Book of Estimates, 1998: Statements (Resumed).

Ms Clune

Heavy traffic flows could be relieved by investing in our national road structure. The large volume of traffic in Dublin, Cork and other urban centres is strangling our economy. An industrialist told me recently he would not set up industry in Tralee because it is too difficult to get to and from Dublin Airport. We must invest in the road structure that serves the airport because it is vital to all parts of the country.

We should also invest in the visual as well as the fixed environment by improving the appearance of our towns and cities and providing green areas and urban forestry. As we have the necessary information, it is up to us to pass on a healthy environment to our children.

Mr. Hayes

I thank Deputy Clune for giving me an opportunity to contribute to this important debate. Large sections of the population would argue the Book of Estimates is a ritual, a few increases and reductions here and there. While it may not have a great impact on the public, it has an impact on Departments in terms of the amount of resources they are given to do the job of Government. I welcome the additional expenditure provided for in the Book of Estimates.

As in recent years, this year's Book of Estimates is a reflection of the prudent economic decisions taken in the late 1980s. At that time a political consensus was achieved on the crucial issues facing our economy and we are now enjoying the results. Given that we achieved consensus then on taking the correct but difficult fiscal path, surely we should reach another consensus now about poverty, social deprivation and helping those who have not benefited from the economic boom of the last few years. That consensus would tackle long-term unemployment, social disadvantage in education, the drugs menace and the other problems afflicting rural and urban area. A residual group of the population has not benefited one iota from our economy and now that we have an opportunity to make a difference for that sector, we should do so. Money should be put into the areas where people have not benefited.

People in jobs have gained much over the last few years — they now take two holidays a year and have two cars — but if they want to preserve their prosperity they should ensure that everyone gets a fair share. In recent years, however, an underclass has been left outside the consensus. The Clondalkin partnership report showed that in parts of my constituency and other urban constituencies, one third of ten and 11 year olds do not attend school on a regular basis. How could our society have allowed this to develop? This is why it was crucial in this Book of Estimates that money was put directly into areas of social need through education. I am, therefore, disappointed in the provisions in the Education Estimate, in particular those for primary schools.

In many parts of my constituency, the long-term unemployed have been brought back to work by way of community employment schemes. Deputies on all sides acknowledge this is an excellent way to bring people quickly back into the workforce. The Estimates provide for a 2 to 3 per cent increase for these schemes, as opposed to the massive increase given to the IDA. It is understandable that moneys should be put directly into the IDA to bring jobs to Ireland but the additional money going to community employment, to benefit the people suffering most from long-term unemployment, is paltry by comparison. This represents a failure on the part of Government — I do not say this in a political way, it applies to all Governments — to give priority to poverty and the underclass who have not gained from our economy.

The anti-drugs provision is another example. The last Government was the first to address the problem seriously but there has been no increase to those funds in the Book of Estimates. That is another priority which has been overlooked. I welcome the increase in the resources given to local authorities to increase the new start housing programmes next year. However, this will not make a huge difference to the thousands of people on the housing lists for South Dublin, Kerry or Dublin Corporation. On the key issues of community employment, school attendance, education, anti-drug programmes — vitally important to the areas ravaged by this menace — and housing, we have a great opportunity to ensure that proper resources are provided for these communities. Let us not fail because the opportunity will not come again.

Mr. Foley

I wish to share my time with Deputy Callely. I welcome the increased funding for housing provided in the 1998 Estimates. The total provision of £453 million in 1998 represents an increase of almost 14 per cent on the estimated expenditure this year and reflects the Government's commitment in an action programme to providing a suitable standard of accommodation for all our people. Over £214 million has been provided for the local authority housing programme, an increase of £40 million or nearly 23 per cent on the estimated expenditure for 1997. It will enable local authorities to meet commitments on their ongoing programmes and to fund a programme of 3,900 new starts or acquisitions in 1998 compared to an outturn of about 3,500 in the current year. This level of funding is a clear indication of the Government's commitment to a continuing house construction programme by local authorities as provided for in its action programme.

I welcome the announcement by the Minister of State, Deputy Molloy, of major improvements to voluntary and other social housing schemes. Highlights of this package include new maximum levels of assistance to voluntary housing bodies under the capital assistance scheme which exceed the previous levels by amounts ranging from £5,000 to £15,000 per unit of accommodation; wider income limits, lower rents, higher unit cost limits and a higher level of ongoing support for voluntary housing under the rental subsidy scheme; a 50 per cent increase in funding for communal facilities in voluntary housing projects; an increased income limit for the shared ownership scheme, with an increased level of subsidy which will assist shared owners to meet higher house prices; a £5,000 increase in the maximum local authority house purchase loan and an increased income limit.

This Government's priority is to ensure that households have access to affordable, good quality housing. The terms and conditions of the social housing schemes have not been updated since 1995 and have fallen out of line with building costs and house prices. This is leading to a slow down in social housing provision which must not be allowed to continue. I congratulate the Minister of State for reviewing the schemes and delivering major improvements to the range of social housing options. These measures are in addition to the major increases in funding for the local authority housing programme announced in the context of the 1998 Estimates. The package will restore reality to the local authority housing schemes, ensure their expanded use and provide an opportunity for social housing in locations where it had not previously been attempted.

The housing package has some excellent points. Under the voluntary housing capital assistance scheme, voluntary housing bodies are assisted with non-repayable capital funding from local authorities to provide accommodation, usually one or two bedroomed units, to meet special housing needs such as those of elderly people with disabilities, homeless persons or smaller families. The maximum levels of capital assistance have been increased from 1 July last. For one and two person units, the limit has risen from £27,000 to £32,000; for family-type houses and traveller bays, the limit has risen from £33,000 to £40,000. Special grants are available for communal facilities; where works have commenced on or after 1 July 1997 suitable proposals may qualify for grants of up to 90 per cent of the approved cost of the works, or a total equivalent of not more than £3,000 for each unit.

Under the voluntary housing rental subsidy scheme, such bodies are assisted with loan finance and subsidies from local authorities to provide housing for renting, particularly to meet the needs of low income families. The basic income for eligibility for a tenancy has been increased from £9,000 to £10,000 with effect from 13 November 1997. No income limit will apply to 25 per cent of applicants provided they are approved applicants for local authority housing. A new rent formula, backdated to the subsidy year commencing 1 July 1997, reduces the rent chargeable from 20p to 18p for each £1 of income over £80 per week. The formula also reduces rents chargeable in respect of subsidiary earners.

The recent announcement of the education technology investment fund by the Government represents a major commitment by the State to the future of the information technology industry. It is widely accepted the investment will go a long way towards resolving the major educational bottleneck which has threatened growth in the industry. The fund is a response from Government to the concerns expressed by the indigenous and multinational IT industry that inadequate resources were being given to the technology education area, and will also be directed at the more general problem of emerging labour shortages.

