The doom and gloom which prevailed in the country has been replaced by an air of confidence and expectation. The Opposition parties tried on many occasions to claim credit for the successful policies of the Government, accusing them of stealing their clothes. They cannot accuse us of doing the same with their face, and that appears to have gone missing over the last few weeks. Despite the enormous cuts and resultant gains many of the Opposition Deputies are advocating that we throw it all away for empty policies which were given very little thought — a policy of spend and God will send. We might still be a Catholic country, but our beliefs do not extend that far.
One must ask what the priorities were in this budget. They were (1) to keep the public finances under control; (2) to spread the tax net more evenly; (3) to reform our tax system to encourage initiative and to reward effort; (4) to provide the climate for employment and (5) to assist those who are most in need. I believe that this budget goes a long way towards solving those problems.
I will now deal with specific matters in the budget, the first being social welfare. The 5 per cent increase is well in excess of the expected rate of inflation and will more than compensate for unexpected shortfalls last year. This is the third successive year that those unfortunate enough to be on long-term unemployment assistance will have it increased by 11 per cent. Social welfare recipients are morally entitled to these increases as we must realise that they are not in a position to benefit from wage increases or the reduction in tax rates. The new and higher welfare payments are in line with concerns raised by groups who lobbied for better social services.
The new welfare payment of £45 per week for people who care full-time for dependent elderly relatives will replace the £28 per week prescribed relative's allowance which proved to be very restrictive and indeed fewer than 5 per cent of the country's carers qualified for it. This new allowance is a major step forward and it recognises the wonderful work done by these unsung heroes.
A number of other social measures were announced which will be very beneficial. They include the clothing allowance which will come into operation next September and will be very welcome in many poor homes as buying clothing for children on their return to school after the long summer holidays has proved to be financially and embarrassingly difficult for parents. I am sure that this allowance will ease those difficulties.
The extra £10 million provided for health, including £5 million for services for the elderly, £3 million for dental services and £2 million for the mentally handicapped, will be very welcome in areas which did not receive the attention they deserved.
Generally, weekly welfare payments will be increased from next July. Why must people wait so long for the increase? This policy was introduced some years ago and successive Governments have continued it. I demand that it is changed so that recipients will get their increase in April.
The problem of local authority housing is very serious in County Kildare. It appeared as if we were taking a whole fresh look at the question of housing when the Minister for the Environment introduced the very helpful purchase scheme which enabled tenants to buy their local authority houses at roughly half their market value. Thousands of people throughout the country availed of the opportunity to do this and it also relieved the county councils of maintaining and repairing those houses.
While I compliment the Minister for instigating this scheme I question our future policy on building local authority houses. Last year in Kildare building slowed to a trickle and has now almost dried up. We were asked to carry out a survey of our housing needs and to present our case based on inspected, verified needs. We finally came up with 450 deserving applicants in need of housing. Unfortunately, this fact does not appear to have been accepted by the Department of the Environment because our allocation — to date — for 1990 is 40 houses. We cannot wait for ten years to deal with our housing problem as many of the pupils who are at present in school will be on our housing lists by then.
I suggest that we draw up a three year housing programme which would mean building 150 houses per year to meet this target. Such a programme would have a very beneficial effect on the economy and would give those who were forced to emigrate a chance to return home to a job. We have the applicants and the land and I appeal to the Minister to provide the money. If this matter is not tackled a serious problem will become a crisis. My advice is for a stitch in time.
I must mention the county roads in Kildare. Most Members and passing traffic only experience our arterial and main roads. As a result they think that the Naas by-pass is indicative of all Kildare roads. Nothing could be further from the truth; the county roads in Kildare are, without doubt, the worst in Ireland. It is not a record of which we in Kildare are proud and if there are any doubting Thomases or unbelieving Pádraigs who do not accept my assertion, I will be delighted to take them on a tour of our potholed-ridden county.
