I would like to share time with Deputy Roche.
Finance Bill, 2002: Second Stage (Resumed).
Question again proposed: "That the Bill be now read a Second Time."
Is that agreed? Agreed.
I welcome the opportunity to speak on the Finance Bill, 2002, the fifth Finance Bill I have had the privilege of dealing with in Dáil Éireann, and I congratulate the Government on it.
I welcome the changes the Minister for Finance has initiated in the Bill with regard to the town renewal scheme. The town renewal scheme was initiated in July 1999 to benefit all small towns. There are around 100 towns benefiting from the town renewal scheme. At the time of the inception of the scheme and when the towns were designated in July 2002, a number of designations were given to different properties. It was a very complicated system and different types of designations were given to different types of buildings. In the wisdom of the Government, it was announced, under section 23, that there would be a carte blanche across all the properties in respect of the town renewal schemes. I am delighted that both Charlton and Kanturk in my constituency are benefiting from the scheme.
There are a number of issues relating to town renewal that must be highlighted. There seems to be some divergence between what was actually designated and why designations were made. From the criteria that were laid down, sometimes it is very hard to say why some properties were left out, but that is not for discussion in respect of the Finance Bill. What should be discussed is section 23, initiated by the Minister. I welcome wholeheartedly the idea in the section. It is a brilliant concept, namely the generation of more activity within rural towns and villages. There is no doubt that small rural towns suffered from major depopulation, particularly their centres, over the past number of years. We hope this Bill will address this in a major way.
Recently, we have seen a massive reduction in the burden of taxation. Direct taxation or income tax has been reduced enormously, which I welcome. Fifteen or 20 years ago it was said that it did not pay to work, that one was giving 50, 60 or 70 pence in the pound back to the taxman and that there was no incentive to work. When people take home their pay packets and see the reduction in taxation, I know they will still say they do not want to pay any tax. However, they all understand the reason why they are paying it.
The reduction in taxation has produced a greater incentive for people to work, which is one of the greatest things in any society. For far too long there was a perception that it did not pay to work. I am delighted that perception no longer exists. The only sure way of reducing the level of poverty is to ensure that people have jobs. In the past few years, we have seen almost 400,000 jobs being created. While we see major job announcements and major companies employing 1,400 and 1,600 people, they tend to be located close to large centres of population, though that is not always true. The amount of jobs created throughout the country has certainly lifted the rural economy as well as the major centres of population. Not too far from my home place on the border of counties Cork and Kerry, there are 1,600 employed in Munster Joinery who are travelling the country. They are manufacturing windows. Munster Joinery is located in a very rural setting and is providing enormous employment for east Kerry, parts of west County Limerick and the western side of County Cork.
Investment in schools should be considered. We have put an enormous amount of money into schools over the past 4 and a half years, but we need more. For far too long primary schools in particular were neglected, and they have to be brought up to full standard. If we are serious about ensuring the success of this Celtic tiger economy and creating further wealth, there is no doubt that investment in our education system is one of the most important things we can do. We have a great education system, but for a number of years there was very little investment in the basic infrastructure. Money should be continually pumped into the system by way of the capital programme to ensure the system remains good.
There are some measures in the Bill concerning nursing homes and giving greater tax breaks. There are also incentives to facilitate and encourage carers looking after elderly relatives at home. Public representatives of all parties have seen the massive demand that exists for long-term care beds for the elderly and the growth of nursing homes in recent years. People approach us and say that because they are over the limit for the means test or because of some technicality they are finding difficulty in getting the carer's allowance. The means test limit for the carer's allowance and the carer's benefit have been increased in recent years. These measures are ensuring the elderly can remain in their own environment for as long as possible.
In 1997, the home help allowance was £1.40 per hour; it is now over £7. Home help is now seen as a respectable job, ensuring that people can stay within their own environment for as long as possible. I encourage the Government, as far as is possible, to ensure that this is continued. With regard to the care of the elderly and the provisions in the Finance Bill and in past budgets, particularly the last budget, if we are serious about making it attractive for people to be cared for in their own homes, the carer's allowance and such things have to be encouraged more and more. In some instances, they have proved to be very satisfactory.
