Noel Dempsey (Meath, Fianna Fail)

Like Deputy McDowell, I was first elected to the House in 1987, for which reason alone that year's election sticks in my mind. It sticks in my mind for other reasons too. The Minister, Deputy McDowell, clearly described the economic situation in the country, with economic parameters based on inflation and employment levels etc. During the 1987 election campaign no house in the constituency we called to was without an unemployed person or a member of the household who had emigrated, or a combination of both. Within 12 months of being elected, I had a four-drawer filing cabinet full of CVs from people seeking employment. Some 40,000 to 50,000 left our shores every year because of the economic situation.

I believe I made my maiden speech during the budget debate. I had come across a letter in the sadly now defunct and out of circulation The Irish Press written from Boston by a young man from Kilkenny. The letter he wrote castigated politicians of all parties for the fact he was in Boston where he did not want to be. He wanted to be working at home and to bring up a family here. However, he could not do so because, he said, of the failure of successive generations of Irish politicians. I said that day in the House that I hoped that as long as I was in politics I would never need to see a letter written by an Irish person living abroad castigating politicians. As a new Deputy, I pledged myself to try to ensure I would make decisions that I felt were in the best interests of the country rather than based on political expediency.

In a sense in the past 20 years that is what successive Governments have done, mainly involving Fianna Fáil, but also other parties. I have given credit to the two Governments between 1987 and 1992, the Fianna Fáil and Progressive Democrats Government from 1989 to 1992 and the Fianna Fáil Government from 1987 to 1989. I also gave credit to former Deputy Alan Dukes who was Leader of the Opposition at the time and instituted the Tallaght strategy which helped the then Government to make decisions that might not have been made previously. In many respects this is a very happy day for Members on all sides of the House, although they might not admit it. We are debating how we should spend the huge sums of money generated by the people's work and facilitated by successful Government policies.

As the Minister with responsibility for communications, the marine and natural resources, I wish to focus on the energy element of my brief as it pertains to the budget. The budget has confirmed and demonstrated the Government's commitment to a clean, clever and competitive energy sector. It clearly demonstrates our support for the concept that better energy efficiency and demand management initiatives pay significant dividends for citizens. The allocation of an additional €20 million under the greener homes domestic grants scheme almost doubles the funding provided last year for the programme. Funding of €47 million is now available for greener homes. This represents a clear recognition by the Government of the enthusiasm with which the public has embraced the programme. Since March almost 10,000 applications have been received for grant aid toward the purchase of wood pellet boilers and stoves, solar panels and heat pumps. The level of interest in the scheme has been very encouraging and a strong endorsement of the Government's policy to increase the deployment of renewable energy sources across all sectors of the economy.

Building on this policy and to ensure every individual, group or business can access cheaper and cleaner energy, we are also extending the €22 million bio-heat programme which I launched last June. Our focus so far has been on wood pellet and wood chip heating systems for the commercial sector. An additional €4 million will now be provided for the programme in the period to 2008, allowing us to widen its scope and increase the choice and flexibility in the technologies best suited to people's needs. Critically, we will now include the non-commercial sector in the grants programme.

Clearly, those who play an active and positive role in shaping the society in which we live must be encouraged and rewarded for their efforts. In particular, those who do so on a voluntary basis need to be recognised. Following the budget, the community, sports and voluntary sector which makes a very significant contribution to all of our lives will now be able to avail of the scheme. These initiatives, including bio-heat, biofuel, the greener homes grant scheme, etc. are helping to reduce our dependence on conventional fossil fuels, lowering CO2 emissions and will assist business, householders and community and voluntary groups in accessing cheaper and cleaner fuels. The new measures build on last year's budget package of €65 million over five years for renewable energy initiatives by providing an additional €24 million in funding.

The Minister for Finance also announced his intention to continue the corporation tax incentive for investment in renewable energy projects for a further five years, subject to EU approval. This practical and successful scheme provides tax relief for corporate investment in renewable energy products in the solar, wind, hydro or biomass technology categories and will be very important in the future. By extending the length and capacity of existing schemes, including new technologies and increasing access to funding, we will reap many benefits by reducing CO2 emissions; cutting energy costs; contributing to security of energy supply by diversifying the energy technologies and sources; and contributing to the development of a vibrant renewable energy sector. These measures are engaging all members of society in the debate on a cleaner greener society.

We are broadening the scope of and changing people's attitudes and behaviour, an example of which is the recently launched Power of One campaign which aims to encourage a reduction in energy demand. The budget further emphasised the importance of energy efficiency, with an additional €3 million provided for Sustainable Energy Ireland to develop pilot programmes to support small and medium enterprises. These will allow for the introduction of energy audits in the sector. They will assess SME energy usage and measures to enhance energy efficiency. The impact of the pilot scheme will be reviewed during 2007. It will assist SME energy usage and increase energy efficiency in the sector generally.

Despite the criticism from some Members across the floor, the budget introduces a number of measures to support the agriculture sector in growing and harvesting energy crops. It is critical that all elements of the supply chain are in place if we are to develop a robust renewable energy market that meets the needs of consumers and industry and supports the rural economy. This is another piece in the jigsaw of developing renewable energy initiatives.

The ministerial task force on bio-energy comprises seven Ministers from key Departments involved in the development of renewable energy resources. As part of the work of the task force, I intend to publish a national biomass action plan shortly. Some of the measures in the budget which I welcome anticipate that plan.

The announcements in respect of vehicle registration and motor tax will help to deliver further projects in the bio-fuels area. Deputy Naughten referred to a range of items not announced yesterday in the Budget Statement. It is clear the Deputy has been reading my Department's Green Paper because all of the matters he raised, about which he wanted the Minister for Finance to speak in connection with the budget, are covered therein. They will be finalised in the White Paper we intend to publish early in the new year.

The Government's energy policy is designed to ensure Ireland can develop sustainable sources of energy, increase its energy efficiency and improve the security of its energy supply. An area of importance in the context of energy is that of research and development, on which the Government is focused.

The budget reflects what the Government has done during the past nine years. Yesterday, we again underlined our commitment to an inclusive society. The record social welfare package of €1.4 billion is a demonstration of our commitment to the less well-off in society. The Government had committed to increase the old age pension to at least €200 per week and in the budget we have more than delivered on that commitment. We are doing this by increasing the non-contributory pension by €18 to €200 per week. In addition, those in receipt of contributory old age pensions will receive €209 per week.

The Government is listening and taking on board what it hears. The budget is not just about building for the future through responsible fiscal policies and ambitious investment programmes which are important, it also revolves around dealing with the needs of the individual and those issues people face on a daily basis. We have set about addressing these issues in four main ways: first, as the Tánaiste stated, we have completed a transition to a more equitable tax and welfare system; second, the budget maintains and deepens our strategy to reward work and enterprise; third, it provides real support for families with particular needs at critical stages of the life cycle to improve the lives of all the people; and, fourth, it provides incentives to deepen our competitiveness on a sustainable basis.

The Government's achievements during the past five years and the partnership's achievements during the past ten have set a sound basis for the future. I am confident that the direction set out in the budget will provide a cohesive basis on which to positively shape the future of the country.

See this speech in context