Yesterday, on behalf of the Government, the Minister for Finance introduced the most swingeing and savage budget in years against the background of the Government's decision that every citizen must now pay for its mistakes. Yesterday, I said the country had a surplus of €6 billion two years ago but now is in deficit of almost €15 billion. There are no answers as to where all that money went or how the Government has led us to this point of recession.
In the course of the budget debate yesterday, we learned not only about the Government striking a blow against elderly people by taking away medical cards granted to those over 70 and how middle income families will now get screwed by taxation at every turn of the road, but also about a change in respect of the health expenses relief. The point raised by Deputy Michael Noonan on the health expenses relief requires clarification, as the Taoiseach is aware. Budget 2009 states in page B.6, "Health Expenses relief will be granted at the standard rate only from 1 January 2009, with the exception of nursing home expenses which will be standard rated from 1 January 2010." There is great confusion over this. The Minister for Defence, Deputy O'Dea, said that the intention of Government was to have this rated at the higher rate of tax and not at the standard one. This seems to have been disputed by the Minister for Health and Children and I therefore want the Taoiseach to clarify it. What will the rate be? Will it remain at 41% or will it be reduced to 20%, which will have a devastating impact on families paying for patients in nursing homes, particularly in the Dublin area where charges can be higher than in the rest of the country? The measure is supposed to yield €150 million in a full year.
