Charlie O'Connor (Dublin South West, Fianna Fail)

Before the break I spoke about the efforts of the Minister, Deputy Cowen. I praised his efforts 70 days ago in introducing the budget, which was well received on all sides. I want to examine the list of positive measures in the Bill. First, it removes completely a significant number of people from the tax net. It confirms a cut in stamp duty for first-time buyers of second-hand houses, thereby helping new buyers to become property owners. Members will be aware that this measure has been well received throughout the country, including in my constituency of Dublin South-West. On the one hand, the Bill gives greater powers to Revenue in pursuing major tax evaders while closing off a series of tax avoidance schemes and, on the other, for those compliant taxpayers, who form a majority of our citizens, it amends or extends a significant number of tax reliefs in areas such as pensions, foster care, farming and international financial services activities.

The Bill delivers on the core promises contained in the Fianna Fáil-Progressive Democrats Government's economic policy, but it gets better. Not only does it remove people entirely from the tax net and give significant benefits to all taxpayers, but the increased revenue provided under the Bill ensures that the Minister can make provision for greater public spending in vital areas such as health, social welfare and education. This is not a conjuring trick, but the result of increased tax revenue because of increased economic growth and a significant clampdown on tax evaders and tax avoidance.

The Minister can announce that we have one of the lowest rates of unemployment and one of the lowest rates of inflation in the European Union and that our rate of public debt to GDP is at an all-time low. Not only is it a balanced budget, but we can put aside savings for further contingencies such as pensions. Most of the Bill is of a highly technical nature, and I will discuss it section by section. However, I acknowledge that I am relying for my comments to a great extent on the Bill's explanatory memorandum.

The Bill could only have been framed against a background of a highly successful economy, and most of it is good news piled on good news. That is why I particularly wish to lend my support to the remarks made by the Minister, Deputy Cowen, about increased Government spending. This is not a question of simply letting the good times roll, rather it is one of recognising that these are good times but that they may not last forever and, therefore, we must ensure that we make the best of them. It has often been remarked in the past that a rising tide lifts all boats. Seán Lemass often made that point, and it is true. One of his successors, the Taoiseach, Deputy Bertie Ahern, has reminded us time and again of social inclusion ideals and the need to ensure that a rising tide can also set some boats adrift if they are not properly anchored, which is something to which we must give attention. Now that our economy is in good shape, we must ensure that we spend the benefits of our success wisely and build for a future where circumstances may not be so favourable.

We cannot expect the Minister for Finance to continue to come into this House every year with such a favourable package as that presented by the Minister, Deputy Cowen. Now that we have the chance, we should build for the future. This is particularly true in those vital service areas identified by the Minister, those of health, social welfare and education. These are not areas in which we can solve all the problems presented simply by spending money at them. I know from my experience of being a member of a health board from 1994 that health in particular is an area where increased expenditure takes time to deliver improved services. We must be patient as well as prudent and not squander the benefits of our new-found prosperity.

I endorse the policy of increased spending in these and other important areas. Improving services in the health and education is not the same as buying new helicopters for the rescue services or building new roads and bridges. We must identify the areas where spending increases can be directed to ensure that when economic circumstances become less favourable, as is inevitable, we have put the structures in place to ensure a continuity of improved services.

I do not propose to join the prophets of doom, of whom we have plenty, but exceptional economic performance must be acknowledged for what it is. It is sound policy to prepare for more normal times without being negative. We have not got where we are today by accident but by sound economic management such as is contained in this Bill. I look forward to the continuance of our economic management under the Minister, Deputy Cowen.

In presenting this Bill to the House, the Minister must be the envy of all his colleagues in Europe. While we acknowledge that these economic circumstances cannot last forever, let us accept them while they exist. In drafting this Bill, the Minister has been well served by his Department. In presenting it to this House, we have all been well served by the Minister. For a variety of reasons, I am happy to endorse the Minister's request that this Bill be read a Second Time and I look forward to voting in support of that.

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