We carry more traffic on our roads than any other county. The reason is that any traffic leaving the capital and heading for the west must pass through Leixlip, Maynooth and Kilcock while all the traffic travelling south must pass through Newbridge, Kildare and Monasterevan. The Minister, to give him his due, acknowledged our problem and gave us an extra £1 million to spend this year but depite his generosity we will only be able to do a patch-up job. The task of restoring our roads to an acceptable standard must wait. We must all ask how long more they will have to wait.
One could travel to any part of Kildare; Allenwood, Ballymore Eustace or Ardclogh; and ask the people what their biggest problem is. I can guarantee that the replies will be the same, the dreadful state of our roads. School buses have stopped travelling on them, the county council refuse lorries took them off their schedule and fuel lorries have done the same. School children can no longer cycle on some of these roads. Last week the residents of the Ballymore area showed a video recording to Kildare County Council officials and left them in no doubt as to the state of our roads.
A few years ago there was a move to hold a number of Government meetings at Barrettstown Castle but they do not seem to take place there anymore. I think I know why. However, if it is decided to recommence these meetings let me offer a little warning: do not make mincemeat of our Mercs. Last year we were promised a special pothole machine but, unfortunately, it did not arrive and we are now considering hiring the very same machine. Last year's promise should be honoured this year which would allow us to spend the extra £1 million solely on materials.
It has often been suggested that we in Kildare are not getting value for money. It is easy to understand this when one compares the state of our roads with those in our neighbouring counties. I ask the Minister to send some of his experts to Kildare County Council to examine our work practices. After all, the Department of the Environment should be as keen as anyone to see that we are getting value for money. My own feeling is that we are spending far too much on administration and not enough on materials. There is no doubt that we could make savings in a number of areas. However, the real problem lies in the whole system of local authority funding. In 1977 we removed domestic rates and car tax and as a result deprived local authorities of a personal source of funding. The idea was to replace rates with an allocation from central funds. The public reacted quite favourably to this plan as it meant paying less tax but it was not very long until their eyes were opened. Car tax was quickly reintroduced and it became obvious that local authorities could not provide the required services. We need to restore power to local authorities so that they can raise their own finances to provide adequate services throughout the country. This is an area about which we — and indeed other parties — have done quite an amount of talking and made many promises. We must be honest and admit that we have failed to deliver. The sooner we bite this bullet the better.
Water, refuse and sewerage charges are no substitute and have proved to be a desperate embarrassment, particularly in areas like north Kildare. People in Leixlip are being asked to pay these charges while those living a mile down the road in County Dublin do not have to pay any. Is there justice in that form of taxation? Kites were flown about a property tax and, of course, there were objections, which is to be expected. We would be foolish to expect a general acceptance for any new type of local authority funding. Nevertheless we must realise that the patient is very sick and the sooner the medicine is administered the better. To knock on doors seeking votes for the local elections in 1990 — or any subsequent year — without solving this problem is tantamount to venturing into the polar bears' pit in the Zoo.
It is only right that in the course of my speech I should refer to the Defence Forces. The question of pay and allied matters were thorny issues in recent years but I am confident that the problems can be solved in the not too distant future. I was pleased to learn of the decision of the Department to enlist 1,000 new recruits this year. What I found more gratifying was that 6,920 people applied for those posts. Some may argue that that was a sign of the terrible unemployment that is with us at present but I look on it as an indication of the attraction of Army life for young people.
It is good to see that at long last old archaic Army barracks in Dublin, dating back to the dashing days of the Empire and inherited by this infant State, are being sold off and a realistic and modern approach is being taken to Army accommodation. The Curragh is the place for a modern barracks and Army headquarters. There is no doubt that it is not possible to find a more suitable location. The Kildare artillery barracks is close by, Baldonnel is but 20 miles away and the Glen of Imaal is accessible. The facilities at the Army Equitation School are excellent. The Military College provides scope for all types of training and, indeed, the Curragh has the physical room and an unparralleled tradition in the military field.