The investment fund is £250 million: £100 million in 1998 and the balance over the following two years. The breakdown is as follows: £60 million for additional places at both technician and degree levels in the computer software industry; £20 million in accommodation and equipment needs in the hotel and tourism sector; £20 million to support apprenticeship places; £80 million to renew and develop the infrastructure in the third level technological sector; £30 million for a major equipment renewal programme in third level institutions; £15 million to meet the capital needs of promoting research and development and technology transfer; and £25 million, balanced between capital investment and investment in teacher training in first and second level schools.

The Minister for Education and Science, Deputy Martin, is to be congratulated. He has said funding will be allocated on the basis of priorities developed in consultation with industry and education. I support the appeal by the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, to the corporate sector, particularly high-tech industry, to contribute to the new fund. She stated "through the fund the taxpayer will invest heavily in the quality of our education system and its graduate output will be of enormous benefit to business".

I welcome the recent review of public service pensions. Almost 77,000 retired public servants are to receive pension improvements averaging about £300 a year, at an annual cost of £23 million to the Exchequer, as the Government has decided to bring pension improvements into line with recent public sector pay deals. The Minister for Finance, Deputy McCreevy, has explained that public servants who retired before restructuring deals were agreed under the PCW will now receive pro rata increases in their pensions. In addition to the £23 million current cost of the improvements, back payments totalling the same amount are due to the vast majority of the 77,000 retired public servants.

The control of farmyard pollution scheme was introduced in 1994 and proved to be very popular, resulting in more than 18,000 applications. The available funding was insufficient to meet the unprecedented demand and this was acknowledged in the mid-term review process, with the scheme getting priority status. This resulted in an extra £20 million being allocated to the scheme which will go a long way towards meeting existing commitments. I hope the Minister will make provision for further funding for this very important scheme.

There have been 8,000 applicants to the dairy hygiene scheme since it was introduced in 1994. The available funding was insufficient to meet the unprecedented demand for this scheme also, which was acknowledged in the mid-term review process which gave the scheme priority status. This resulted in an extra £8 million being allocated to the scheme which will go a long way towards meeting existing commitments.

The scheme of early retirement from farming is operated under Council regulation 2079/92. It provides an incentive for older farmers to cease farming and pass on their farms to younger trained farmers who, thereby, enlarge their holdings to create more viable units. To date, 6,750 applicants have joined the scheme.

The scheme of installation aid for young farmers was one of the submeasures operated under the operational programme for agriculture, rural development and forestry 1994-9. The programme had an indicative budget of £17 million for the scheme and was launched in December 1994. It was expected that about 3,000 young farmers would participate. By 1 September 1997 a total of 3,100 young farmers had been paid almost £17 million under the scheme. In addition, there are about 600 other applications being processed currently, with a potential grant commitment of about £3.5 million.

The Department, as part of its submission to the mid-term review, sought additional funds in the region of £10 million to enable the continuation of the scheme. This was additional to the funds sought in other areas where the level of applications had already exceeded the level of available funds. The mid-term review took on board the views of an independent evaluation report, along with a report prepared on the operation of the first half of the operational programme completed by Fitzpatrick and Associates, both of which recommended the suspension of the scheme. Accordingly, it did not make any additional funds available for the continuation of the scheme. I hope the Minister will reconsider this situation and make the necessary funding available.

Mr. Callely

I congratulate the Minister for Finance, Deputy McCreevy, on the clear picture he has given of the position for 1998. I welcome his statement that "the prudent budgetary policies which have done so much for the success of the economy will be maintained". We all appreciate what can go wrong if budgets are not adhered to.

Ireland has enjoyed unprecedented economic progress. While it may be difficult to enjoy the same levels of progress in the years ahead, we should be able to maintain and enjoy the fruits of such progress, if they are handled properly, for many years to come. It is equally important to continue to attract significant investment to support our future development.

It is very encouraging to see the demand for personnel in the various employment sectors. It is important we use these opportunities to ensure real and lasting jobs and training in the years ahead. I emphasise the need to be more innovative in the area of training. It has been brought to my attention that we should revisit the area of apprenticeships and examine the available opportunities, particularly in the current climate.

I give a cautious welcome to the Health Estimate, particularly the additional funding received in 1997. It is important to focus on the need, particularly in Dublin, for improved step down facilities, which is causing the blockage in the acute hospital beds and having an impact on the accident and emergency services and elective procedures. It is only with appropriate step down facilities that we will see real progress in this area. It has a serious impact on waiting lists. It is very sad to read that many people die while on waiting lists for long stay beds, cardiac operations or other procedures, which is totally unacceptable.

Many Members of this House must be tired of having to raise the issue of the mentally handicapped. Someone in a position of authority, whether it is a Minister or a Minister of State, will have to address this issue appropriately and put in place a proper care programme over a given period of time, so that the carers, loved ones, spouses, partners and families of the mentally handicapped will know the level of care to be provided in the years ahead. Members understand what I am saying in this regard.

I wish to turn now to the area of justice and crime, particularly drug related crime. I have spoken in the House on many occasions on this matter but we need to see great improvements.

The various housing programmes and schemes, especially the shared ownership scheme, merit alterations to qualification levels. There are huge numbers on waiting lists. Most politicians have encountered sad situations involving the denial or provision of inappropriate accommodation in overcrowded conditions.

The car scrappage scheme resulted in the submission of 42,000 cars for scrapping. It also generated almost £100 million in revenue. Given this, and the ensuing improvements to driving on the roads, I have requested the Minister to review the abolition of the scheme.

According to the Estimates, an additional £122 million is to be spent on social welfare. Will the Minister ensure that it is given to those who have served the country well and have paid into the system but are on restricted incomes at the latter end of their lives? It will enable them to enjoy the benefits of the current economic climate

The current spending on asylum seekers is a misuse of taxpayers' money. Expenditure by the Department of Social, Community and Family Affairs alone amounts to more than £25 million. A couple of Deputies present in the Chamber who criticised me this morning for my views on this are seeking benefit payments.

I support our international obligations, including adherence to the 1951 convention, and am proud of Ireland's humanitarian understanding and accommodation of genuine refugees. However, it is wrong that it takes over two years to process applications by asylum seekers for refugee status.

Mr. Finucane

Has the Deputy spoken to the Minister for Justice, Equality and Law Reform?

Mr. Callely

A mechanism must be provided to ensure the necessary supports for genuine refugees.

I am dismayed at the manner in which a leading national newspaper presented my views on this issue in an unfair and untrue manner. It attributed views to me which are incorrect. By contrast, Jerome Reilly's article in the Irish Independent of Tuesday, 25 November was fair and balanced. It arose from a press release where I called for a halt to the misuse of millions of pounds of taxpayer's money on asylum seekers. I issued the press release following receipt of a report from the Eastern Health Board indicating that it takes over two years to process an asylum application. It stated Ireland is the only European country experiencing a continuing increase in the number of asylum seekers and went on to say that in 1997 the proportion of asylum seekers here will be higher than that in most European countries.

