P J Sheehan (Cork South West, Fine Gael)

The onus is now on me to try to impress on the Government the necessity to act before it is too late. I hope the Minister for Finance will consider that where joint ownership of family farms is dissolved and jointly-owned assets are divided, no charge from capital gains tax should be applied. In other words, the roll-over relief abolished in 2002 should be reintroduced.

I trust the Minister will bear in mind that all taxpayers should benefit equally from increases in personal tax credits in the forthcoming budget. Farmers and other self-employed taxpayers have been denied significant increases in personal tax credits available to employees and others whose income goes through the PAYE system. Everybody should be treated equally.

I hope the Minister will consider a substantial increase in stamp duty rate bands for farm land to take account of inflation in values over the past five years. I trust he will consider legislating for no capital gains tax to arise from the disposal of farm land to a local authority for road building or road-widening purposes, provided the proceeds or compensation are reinvested in farm business assets.

I hope that where an individual exceeds the threshold mainly from income from harvesting of forestry, which may exceed €250,000 in a particular year, he or she would be exempt from tax relief restrictions introduced in the 2006 budget up to the €250,000 limit. Anything over this limit in relief should not be taxed as forestry farms, such as those with conifer plantings, take 40 years to mature. The sum of €250,000 divided over 40 years leaves a pittance that should not be taxed by any responsible Minister for Finance.

The living alone allowance should be increased to €16 per person, as it is now only €7.70. It has remained at that point for a number of years, a pure pittance compared to today's cost of living. Fuel allowances for old-age pensioners should also be increased to meet the steep increase in the price of fuel. Small business people trying to survive in small towns and rural areas should receive a 50% increase in rate allowances applicable to rates on premises, in view of the serious decline in incomes brought about by lack of business.

I need not remind the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, that every second rural pub in the south west is closing because of a lack of business. Small shops in the towns and villages throughout south-west Cork are closing because they are being squeezed out by multiples which have opened in centres 25 or 30 miles away. Their normal customer is leaving them behind. Unless the Minister takes a bold step and addresses the serious situation evident in rural Ireland, we will be heading down the road to a collapse in rural life. It is sad to think people are being deprived of living where they were born and bred due to a lack of consideration from Government officials and Departments.

How long can small business people exist when they are forced by county councils to pay for water in and water out? This has never happened before, even going back to penal times. The Minister for Finance should think of the issues I have outlined to him this evening when compiling his budget for the first week of December.

I do not know if the Celtic tiger is healthy at the moment.

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