Brian Cowen (Laois-Offaly, Fianna Fail)

I am beginning by halving the excise rate on kerosene and LPG used for home heating from midnight tonight. This measure will cost €46 million in a full year.

Betting tax

Earlier this year I initiated a review of betting duty. One of my prime concerns is how to protect the revenue base on a fair basis in view of the prevalence of effective tax-free betting on the Internet. With this in view, I am announcing today a reduction of betting duty from 2% to 1% from 1 July next with the intention that this duty will be borne by the industry and not the customer. This should ensure that tax-free betting is available in all betting offices and prevent betting offices competing on the basis of tax, sometimes to the detriment of small, locally-owned concerns. This reduction will cost up to €25 million in a full year but it is my intention to examine the potential for widening the tax base on which this 1% applies in the future.

In making this reduction, I am seeking to protect the betting tax base in the State and to secure at least some revenue by levying the duty on the bookmaker and not on the customer.

Securing our environment and our heritage

Farming tax

Farming is an integral part of this country's heritage. However it faces a significant challenge over the next few years for a variety of reasons. On the world scene, in the context of the ongoing WTO talks, there are pressures to reduce certain supports for agriculture and to throw open markets for agricultural produce to a greater extent, particularly those of the EU and the US.

On the other hand, there are opportunities too, particularly where land can be used in a sustainable and environmentally friendly way. I will be giving details in a moment of new incentives for the promotion of biofuels which offer not only a new opportunity for farmers, but environmental and economic benefits for the whole community.

Farming will continue to be one of the lynchpins of the economic, social and cultural life of this country, and I will ensure that policies that support farmer enterprise and good business practice will be maintained. The five-year investment framework I am announcing today includes over €1 billion to support on-farm investment, including forestry.

The Minister for Agriculture and Food and I agree there is a clear need for us to provide additional assistance to farmers, and particularly younger farmers, to help them adjust to the major changes that will take place. With this in view, I am proposing a package of significant tax reliefs for the farming community. These include the continuation of the stamp duty exemption for young trained farmers for a further three years, a significant increase in the tax exemption limits for income from farm leasing for over five years, an improvement in the farm pollution control relief and an extension of certain existing capital acquisitions tax, capital gains tax and stamp duty reliefs to cover the EU single farm payment entitlement in appropriate circumstances. Full details are set out in the summary of budget measures.

Alternative energy sources

Government concerns about the environment, our obligations under the Kyoto Protocol, the present level of oil prices and concerns about security of energy supplies over the medium to long term all suggest that Ireland should take further measures to support the provision of environmentally friendly energy alternatives and put in place structures to support this policy.

My budget today builds on the measures already in place to support the provision of alternative sources of energy, through the establishment of a carbon fund, further support for biofuels, flexible-fuel cars and renewable energy.

Carbon emissions

The Government is conscious that climate change is one of the most challenging environmental issues facing this and future generations.

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