We must ensure that genuine refugees obtain appropriate support. However, it is unfair that large numbers of asylum seekers — over 3,000 — who may not be genuine and who are probably attracted to Ireland because of its welfare state are enjoying its welfare provisions, including supplementary welfare benefits and medical cards. Our own hard pressed, retired pensioners and those on waiting lists see others enjoy the fruits of the present economic climate, including their enjoyment of the use of private rented accommodation paid for by the Department of Social, Community and Family Affairs through the health boards. I ask those Deputies who hypocritically criticised my statement this morning — to be honest and acknowledge that my request is reasonable.

Mr. Ferris

I wish to share my time with Deputies Moynihan-Cronin and Penrose.

An Ceann Comhairle

Is that agreed? Agreed.

Mr. Ferris

Deputy Callely in on his own on this issue. I would not like to be in the shoes of asylum seekers. They are trying to fend for themselves and should not be castigated. We have obligations both as a community and under international law. The Deputy's remarks were racist.

Mr. Callely

They were not.

Mr. Ferris

They are especially inappropriate in this debate. We are discussing the revised Estimates for the various Departments. The Estimate for the Department of Tourism, Sport and Recreation provides for a revised sum of £89,323,000.

The tourism outturn for many areas proved to be much greater than estimated. There is the possibility here of a new potential growth industry in tourism development. Selling Ireland abroad is one of Bord Fáilte's primary roles. It is essential that efforts are renewed to ensure that areas of slack this year will be counteracted by more positive selling, including ascertaining the difficulties experienced by tourists, whether over pricing by the hotel industry, as cited in a recent article, or the terrible litter problem which costs local authorities millions of pounds to address.

We all have a responsibility to ensure that our agencies abroad sell a product of Ireland that contains a clean and environmentally friendly atmosphere which will attract tourists from all over the world. While the European and North American market has been successful in the past, we are not investing enough in the emerging markets in Asia and Australia, especially with regard to tourism promotion. Five times more tourists visit the UK than Ireland. My former colleague Michael Moynihan, who previously fulfilled a ministerial role in tourism, had an ingenious idea that people visiting the UK should be encouraged to continue their journey to Ireland for a small sum. This could be done by ingenious product selling abroad.

We have no idea of the numbers visiting Ireland, nor the reasons for their visit. Tourism figures are compiled from formulae which have no basis in fact. Other countries go to the trouble to ascertain from where and why visitors travel and how long they intend to stay, whether it be for business or pleasure. I will have more to say on this subject since I have been given responsibility by my party leader to develop this industry. Part of the tourism industry involves sport. With the Tour de France coming to Ireland next year we will have to meet the various public bodies in Cork, Tipperary, Wicklow or Dublin to ascertain their needs. The Departments will have to ensure the necessary finance is made available, for this once in a lifetime opportunity to sell Ireland to 500 million or 600 million television viewers. We must spare no effort to project Ireland in its best image. There are individual projects about which I am concerned in my constituency.

Promises were made before the election and people are upset when they are not fulfilled. The Seán Kelly sports centre was funded in the past by the Department of Education. Fianna Fáil promised the deficit would be made up. I want that deficit made up. There is also a deficit in the Excel project. Fianna Fáil said it would fund the Excel project in full — an indication that I could not do it. I ask the Minister, Deputy McDaid, to address that problem and the whole area of funding for sports complexes which are dependent on FÁS workers and other agencies. We have to look at the areas of recreation and sport and ensure they are properly funded. I look forward to one of the greatest sporting years in Irish history in 1998. The Minister who is committed to this area can be assured of my assistance. I shall continue to urge him on to better deeds.

Mrs. B. Moynihan-Cronin

I welcome the opportunity to contribute to this debate. As spokesperson for social, community and family affairs I propose to deal with social welfare issues. It is obvious I will not be able to deal with all the issues.

We are considering an estimate of £2,724 million to provide services in respect of the Department of Social, Community and Family Affairs. People who would not be fully acquainted with the wide cross section of the community who are either totally or partially dependent on payments from the Department may consider this expenditure is of huge proportion in a population of 3.5 million. On examination of the allowances paid to individuals, on benefit or assistance, one is immediately struck by the inadequacies of such allowances to provide even frugal comfort for these people. In view of the anticipated buoyancy of the economy that section of the population which is dependent on these payments from the Department of Social, Community and Family Affairs — the marginalised in society — look to the Minister for Finance on budget day for increases in their allowances to enable them to have a reasonable standard of living.

Will the Minister explain items A.7 and A.8 in the Estimate, consultancy and agency services, which involve a total estimated expenditure of £31,375 million? This appears to be a huge sum for one year.

In regard to old age non-contributory pensions, I am concerned about the existing regulations governing the assessment of income from savings. The assessment is 7.5 per cent and 15 per cent. Given the low interest rates — approximately 1 per cent — and since the majority of old age pensioners do not have savings, will the Minister change the regulation and assess the income to the actual interest earned by the savings? If the Minister knows where pensioners can get 7.5 per cent to 15 per cent interest on their savings I am sure he will let them know.

Éamon Ó Cuív

That was a point I made to the previous Government many times.

Mr. Penrose

I agree.

Mrs. B. Moynihan-Cronin

Given that the Minister is in agreement, we will expect delivery in the budget.

Éamon Ó Cuív

I used to wonder whether there was a third banking force that the Minister had not heard about.

Mrs. B. Moynihan-Cronin

This is the Minister's chance. If the regulation is not changed I am concerned that old people will revert to the practice of keeping money at home. This is not acceptable because of the high number of robberies and assaults on the elderly, particularly in rural areas. Changing this regulation would entice pensioners to lodge their savings in some financial institution.

Will the Minister consider allowing widows and women in the home the opportunity to participate on FÁS and community employment schemes? Widows on contributory pensions, who are technically lone parents, are debarred from participating in such schemes because they are not considered to be on the live register. This anomaly is unjust, particularly at a time when widows could benefit from the extra income as well as the opportunity to get out of the house for some time each day. This is discrimination. I appeal to the Minister to address the matter of widows and women in the home.

I draw the Minister's attention to the problem of participants in FÁS schemes who, following the completion of such schemes, are penalised in that they are denied certain payments such as the Christmas bonus, butter vouchers and free fuel. The greatest anomaly is that they will be denied a weekly allowance for their dependent children over 18 years who are in full time education. It is unthinkable that these participants who were previously entitled to this allowance will no longer receive it. It is as if we are asking them not to send their children to school.

The estimated increases for 1998 show only a modest increase on the 1997 expenditure. We must await the decision on budget day to see how the Estimates will reflect the income of the various recipients. I sincerely hope and expect the Celtic tiger will deliver a substantial increase to everyone in receipt of social welfare payments and that the Government will fulfil all the promises made to the people in June.

