Mattie McGrath (Tipperary South, Fianna Fail)

I am delighted to address the House on budget 2008. I compliment the Minister, Deputy Cowen, and his officials for the manner in which they produced this prudent document. The Minister has availed of the opportunity to be fiscally responsible and to react to the changes to the economy since last year's budget. The management of the national debt is most responsible. It has been kept to approximately 25% of GDP, which is one of the lowest in the developed world. The national development plan is an ambitious programme for investment in the future. The top priority is for our continued economic and social development. This budget continues to implement the national development plan, providing important infrastructure in transport, education, housing, environmental services and health. We are investing in building up our skills and enhancing our competitiveness internationally.

The budget also prioritises the environment through a range of measures on VRT, motor tax, VAT changes, energy conservation and research, and carbon reduction measures.

I welcome the proposals supporting home ownership. The ceiling on mortgage interest relief has increased for first-time buyers to €10,000 for a single person and €20,000 for a married couple. Stamp duty on residential property has been revised so that the first €125,000 is exempt. The above measures are very important and will help to kick-start the important house building industry.

I especially welcome the broad range of improvements in social welfare. The increase on last year's budget will cost €980 million in a full year. This means social welfare expenditure in 2008 will be more than triple the level set by the Labour and Fine Gael parties when they were last in Government. Furthermore, as a result of the changes made in budget 2002, all social welfare weekly increases will be paid with effect from 1 January 2008, which is most important. As a result, increases for those dependent on social welfare are payable more than five months earlier than was the case heretofore.

Other key positives in the budget include increases in the carer's allowance, carer's benefit and death benefit and pension increases of €14 per week. This has been warmly welcomed in my constituency of south Tipperary. I spoke to many pensioners who receive pensions from abroad and they are envious of the rates of pension available here.

The respite care grant has been increased by €200 from June 2008. Minimum maternity benefit and adoptive benefit rates have been increased to €221. FÁS payments have been increased in line with social welfare. This is important as people employed on such schemes do valuable work and it is vital that we reward them.

Family income supplement income thresholds will increase by €10 per week, which will improve the situation for large families. I referred to old age pensions. We are honouring our election promise in 2002 to bring the pension to €200 per week. Prior to the 2007 election we pledged to increase pensions to €300 over the lifetime of this Government and we are well on the way with the increases given this year. I warmly applaud the Minister, Deputy Cowen, and his officials. I fully support the measures taken in this budget.

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