Joe Carey (Clare, Fine Gael)

I welcome this opportunity to speak on the first budget since I became a Member of this House.

I am deeply disturbed that this Government sees fit to borrow €5 billion in the face of a modest slow down in the economy because this sets a mark of things to come from this supposedly new Green Government. It is alarming that the Minister for Finance has overseen such a plunge in the public finances from a €2.3 billion Exchequer surplus in 2006 to a €4.9 billion borrowing requirement in 2008.

In years to come, if this borrowing continues, we will be back to where we were, in debt up to our eyes with nothing to show for it but a wasted opportunity. The Minister for Finance blamed global markets for the slowdown in this country. The Minister and the Government have allowed the economy to rely too much on the building sector. That was fine while there was confidence in the housing market but now we are feeling the pain as tax receipts have plummeted because of the loss in confidence and the Government stood idly by.

I welcome the reform in stamp duty, but why has it taken so long for the Government to realise that change was necessary? Rising interest rates and building inflation suggest the Minister has missed the boat. I hope this will stimulate the housing market but I have reservations.

This summer the economic future of the mid west and County Clare was plunged into great uncertainty when Aer Lingus announced its withdrawal from the Shannon-Heathrow service. The fall-out from this nonsensical decision will have far-reaching implications for the business and tourism interests in the mid west. The Government holds 25.4% of the shares in Aer Lingus to protect the country's strategic interests. It could intervene in this decision but refuses to do so. The Minister for Transport continues to ignore these facts and I urge him to meet with the British authorities to discuss this and agree to designate the Shannon-Heathrow service as a public service obligation, PSO, route. This option remains open to the Minister but to judge by replies I have received to parliamentary questions he and his officials are not giving it a fair deal. It would restore connectivity to the mid west.

Prior to this year's general election the former Minister for Transport stated that a large package would be put in place for Shannon in response to the publication of the tourism and economic development plan published by the Mid West Regional Authority. I am disgusted that the new Minister for Transport, Deputy Noel Dempsey, and the Government seem to be reneging on this promise as there is no provision for it in this budget.

The Government has lost significant support in the mid-west because of its inaction on the Shannon-Heathrow issue. Budget 2008 provided a great opportunity to regain some of this support but instead the Government is breaking another promise by not delivering the €53 million package to Shannon. This package could help Shannon Airport to secure 30% of the direct transatlantic market and provide a vital leg-up to the Shannon region in an open skies era. It is incredible that the Minister and officials from the Department of Transport who had an input into the formulation of the plan are ignoring it. I can see no provision in the budget for movement on the rail link to Shannon Airport. Every modern functioning airport in the Western world has access to rail except those in Ireland. I ask the Minister to prioritise the delivery of the rail link to Shannon Airport in the interest of the region.

This budget does not go far enough in provision for education. There will be no action next year to reduce class size. This is a clear breach of the agenda set out in the programme for Government. It is not acceptable that students continue to be educated in overcrowded classrooms. The Government's record on this issue is damning. This budget provided it with an opportunity to address class size and it failed.

I urge the Minister for Education and Science to announce in early January what projects will go ahead next year because so many schools are held up waiting for this announcement.

I am most disappointed that the Minister for Finance did not announce any reform of the medical card. It is clear the thresholds need to be dramatically increased.

As Fine Gael spokesperson on juvenile justice I am disappointed with the reduction of €5 million in the capital budget for the youth justice service. While I acknowledge that much work has been done recently to establish the service one of the shortcomings in the system is the need for capital improvements. The capital spend in this area is designed to provide for the physical development of the service which cannot happen without the proper funding. The youth justice service works with children and deals with the consequences of their being in trouble with the law. It focuses on rehabilitation and, only as a last resort, detention. This system could provide many young people with a lifeline which would keep them out of the revolving door justice system and give them a chance to lead a crime free life. It is a disgrace that the Government has not taken this opportunity to help young people in trouble and in the long term reduce crime rates.

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