The Army Apprentice School in Naas trains technicians and has proved more than capable of answering all calls in emergencies. It is a long time since the people of Kildare suggested this new approach for our Defence Forces. Indeed, I am delighted to see that action is being taken in regard to the Army. I should like to take this opportunity to pay tribute to the Army for their service to our country and their willingness to answer any call and come up trumps every time. They provide armed military escorts for the movement of money and prisoners. In those operations not as much as one penny or one prisoner has been lost. There must be a lesson to be learned there in regard to armed escorts and using armed men as a deterrent for robbers and wrongdoers. We can see that the Army have played a major role in combating the number of robberies. Their record speaks for itself and I hope they will continue to provide the same type of service for many years to come.
There are a number of measures in the budget which will prove very beneficial to the agricultural industry. The changes in the rate of income tax and VAT will be welcome in farm households, particularly those on the lower end of the scale. The VAT refund for farmers is to be increased from 2 per cent to 2.3 per cent and, again, I am sure the farming community will be pleased with that development and also the changes in capital acquisitions tax.
The big change in regard to the latter is that in future the thresholds which determine the value of capital which can be transferred before the payment of capital acquisitions tax will be adjusted each year to take account of inflation. Another change in capital taxation will mean that in future gifts between spouses will be exempt from capital acquisitions tax and transfers of property from one spouse to another will be exempt from stamp duty where such transfers have the effect of creating a joint tenancy in the names of both spouses. The combined effect of these changes in capital taxation rules will be that many of the well run and well capitalised farms throughout the country can be passed within the family from one generation to another without creating a major burden on the inheritor.
I was delighted to learn that the Minister for Finance has recognised the importance of providing adequate training for those entering agriculture. In total an extra £1.7 million has been allocated to students in our agricultural colleges. That measure will have the effect of reducing the inequity between students in different sectors of vocational training. It will also encourage many farming families, particularly those on low incomes, to put their sons and daughters into agricultural training. In 1988, 70 per cent of the vacancies for farm managers notified to the Farm Apprenticeship Board remained unfilled for want of suitably qualified managers. The allocation of £1.7 million will ensure that in future years when such vacancies arise we will have a number of highly qualified managers. The emphasis on agricultural training can only be good for the industry and will in time result in additional output on the farms.
The beef industry has traditionally been our greatest money spinner. However, the last few years have proved to be difficult ones for that sector. Last year in particular was a disaster for many farmers. Cattle prices slumped last autumn and this meant that many farmers were selling cattle for the same price for which they had bought them. When we entered the EC farmers were promised a bonanza. They now had easy access to the huge European market. The first few years of our membership proved to be very rewarding ones for agriculture. Unfortunately, the last few years have seen the beef industry go into decline. Ten years ago we had three meat factories in Kildare, in Leixlip, Kildare and Sallins, and they killed one-third of the cattle killed in the country. Today Leixlip has closed, Kildare Chilling are on a one day week and the factory at Sallins is on a three day week. The meat industry provided many jobs in Kildare down the years. Unfortunately, the picture has changed much to the detriment of the workers. Their morale is at an all time low and who can blame them.
Continuity of work is no longer guaranteed and, as the summer draws near, many of those workers are facing a long hot spell on the dole once again. They deserve better. I should like to appeal to the Minister for Agriculture and Food to sit down with the other interested parties and prepare a plan which will guarantee a continuity of jobs in the meat industry. Since Polaroid moved out of the plant in Newbridge the IDA have spent a lot of time trying to find a replacement industry. Two years ago a German firm, Greenfields, announced their intention to set up in Newbridge. They have more than 1,400 outlets and they planned to export prepacked meats. That news gave a tremendous lift to the people of Newbridge but their plans seem to have run into difficulties. I hope that setback proves temporary and that Greenfields will set up in Newbridge and provide badly needed jobs for the area.