I know the Government is looking seriously at the possibility of public private partnerships in respect of State buildings such as schools and hospitals. We can see the vast amount of money projects by Departments, the Office of Public Works and others cost. If the private sector were involved, we might be able to build far more cheaply than we are at the moment. There should be an overall study done of these projects and something built into the system that would ensure the private sector took on such projects and rented them back to the public sector.
The business expansion scheme has been increased from €317,500 to €750,000, which is to be welcomed. The scheme has been of benefit to Charleville in my constituency. A number of years ago the chamber of commerce with other interested groups used the scheme to build an advance factory in the town which would not have been built were it not for the tax incentives available through the BES.
The taxation initiative for sports people was mentioned. I am pleased at the amount of money spent on local sports facilities during the years, but more should be spent on these projects. If we are serious about alternatives to crime, drugs, etc. no area of the country should be without proper sports facilities, an area in which I encourage the Government to continue to invest. I would like to see a tax incentive for businesses or individuals to invest in local sports clubs and organisations and call on the Minister to investigate this, as it would be of benefit to our youth.
In recent months there has been a debate led by An Taisce about once-off houses in rural Ireland, a matter which has been discussed on "The Late Late Show" and elsewhere. As a rural Deputy, I find it crazy that anybody would try to prevent development in rural areas. I know that planning is required and that monstrosities or skyscrapers should not be built on the rural landscape, but once-off houses are of enormous benefit to such areas. Governments have spent millions on rural development ensuring the rural population survives. We have had debates about the future of An Post, shops, villages and rural schools for many years. In the past there was population decline, but now that people are queuing up to build homes in rural Ireland, they cannot do so because it is deemed detrimental to the landscape.
No planning would be required to plant 60 hectares of sitka spruce trees anywhere in rural Ireland, even though this might be detrimental to the landscape. However, the building of an ordinary bungalow could be stopped. On any road or boreen it is much nicer to see a house with a couple of cars outside and children giving some life to the area than a blanket of trees. I know the vast majority of public representatives from rural areas agree with this. To ensure we have a vibrant rural community, this issue needs to be resolved. I accept the need for rules and regulations, but they must be sensible.
This is the last Finance Bill of the 28th Dáil and I am delighted to have been here to see all the major changes that have occurred in the past five years. I know much more remains to be done, but I compliment the Minister and the Government on all their work, which has benefited the country. Even in the short time that I have been a public representative, since 1997, I have seen tremendous developments for the elderly, home helps, etc. I know there are other issues to be addressed, but the day there are no issues will be the one that politics and politicians become defunct. I am delighted to have been able to contribute to all the Finance Bills mentioned and thank you, a Cheann Comhairle, for the opportunity to speak on the Bill.
I wish to share my time with Deputy Daly. Deputy Moynihan made the very valid point that we are now dealing with the final Finance Bill of the 28th Dáil. What an extraordinary collection of Finance Bills we have had. By any objective standards, Deputy McCreevy has undoubtedly been one of the most progressive, innovative and radical Ministers of Finance in the history of the State. I did not agree with him about some of the things that have been done, but there have been remarkable achievements. The whole process of changing the tax year in line with the calendar year, which is so logical, has not been referred to in the debate so far. The tenure of the Minister has been an extraordinarily creative period. He has been very well served by the staff of the Department. As a former employee, I always believed the Department had many qualities, but those qualities could only be brought out by the leadership of a truly innovative Minister.
The record is there to be seen and enjoyed by everybody in the country. The Minister has given us unparalleled tax equity. The personal income tax changes have been quite remarkable. Before the Government came to office, for a whole variety of reasons, the tax burden on the single person was extraordinary. Everybody with an income above €17,270 paid tax at the higher rate. Following budget 2002, the same person will not pay tax on the higher rate until his or her income exceeds €28,000. That is a marvellous achievement, which all previous Ministers for Finance would love to have achieved.
Section 2 of the Bill expands the tax bands. A further 57,000 low-income earners have been removed from the tax net. That is something we should celebrate. We have introduced the tax credit system. Some years ago as a student we talked about the acme of achievement that should be striven for. It has been introduced and is operational which is entirely due to the Minister. Since 1997 the positive changes have removed 71,500 elderly people from the tax net. Like most fair-minded Members, I always regarded it as being almost obscene that pensioners had to pay tax, but that has now changed.
