Nicky McFadden (Longford-Westmeath, Fine Gael)

I am sharing time with Deputies Dan Neville, Derek Nolan, Tom Barry, Colm Keaveney and Patrick O'Donovan.

While difficult decisions were made in budget 2012, they were made in the context of improving Ireland's economy in the longer term. No decisions were taken lightly and, while I acknowledge many people are struggling and will be affected adversely by some of the cuts, it is important to note that positive change can only come about if the necessary decisions are taken now. The bottom line is that if we are to make genuine and long-lasting improvements to our economy, we must reduce the deficit. We ought to focus on allocating resources in an intelligent and progressive way. It was the previous Government's complete inability to make the necessary decisions and its lack of foresight, through implementing unsustainable policies and policies of short-term gain, that led Ireland into economic crisis.

As the Minister for the Environment, Community and Local Government, Deputy Hogan, has said, the motion laid down by the Opposition bears no relation to the reality of what is happening. The Government is acutely aware of the challenges facing many people across the country. This is the job that the people of this country gave us a mandate to do. We have been elected to fix the problems that this country was left with owing to years of mismanagement. This will not be done overnight but it is achievable.

The Government's first priority is jobs. Everything we do is done to make this an economy in which we can create jobs. We have an action plan for jobs, a plan to help provide temporary credit for commercially viable small businesses and a new strategic investment fund and plan to help finance micro-enterprises. We are working to a reform agenda. The public service is being streamlined, with 23,000 fewer positions, more efficient working methods and better value for money in the lifetime of this Government.

Local government plays a pivotal role in the delivery of local services such as housing, water supply and road maintenance. Local authorities need the appropriate resources to deliver efficient and effective services. Commercial rates are collected and spent locally, ensuring that money is invested in essential local public services. The introduction of a household tax will further contribute to the provision of essential local services. The focus now should be on efficiency so local authorities can play a role in developing local enterprise.

The Minister is not introducing the legislation on septic tanks because he wants to; he is doing so to address a European Court of Justice ruling against Ireland from October 2009. It was a lack of will on the part of the previous Government that resulted in a lack of action on the issue. The charge is by no means an attack on rural Ireland but a measure to protect rural Ireland by providing good-quality drinking water. The protection of ground-water is vital.

People have a responsibility to ensure their septic tanks are in good working order and not endangering their water supply and that of local communities. Householders who already meet their responsibilities have no reason to fear an inspection system. We must ensure that septic tanks are not endangering human health or the environment.

I am particularly confident that agriculture will play a key role in Ireland's economic recovery. The Government's overall objectives are job creation, addressing the fiscal challenge as fairly as possible and creating a more efficient public service which provides value for money. To deliver on this strategy, the agriculture, food and marine budget focuses on four key objectives: to support schemes for farms targeting available funding at active, productive farms in vulnerable areas; to encourage productivity and up-skilling; to focus available funds on driving the Food Harvest 2020 strategy objectives; and to introduce reforms within the Department and State agencies under the Department's remit to generate efficiencies and savings.

The rate of stamp duty on agricultural land is being cut from 6% to 2%. A half rate of 1%, which will be available on transfers to close relatives until the end of 2014, should encourage the transfer of farms to the next generation. This will help to improve the age profile of Irish farmers and ensure the viability of the sector. Restructuring the retirement relief on capital gains tax will further incentivise the earlier transfer of farm assets to younger farmers.

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