The decision of the Minister to grant £3.5 million to the horse racing and greyhound racing industries is welcome. Horse racing has for many years been described as the sport of kings. If that industry were to continue on the same road it has been travelling for years, it would be a sport of the past. The bloodstock industry is a major natural resource and represents approximately 8 per cent of our gross domestic product. It has enjoyed tremendous success for many years and is recognised worldwide for the quality of production. The industry provides employment for approximately 25,000 people. It has provided employment for many Irishmen and women down the years regardless of how the economy was performing. It is important to add that the jobs were provided without any assistance from the State. Unlike most countries, Irish racing never received a share of off-course betting tax and as a result the future of the bloodstock industry was placed in jeopardy. However, the grant of £3.5 million to racing will put the industry back on a sound footing. It will secure the jobs of those already employed in the sector and I am sure it will create many more jobs.
When Opposition Deputies looked around in vain for something to criticise on the evening of the budget some of them picked on the grant to the racing industries and said that the Minister thought more of horses and dogs than he did of sick people. They tried to give the impression that the Minister was giving the money directly to horses and dogs, like a person bequeathing money in a will to a dogs and cats home. I regard that as the cynical reaction of a very sick mind. The grant is going to help two important industries in need of help. They are very big employers in my constituency, particularly at the Curragh, the headquarters of Irish racing. The Minister has not revealed how he intends to distribute the grant between the Racing Board and Bord na gCon. It is fair to assume that horse racing will receive the lion's share and, as the grant is to continue for the next three years at least, both industries will have an opportunity to plan for the future. They should adopt a new professional approach aimed at providing a high quality service for customers. They have an opportunity for real growth and increased international prestige for the nation through a combination of self-help and astute application of funds.
A healthy racing industry is vital for the well being of the entire bloodstock industry. The racetrack is the shop window for all breeders and through lack of assistance from Governments, and indeed lack of imagination and initiative on behalf of the management, many of these racetracks have found themselves in serious financial difficulties while others are desperately in need of major improvements. A recent survey which was carried out reveals that over £16 million is urgently needed to put Irish racetracks back on a sound financial footing.
A sum of £10.4 million is required to refurbish racetrack buildings and enclosures and £2.2 million is required to bring the courses themselves up to a satisfactory standard. Outstanding debt owed by racetracks to the racing authorities totals nearly £4 million.
However, it is vital that part of this grant is spent on increasing the value of the smaller races. At present the value of these races is less than £1,200 while the value of a similar race in Britain is more than double. With training expenses running at approximately £600 a month, it is very easy to see why so many owners are getting out of Irish racing.
An increase in prizemoney at the lower end of the scale will help solve this problem. It would also attract many of those owners who have horses in British stables to bring them back to Ireland. An incentive must be provided for Irish owners. I think the time has come for the whole situation of the running of the racing industry to be looked at. The Turf Club and the Racing Board are both responsible for this and I ask, is it not time to have one racing authority?
The Racing Board and the Turf Club have continually ignored the needs of the betting shop punter. Now that you are receiving a grant from the off-course betting tax, it is time that you provide a professional service. There is not the same sort of interest by the off-course punter in Irish racing as there is in English racing. Admittedly, there is not the same continuity in Irish racing as there is in the English. But the question which I ask is why are so many of our summer meetings held in the evening times when the punter is prohibited from having a bet. When two meetings clash on the same day, more often than not the races are run at the same time, again not the most satisfactory position.
I would like to bring to the notice of the House the fact that the Irish Turf Club charge the Racing Post for publishing a list of runners at our meetings. One could hardly call it “good public relations”. Is it not typical of the attitude of the Turf Club, instead of being grateful for this major form of free advertising, they have to charge for it. Is it any wonder that Irish racing is in its present state?
I would ask that moneys be made available for the building programme to extend the centre at RACE. This new centre will not be just for apprentice jockeys but will benefit the many thousands of people working in the industry throughout Kildare. It will become a national equine education and training centre for the horse industry and not only for personnel in Ireland. It is hoped to train foreign staff there also.