There are a number of more radical measures. It is well known in the House that I am not a sportsperson, but I have been stunned and surprised by the curmudgeonly begrudging attitude to the tax relief for such persons. A number of years ago a former Minister for Finance, Mr. Charles Haughey, introduced a tax concession for artists and writers. At the time the same type of criticism was made, but within a year it was regarded as progressive. Over the past ten years it has been regarded as one of the most progressive measures ever introduced. This veritably modest proposal has attracted a negative response that it did not deserve.
Like Deputy Moynihan, I welcome another change the Minister made, namely the dramatic increase in medical expense relief and relief for the employment of carers, which is progressive.
A number of speakers talked about the urban renewal scheme, which has been innovative. The rural renewal scheme which followed on from it has also been innovative. In the case of the rural scheme, there has been some degree of flexibility, possibly due to the challenges posed by the definition in terms of what comes under it. I am sure Members on all sides of the House would agree that some additional review is required.
Sections 33 and 39 are extraordinarily progressive. Section 33, which amends section 843 of the Taxes Consolidation Act, 1997, deals with the issue of capital expenditure incurred for certain educational buildings. That is a progressive measure. It is reflected in section 39. The provision of tax relief for donations to sports bodies for the funding of capital projects is marvellous. Over the years sports clubs, be they the GAA, rugby, tennis or some other sport, have done remarkable work. They have got some support from the lottery. It is time we introduced this progressive measure to allow for tax write offs for donations made to clubs for capital purposes. It is a progressive move by the Minister and I believe Members on all sides of the House welcome it.
I have been seeking taxation relief on shipping tonnage for longer than I care to recall. Deputy Daly, who was the first Minister for the Marine, is present and I know he would have shared that aspiration when he held that office. This is a most important provision. It is astonishing that we are almost the last EU member state to introduce it. In the past we disadvantaged our few shipping fleets. I am delighted this has come true. I lobbied the Minister on this issue, particularly having regard to the needs of a remarkable private company, Arklow Shipping, in my constituency. This progressive measure is a celebration of the success of companies such as that.
After the Minister introduced the budget, I raised a concern about the tax ceiling introduced for renovations to heritage buildings. I discussed the matter with the Minister since and he agreed that an amendment would be included in the Finance Bill covering trusts which formed to deal with heritage buildings. The Minister indicated that the provision is in the Bill, and I hope he will confirm it is the type of measure I sought. In the budget the Minister introduced a tax ceiling of £25,000 in this context. A major project, the renovation of Christ Church, is under way in Bray. It is an important project and the work is only possible due to preferential treatment introduced under the Taxes Consolidation Act some years back. The capping introduced in the budget was to prevent abuse, but providing for a relaxation of that measure to allow the previous regime to continue would be beneficial in this case. I would like the Minister to clarify the position.
This is good Finance Bill. Many previous Ministers would have wished to have been of the position the Minister, Deputy McCreevy. He has made his luck in this regard and we should compliment him. I commend the Bill to the House.
I thank Deputy Roche for affording me the opportunity to contribute to this debate. Like Deputy Roche, I compliment the Minister for Finance and his Department on their outstanding performance and achievement over the past few years. This Bill consolidates the major beneficial financial advances that have been made over the past four or five years. In regard to the fairly dramatic and innovative changes that have taken place, the Minister will rank as one of the most innovative and forward looking Ministers for Finance since the foundation of the State.
The personal taxation measures alone provided in this Bill and recent Finance Acts have been particularly helpful, especially in providing relief for many elderly people and taking others out of the tax net. More than 70,000 elderly have been taken out of the tax net since 1997, which is a major achievement. That has been coupled with reductions in the level of taxation in recent years. On one issue alone, the reduction in taxation and the taking of many low paid and elderly people out of the tax net, there is reason to endorse this Bill and compliment the Minister on the work he has done in that area.
I welcome section 16, which effectively will bring investors back into the housing market. Fianna Fáil policy since its foundation has been geared towards advancing the construction industry – the party has been synonymous with the building industry. It gave the industry life and vibrancy. Every time Fianna Fáil went out of office the building industry went into decline because people involved in the industry did not have confidence to invest and develop it. Confidence in the building industry is one of the main barometers of economic performance and development in any economy. This section alone will make a major contribution towards restoring confidence in the construction industry, in investors in the industry and in the housing market.