Mr. Penrose

I welcome the opportunity to contribute to this debate, with particular reference to my brief, agriculture, food and rural development. I strongly believe that the thrust of budgetary changes should be to make farming attractive to the rapidly increasing number of young farmers who are no longer prepared to pursue a career in farming because of the hardships involved. These are real hardships, not imaginary or illusory, as some people would have us believe. The figures are evidence of the fall in the number of young people participating in farming. There has been a fall in the number of farmers under the age of 35 from 14 per cent, or 21,600, in 1994, to 12 per cent, or 18,000, in 1996. The fall is continuing and is reinforced by those who have a knowledge of agriculture.

In September, for the first time in a number of years, it became clear young people are not pursuing a career in farming because the agricultural colleges are not able to fill all their places for training young farmers. That fall is being accelerated. A ludicrous decision of the Fianna Fáil-Progressive Democrats Government in August to suspend installation aid for young farmers has exacerbated the situation. I do not know on what basis or on what report that decision was based. I challenge the Minister to lay those reports before the House so that we can debate them because I believe they are not founded on a correct premise. This decision was a retrograde step. Since 1986, 5,741 young farmers had taken up the scheme. The lump sum involved, £5,600, was extremely useful in meeting transfer costs, legal fees and tax liabilities and in financing necessary on-farm investment. Some who expected to benefit were short-changed. I know of a young man with the necessary qualifications who encountered problems in having the matter of title relating to a Land Commission farm resolved. It was his intention to use the lump sum to pay off large arrears owed to the Land Commission and thus remain on the farm but he lost out.

The decision taken by the Government was disgraceful. The Minister for Finance should reintroduce the scheme in the budget on Wednesday next at a cost of between £5 million and £6 million per year. The Government took in an extra £700 million this year. It should give back 0.75 per cent of this to young farmers to give them their day in the sun.

Éamon Ó Cuív

Do not tell Deputy Rabbitte that.

Mr. Penrose

The Government parties should honour their pre-election commitment to reintroduce the control of farmyard pollution scheme. Approximately 18,000 benefited under the previous scheme. The Government parties also gave a commitment to reintroduce the dairy hygiene scheme. It is extremely important that the control of farmyard pollution scheme is reintroduced to help farmers qualify for the REP scheme under which the installation of proper anti-pollution facilities is required.

It is critical that incentives are provided to encourage people to remain in rural areas, a matter close to the heart of the Minister of State and one on which he was vociferous when in Opposition for which I give him credit. He was also vociferous on the issue raised by my colleague, Deputy Moynihan-Cronin. As the Minister for Finance does not favour the introduction of a scheme similar to the urban renewal scheme I ask him to consider the possibility of introducing a pilot scheme under which the new house grant would be doubled to provide people with an incentive to build in rural areas. This would help to keep Garda stations, schools and churches open and local football teams going. If the trend of degeneration is not reversed rural Ireland will be decimated. The inter-family lease arrangements under the farm retirement scheme should be changed and the enlargement clause deleted while the Minister for Justice, Equality and Law Reform should give a firm commitment that no further rural Garda station will be closed.

I welcome the proposed increase in spending under the REP scheme which is demand-led and note that a sum of £6.5 million is earmarked for the national beef scheme in 1998 to put a computerised system in place for the identification and registration of cattle. This should help to reassure consumers.

When Tánaiste and Minister for Foreign Affairs, the former leader of the Labour Party was subjected to vitriolic abuse from Fianna Fáil on the reopening of live export markets. What has the Minister for Agriculture and Food done to honour the commitments given in the Red Cow Inn on the Naas dual carriageway in the presence of 1,000 farmers?

Mr. Ferris

Nothing.

Mr. Penrose

Does he think that farmers are fools? Farmers in the midlands are waiting in the long grass for him.

Mr. Aylward

I wish to share my time with Deputies Kelleher and Daly.

Acting Chairman (Mr. McGrath)

Is that agreed? Agreed.

Mr. Aylward

I am pleased at the level of co-operation between the Westmeath representatives. With such spirit I look forward to Westmeath winning an All-Ireland title in the not too distant future.

Mr. Penrose

In football.

Mr. Aylward

The strong performance of the economy is unprecedented. It is predicted to grow by 7 per cent this year. With inflation running at 1.5 per cent and interest rates at an all-time low we are in a sound financial position.

We should reflect on how this economic miracle was achieved. I remember the bad days when inflation was rampant, interest rates were at an all-time high and the future looked bleak. The seeds of revival were sown in 1987 by the then minority Fianna Fáil Government. Successive Governments have followed its policy of managing the national finances prudently. I pay special tribute to the social partners for their contribution through the various national wage agreements. This should be recognised in considering the Book of Estimates. To them I say well done. We must ensure the prudent management of the national finances continues into the next millennium.

The most important item to be dealt with in the forthcoming budget is that of taxation. At the last election all political parties, including my own, entered into a contract with the public and gave a firm commitment to tackle the issue. We must honour this commitment. One can argue about whether the higher or lower rate of tax should be reduced or whether the tax bands should be widened but the burden on PAYE taxpayers has to be reduced.

It is of vital importance that the issue of social welfare is addressed. There has been much talk about the Celtic tiger, a title I am beginning to hate. Many people, particularly in rural areas, feel left out and that they are not sharing in its success. The marginalised, the poor, the long-term unemployed, old age pensioners, widows and widowers and those in receipt of social welfare payments seem to have been left behind. I have been saying for years that there is an anomaly in the system, that benefits such as free electricity, free television licence and free travel have not been extended to widows and widowers and those in receipt of disability pension but nothing has been done in the past ten years to rectify it. The time is now right to extend these benefits to the people concerned. I call on the Minister for Finance to ensure this is done in the budget.

For ten years the fuel allowance has remained unchanged. One can buy very little with the weekly payment of £5. Applicants are refused the allowance for the silliest of reasons, for example, where they are in receipt of a small retirement pension. That should be addressed in the budget.

An increase of 2 per cent, 3 per cent or 5 per cent is fine for somebody with an annual income of £100,000 but for somebody on, say, £68 per week, it amounts to very little. For years the gap has become ever wider between the "haves" and "have nots", to the extent that now we have a two-tier society and those at the bottom of the scale feel quite aggrieved and hard done by. This is something else that must be addressed in the budget.

It is generally accepted that the carer's allowance paid to people providing a very valuable service to the community if properly administered saves the State money in the long-term, but there are many anomalies in the system. The means test is fairly severe. For example family members looking after their loved ones, perhaps elderly parents, but who work and return home in the evening, are not deemed eligible for the carer's allowance even though they are contributing to keeping elderly people out of hospital a solution which would cost the Exchequer a much larger sum.

People who provide home help in my region are paid £2 per hour, a miserly sum by any standard, another matter which should be investigated. It is ludicrous that carers also in receipt of unemployment assistance will have that allowance deducted from the assistance payment. That must also be addressed.

