John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

This budget, while containing many difficult measures, is taking the country one step further in the right direction. Deputy Colreavy referred to the troika leaving the country and a few minutes ago the European Central Bank announced a cut to its lowest interest rate ever, 0.25%. There are some positive signs of growth. While I agree there are not enough signs, I found it a bit churlish of Deputy Ellis to concentrate on the Social Welfare Bill and emigration without acknowledging that Central Statistics Office figures show that 35,000 additional people are working in Ireland over the past 12 months. While I would like to see employment rates grow more quickly, it is the first time they have grown in the past five years, as well as the first time unemployment has dropped below 400,000. This is a step in the right direction.

I forgot that Sinn Féin’s budget proposals spoke about reducing politicians’ wages, with a substantive cut for Deputies. That is a fair political point to make, but there was no cut for Senators. Maybe the result of the referendum changed Sinn Féin’s mind on the value of the Seanad. It is puzzling that Sinn Féin did not propose to cut Senators' current pay of €60,000. It is also ironic when one considers that Sinn Féin opposed the Haddington Road agreement, which saw a €5,500 cut to Deputies’ salaries.

I commend the Minister on the retention of the 9% VAT rate for the tourism sector, which was an issue of concern in Kilkenny, where tourism is a significant industry.

The pupil-teacher ratio is under a different Department, but it is highly contentious. As a former teacher, the significance of keeping classes as small as possible, particularly at primary level, is important and it is welcome that the ratio was retained. I welcome this morning's announcement by the Minister, Deputy Ruairí Quinn, on the school summer works scheme being reinstated. When the previous Government got rid of it, I was on the board of management of a school which had carried out significant work under that initiative.

The new tax scheme for home renovations is a welcome incentive for many people who will be seeking to improve their living accommodation. I welcome it, as well as the extension of the Living City initiative from Limerick and Waterford, where it was originally rolled out, to Cork, Dublin and Kilkenny. I am sure the Acting Chairman, Deputy Ann Phelan, also welcomes its extension.

I wish to raise some concerns. Since the budget was announced, I have received the most correspondence on the tax credit changes for unmarried parents who do not live together. Yesterday the Minister announced some changes and I hope he can see them carried through when the Bill is finally passed.

Deputy Michael Colreavy mentioned investment in agriculture and the significant announcement in the budget that a new suckler cow scheme would be unveiled. This is both substantial and important in a sector of agriculture that was under severe pressure. Many have left the suckler farming sector in the past few years, but this scheme will provide an incentive for them to remain and keep the standard of beef production as high as possible.

I cannot let the opportunity go without voicing my concerns on the local property tax. Its highly contentious introduction last year went relatively smoothly, but the handling of the issue by the Revenue Commissioners in the dissemination of that letter to the public was calamitous. The letter was as clear as mud and has caused much unnecessary upset among the public. Revenue got it badly wrong.

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