Section 29 provides relief for the purchase of milk quota. Many small farmers, certainly many in my constituency, have been put to the pin on their collar to raise finances to purchase milk quota, which is important for the small farmer surviving on milk production and on which many small farmers, including many in west Clare, to a large extent depend. This relief is worthwhile.
The Minister has been innovative in introducing concessions for the building of private hospitals in recent years. Section 31 provides further relief and introduces new measures to encourage investment in private hospitals. The Minister introduced provisions in recent years which encouraged private individuals to provide accommodation for elderly people in private nursing homes. A number of private nursing homes which were recently constructed were completed just prior to the introduction of the scheme. These people have a genuine grievance and I would like the Minister to examine the possibility of extending the relief to them.
A number of Deputies spoke about the urban renewal scheme, which is beginning to be successful. I am glad that certain extensions to it have been granted because even in the case of the initial urban renewal scheme it was some time before people began to get involved. I recall that when Ennis was first designated it took almost two years before the scheme got under way. Some of the small towns designated under the scheme, those in County Clare in particular, were slow on the uptake. This extension is badly required to encourage people to invest in the renewal of towns and villages, particularly in the west.
That scheme, to a large extent, has not been as successful as anticipated. However, the extensions and exemptions granted in the Finance Bill will encourage people in small towns to invest in the renewal of these towns. It will make a major contribution to keeping people out of the larger centres of population and help to stabilise the population, particularly in western counties.
The Minister has made a major contribution to the economic prosperity of this country in the policies he has followed since he took office. I am sure the foundations which are laid and consolidated in the Bill before the House will form the basis of a sound policy for the next four or five years. We hope we will be here to see that through as well.
I wish to share my time with Deputy Perry.
Is that agreed? Agreed.
I was amazed to discover Deputy Roche was in the Department of Finance. That explains why the Department was in such disarray for about 20 years. I can now understand why the Department could not achieve a surplus. The same Deputy Roche had a great relationship with the then Minister, Dr. Martin O'Donoghue, and the country never recovered after his term in office. I can understand why the Department has not recovered either.
The people of my constituency regularly ask me where the money has gone. It is a good question. I listened to the previous speakers talking about our wonderful Minister and Government. This country had a surplus in recent years but the situation is now reversing. We have problems. If there is so much money in the country why are children being taken out of schools, why are people on hospital waiting lists, why can people not get their relatives into nursing homes and why are so many people dissatisfied?
I will start with the provision of tax relief for sportspersons. It is outrageous, particularly when one thinks of the people living on social welfare. Some of these sportspeople moan and groan about this State. They give out about the facilities, the Government and the country generally. If one asked the same people to open a supermarket or shop, they would not do it for less than £5,000. Now we are going to give them tax relief.
I hear a great deal about the Niall Quinns and Roy Keanes who live outside the State. I also listen to Eamon Dunphy and John Giles, who at least live in this country. I take this opportunity to compliment and congratulate Niall Quinn. I wish there were more people like him. He is due to have a testimonial match in the next few weeks and will donate the proceeds to charity, one in Ireland and one in England. Well done, Niall Quinn. I would not mind helping him.
Look at the type of money some of these people are earning from sports. Just because they are friends of the Government and the Minister for Finance, a tax break is being introduced in this Bill to look after them. The same Department has no money for schools, hospitals or the woman on whose behalf I had to beg last week to get her into Beaumont Hospital. Is that not a two tier system?
The Minister of State, Deputy Treacy, is busy on the roads at the moment. There is nothing but helicopters and airplanes flying in and out of Mayo—
To Knock Airport.
I wish they would come by road. I am anxious to talk about the N5 and the Minister has given me the cue. They never come by road, always by air. I am glad you mentioned Knock Airport, Minister, because I want to ask you to do something for me.
I am reluctant to intervene but if the Deputy addressed his remarks through the Chair he might not invite interruptions.
I will do that. I want the Minister to do something for Knock Airport, now that he has mentioned it. We are seeking a special tax designation for Knock Airport. The airport has been let down when it should have been supported by all Governments. It is a necessary element of infrastructure in the west and it needs some tax designation. I call on the Minister of State and the Government to introduce that immediately so the airport can get moving again by generating employment and attracting industry.
The west is disadvantaged. The Minister is aware of the problem with the roads. IBEC recently visited the Minister's Department—
There is a great road to Castlebar.