All Members are only too well aware of the huge hospital waiting lists which appear to become ever longer regardless of what funds are made available to the various health boards. People are awaiting hip replacements, heart operations, and smaller operations. In the case of public patients the waiting lists appear to be an insurmountable obstacle in their endeavours to gain admission. I call on the Minister for Health and Children to ensure that some emergency programme is implemented to correct this problem.

I suppose most Members become somewhat parochial when speaking on the Estimates. I will refer to the orthopaedic hospital in Kilcreene in my constituency whose services I understand are being transferred to the Regional Hospital in Waterford. I am most unhappy about that proposal. Those services should be retained at St. Luke's Hospital Kilkenny with appropriate funds being provided for its upgrading.

Deputy Ferris spoke at length about his brief on sport, tourism and recreation. I drew up a policy document now regarded as the blueprint for the new Department of Tourism, Sport and Recreation whose underlying thrust was to deploy the functions and activities of that Department to divert young people from many social problems particularly by the dangers of the use and misuse of drugs. From the Book of Estimates, I am happy to note in this respect some progress has been made, particularly in the case of the Minister of State at that Department, Deputy Flood, who will work in disadvantaged areas, through the many voluntary workers in this field. I am disappointed with the level of grant aid for the recreational facilities scheme, one of the best ever introduced here. I suppose it is understandable given the unfortunate reneging by the former Minister on his promises, having spent some £9.5 million for election purposes.

I refer to the on-farm investment schemes, particularly the installation aid grant which I am confident will be reinstated since it was a commitment in our election manifesto which should be honoured along with the commitment to control farmyard pollution and establish the dairy hygiene schemes.

Mr. Ring

We will support the Deputy.

Mr. Aylward

I call on the Minister for Agriculture and Food to make an early announcement in respect of those schemes. While several schemes have been introduced, not sufficient has been done. I hope the policy document issued by the Minister of State at the Department of Agriculture and Food, Deputy Ned O'Keeffe, will be implemented. It will go a long way to solving many problems.

This Government is presented with a golden opportunity in its forthcoming budget. While there appears to be a general perception that there is a great deal of money in the Exchequer unless it is directed to the more worthy and deserving within our society, we shall have failed our people. I know the Minister for Finance will certainly address those issues on budget day.

Mr. Kelleher

We talk about the Celtic tiger, buoyant revenue, unprecedented growth, low rates of inflation, interest and falling unemployment. Nonetheless there are those within our society who have fallen very far behind because of that rapid growth within our economy, in particular elderly social welfare recipients in recent years. Since the establishment of the Commission on Social Welfare in the 1980s, against a backdrop of a very depressed economy, the recent economic boom has brought the country much prosperity. Unfortunately, we continue to base social welfare payments on the recommendations of that commission made some time ago. Social welfare recipients, particularly the elderly, have been left well behind and the Government is afforded a golden opportunity to address that position once and for all. We must remember that Celtic tigers will come and go but we shall always have the elderly within our society.

The essential housing grants and security systems introduced for the elderly alleviate their anxieties and concerns. As people become older and less mobile, they are more vulnerable to crime and are afraid of falling in their homes and so on.

People speak about social inclusion, but there is also social exclusion in that there is now a huge school truancy problem in urban areas and there appears to be no means by which the appropriate legislation can be enforced to ensure their attendance. This truancy tends to lead to petty crime. All the surveys, analyses and statistics show that those who drop out of school at an early age become involved in petty crime straightaway, leading to larger scale crimes. On examining the circumstances or lifestyles of for instance a drug baron, very often one discovers that person fell by the wayside, having dropped out of the educational system at a very early age.

The overall problem of drugs must be seriously addressed. Indeed for far too long, like the ostrich, we kept our heads in the sand, and failed to recognise the scourge plaguing our society. Heroin is a problem encountered at a very early age. Yet the authorities, successive Governments, even the Garda refused to acknowledge the existence of a huge problem particularly in Dublin inner city which has led to a total breakdown of social order in certain areas. I recommend the provision of proper treatment facilities, with the extension of methadone programmes, in addition to psychiatric and counselling services not only for drug addicts but for their families, the latter being crucial to the proper care and rehabilitation of a drug addict.

The Minister for Education and Science, Deputy Martin, has been referred to as the million dollar man. I understand the figure for education and science is £250,000,000 so perhaps we should call him the billion dollar man. That is an acknowledgement of the fact that this economy is growing at a rapid pace. There is a great deal of prosperity and we are getting much inward investment, but we must invest in technology, training and retraining. There will be golden opportunities for the long-term unemployed if proper training facilities are put in place.

The whole area of computerisation and computer literacy must be seriously examined. We must encourage private investment in education in addition to State funding. We must put computers in schools and set up classes for the young and people who have not had the opportunity to attend such classes in the past. That vacuum must be filled.

The problems affecting people with mental handicap have been referred to. We owe a debt of gratitude to the many parents and other family members who spend long hours looking after family members with a disability or a mental handicap. That must be acknowledged because for too long we have neglected these people who are entitled to the full support of the State in addition to whatever services they require.

It is unfortunate that I had to rush my maiden speech. I would like to have dealt with issues such as agriculture, dairy hygiene grants, control of farmyard pollution grants and installation aid. I believe Deputy Penrose might yet vote with us on budget day.

Mr. Finucane

Deputy Fox will be won over again.

Mr. Daly

In our wildest expectations some years ago none of us could have anticipated the contribution made by the Minister for Finance in which he set out an optimistic prospect in the Estimates for the coming year. He certainly offered hope in dealing with many of the major problems in the economy over the past number of years.

The Minister referred to the drop in unemployment and I want to draw attention to the fact that even though there has been a major drop in unemployment levels and a dramatic increase in the number of employment opportunities created, a significant number of young people, particularly in the west, cannot obtain employment. It is important not to neglect investment in the capital programme to ensure that infrastructural investments in western areas in particular are expedited.

The current trend in the Department of Finance is to indicate some type of curtailment of the incentive schemes introduced some years ago to direct finances into disadvantaged areas. I pay tribute to the seaside resorts scheme which has been extremely important in attracting development to resort areas. In Kilkee, approximately £18 million to £20 million worth of projects will be unable to proceed unless the seaside resorts scheme is renewed or extended. In relation to incentive schemes generally, it is important that the Minister examines capital allowances to enable infrastructural investments to be made.

Some years ago, when the Government was unable to provide the capital to build offices for Government staff, a scheme was initiated whereby the private sector was encouraged to design, finance and build offices. That scheme saved the taxpayer enormous amounts of money. Such an initiative could be extended for the provision of services such as sewerage systems in small villages. If capital allowances were given to builders under those type of initiatives, they could be incorporated in schemes such as the seaside resorts renewal scheme. In that way, the capital needed by the State would be provided by the private sector thereby enabling much of the infrastructural work to be carried out.

Finally, I want to make a plea on behalf of charitable organisations which have lobbied all Members of the House to get tax concessions on corporate donations to charitable organisations. I ask the Minister for Finance to look favourably on that request.

