Jimmy Devins (Sligo-Leitrim, Fianna Fail)

I am delighted to have this opportunity to speak on the Bill. I congratulate the Minister on his first budget and on this empowering legislation. Budget day has always been one of the more important days in the life of Dáil Éireann. In many past instances, debate raged far into the night. However, it was remarkable that the debate on the last budget ended early in the evening because the Opposition had little to complain about and ran out of steam after a few hours. The following day, all commentators agreed that budget 2004 was remarkable. It was remarkable because it continued the policy of the Government of maintaining growth by keeping taxation levels at an all-time low.

The Minister for Finance was in the past Minister for Health and Children. The caring and compassion he showed in that Ministry is evident in this year's budget, in particular in regard to the money he provided to deal with disability, both intellectual and physical.

The Government is rightly committed to maintaining full employment while allowing people to take home increasing levels of money after tax is paid. However, it is also committed to looking after the less well-off in society. There are people who have not benefited from the economic boom and growth of the past six to seven years to the same extent that others have. It is the duty and responsibility of any government to ensure that all citizens benefit from a healthy economy. The Minister has, with this Bill, put in place the steps towards making sure that all, especially the less well-off, are looked after. In that regard, the provision of funding to make available an extra 230,000 new medical cards is welcome. These cards are due to come into force over the next couple of months and a large number of our constituents will welcome them. The huge increase in funding for the disability sector, allied to the coherent and co-ordinated approach across all six Departments that deal with disability, will result in a real and positive improvement to the lives of those who suffer from disability, be it intellectual, sensory or physical.

The contents of the Bill cover nearly 180 pages. In the limited time available to me I would like to refer to its most important aspects. With regard to the stamp duty reductions, I welcome the fact that the exempt threshold for first-time buyers of second-hand residential properties has been raised from €190,500 to €317,500. First-time buyers are starting out on the property ladder and the raising of the exemption threshold will open up a significant range of housing options to this group. I know of a considerable number of first-time buyers in the Sligo-Leitrim area who will benefit from this progressive move as the range and type of houses available to them without the extra burden of stamp duty will increase significantly.

I welcome the fact that somebody who switches from one credit card to another during the course of a financial year will not have to pay two stamp duties. The option of changing one's credit or laser card due to the availability of better rates in a different financial institution is one which should be available to all. However, up to now many people did not avail of this option because they were penalised by having to pay double stamp duty if they did so. The Minister recognised this anomaly and the change is a welcome one.

With regard to income tax, I welcome the provision that any payments made by the Health Service Executive to foster parents in respect of the care of foster children will in future be exempt from income tax. The provision of foster care is an area the former North Western Health Board promoted energetically. For parents to take on the care of a foster child is a huge responsibility and they are deserving of our respect and as much support as possible. From my former work as a general practitioner in Sligo, I know of many children who speak in glowing terms of the love, affection and support they received from their foster parents. Obviously, in an ideal world children would be with their natural parents but, unfortunately, for a variety of reasons this is not always possible. The option of fostering, either on a short-term or long-term basis, can help maintain the family unit which otherwise might be tipped into crisis.

Parents engage in fostering because of a deep and genuine sense of love and support. The financial aspect is not their main reason for doing so. However, they should not be penalised by added income tax for undertaking this civic duty. The recognition by the Minister of this civic commitment by removing any financial payment that foster parents receive from income tax is a progressive step which will be welcomed by foster parents.

I welcome the proposal whereby tax relief on third level educational establishments or facilities has been changed. Up to now, relief could only be obtained where the Minister had issued a certificate before 31 December 2004. This has now changed and an application made to the Minister before 31 December last will now be eligible for relief. There are third level educational establishments throughout Ireland, including universities and institutes of technology, which have wonderful plans for development. However, they were penalised under the old regime. This welcome change will allow these necessary developments to proceed and it should be a significant addition to any third level institution. In my constituency, the institute of technology in Sligo and St. Angela's College will consider this new regime progressively.

I welcome the decision to exempt from VAT any short-term letting for student accommodation. This is in accordance with the sixth VAT directive of the EU and it should ensure an increased supply of rental accommodation for students attending third level. Every year, students and their parents must go through the long and painstaking process of looking for rental accommodation during the months of September and October. This measure will ensure an increase in the supply of such accommodation and thereby make for a more satisfactory overall solution.

I wish to refer to the removal of all those on the minimum wage from the tax net. This is welcome and again confirms the Government's commitment to those who are less well-off. For the first time ever in the State, a person earning the minimum wage will not have to pay income tax.

The Bill will provide a legislative basis for the dramatic and far-reaching changes announced on budget day. I congratulate the Minister on his first budget and I know my sentiments are shared by the public.

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