The Deputy will have his opportunity to speak shortly. IBEC was complaining on behalf of the few companies located in the west which are losing a fortune because their customers are complaining that their products are damaged. This is because the roads cannot take the lorries which bring the products from Westport, Castlebar or Ballina. I call on the Minister, as a west of Ireland Deputy, to talk to his senior colleague, the Minister, Deputy Dempsey, to direct the NRA to put the necessary funding and commitment into this. The Government has the power under the Act to direct the NRA to make that road a priority. We are entitled to have at least one decent national primary road into the west. I challenge the Minister and the Govern ment to look after both Knock Airport and the N5, two necessary elements of infrastructure in the west.
I do not know why sportspeople deserve a tax break. Why was a tax break not given to the shareholders and workers of Eircom? The workers were bought off with shares. They were told they would have the shares for the rest of their lives. They were given a guarantee by the Government and the Minister, in a £90 million PR campaign, that everything would be well. Why did the Minister not compensate these people, particularly the poor people who wanted and needed help and who believed the Government? They will be waiting in the long grass for the Government.
There is one thing one cannot do. Fianna Fáil will promise the sun, moon and stars – there was a time it would promise the bees but would not give the honey. However, when one takes a pound out of a person's pocket, they will not forget it.
We did not do that.
The Government took it through the Eircom shares and it will pay for it.
I wish to discuss another issue that is close to my heart with regard to tax designation. In the past fortnight we heard a wonderful announcement from Europe, that we would be able to buy cheaper cars. Ministers and my own colleagues, great Europeans, wonder why the people rejected the Nice referendum. I can give one of the reasons for rejecting it. We joined what was then the EEC and is now the European Union, and we are now talking about enlargement. The Government would be better off if it returned the VRT to the people rather than giving the money to overpaid sportspeople. VRT should be removed from cars. If that change was introduced in this Bill, I would welcome it and congratulate the Minister on doing a wonderful job.
The Government wants us to be wonderful Europeans and citizens but if I go to Belgium, England or France to buy a car, when I bring it to this country the guy with the peaked cap will insist that I pay the Government up to £8,000. Is that equality in Europe? Why was that not dealt with in the Finance Bill? No, the Minister had to look after the guys with the hats, the horseracing people.
If there is one group of people who are thankful to the Minister, it is the bookies. They are friends of the Government – it is no wonder they have the Government installed as favourites to win the election. How could we get fair play with the Government buying them off, giving them tax relief and putting more money into their pockets? The Taoiseach and the Minister for Finance were looking up the odds last week. Did they think Paddy Power was going to say that Fine Gael would win the election or that Independent Newspapers would say it? Not at all.
Another subject dear to my heart, which was touched on by previous speakers, is the plight of carers, home helps. Once, they received £1 per hour which was raised to £1.20. Then health boards had to pay the minimum wage, which is what home helps now get. It is difficult to get people to do this hard job for only two or three days a week. Now they are taxed. In recognition of the job they do, in the Bill we should have decided not to tax them for a 40 hour week, which would be an incentive for people to do this work. The Government gives with one hand and takes with the other. This is the caring Government which looked after the bookies, the rich and the chief executives.
What about old age pensioners?
I listened to the Minister of State when he spoke. It took three years to establish the urban renewal scheme, about which many have spoken, but no one is taking it up because the tax breaks are not attractive. The Government has been a good employer to the media, consultants and spin doctors. It was money well spent because announcements made four years ago are being respun and reissued. They get media coverage because many of the Government's consultants were employed at RTE and the Independent Group of Newspapers where they use their connections. While it is not cheap, it is a new industry on which taxpayer's money is spent.
The Minister for Social, Community and Family Affairs, Deputy Dermot Ahern, was prominent in the media morning, noon and night. I was sick of hearing his name over the Christmas period. He had to announce the increase in social welfare. Who asked him to do so? Everyone already knew about it. The advertising was not cheap as it was carried in the local and national papers and on local and national radio. Like me, the Minister should not be photographed too often as he is going thin on top.
Will the Minister benefit the whole of the west by doing something about planning permission? If we do not act soon, there will be land banks and reservations in the west with no one living on them. There is a hidden agenda. The various State agencies state no houses can be built because areas are protected or preserved while county councils deny planning permission. A family member who wants to build must be protected from this. We fought the landlords for our independence and freedom, but now there is a new landlord, the State, which is not protecting young couples. In Mayo County Council there is an average of 50 planning applications refused about which we know. Others are withdrawn on the advice of the planning officer while some are referred to An Bórd Pleanála. Ministers announced the CLÁR programme, particularly the Minister of State, Deputy Ó Cúiv, but his £20 million would not cover four roads in my constituency. He held public meetings with his spin doctors and the Saw Doctors to publicise it.
