galway alone there are 400 such schemes. In reply to a recent question I learned that 109 groups in Galway have applied to set up schemes. These people are discriminated against on grounds of tax relief. The Government informed me it would lose £50 million if it did away with the charges. This proposal is bureaucracy gone mad. If one pays the water charge on time one will get a tax free allowance.This appears to be muddled thinking.

The same bureaucratic thinking applies to tax on overseas development aid. As my party spokesman on overseas development aid and the Third World I welcome the 26 per cent increase in ODA. It would be more practical if a person was allowed to give money directly to the charitable organisation, obtain a receipt and a photocopy of the cheque which should be accepted by the Revenue Commissioners as a deduction against his or her income. This would eliminate much of the Civil Service work involved, the charity would get the money direct and the taxpayer would be better off. The Government has introduced a restrictive and cumbersome method of dealing with tax relief for donations to Third World charities. Will the Minister clarify if it is his intention to restrict tax relief to a maximum of £750 and if it will be continued for a number of years? I read in today's newspapers that the National Charities of Ireland consider it unacceptable that they are not getting the same benefit from the tax relief for donations and say it will have a drastic effect on the home based charities. The Minister may have to examine that area again.

I had the honour of meeting the Minister of State with responsibility for western development, Deputy Carey, in my constituency last Monday. I wish him well in his endeavours to maintain and improve rural life and further rural renewal. Today he answered some questions on rural schools. From his recent replies particularly to Deputy Micheál Martin, on schools that will lose a teacher by next September, I note in County Galway that 26 teachers will be lost in 23 schools. He will have a big task in getting resources for those schools. I hope the Minister for Education will look again at the pupil/teacher ratio and provide badly needed remedial and resource teachers. The problem of rural schools losing teachers is a serious one. The reply to that question draws attention to the stark reality.

On the health services in County Galway, in 1982 proposals were submitted by the Western Health Board for development at University College Hospital. I understand we may only be able to get planning costs in 1995 which means the development will not take place for perhaps two years. At the moment patients are being detained overnight, for long periods on trolleys, in the accident and emergency department.This is unsatisfactory from the point of view of patient care and the dignity and privacy of patients. All booked admissions during the period August 1994 to January 1995 have been cancelled to maintain an emergency only service. This equates to almost 40 deferrals each day. Arrangements for the admission of some patients have been cancelled up to five times. Professional standards of nurses and doctors and all other hospital staff are threatened in such conditions.

I hope the board's proposal will be taken seriously by the Department. We want to convert an under-utilised area of the obstetrics department for use as a general ward. This ward will be ready for occupation at the end of the month provided we can obtain funding. Funding is the main problem. I understand capital costs would be £59,000 and the operating costs for ten months would be £439,000. This funding plus the fact that we may be able to use Merlin Park Hospital on a rota basis would give us the facilities we need in the short term. I hope that the short term proposals I have made for the interim development and the major development will soon be acted upon by the Department. From August 1994 to January 1995, 185 patients were detained overnight in the accident and emergency department, some from six to 30 hours. During the same period, August 1994 to January 1995, patients whose booked admissions were cancelled number 2,016. That is the position in University College Hospital which should be the jewel of the west.

As spokesperson for emigrants' issues I am very disappointed that statutory funding has not been made available for pre-emigration services in this country. All the agencies tell us that if emigrants from Ireland were better prepared and counselled they would not find themselves in difficulties in other countries. We often forget there are two sides to this coin, pre-emigration and post-emigration services. I welcome the provision of funding through DÍON and FÁS, but a greater allocation must be made available for the few existing specialist pre-emigration services for which I hope the Government will put statutory funding in place.

In 1994 the economy was in a very healthy condition, showing the best annual returns for many years. Claims have been made about the European and world market but we also have a very buoyant domestic market as a result of careful management by the Government since 1987. In recent years there has been an air of confidence which, in any area of life, is an essential ingredient. That air of confidence existed in the agricultural and industrial sectors as well as other areas. In recent years I met business people who admitted that we had a very good Government and those people were very concerned when it fell at the end of last year.

One must be concerned at the fact that Fine Gael and Labour are back in Government and have their hands on the books again. Since the 1950s when we had the first Coalition Government, every Coalition involving those two parties ended in disaster, leaving a mess for the incoming Government. I remember speaking in this House after the 1983 budget introduced by Deputy Alan Dukes, a budget that spelled disaster for the Border region, with the increase in excise duty on cigarettes, petrol and diesel. This resulted in many people going on shopping sprees in Northern Ireland. It took years for the economy of that area to recover and it was only as a result of the MacSharry and Reynolds budgets that improvements were made. At that time we witnessed the withdrawal of funding for arterial drainage, the withdrawal of grants for agricultural buildings and so on. The result of the measures taken in those years was that the national debt doubled from £12 billion to £24 billion.

Last week I heard a Minister stating that this Government is acting as a unit. As the previous speaker said, it is a very leaky unit. The leaks before this budget were unfortunate for the Minister for Finance and are a cause of concern to many people. There is a lack of confidence at present in many aspects of life.

In 1994, for the first time in 27 years, there was a budget surplus, but it seems that was a once-off position. In the 1995 budget the Government is returning to the policy of budget deficit — the figure of £310 million has been mentioned. Total Exchequer borrowing for the year is projected at £813 million. A budget deficit was unheard of until the early 1970s, around the time I entered the Dáil.

We do not blame the Deputy for everything.

Up to that time budgets were always balanced. The priority in industry, business and farming was to balance the books.

