Michael Finneran (Longford-Roscommon, Fianna Fail)

I compliment the Minister for Finance on this Bill and on the recent budget in which he addresses many issues affecting everyday lives. The elderly, the disadvantaged, those with disabilities, parents of children, all are to receive their fair share of the national cake.

The taxation proposals leave citizens with one of the lowest tax demands in the European Union. Those on the minimum wage are excluded from the income tax net altogether. At the same time, business and enterprise is encouraged and supported in the national interest. Major capital investments are being made in schools, hospitals, housing, road and rail and in the general infrastructure.

Farmers and farming families are afforded less attention in a modern, affluent Ireland. My constituency of Roscommon-South Leitrim contains approximately 10,000 farmers. They contribute greatly to the local economy, not alone in production but also in the high level of employment created through the food processing industry in both counties.

The Finance Bill demonstrates a clear commitment to farmers and to young farmers, in particular. I compliment the Minister for Finance for his initiative in this area. The changes made by the Bill will see tax exemptions in place for long-term land leasing which will encourage more young farmers to involve themselves in the industry as more land will become available to them on a long-term leasing basis. The Bill is a real shot in the arm for young farmers as it includes the single farm payment element for tax exemption purposes. This should produce a knock-on effect by encouraging farmers to lease part of their lands to young farmers. It is a progressive move which highlights this Fianna Fáil-led Government's commitment to the sector, its future and young farmers.

The Finance Bill and the budget will enable young farmers to save almost €60 million over a three-year period of exemption from stamp duty. This is a significant initiative for young farmers. The measure allows young farmers to expand their farms without incurring stamp duty tax which in some cases could amount to thousands of euro. Young farmers will be allowed full stamp duty relief on entitlements, transfer or purchase of land, with a measure worth more than €2 million in a full year.

Stamp duty measures are part of a generous package of farm-specific measures worth more than €24 million which were announced in the budget last December. This will help farmers consolidate their holdings and meet new challenges in the global market place.

The 2006 budget has made significant improvements to the rental income exemption available to land owners who lease out farm land for five or more years. The income tax exemption for leases of five to seven years has been increased from €7,500 to €12,000 with an increase from €10,000 to €15,000 for leases of more than seven years. These measures will optimise land use and encourage high productivity on agricultural soil.

From the beginning of 2006, the qualified adult rate for farm assist will increase from €148.80 to €165.80. This will directly benefit the 8,020 farm families in receipt of farm assist payments. In addition, the payment rates for the rural social scheme will be increased in line with social welfare rates. I commend the Bill to the House.

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