Acting Chairman

I now call Deputy Finucane. I understand five speakers intend to share the Deputy's time slot. Is the time being shared equally?

Mr. Finucane

No. I want to make some points in relation to my own brief on marine and natural resources because in the debate on the Estimates, fishermen are often forgotten. Of all occupations, fishing is one of the most hazardous. Anyone watching the news tonight will be aware of the difficulties currently facing fishermen, as expressed by the Killybegs Fishermen's Organisation, because of the various restrictions imposed on them. Those restrictions appear to be impacting on one segment of the fishing community, namely, the fish catchers. There seems to be a considerable gap in the profits made between the net and the fork. In other words, the processors and distributors are making money while the catchers of the fish are not doing so well. They are the people who have to fish in all kinds of weather. Quota restrictions are badly affecting fishermen also.

In their programme for Government, Fianna Fáil and the Progressive Democrats promised to ban all flagships. It is questionable whether that can be achieved because under the Treaty of Rome, people have freedom of access. The current position, however, is that approximately 150 foreign flagships are fishing in Irish waters, plundering our fish stocks and landing the fish on foreign shores under the quotas of the United Kingdom or Spain. Parallel with that problem, the fish processors, as a result of the instability of white fish supplies throughout the year, are buying from countries which have fished over their quotas and from countries where no restrictions apply. The fishermen, therefore, face many difficulties.

Another problem is that many of our fishing vessels tend to be very old. The former Minister, Deputy Barrett, did excellent work in the marine area. He initiated the marine fishing safety review which concluded that 64 per cent of the fishing fleet had safety deficiencies. In a Fianna Fáil manifesto produced by Deputy Michael Smith, he referred to the consideration of providing some type of electronic location device for fishermen at sea. I ask the Minister to respond in regard to one particular measure which is important to fishermen from a safety point of view, namely, the provision of radio control equipment for fishing vessels at sea, the overall cost of which has been estimated at approximately £6 million. That would be a significant gesture because many of the recommendations in the fishing vessels safety review will impact considerably on fishermen. If they do not have the necessary resources they will be unable to implement those recommendations and it is important to send out a positive signal to fishermen.

Fishing is a hazardous occupation and each year fishermen have to travel further out to sea. Many vessels have been lost and anything we can do to assist our fishermen with regard to safety is extremely important. I invite the Minister to consider that. Although we are spending some money on the modernisation of vessels, many vessels require basic safety equipment and refurbishment.

It is impossible to properly invest in ships for fishermen because of the constraints that exist with regard to European Union and national funding and the differential which must be met by the owners of particular ships who want to improve and upgrade their vessels. Many owners cannot meet those demands. If we are serious in our intention, we will have to provide greater incentives to fishermen. In countries such as Scotland and Spain, owners are building bigger vessels and are encouraged to do so.

In the budget I hope the Minister for Finance will introduce a business expansion scheme or some additional financial incentives for business people to invest in fishing vessels. Bankers are reluctant to invest in the white fishing fleet in particular because they do not consider it will yield a sound return on their investment. The Minister for the Marine must give serious consideration to what can be done to meet the needs of our fishermen. There will not be an incentive for fishermen to fish in the future and the fishing industry is important to our economy. Many of our fishermen live in areas in the south west, the south, the north west and the west and are a vital cog in the economies of those communities.

Mr. Bradford

I thank my Front Bench colleague, Deputy Finucane, for sharing his time. The Minister for Finance and the Government are in a fortunate financial position. When they come to finalise budgetary policy in the next few days they will have an unprecedented amount of financial resources available. For the first time in the history of the State a Government will be able to consider different choices in how resources should be allocated.

I wish to dwell on budgetary and financial policy and how it will impact on the elderly. A growing number of our people are facing difficulties and it is hoped that as a result of our Celtic tiger economy the Government will be in a position to address their problems. I strongly support Deputy Moynihan-Cronin about the means testing of social welfare allowances, in particular the means testing of pensions. It is bizarre to have a system of means testing which provides that moneys can be assessed at 15 per cent. We all know that no investment here yields a return of 15 per cent. An improvement was made to the system of means testing by the former Minister, Deputy De Rossa, last year, but we need to go further and introduce a fair means test whereby money is assessed at what it would be worth. We all know that is not 15 per cent or even the current 7 per cent minimal rate of assessment. The rate of assessment should be more akin to rates in the marketplace. Money should be assessed at ordinary bank deposit rates. That would cost the Government money, but if we want to take a step in next week's budget towards having a fair and just society, changes must be made where they are necessary.

A number of associations representing the elderly have called for the Government to give serious consideration in 1998 to granting a medical card to all people over the age of 66, regardless of their incomes. Statistics indicate that approximately 80 per cent of senior citizens have medical cards. We are beginning to enjoy the fruits of our Celtic tiger economy which were developed by the tens of thousands of people who worked here down through the years. The least we can do for our senior citizens is to ensure they are entitled to health benefits free of charge by providing them with a medical card.

I hope in next week's budget the carer's allowance will be increased and that improvements will be made to the nursing home subvention regulations because the current system is not sufficient to deal with the social problems faced by the elderly and those who care for them. There will be another opportunity to discuss these matters in more detail, but I wanted to put forward those suggestions.

Mr. Boylan

More time should be given in future years to discuss the Estimates because this is the time to put down a marker in regard to the forthcoming budget. At this point we can say what should be done in advance of the budget, but when it is announced we can only talk about what should have been done. When the Minister for Finance, Deputy McCreevy, introduces the budget next week he will have a bountiful harvest. I hope he will be gracious enough to acknowledge the role of the previous Government in laying the foundations that has given him that harvest to dispense. I hope he will be fair in disbursing the funding available to him and that he will not forget the elderly who built this nation. They worked hard in harder times than this generation is witnessing or will ever appreciate and they are still in need of improvements in many areas.

The Minister for Finance should not forget those with a mental and physical handicap. We must pay tribute to the many thousands of families who care within their family circles for a person with a mental or physical handicap. There are many shortcomings in the system and many benefits to which they should be entitled, especially in good times. We are renowned for the care of those less fortunate than ourselves.

The main point I wish to make concerns the Government's discrimination against the Border region from its inception on 6 June. In Opposition it championed the cause of that region, but in Government it has neglected the six counties, the Border region and what should be done there. We are now witnessing the benefits of the peace process and people can now move freely. There is an opportunity for the Government to give a lift to a region that has suffered for the past 25 years, but there has been total silence and neglect. That is not acceptable. The Minister of State, above all people, will understand why that is the case. It is ironic that he is present when I make this charge. The Tánaiste and Minister for Enterprise, Trade and Employment who has sole responsibility apparently for handing out the thousands of jobs she has announced, in regard to which I wish her well, has not announced one job for the Border region, Donegal, Sligo, Leitrim, Cavan, Monaghan or Louth. I am particularly concerned about the Cavan-Monaghan area. The Tánaiste realises she will never have a foothold in the Border region. Therefore, she has decided to target areas of the country where she can increase the vote for her party and hopefully win seats. Fianna Fáil in Government is supporting that policy which is not acceptable to me. It is wrong, unjust and unacceptable to people who have suffered as a result of the spillover of violence from the North. I want to see an immediate change in that policy and jobs to be announced for that region. It has been the focus of international attention and industrialists could be attracted to it if the Government made an effort to do so but it has not. Lip service was paid to the region, but when it comes to action, the Government has failed miserably. I appeal to the Government to change its policy on the Border region where industrial sites can be bought for £5,000 to £6,000 an acre compared to £25,000 in the more affluent areas of this country at which jobs have been targeted. I will seek to raise this matter and get a reply to it on another occasion.