To date 240 people have completed the course in RACE; of them 77 per cent are still working in the industry mostly in Ireland, while others have been very successful abroad. I feel a small investment here would ensure that 40 new trainees every year would attend RACE to gain skills, which would make them employable not just in Ireland but throughout the world.
I have some remarks to make on educational matters, and while they may be disjointed and unconnected, they are matters that I feel need attention. One is a matter of school buildings. I do not advocate a return of the same type of school all over Ireland, as happened years ago, but they had the merit of being built to last, and they are still standing after 100 years. They may not have been modern architectural marvels, but they still serve the primary purpose of providing shelter and keeping out the elements. In the last twenty years, some designers and architects really went overboard with flat roofs, roof lights and flashy new building systems. I know of two modern schools in Maynooth and Newbridge, built in the last 15 years, with dreadful roof leaks, that still defy permanent solution.
In Naas, the roof lights and coverings and associated rainwater outlets and coverings have now to be replaced after a lapse of 15 years and the total cost is well in excess of £40,000. I am told that these types of rooflights have a normal life span of ten years. I do not believe that the builder or architect would accept this type of design in his own house, if he had to pay the bill himself. The building unit or design team in the Office of Public Works or the Department of Education should not accept this either, when the unfortunate taxpayer is paying for it.
In general, I do not accept that we have to talk money in telephone numbers when the public are paying for the cost, and today, this seems to be accepted. Surely, any money spent in a thorough examination of such flawed designs would save us millions eventually.
I wish to deal briefly with the literacy problem. I am not going to lay the blame on TV watching, lack of parental control, lack of discipline in schools or a general decline in overall standards, but all teachers agree that today literacy is more a problem than ever and remedial action needs to be taken at primary level and followed through at post-primary level. I know of many schools where the remedial teachers are not allowed or are not able to carry out the particular duties for which they were trained, and pupils needing individual special attention, slip through the system and are branded as failures. We need not look askance at the figures for illiterate people in India or Mexico or Zaire or elsewhere. We need to apply the remedy at home first.
Surely, it would be money well spent to provide a helpful pupil-teacher ratio with special classes and special teachers at a time when the pupil can be helped than to be forced to spend it on reform schools and places of detention later on. This is not the advice of a crank, but I believe it is a fundamental flaw in our educational system as it operates at present. Even at a time of extreme unemployment, I know of one type of person who is assured of plenty of work, all over the country, that is the skilled tradesman. Most Members of the House will have experienced the difficulty in getting a good plumber or carpenter or electrician when you need one, and indeed they are getting scarcer.
It is in this context that I want to refer to apprenticeships and modern thinking in this regard. I will not venture into the debate as to where education ends and where training begins, or the overlapping that went on between the Department of Education and the Department of Labour in the early days of the expansion of AnCO and the thinking regarding training and apprentices in these years.
Obviously, the system since 1980 has not been a success. Huge numbers were taken in and proper training was impossible. The system of one year off-the-job training was not popular with employer or employee and simply did not work. I am prepared to say that the new FÁS probably will not succeed in producing a trained craftsman after two years or 25 months. It will not be possible to produce plumbers of carpenters after two years because even a person of exceptional skills needs time to grow up and mature and the four year period was a period of education as well as training. My advice is not to rush into this new FÁS system of apprentice training. Knowledgeable people in USA and Britain have spoken out against it and what failed there is unlikely to succeed here.
In conclusion, I welcome this budget in its overall approach in keeping a tight grip on the public finances and the spreading of the burden of taxation, which in turn, creates incentive and allows people to hold on to more of their income. I hope that the provision of new jobs will continue and that the caring of the elderly and the less well off will remain a major priority for this and all further Governments.
I ask that all benefits which accrue from our recent policies be given to those who need it most. As we enter a new decade it is easy to see this new wave of optimism in our country. The Government have taken corrective measures to create this climate, I say, let us keep it up.
