Seán Ardagh (Dublin South Central, Fianna Fail)

I am delighted to contribute to the debate on the budget and on this financial resolution. This budget is a positive demonstration of the competence and management ability of the Government under the stewardship of the Taoiseach, Deputy Bertie Ahern, and the Tánaiste and Minister for Finance, Deputy Brian Cowen.

The world and his wife knows these are challenging times, particularly in areas of climate change, the cost of energy and interest rates, all of which are outside our immediate control, yet in a masterful and calming way the Minister has addressed these issues as well as the national economic and budgetary matters that affect us all. It is generally accepted that the 2008 Budget Statement is crafted in a masterful way as befits the reputation of the Tánaiste. It has been very well received by the majority of the population, mainly because it addresses so well the issues in the minds of citizens. The Tánaiste has previously said in debate not too long ago that the Government represents the citizens, not the vested interests. The 2008 budget is a financial plan as a result of which the country and its citizens will benefit, not only in 2008 but in the years ahead.

There is no doubt that the major item of discussion and importance in the budget is the fundamental change in the stamp duty regime on residential property. Looking at the various media reports on television and radio and in the press, there has been an excellent response from all the stakeholders, from the sellers and buyers of houses and from agents and financiers. I look forward to all these stakeholders engaging in a very active housing market that I hope will re-emerge in the not too distant future.

The elderly have been particularly well looked after again. The term "qualified adult allowance" is near the end of its useful life, and not before time. It is hoped that next year it will be gone and that every person — this applies in particular to women — will be entitled to their pension in their own right, not because they are the spouse of another person. People, men and women, will receive a pension because they are over the age of 65 years.

In regard to the budget, it has always been the mantra of the Government that we must maintain and sustain the economy to continue in the direction it is going and not do anything that would in any way put it off track. In regard to the changes in income tax this year, the Tánaiste, in ensuring that the various increases, the widening of the tax bands and the increase in personal credits are in line with inflation, has done what is required and necessary in this economy, particularly when there are items outside our control which could influence matters.

The Tánaiste has always shown particular care and concern for the disabled. In that regard the exemption for the incapacitated child, which has increased from €3,000 to €3,660 is welcome. In the area of interest rates, we have no direct ability to change or differentiate in regard to what is charged. That is now largely a matter for the European Central Bank. I am delighted that the Minister for Finance has substantially increased interest relief for first-time buyers by 25% from €8,000 to €10,000 for single people and from €16,000 to €20,000 for married people. It is not difficult to see the necessity for this, given that €20,000 is practically equivalent to €2,000 per month for a mortgage repayment in respect of interest alone, and that is not uncommon today.

The tax allowance in respect of rent paid by certain tenants has not been taken up to the extent it could be. More publicity is needed so that more people will take up the allowance they can get in respect of the rent they pay. The rent a room scheme is particularly attractive now in that the threshold has been increased from €7,500 to €10,000. I am particularly interested in publicising the rent a room scheme because in the constituency I represent, Dublin South Central, there are a number of areas where a significant number of elderly people live on their own in three or four bedroom houses with large gardens. Many of these people would benefit greatly by having a lone parent and their children or some other people living in the house with them. There is a possibility for the owner of a house to accrue rent of up to €10,000. Many people want to live on their own and have no desire to have other people living with them. However, for many senior citizens who are living alone there is an option that should be publicised, which could be made attractive. It could be suggested by both the HSE and citizens information centres to try to generate more housing of this type for people who need it and at the same time benefit senior citizens. I am also delighted that citizens information centres are getting more finance in this budget to enable them to give more information to citizens on an ongoing basis.

The question of VAT registration thresholds for small and medium enterprises has been increased by a very small amount, from €35,000 to €37,500 for services and €70,000 to €75,000 for supplies. In the UK the figure at the bottom level for supplies and for services is well in excess of €100,000. I cannot see why we do not have similar figures for that here.

There are two items I want to mention before I finish, one of which is the differentiation between non-contributory pension, contributory pension, disability payments and deserted wife's allowance. By 2017 we should aim to have one State payment of €400 for all these people, which would be sufficient to cover all their needs. This would reduce the bureaucracy in regard to State payments. We are moving towards a citizenry-type of republic and if a citizen earns income he or she should pay towards that whereas if one does not earn an income one cannot do that. I am delighted to have contributed to this debate.

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