Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Is dóigh liom go bhfuil an buiséad seo féaráilte, cé nach bhfuil aon dabht ach go bhfuil sé crua ar a lán daoine. Táimid ag troid ar feadh blianta anois chun fostaíocht a chruthú agus chun postanna a chur ar fáil, go háirithe do dhaoine óga. Tá sé an-tábhachtach go leanfar leis an obair seo agus go dtiocfaidh críoch leis. It is very important to note, as my colleagues have said, that although this is a tough budget, it is part of a series from the past number of years. There is light at the end of the tunnel and we know where we are going. We have made very significant progress economically, and by the end of next year 85% of the heavy lifting of decisions and burdens to be borne proportionately will be done. The more people have, the more they will pay, as that is the only way forward.

In many ways this budget is the watershed for really tough decisions. With every euro coming to the tax coffers, approximately 82 cent is spent by three different Departments. The Department of Social Protection has a budget of €20 billion, the Department of Health has a budget of €13.8 billion and the Department of Education and Skills has a budget of approximately €8.6 billion. In most Departments, a significant proportion of money goes to paying people who work in the areas so the amount left is critical when we are discussing cuts. People will judge the equity and fairness of the budget.

We are looking to the future and the creation of jobs. In my constituency we have been lucky in the past number of years and this year in particular because we have created jobs. In my home town over 600 jobs have been created this year from foreign direct investment. Why is that investment coming and why have 10,000 jobs been created this year by IDA Ireland? It is because the economy is competitive and our costs have decreased. Internationally, we are much more competitive than we have been, and people wish to invest in a country with a young, talented and educated work force. We have modern communications with broadband and road and rail networks. People are coming to Ireland because they can do business with our country.

One of the key points about the budget is that there is no change in corporation tax, which remains at 12.5%.

Long may that be the case.

As my colleagues noted, the burden of the budget is falling on people in a manner proportionate to their income. In other words, the greater one's salary, the more tax one pays. Speakers have referred to equity in the context of the property tax and I accept it will be difficult to pay the tax. North of the Border, however, people pay a property charge whether they live in a terraced house on the Falls Road or in a semi-detached house on the Malone Road. The average annual charge equates to €1,200 and every improvement a person makes to his or her home results in an increase in the tax. Moreover, councils may impose an additional amount and I note with interest that members of Sinn Féin on Belfast City Council and other local authorities in the North have proposed raising funds locally for local issues.

The property tax will deliver greater accountability and democracy in local government because from 2015 onwards local authorities will have the power to levy local charges to improve their local areas. While some will argue that 1977 was a long time ago, the most damaging political decision taken in our lifetime was made in that year. I refer to the ridiculous decision to abolish property charges and road taxes. This proposal was used to buy the 1977 election and the country suffered as a result.

This Government did not create the current appalling financial mess but was elected to deal with it. Our role is not to be popular but to do a job. We are fighting to get out of the current mess and taking tough decisions. There is, however, light at the end of the tunnel as it is clear from conversations I have with people involved in commercial life, whether business or property, that a change is coming. The tough decisions being made and the burdens being imposed on people, proportionate as they are, will deliver success and the Government will stay the course.

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