Mary White (Carlow-Kilkenny, Green Party)

In light of the domestic and global economic downturn, the Government was right to bring forward the budget to impinge on the public the dire state of our public finances and the adjustments required in the short term. These are necessary to maintain money in the economy but they are also balanced as the need for extra revenue cannot be achieved only through borrowing. Revenue-raising through taxation is necessary and that signal has been sent out.

Mistakes were made with part of the budget — the medical cards and income levy thresholds to name two. The restructured income levy provides for the shielding of both social welfare dependants and low-income earners from the 1% levy, while the 3% on income over €250,000 is progressive in its targeting of the tax take on the wealthiest.

The levy of €200 a year on non-principal residences also marks an important shift towards more progressive taxation. It is a levy on those with the luxury of a second property and a resourceful way of funding local government. The move to finance local government by this measure should reduce local government dependence on motor taxation for revenue, an environmentally positive signal.

Other tax increases, such as DIRT in certain cases and capital gains tax, are taxes on wealth. The increase in the latter was advocated by the Green Party in the last general election so as to reduce the inequity whereby those who benefit from capital gains pay less than those who work and pay tax on their earnings.

Despite the economic challenges and tight fiscal parameters in which this budget was constructed, the Government has succeeded in driving forward the need to re-balance taxation and incentives towards a more environmentally sustainable system and way of life.

Combating climate change through the development of renewable energy generation, the allocation of €20 million for the greener homes scheme, €5 million for the warmer homes scheme for low-income households and the extension of capital allowance for energy efficient equipment are all welcome. In total, €71 million is being provided in capital funding for energy efficiency and energy research programmes. Climate change is the single greatest moral imperative of our time. Such investment is vital if we are to make Ireland a hub for renewable energy in Europe and beyond.

Other important environmental allocations include the extra €89 million for water services investment. The dangers facing the country from under-investment in our water infrastructure are massive, not to mention the EU penalties and fines that will loom large if we do not get our act together. With the water framework directive coming down the track, all water must be of good quality by 2015. The Government, and in particular the Minister for the Environment, Heritage and Local Government, Deputy Gormley, have shown a determination to make the investment before it is too late. Many areas, including Carlow-Kilkenny, will be glad of the input of capital investment in waste water treatment plants.

Two innovative ideas for reducing our usage of cars have been introduced. The levy on parking spaces in cities, while unpalatable to many, is a firm signal that we must move away from our complete reliance on and worship of cars. The car might be convenient and comfortable. However, until society arrives at a stage where cars are carbon-neutral, we will have to get used to the idea of using them less. This measure will hopefully make people reconsider their modes of commuting and opt for public transport which needs more investment.

With this in mind the safeguarding of investment in public transport projects in Transport 21 is crucial, which I welcome. The continuation of the rural transport and the green schools programmes is also welcome. I urge future decisions to expand these schemes as much as possible.

I am sorry Deputy Ring is not in the Chamber. The second innovative idea on reducing car usage in this budget is the tax relief for employer provided bicycles through the cycle-to-work scheme. While Deputy Ring may belittle cycling, I could not see the Danes, the Dutch or the Finish Opposition parties laughing at a tax incentive scheme like this. This idea has gripped the imagination, judging by the number of telephone calls and e-mails to the Green Party's constituency offices.

The tax relief provided for bike and safety equipment purchase is more than ample. Those who criticised the amount allocated for it would be the first to criticise the allocation if it were any greater. The cycle-to-work scheme is yet another innovation the Opposition wants more funding for but cannot tell us from where it would get it. I will not be holding my breath. As 2009 will be the first year of this scheme, the Government was right to be prudent in its allocation as it is not yet known what its take-up will be.

One other environmental aspect of the 2009 budget which should be acknowledged for its importance is the tax relief for cleaning up heavily polluted industrial sites. This is important for a green economy such as Ireland which produces quality and safe food in a clean environment. This is why many tourists come to Ireland. There is no need to rake over the sorry track record of industrial pollution but there is a need to rectify these industrial mistakes. This tax relief will be of benefit in cleaning up these sites.

I welcome the progress in section 13 regarding our infamous tax exiles. For far too long this State has had an ambivalent relationship with Irish people who find the burden of tax residency too costly. We have castigated their refusal to pay tax in this country, yet they are treated as national heroes with praise for their philanthropy and reportage of their business affairs and opinions. There is nothing national or heroic about these people attending events in Ireland throughout the year, taking positions on State and commercial boards and proclaiming pride in being Irish, while paying none of the tax the rest of us pay. If they benefit from this country they should financially support this country. No amount of job creation or generosity should overlook that. I welcome the move in section 13 to limit the time spent here by these non-residents. I hope the change will be enforced and their movements in and out of the country monitored so that they comply with the law. I commend the Bill to the House.

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