I am sorry that there is so little time as there are other matters I want to discuss. The Government should do something about Knock Airport.
I thought the Deputy's party sorted that out when in government.
We did, but it could not be taken up at the time. I ask the Government to extend it.
Deputy Roche spoke of Charles Haughey who, as Taoiseach, introduced tax breaks for artists, which I welcomed. However, artists cannot be compared to sportsmen today. Many artists could not make a living and their work was only valuable after their deaths. The present day sportsperson gets well paid.
I do not welcome the Bill. The Government had the best opportunity to tackle inequality, look after the sick and poor, and provide for schools, but let us down. I have bad news for it because the Independent Newspapers opinion polls are wrong. I meet the ordinary punters every day and they will deal with the Government. I assure the Minister that if we all get back, which is the most important matter—
If we all get back, we will still be sitting over here with the Deputy on the Opposition benches.
I hope to be where the Minister is sitting after the next general election.
I am delighted to follow Deputy Ring as he aptly identified many issues. I call the proposals for sportsmen the Charlie's Angels Bill. From where did the Minister get the idea? The notion of favouring the well heeled by giving millionaire sportsmen a ten year tax rebate is one of his mysteries. I agree with Deputy Ring on this. The GAA and other amateur sportspersons have contributed to the development of sport. Who were the main movers behind this proposal? There are 1,300 applications for capital grants for sports projects and while many are hopeful of receiving funding, having met the Minister and officials, the record shows that only a handful will.
The Minister has failed in many areas. The indications in his speech are not good. The next Government, which I hope will be led by Fine Gael, will have difficult times as there will be a deficit of €4 billion. Over the last five years, when we had a surplus, huge amounts were squandered. No other measure highlights the Government's skewed priorities in favouring the rich at everyone else's expense as the sportsperson proposal.
On radio this evening, the principal of Riverstown school spoke of the Third World conditions in his school of 97 children built in 1904. It is wrong that in these times a principal must beg to have his school upgraded. It is featured throughout the media.
The essential road infrastructure in the national development plan is not being delivered. I see massive signs in Sligo referring to NDP funding. The Minister of State will be able to see them when he comes to Sligo – but nothing is happening. The signs are erected and that is all.
Big roads in Sligo.
The Minister of State has not been in Sligo recently. This will be a major election issue and Fianna Fáil will be in serious trouble in Sligo. There are big signs up about the inner relief road but the word on the ground at present is that there is no money and the National Roads Authority chief executive has not said the money is available. Some of the election candidates in the area are politicising the issue but it should not be politicised.
The Minister should say with no ambiguity that there is €20 million available for this job. When I put down a parliamentary question on this issue yesterday his answer was that he was not responsible to the House on the issue as it was a matter for the National Roads Authority. I am putting down a marker here. This is a big issue, as it is one of the biggest developments in Sligo and has been fought for 20 years. Is the funding in place for this road? As we speak, the Minister is kicking to touch and the NRA is kicking to touch. That cannot continue.
The Castlebaldwin by-pass is another issue being kicked to touch. People are intelligent and will not be fobbed off with promises on this matter. This will be an election issue that will cost the Government dearly if there is no clarity on it. I have a commitment from Deputy Noonan that in Government there will be no difficulty with either the inner relief road or the Castlebaldwin by-pass.
Last week Mr. Ray MacSharry said in Sligo that one of his major regrets was that this road did not proceed.
A great man.
I agree entirely, but we are now in a different era. The people of Sligo need clarity as to when this road will be built.
The Western Development Commission must also be addressed. As Deputy Ring said, I heard the Minister of State at the Department of Agriculture, Food and Rural Development, Deputy Ó Cuív, announce the CLÁR programme on the radio during the week. It is the biggest snow job of all time – there is no money. He said if communities have a problem and have a shortfall he will make it up – it is like "live horse and get grass". People have asked me what this is about – there are no applications needed but if one sends an application in, one is looked after. I never saw such politics in all my life. There is €20 million in funding but no applications are needed; people are to call in to be looked after. It is a political slush fund but it will not be spent before the election.
