Dinny McGinley (Donegal South West, Fine Gael)

Like my colleague, Deputy Connaughton, I have witnessed many Budget Statements in the House. Some were good, some bad and some mediocre. It is difficult to state into what category this budget fits.

There has been a dramatic change between last year's circumstances and Wednesday's. Last year, the Exchequer had a surplus of almost €5 billion but this year it has a deficit of €2 billion. A problem was created somewhere along the line. No matter what spin is put on it, the Government must accept responsibility for this development.

The spin doctors did a great job for once when they primed the country to expect the hardest hairshirt budget in memory. It turned out otherwise because the Tánaiste and Minister for Finance failed to face up to the realities of the situation.

This year, €5 billion will be borrowed for capital purposes. We cannot quibble with this as infrastructural development must be brought up to average European levels if we wish to be competitive economically and to hold on to jobs. I am long enough in the House, however, to recall how it could lead to a slippery slope in borrowing. I hope we do not fall into a cycle of borrowing for every budget until we reach the similar situation reached some years ago when all income taxes went to service the national debt. We will never allow Fianna Fáil to get away with that.

Up to €21 million has been set aside for the decommissioning of the whitefish fleet. Some years ago, a similar scheme was announced but with a €59 million package. Some €59 million to €21 million is a drastic reduction.

There is an undertaking to amend the tax code to assist and maximise the take-up of the decommissioning payment. I have nothing against that as it happens in other lines of business. A laid-off factory worker's redundancy payment will be tax free. This year when drift net fishing was terminated and salmon fishermen were no longer allowed to pursue their traditional methods of fishing, their compensation package was not as generous as the whitefish fleet one and was liable for tax. Why can the same tax code applied to the whitefish fleet not be applied to the salmon fishermen? The Minister of State in his previous post will be familiar with this and I ask him to bring it to the attention of the Minister.

The Green Party's fingerprints are all over the proposals on vehicle registration tax, VRT. All parties are in favour of this. While it does not belong to one party, I accept the Green Party led the way. It is well known that many people purchase new vehicles in the first six months of the year. Many have already done their deals and will collect their new vehicles in the first fortnight in January. One man I know will be buying a Renault Laguna, the VRT on which will be reduced next July from 25% to 16%, a saving of €2,000. Since he already has the deal concluded for January, he will lose that saving. It is not fair that he is penalised. Can the new VRT regime be introduced in January? Failing that, can a refund can be organised for those affected when the new regime comes into effect in July?

Whatever is claimed about the schools building programme, a new stealth tax, water charges, will be imposed on every school in the new year. I am a former school principal and have been in touch with many schools in the Donegal South-West constituency on this matter. This year schools will have paid €336 for water but next year, when they are metered, it could rise to thousands of euro. These are schools where the boards of management, principals and teachers are engaged daily in raising money to keep their schools going. These new charges will put an intolerable burden on them. Will the Ministers for the Environment, Heritage and Local Government and Education and Science examine this issue?

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