Since publication of the Book of Estimates I raised by way of Adjournment debate the reduction from £4 million to £2 million in grant-in-aid for special housing for the elderly. On that occasion I stated that health boards use FÁS employees to carry out work such as house repairs, the provision of water, sewerage and electricity and the installation of showers and baths. To qualify for the grant the house must be owned by the applicant and priority is given to aged couples, handicapped people, persons living alone and widows with children.I strongly made the point that the increase provided for in 1994 was of tremendous benefit.

In his reply the Minister stated that because of the high level of demand for assistance at the end of 1993 the number of applications awaiting action by the health boards had increased to 3,600 and that it was for the purpose of clearing as much as possible of this backlog that an extra £2 million was provided in 1994 from the proceeds of the tax amnesty. The Minister went on to say that the extra provision from the tax amnesty had a positive effect on reducing the arrears. With the extra £355,000 made available last year work was carried out on an extra 530 houses — the average cost per house amounted to £640.

I tabled a parliamentary question to the Minister yesterday, to which he replied that at the end of 1994, 3,795 people were on the waiting list, an increase in the figure for the previous year. That gives an indication of the demand for the scheme, an essential scheme which is good value for money. Having asked the Minister to consider this matter in the context of the budget, I am disappointed that was not done. In view of the increases in demand for the scheme there is a strong case for the provision of additional funding to the health boards for this purpose. If the funding is reduced to its pre-1994 level, some pensioners will have to wait three to four years for draught proofing, the installation of a door or window or the replacement of slates. It is ridiculous that 65 and 70 year old people should have to wait that length for this service.

There has been much reference to the increases in social welfare. I welcome the increase in child benefit but am critical of the 2.5 per cent increase for old age pensioners, the lowest percentage increase for that category for many years. Even during very difficult times Fianna Fáil gave old age pensioners increases of 3, 4 and 5 per cent. When the Minister for Social Welfare was in Opposition he said that the increases given by the then Government were miserable, that they told their own story. He has changed his tune now that he is on the other side of the House.

The previous speaker referred to group water schemes. There is reference in the budget to a figure of £10 million in 1995 under this heading but there is also a later reference to a sum of £4.5 million. Most group schemes, which were funded to some extent by private subscriptions, require upgrading in order to comply with EU regulations. Funding is also required for treatment works and it is regrettable that more funding was not provided for this purpose.People in Monaghan town and Clones are waiting the approval of funding for a public water scheme.

Since I am being parochial, I wish to refer to the waste study carried out in County Monaghan last year. This study, which was grant-aided to the tune of £100,000 by INTERREG, identified the serious problem caused by large quantities of poultry litter and mushroom waste compost which was spread on land, filtered down to the water sources and contaminated the water with nitrogen and phosphate. The Erne and Blackwater catchments were contaminated in that way. There is a need for funding for a recycling plant which will dispose of the waste. I ask the Minister to provide funding for the proposed small generating plants which will deal with this problem.

I wish to refer to the funding which will shortly come on stream under various headings — INTERREG, the IFI, the Delors initiative for Northern Ireland and the Border counties, the promised funding from President Clinton, Leader II and the county enterprise boards which have provided funding for small industrial developments in recent years. It is necessary to put in place a structure which will ensure that this funding is put to the best possible use. As I have said on numerous occasions in the House, we have not made the best use of funding to date. In anticipation of this money, community groups in counties Cavan and Monaghan are putting together projects. However, if they apply for assistance under the IFI they have to have backing funding which is very hard to obtain in certain areas. I ask the Minister to put in place a structure which will co-ordinate the distribution of this funding.

The previous speaker referred to the funding for roads. One of the most disappointing aspects of the budget is the reduction in the funding for county roads. Even during difficult times Fianna Fáil gave a continuing increase for the maintenance of primary and county roads. While this funding was never sufficient, additional funding was provided each year. Given the favourable economic climate, there were expectations of substantial increases in the funding for county roads. Instead, the Government has reduced the level of funding for this purpose by approximately £7 million. This reduction will have serious implications for Border counties where, as a result of the peace initiative, many roads which had been closed for the past 20 years have been reopened. Much money is required to repair these roads which are now used by an increasing number of motorists. Additional funding is also required for the development of agriculture and tourism. I hope the Government will provide this additional funding before the end of the year.

I welcome the budget in general. Regardless of whether one is in Opposition or in Government, one retains the right to be critical of aspects of it. I share Deputy Leonard's anxiety about the need for extra funding for county and regional roads. The issue of roads is of extreme importance in counties Monaghan and Cavan. I will refer later to this point.

Much reference has been made to the budget leaks. Instead of focusing on this good budget the Opposition focused on the leaks. I was interested to hear some members of the Opposition express their regret at the resignation of Deputy Phil Hogan as Minister of State. However, I would remind them that they sought his resignation. His decision to resign was very honourable and it showed what our party stands for. When I was in Opposition some people in Government refused to take responsibility for their actions. I am proud to belong to the same party as Deputy Phil Hogan who made a major sacrifice. I hope he will be restored to high office sooner rather than later.

I wish to refer to the special provisions for aid to Third World countries. On numerous occasions in the recent past people have shown that they are extremely concerned about people who are worse off than themselves. The extra funding provided for Third World aid shows the Government's commitment to this issue. The tax relief provided for taxpayers who make long term funding commitments to agencies working in the Third World is extremely important. I think all of us would admit that we give to these needy voluntary organisations only when there is a serious crisis. These arrangements will lead to a stronger and more organised commitment to fund these voluntary organisations and will herald a new beginning in the provision of aid to Third World Countries. In this regard I congratulate the Minister for Finance, the Minister for Foreign Affairs and all concerned.

The budget has been structured in such a way as to reward work and promote enterprise and to strengthen society. On both these issues Fine Gael has a major and important role to play in the three party coalition.

Debate adjourned.
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