We would not do that.
The Government is fooling nobody in Sligo. The CLÁR programme is the biggest cop-out of all time. It is a €20 million sell-out, bringing people in to clap them on the back and tell them if they have a problem they do not need an application. People are not taking that in this day and age.
The Government is dealing with quirky projects. We have the Bertie Bowl and now the "Charlie's Angels" sportsman's provision.
Is the Deputy's party anti-sport?
I am pro-sport but sport starts at ground level. There are approximately 80 applications from Sligo on the desk of the Minister for Tourism, Sport and Recreation. He vetted some and told the applicants what to do but they will not get any money. He should tell them that. Perhaps five or six or them will get money. In the last three years Sligo-Leitrim applicants sought £17 million; how much was granted? Just £1.5 million in the past three years. That is the reality.
Radiotherapy is needed in Sligo General Hospital. What is happening? People must spend three hours on an unheated train to a Dublin hospital, where they face further delays – they may have to book into a bed and breakfast or even come back the next day. Patients from the west are not wanted in Dublin hospitals because they are a major inconvenience to the administration of those hospitals. Why can we not have radiotherapy in Sligo General Hospital? It is because of money. The priorities are totally skewed. The boom has gone and so has the money but people expect more.
I congratulate Michael Farrell of Connacht Gold, who has been appointed chief executive of the Western Development Commission and do not doubt he will do an exceedingly good job. However, I hope he is given more support than was Sean Tighe, the outgoing chair. He had no money and was totally frustrated in his job. Deputy Ó Cuív said he would do things his way; that he would not pledge money but would see how things were going. That is not on.
The Western Development Commission has done nothing to date. Sean Tighe and his directors were strapped for cash, though theirs was a legislative body set up by the State. However, it has only been a talking shop to date. I hope Michael Farrell is given the support the Western Development Commission needs to create jobs in the west. We hear of meetings in the BMW region but what is happening on the ground? I see very little apart from signs declaring that everything is being funded by the NDP.
The South Sligo Rapid Transport Group had Halcrow, a top consultant, carry out a study and that report was on the desk of the Minister for Public Enterprise but she has refused to meet the group until now. Last week we heard a new rail strategy announced and in Sligo-Leitrim there is talk of great possibilities. To date the Minister has refused to meet that group, though theirs is a massive concept, involving rapid transport coming to south Sligo, then on to Boyle and Carrick-on-Shannon. However, the Minister is playing politics with this, as the report sat on her desk for six months and nothing was achieved.
I have asked numerous questions about the Claremorris line but the Minister has refused to fund a feasibility study on it up until now. Now she says it may go ahead.
It is being reviewed.
It is being reviewed before the election. It will be shelved if the Government is re-elected, which I hope it is not.
Being elected to Leinster House is a great privilege and one must point out inequalities. I return to the inner relief road, which is a huge issue in Sligo. I appeal to the Government to cut out the politics and to announce funding for the road now. We do not want the Minister to hide behind the NRA, as that is what he is doing. He is the paymaster and appoints the NRA but now he is saying the NRA is not accountable to him for funds. That does not wash. If the Government thinks it does, when the boxes are opened in Sligo-Leitrim after the next election the Government will get a very clear message. We want that money and the Government has no hope of a second seat in Sligo-Leitrim without it. I put that down as a major marker this evening and I expect the Minister to announce the funds are in place for the inner relief road.
It is unfortunate that again the west is the first casualty when the tills are empty – the inner relief road, the Castlebaldwin by-pass and the N17, on which the Minister of State travels frequently. Where will money for the N17 come from?
The new road? Negotiations are proceeding well.
Unfortunately it is all spin. We have 75 spin doctors employed by the Government. As Deputy Ring said, the Government has been great for employment. It has the best spin doctors one can get – 75 of them. That is more doctors than most hospitals have under this Government. They are doing an excellent job; one only has to look at Independent Newspapers. The spin doctors must be very active with press releases. They are masters at spin. Our party leader, Deputy Noonan, said we will win the 42 rounds even if it is not a knockout. When the 42 battlegrounds are counted, the Government will know Deputy Noonan was right. I am sure that will happen.
