Margaret Conlon (Cavan-Monaghan, Fianna Fail)

Chuir an t-Aire Airgeadais an buiséad os comhair na Dála Dé Máirt seo caite. Ag an am seo, tá a lán cainte go bhfuil geilleagar na tíre ag dul i ndonacht. Inniú, tá na scaireanna ag dul i laghad arís. Bhí ar an Rialtas cinneadh a dhéanamh. Tá gach éinne ag fulaingt. Tá eagla ar a lán daoine faoi na ciorraithe. Caithfimid dul ar aghaidh agus feabhas a chur ar chursaí na tíre. Tá sé sin an-tábhachtach ar fad.

For the past week, the airwaves, newspapers and on-line media have discussed nothing else except the budget. My constituency and Dáil office, and I personally, have been inundated with calls, e-mails and visits from people who are worried and stressed. The need to restore stability to the public finances left no option but to take difficult decisions on public expenditure. The budget's bona fides are without doubt; they aimed to be in the best interests of the future of the country. However, we as a Government erred in our delivery of the message about the medical card changes. I welcome yesterday's amendment, which means the income threshold for medical card eligibility will allow 95% of people to qualify.

The income limits announced by the Government are generous and take into account the increased need for a medical card for those aged over 70. Single people who earn €700 per week, or €36,500, per annum and couples who earn €1,400 per week, or €73,000 per annum, will be eligible. That is a lot of money. This effectively means 95% of people aged over 70 will be eligible for the medical card and I welcome that progressive step.

People were also very worried about their savings and it is prudent that these will also be exempt. Income from savings up to the first €36,000 for a single person and €72,000 for a couple are not counted. A sign that Fianna Fáil looks out for its citizens and does not merely spout out niceties is that anyone with an income above the threshold who has difficulty in meeting their medical needs will be eligible to apply for a medical card under the HSE's discretionary medical card scheme.

This issue has caused much concern and anguish, which I very much regret. I received many calls from concerned people in the past week and I hope yesterday's announcement will reassure people that we are concerned about their status. With 95% of people now eligible under the new income limits, only those at the top of the income bracket will not qualify. It was never the intention of the Government to upset or distress any elderly person and I am sorry that happened.

The Government consulted the Irish Medical Organisation on the position arising from the Taoiseach's statement. A process of intense engagement with the IMO and those with particular expertise in this area has been established to develop recommendations for good practice, which will secure safe and effective prescribing for patients, while maximising the potential for the economy in the use of public funds. I encourage all relevant groups to make their submissions by Friday, 24 October to Mr. Eddie Sullivan so he can accurately recommend a new rate.

I welcome the announcement in the budget that the maximum personal rates of payment for State pension, contributory and non-contributory, and State pension transition are being increased by €7 per week from the start of January 2009. Fianna Fáil has historically delivered for the elderly and we will continue to do so even though we got it wrong last week on the medical cards. State pensioners will also receive an extra €6.30 per week for a qualified adult dependant, such as a spouse aged over 66, and an extra €4.70 per week for contributory-qualified adults under 66.

The fuel allowance is being increased by €2 to €20 per week, or 11%, with effect from January. The duration of the fuel season is also being extended by another two weeks from April 2009, bringing it to 32 weeks in total. That is a direct budgetary provision that will benefit our senior citizens and one which many of my constituents were looking for.

I am glad the 1% income levy announced in last week's budget will not apply to people on incomes less than or equal to the national minimum wage. Thus, anyone on €17,542 or less will not have to pay the levy. The Government made this decision in the context of social partnership so as to ensure that those who earn the least are protected. While this is a small adjustment to the measure, it is important nonetheless.

I am disappointed Monaghan Army barracks are to close. I know people in the town and county will be sorry to see that facility lost. The Government made that decision as part of this year's budget, which was prepared in very unfavourable economic circumstances. The decision to close that and four other barracks throughout the country was made following an analysis of the Defence Forces to make the force more efficient and effective.

The approximately 200 personnel in Monaghan will be accommodated at Dundalk, where better facilities exist, from January next year. I am relieved that no one will lose his or her job as a result of this closure.

Force regulations also will provide for the payment of certain allowances and I am assured by the Minister for Defence, Deputy Willie O'Dea, that civilian workers at the base, in conjunction with their unions, also will be eligible for allowances. An alternative use for this site now presents a real opportunity for the town in the future and I will work hard to ensure that maximum benefit is derived from it. All potential stakeholders should strive to have this facility used widely, innovatively and efficiently.

I note that total expenditure by the Department of Agriculture, Fisheries and Food in 2009, including EU funding, in support of the agriculture, fisheries, food and forestry sectors will be €3.26 billion. Spending on REPS will increase by 7% to €355 million, including a 17% increase in the payment to participants in REPS 4. The focus of the 2009 budget is on prioritising spending to protect the most productive elements of the agrifood sector.

However, I am disappointed to note there will be a 14% reduction in area-based compensation payments. The rate of payment under the suckler welfare scheme will be reduced from €80 per cow to €40 per cow in 2009. Moreover, the 2009 payment will be deferred until 2010. However, the partnership agreement to spend €250 million on this scheme will be honoured in full. I also was disappointed to learn of the suspension of new entrants to the early retirement and young farmer installation aid schemes with immediate effect. However, a sum of €56 million will still be spent on the schemes in 2009 on existing participants. I will seek a meeting with my constituency colleague, the Minister for Agriculture, Fisheries and Food, Deputy Brendan Smith, to discuss these matters with him at the earliest available opportunity.

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