Kieran O'Donnell (Limerick East, Fine Gael)

Many of the flights out of Dublin Airport will only be taxed by €2. The only route on which the €10 tax will not apply to Shannon is the Dublin one. The Government bailed out of the Aer Lingus Shannon-Heathrow route and soon no Aer Lingus cabin crew will be based at the airport. A punitive €10 charge is being imposed on every passenger leaving Shannon Airport. This must be reversed. I put that to the Minister for Defence, Deputy Willie O'Dea, the only Minister in the mid-west. He informed me the Minister for Finance would consider it until March. However, I want the decision reversed with immediate effect.

The Budget Statement did not refer to urban regeneration projects for Limerick city when they got great mention last year. The Minister of State with responsibility for housing, Deputy Finneran, is present and we need a commitment on this matter. The people of Limerick were promised regeneration would be delivered . It must be honoured by the Government. We were informed the Minister for the Environment, Heritage and Local Government, Deputy Gormley, will reaffirm the Government's commitment to the project and outline details on the level of funding and when it will be forthcoming. The project is vital to the revitalisation of Limerick and those living in the proposed regeneration areas. If it is not delivered, it will be a disaster for Limerick and the region. I look forward to hearing what the Minister, Deputy Gormley, has to say about regeneration.

The Government is forever asking what Fine Gael would have done in this budget. We have produced not one, but two policy documents, Recovery Through Reform, published last July, and our budget details last week. We said we would not raise taxes. The Government has done the opposite. We said we would conduct proper public sector reform and cut €1.8 billion from current expenditure. The measures would be very straightforward. There would be a cut in public sector pay for those earning over €50,000 and a ban on all recruitment, apart from frontline services. We wanted reform of the drugs scheme to be based on generic drugs. We wanted €1.5 billion to be sought from the banks for the State guarantee scheme. The budget contained no mention of what charges will be imposed on the banks for the guarantees, yet it is based on taxpayers' money.

The Government is cutting back on the national development plan. Fine Gael proposed to take €1 billion from the National Pensions Reserve Fund to keep the national development plan on course. We proposed a carbon levy on electricity generators to raise €300 million. At least the Government took on board our proposal on capping pension relief, which we welcome.

We proposed putting aside €150 million for benefits for the vulnerable. However, mortgage interest relief is being reduced for people not in their first homes from 20% to 15%. I note no measures to assist people in trouble with mortgage repayments. Fine Gael proposed to set aside €15 million to help people through community welfare officers and MABS to get relief with mortgage repayments. The Government increased the winter fuel allowance by 28% but we believed it should go up by 50% and proposed to set aside €65 million for it as heating fuel costs have risen by 78%.

There is nothing in the budget to deal with the unemployed. Currently, one must be 12 months unemployed and in receipt of jobseeker's allowance to qualify for the back to education allowance. We proposed that this time constraint be done away with for those in receipt of the benefit and the lower paid earning less than €12 per hour. Fine Gael's measures are practical, could stimulate the economy, would not raise taxes or suck the lifeblood out of the economy.

Fine Gael also dealt with two matters the Government has avoided — the fee for the banks for the State guarantee scheme and proper public sector reform. The Government, however, has fudged and not made the hard decisions on these issues.

I note the Minister for the Environment, Heritage and Local Government, Deputy John Gormley, is present. I want him to give me a commitment that he will reverse the decision on medical cards for the over 70s. I presume he is aware that not only will the over 70s end up paying the 1% levy but, if they are receiving more than €26,000 a year through an occupational pension, once their medical card goes, they will be paying another 2% in health contributions. This means they will be paying a superlevy of 3%. Not only is the Minister hitting them through an increase in the drug refund scheme and extra accident and emergency costs, but he is also fleecing them through income tax. A person on an occupational pension of €30,000 will now be hit with nearly €1,000 extra per year in tax, apart from medical expenses. That decision must be reversed. If the Government does not do so, it will show how little it values people who have devoted their lives to building this economy. How does the Minister value such people? This matter is critical in terms of how the Dáil is viewed by the public. Does the Minister care?

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