Mr. Belton

I ask the Government to reintroduce the house improvement grant. Fianna Fáil abolished that grant in l987 and it is only right and proper that a Fianna Fáil led Government should reintroduce it. That grant enabled people to carry out house improvements. Some elderly people do not qualify for the disabled person's grant or the essential repairs grant, both of which have narrow criteria. Local authorities are being asked to give those grants in cases where a house improvement grant would be more appropriate. That grant generated a lot of employment in rural areas for suppliers of building materials and small builders. The Government should consider this issue in the context of bringing life back to rural areas. It would generate more employment there.

I agree with Deputy Boylan's points. Over the last 12 months potential investors have considered using an advance factory in County Longford. I made representations to the previous Minister, Deputy Richard Bruton, about this matter and I hope the Minister will ensure that a project is installed in that factory in the near future.

The comment is being made throughout the country that the Government is anti-farming. It has proven this point because the economy is booming and there is money for everything except farming. The Government has brought down the hay knife and cut off the wedge on which farmers survive. It has displayed sheer hypocrisy in its policies in this area. When Fianna Fáil and the Progressive Democrats were in Opposition, they laughed at the then Minister, Deputy Yates, who was doing a remarkable job. Farmers now know that was the case and shame on the Government for cutting the budget in this area. Farmers are waiting in the long grass but they will emerge. The Government should wake up and get the markets for cattle reopened. It should also reinstate installation aid for young farmers. It was criminal to abolish it.

Mr. Ring

It will not be a good budget for the management and staff of the Asahi plant in Killala, County Mayo. Task forces are established when problems arise in areas and a group was set up in Killala. Announcements were made in the past, and will probably be made in the future, about job creation but no jobs have come to County Mayo or the west. The employees of Asahi are not looking forward to the budget. Instead they are wondering what social welfare payments they will receive next week. That is sad. I pay tribute to the staff and management of the plant and I hope the Government will do something to bring employment back to that area.

I am sick and tired of hearing about the Celtic tiger. Many people have never seen it. The only tigers they see every week are rent men, coal men and children looking for money which is not there. I hope the Government will consider the less well off in the budget. Many men, women and children are on waiting lists for heart and other operations. Some are waiting to be called to St. Luke's Hospital but no beds are available for them. It is time money was spent on people with disabilities and other problems.

I am also sick and tired of hearing about businessmen who have everything. They receive tax initiatives and breaks. More people from Dublin, Cork and London own property in County Mayo than people from the county. This is what the Celtic tiger has done for Mayo. Nobody can afford to live in Westport and the surrounding areas. They have to move out because landlords from Dublin and Cork are collecting revenue from people on holiday in the area. Local people cannot afford to buy houses in their town.

I hope the Government will introduce measures in the budget to allow young couples to buy their own homes. I also hope it will provide money for houses for people who have been on council housing lists for up to six years. I ask the Minister of State, Deputy Cullen, to bring my remarks to the attention of the Minister for Finance and the Government. The businessmen are well able to look after themselves. We saw how Ben Dunne looked after himself. He had so much money he did not know what to do with it so he gave it to his friends in Fianna Fáil. That type of behaviour must stop.

The less well off must be considered. Such people lose their medical cards because they are £2 or £4 over the limit. This must stop. The means testing of social welfare in rural areas must also stop because people are attacked by the Department. It sought to catch cheats and frauds and I agree they must be rooted out. However, the Department targeted small farmers with 15 ducks and 14 cows in the west. It did not go after people working and claiming social welfare or the owners of unsafe building sites where young people from the west fell off buildings and died. Such people and not those receiving small amounts of social welfare must be taken on. Land in Belmullet and Westport is not the same as land in County Meath. I hope provision will be made in the budget for the less well off.

Acting Chairman

As it is now 10.15 p.m. I am obliged to call the Minister of State. However, I understand he is giving five minutes of his time to Deputy McGuinness.

Mr. McGuinness

I thank the Minister of State for sharing his time. I am delighted the Minister has a substantial balance available for distribution as a result of his prudent preparation of the Book of Estimates. He may have difficulty spending it all so I wish to make some suggestions about how he could usefully use a small amount of the money available across a number of Departments.

I represent the constituency of Carlow-Kilkenny. It does not immediately spring to mind when the disbursement of funds is considered. Carlow-Kilkenny could be called the Brigadoon of Irish politics; it is prominent during elections but quickly forgotten afterwards. Counties Carlow and Kilkenny are often referred to as prosperous areas and perhaps that is why they are overlooked when jobs and funds are handed out. An increasing number of my constituents are unhappy about that position. They expect me to make the case for the counties to the Government. I intend to ensure that they receive a reasonable share and are no longer at the end of the line in terms of jobs and funds.

My constituency has a strong case and money would be well spent in either county. The prosperity in both counties is largely the result of self-help and enterprise. However, there is only so much they can achieve. The counties need support from the Government if they are to continue to be successful. I am aware that the completion of ring roads and bypasses is the responsibility of the National Roads Authority. However, I ask the Minister to find a way to encourage major expenditure on the road systems in Carlow and Kilkenny and particularly to allocate funds as soon as possible to ensure the completion of ring roads in the two counties.

Good road networks are essential for the success of industry and business in general. Carlow and Kilkenny cannot move forward unless their road systems are modernised. The current traffic congestion causes delay and inconvenience to individuals and industry. Furthermore, the attractions of both counties as locations for new industry are severely impaired. I constantly receive representations from the chambers of commerce, businessmen and individuals regarding the state of the roads. It is beyond time to do something about them. I appeal to the Minister to take firm action to ensure funds are made available immediately to the relevant authorities to carry out these projects which will not only be good for both counties but also of considerable assistance in alleviating the problems caused to the national and international traffic using the roads in Carlow and Kilkenny. The Waterford-Kilkenny road is a disgrace. It carries national and international traffic to the port of Belview, which cost millions to develop, but the access routes are in a deplorable condition and in need of immediate funding. The N9 road around Thomastown also needs to be addressed. The lack of a proper road network there is choking the small village.