I hope we are sitting on the Government benches next June when the commitments to the west will be honoured. The Minister of State at the Department of Enterprise, Trade and Employment, Deputy Treacy, is from the west. He is an upfront type of person but, regrettably, he is not getting the type of support he should be getting from the Government. There are issues of concern and areas of disadvantage in the west and the Border counties. I could speak for an hour about the needs and concerns of Sligo-Leitrim. Some £100 million is being pumped into the Northern counties, but only £400,000 is being given to the six Border counties through a sports capital grant. The Border counties, Donegal, Sligo and Leitrim, have not got anything. These issues must be addressed.
The people will be waiting in the long grass when the election is called. The people know that the spin doctors will not be near the polling booths and they will not be able to influence the grassroots who will have their say. When the votes are counted, the spin doctors will be the first to leave.
I am glad to have the opportunity to speak on the Finance Bill which implements the tax changes announced in the budget. Five years ago when we came to office, we made a commitment to deliver a fairer and more equitable and efficient taxation system. The Minister for Finance, Deputy McCreevy, has delivered that promise in the five budgets and five Finance Bills he has introduced. We should study the figures. A number of Opposition Deputies said that the people did not get anything from the changes in the taxation system in recent years. When I heard that, I wondered where they had been for the past five years.
Who said that?
Deputy McGrath. He should travel around his constituency and ask the people if the changes in the taxation system increased their take home pay. It is as plain as the nose on my face that they did and people are extremely happy with the reduction in their tax payments. When we came into office in 1997, a person reached the top rate of tax on £13,600 per annum, which was below the average industrial wage in the first half of 1997. Following the budget of 2002, the same person will not pay tax at the higher rate until his or her income exceeds £22,052, which is comfortably above the average industrial wage, as the Minister said. The standard tax band has been widened significantly in the past number of budgets. That means that a further 57,000 taxpayers have been taken out of the top tax band. We have delivered on a promise we made to take the majority of people out of the top tax band.
There were increases in take home pay for everyone up to the middle of last year. Some £3.2 billion was returned to workers in personal tax reductions. That is a significant sum of money which the people appreciate. The people may be in the lush grass after our tremendous performance in Government over the past five years, but they will not come out to snare us. They will come out to shoulder us back into power after the next election.
The Deputy should dream on.
The standard rate of tax has been cut from 26% to 20% and the higher rate of tax from 48% to 42%. The people will not forget that, regardless of how the Opposition tries to put a spin on it. The 310,000 people who have been removed from the tax net will not forget us. Some 268,000 workers were moved from the higher tax net to the standard tax net. More than 600,000 people have benefited from the taxation changes over the past five years. The Opposition says the people will not appreciate that. They will appreciate what they have received and the fact that we delivered on our promises. We will be able to stand before any crowd and say we have delivered on our promises. We will deliver on the promises and commitments we will make before the election when we are on this side of the House over the next five years.
Why are people on the minimum wage still paying tax?
We do not want to go back to the black economy. There must be balance.
Section 3 gives effect to significant increases in basic tax credits resulting in further progress towards our aim of exempting those on the minimum wage from the tax net. The increase of more than 14% in the combined value of the personal and employee credits, which is provided for in the Bill, means that the entry point to the tax system for a single person will be over €209 or £165 per week. That is 90% of the current minimum wage compared to £77 in 1997-98. A single income married couple in receipt of home carer's credit will be exempt from tax on the first €430 per week. These are significant increases over the past five years. The Minister for Finance, Deputy McCreevy, will increase the figure of 90% to 100% in the Finance Bill next year, which is what Deputy Rabbitte wants.
Some 71,500 elderly people have been taken out of the tax net. The increase in the exemption limit means that a single person on €13,000 will be exempt from income tax. We have aimed to do that in recent years and we have delivered on it. That means that 79,000 elderly people will be exempt from income tax. These are significant figures.
I am thinking about voting for the Deputy.
I thank the Deputy, although I hope it is not for the Seanad. However, if I am running for it, I would not refuse his vote.
Medical expenses relief is important. Everyone realises that many families face significant medical costs. Many people, who look after family members, do not qualify for grants or for a carer's allowance. The Minister has extended the tax relief not only for payments for immediate family members, but also for payments in respect of grandparents, grandchildren, non-relatives who are elderly individuals aged 65 years or over or those who are permanently incapacitated.
Debate adjourned.