Joan Burton (Dublin West, Labour)

It is a pollute now, pay later policy. It is environmentally irresponsible nationally and internationally. Why should a rich country like Ireland add to the problem of global warming by increasing greenhouse gas emissions and leave the bill for future generations to pay? That is irresponsible politics and would be addressed by an alternative Government.

I am surprised that simple things have not been done, such as rigorous energy standards in the construction industry and major products under the national plan to be carbon-proofed. Large-scale schemes are needed to convert existing buildings to meet energy efficiency standards. Generous grant schemes to insulate the houses of older people would be beneficial and would keep them out of nursing homes such as Leas Cross. The ways to ensure an older person does not end up in a nursing home are sufficient income, a warm, dry house and mobility aid.

I commend the Minister for one part of the education section of the budget, the commitment to the so-called fourth level, investment in research and development through higher education institutes and universities. This will reap dividends if properly spent and will generate a culture of innovation and enterprise.

The Minister is less sure-footed in his approach to policy and investment at the other end of the educational spectrum, the early childhood years. Policy is woefully inadequate and confused but the evidence of its importance is overwhelming. This can be examined in respect of economic returns aside from social considerations. The National Competitiveness Council returns to this theme in many reports, citing evidence from high performing economies of the valuable role early childhood education plays in securing the best results at later stages.

The 1% reduction in the income tax rate is estimated at €228 million for one year. This figure could start a pre-school education system. The Minister chose to give it to top earners. It would have been better spent on our children to create proper pre-school education. On education, we are as far from Boston as from Berlin. It is not a question of low taxes or better public services. Low taxes are sustained by economic growth when one invests in education at every level.

The Minister emphasised prosperity and economic growth but the secret enemy of continued prosperity is inflation. No amount of heroic cheers can distract from the real dangers of high levels of inflation. For years we accepted a high level of inflation because of stealth taxes and charges generated by the Government, with little regard for long-term consequences. We can no longer pretend there is no downside. The Minister does not wish to refer to it but this week, as with every week, the country faces a record number of job losses. Factories are closing around the country. Workers at the gates of Leinster House today were from Castlemahon and lost out to cheap imports and cheaper labour thousands of miles away. As Fianna Fáil celebrates the budget in robust fashion, there are anxious meetings around family tables about what to do now that the spectre of redundancy is looming. If one is over 45 years of age, it is difficult to get a replacement job.

The smallest part of the budget speech was reserved for decentralisation. We could hardly read it. It is, at most, a long paragraph. If decentralisation was correctly managed, as was done by Labour in coalition with Fianna Fáil and in the rainbow coalition, more people would now be working in decentralised locations than is the case due to the political stroke Charlie McCreevy pulled here three years ago.

See this speech in context