Job creation is high on the Government's agenda and there has been much good news in the counties recently. I compliment the Government and the IDA on the good work they are doing for the country. However, I am concerned that the creation of jobs and the location of new industry in my constituency and particularly Kilkenny does not reflect the national picture. The recent announcements of job creation in various parts of the country left my constituents underwhelmed. I ask for immediate action in this area.

In the context of education, the gaelscoil in Kilkenny and Ormonde College require immediate investment. I ask the Minister to give consideration to these schools. I wish to make many other recommendations but I will do so in the future.

Minister of State at the Department of Finance (Mr. Cullen)

I am pleased to have the opportunity to respond to the many statements made during the debate which were interesting and covered a great deal of ground. However, it is disappointing that so many of the statements from the Opposition continued to criticise the Government for its handling of the 1998 Estimates, despite the clarity with which my colleague, the Minister for Finance, explained the position.

I am sure members of the public listening to some contributions are thoroughly confused. It may be that the creation of such confusion is what the Government's critics hope to produce. I want to answer these criticisms about the Government's handling of public expenditure and it has no intention of allowing them to stand. It is a simple matter to end the confusion and show that our policies are prudent and responsible.

The Minister for Finance outlined the Government's expenditure policies in the clearest possible manner. He stressed the importance of the programme commitment to limit expenditure growth and made clear that meeting it is a major priority for the Government. This would be done not just for its own sake, but because proper management of public expenditure is the key to successful budgetary policy and to continuation of the consensus approach which has brought Ireland such economic success.

Any reasonable observer of the comments made by the Minister and I when working on the finance portfolio in Opposition would acknowledge that we are extremely committed to the control of public expenditure and see it as the bedrock of economic success. He explained in detail how current and capital expenditure changed in 1997 and presented the main elements of the Government's plans for 1998. Other Ministers explained these plans in so far as their areas were concerned.

The reasons the Government decided to allocate additional spending to particular areas next year were set out by the Minister for Finance and other Ministers. The background to the Estimates has been presented openly and transparently, yet the Government has still been subject to attack. The criticisms made by Deputies have largely centred on the fact that the expenditure figures in the 1998 Abridged Estimates Volume produce a 1.8 per cent increase over the likely 1997 outturn, one which is considerably less than the 4 per cent target in the Government's programme. A number of speakers argued that this result has only been achieved by bringing forward expenditure to this year. The Government is supposed to have set out deliberately to increase the 1997 outturn in order to reduce the gap between the outturn and the 1998 Estimates, but nothing could be further from the truth.

The Minister for Finance has already explained the Government's approach, but it must be spelt out once again in order to see that the criticism has no basis. Over the medium to longer term, the Government faces a number of significant costs, which he referred to earlier, including the need to put the payment of teachers' salaries and the recoupment of higher education grants to local authorities on a proper basis, the obligation to fund An Post and Telecom Éireann pensions and the need to meet the unpaid interest accruing on small savings schemes. These are substantial financial obligations which must be met by the Government.

In the case of teachers' salaries and higher education grants, it was right to do so as there was no justification for continuing with the present system. The payments to the pension funds and the savings reserve fund are also justified. In most cases the Exchequer, like a commercial business, will only make payments to meet debts which arise immediately for payment but the obligations to these funds are not like that as the liability is real and at some stage in the future the costs will arise for payment. The difference is that, unlike most bills, payment is not immediately required. This makes no difference to the debt as it is still due for payment and the only question is timing.

If the Government were planning to make payments to cover debts which had not arisen or which would not arise for a number of years, the criticisms some Deputies made would be in order and I would have to agree with them but this is not what the Government is doing. There are only two options open to it. It can clear the debt to the An Post and Telecom Éireann pension funds and the small savings reserve fund over a number of years or it can sit back and wait until a much larger cost has to be met. Given the present fiscal position and long overdue need to address these questions, it is the right decision. All Members would accept that now is the time when there are funds available so that we do not have huge costs to meet in the years ahead. We should maintain a prudent approach when dealing with these matters.

Are those who criticise the Government seriously suggesting that it should wait until the bills must be paid? What the Government is doing is fully justified. The Exchequer is in a strong position thanks to the buoyant economy. It is wise to use these additional resources to clear some of the debts and to create room for manoeuvre in future. The next task for the Government is the presentation of the 1998 budget. All parties have shared the position in which we find ourselves today and realise that the prudent decisions which have been taken have led to the opportunities for us as a nation as we face into 1998.

The 1998 Abridged Estimates set out the main elements of the Government's spending plans for next year. The budget on 3 December will make some changes to these plans and will spell out the Government's fiscal policies for the coming year. Deputies can be certain the 1998 budget will continue the broad policy approach which has brought Ireland such economic success in recent years. The Government will ensure budgetary policy will continue to support sustainable growth, social development and taxation reform. This will be done within the guidelines to which it has committed itself in An Action Programme for the Millennium.

Deputy Noonan asked the Minister for Finance to spell out the Government's medium term budgetary policy so that the Dáil and the public can be aware of what approach the Government intends to adopt, particularly in light of economic and monetary union. The budget will do precisely this and the Minister will wait to deal with it next Wednesday. The first step towards the 1998 budget was taken with the publication of the Abridged Estimates on 12 November and the Estimates were within the limits set by the Government's programme. Next week's budget will also be seen to meet the commitment on spending and other important commitments which we presented in our programme.

Deputy Rabbitte asked for information on the Government's drug strategy. The Government is committed to the war against drugs and has made further progress in supporting the work of the local drugs task forces. In 1997, funding of £10 million is being made available and we have also repeated that allocation for the task forces in 1998. Arrangements for the establishment of a youth services development fund are receiving detailed consideration at official level. The proposals will then be examined by the Cabinet committee on social inclusion and drugs.

As Minister of State at the Office of Public Works, I wish to comment on the plan to provide new accommodation for the Houses of the Oireachtas on the former College of Art site, a plan which was recently approved by the Government. We are aware, as Members, of how limited and inadequate the facilities are in the Leinster House precinct. New demands are being placed on all of us, individually as representatives of our constituents and collectively as parliamentarians. These demands have increased the pressure on the space available within the House. Facilities are clearly no longer adequate for either Members, staff, press or visitors, particularly the public who want access to these important buildings.

For instance, the committee system has created demands for space and facilities for Members, press and the public which did not exist previously and they are set to increase in the years ahead. Members have also been acutely aware for many years of the shortage of adequate research and library facilities and, in particular, of suitable private meeting rooms in which to consult constituents and deputations.

In the light of all this, the Government has approved the Office of Public Works' development plans for Leinster House, which involve the provision of new accommodation on the former College of Art site. When it is completed, the new building will offer all the facilities one would expect to be available to a modern, democratic Parliament. It will be sufficiently flexible to provide for any new requirements which may arise in the foreseeable future.

It would be wrong for any Deputy to suggest that this Government's policy will favour one part of the country over another. All Deputies may be assured that Government policies emanating from Departments will ensure an equitable approach to job creation, etc.

Dáil Éireann díospóireacht - Wednesday, 26 Nov 1997