Johnny Brady (Meath West, Fianna Fail)
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Deputy Barrett was in possession and he has 20 minutes remaining.

Seán Barrett (Dún Laoghaire, Fine Gael)
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It is difficult to get into the mood to discuss the budget following such a heated debate. One must be very careful.

When I adjourned the debate yesterday evening, I was addressing my criticisms of the Government in failing to tackle the big picture. That failure has led to a series of silly cutbacks, which will cause untold harm and political damage to the entire system. I appeal to the Minister to ask the Fianna Fáil scriptwriters why they must always compare what is happening nowadays to what happened 12 years ago. Can we not move on and be more mature in dealing with issues? The circumstances 12 years were entirely different. Every time I hear a Government spokesperson, he or she makes comparisons with 1994, 1997 and 1982. This is so ridiculous that it is hardly worth commenting on because Fianna Fáil has been in power for 19 of the past 21 years.

Its Ministers have had 19 years to put the economy straight and there is no point comparing what they have done to what the coalition did between December 1994 and June 1997. They have had 19 out of the past 21 years to put everything right. They will have to admit they took over a healthy, strong economy in 1997. It was the first time in the history of the State that a budget surplus was achieved. This is an undeniable fact. I was pleased to be part of the outfit that handed over a strong economy to the Minister and his colleagues even though I had to surrender the keys of the Mercedes to people such as his good self. We are proud of what we did during the tenure of that good Government.

I refer to the cutbacks in health services. Fianna Fáil and its partners set up the HSE. They amalgamated all the health boards without putting in place a new management structure. The Minister for Finance said in his Budget Statement that he had suddenly discovered the HSE, since its establishment, had increased its workforce by 12% and created 1,900 administrative posts. He said he will have an investigation carried out and redundancy will be offered. People over 70 are being asked to surrender medical cards while everyone is being asked to pay increased charges for other services, yet the HSE has a budget €15 billion to cover the needs of a population of less than 4 million and has established an additional 1,900 posts since it was set up. How many medical cards would that buy? However, we must go through a process of persecuting groups of people who are badly in need of services.

The new charges include an increase of €34 for a visit to an accident and emergency department; an increase of €9 in the public hospital bed charge to €75; a 20% increase in the cost of private beds in public hospitals; and an increase of 20% in the long stay charge. One can imagine the hike in VHI charges a result of these increases. This has resulted from a failure in proper management and administration by the HSE and, lo and behold, the Minister for Health and Children, together with her Cabinet colleagues, has taken a political decision to deal with cutbacks in her budget by persecuting people aged over 70. If she cannot find €100 million in savings out of a budget of €15.8 billion without persecuting these people and increasing charges for those who are ill and need services, there is something radically wrong with the Government's management.

The Minister for Finance should not ask Opposition Members to be patriotic and to support these mad cutbacks when no one else supports him. I have no intention of supporting of such cutbacks. If there was no other option and the country was on its knees, I might consider it a form of patriotism. However, the HSE was allowed to go out of control and recruit 1,900 additional administrative staff. The failure of the Minister and the Government to put in place a new management structure for the body from day one leaves a great deal to be desired.

I refer to education cutbacks, including a reduced schools building programme, the abolition of substitute teachers from January 2009, the abolition of the equipment for resource teachers, a reduction in the Traveller education budget, the abolition of grants for physics and chemistry at a time our young people need to be educated in such subjects and a €7.5 million cutback in the funding for school books. Where are we going? College registration fees have been hiked to €1,500 despite there being no increase in the student maintenance grant. I have listened to various Government politicians saying how important it is to help children from disadvantaged areas to benefit from third level education, with which I agree, but how will these provisions help a child from a disadvantaged area to undertake third level education? It is not a question of merely getting into college, but of staying there as well. One needs bus fares to get to and from college. If one does not live nearby, one must stay overnight. One requires assistance with books and one needs pocket money.

I will give the House an example. I came from a local authority housing estate. My father was a postman and, because I grew up in an era without free education, I saw him working a turnstile at Croke Park on Sundays to pay for my second level education. I saw people's struggles. Today, those are the same people we are punishing. We are asking them to carry the burden of the problems created by the Government. Given that 19 of the past 21 years saw Fianna Fáil in government, it cannot blame anyone other than itself.

The Government is telling us that children from disadvantaged areas should be given every chance to attend college. However, it is not just a question of getting enough points to enter third level if one comes from a local authority housing estate and one's parents do not have any money. Who will pay for bus fares? Who will buy——

Pat Rabbitte (Dublin South West, Labour)
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A €1,500 registration fee.

Seán Barrett (Dún Laoghaire, Fine Gael)
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Yes, one must spend €1,500 at the start, then find money for books, to dress oneself, to pay bus fares and to feed oneself. Given the cuts, it is hypocritical to state that we are trying to give everyone a chance to attend a third level institution. The cuts are due to the fact that the Government failed to see the big picture.

As the Minister will admit, 80%-85% of the education budget is spent on salaries and wages. If one does not tackle this problem and the issue of numbers, one must consider cuts in the remaining 15%-20%. In this light, one is bound to make silly, stupid cuts that affect people who pay taxes.

I do not want more hearts bleeding for children who should get access to third level education. I want practical help to be given to them. They can appear at a social welfare office to get assistance before walking the streets. Would we not be better off spending the money helping every child to become skilled, to attend college and to have a positive and creative way to fulfil his or her life? These are the practical day-to-day problems that people must face, not theories or seminars on how to spread wealth. Given the fact that people need education and skills for today's society, how can anyone in the Government increase registration fees, not increase the maintenance grant and abolish grants for school books? It is a disgrace. Let us cut out the hypocrisy and address reality.

I will address climate change and carbon emissions. I have the pleasure of chairing the all-party Joint Committee on Climate Change and Energy Security. I am proud of my position and of the committee's members, who work hard. We have noticed the various Government statements on targets and the actions to be taken. Ireland is running out of time and the failure to meet targets will cost the taxpayers money.

We discuss transport often, but what are we doing? What movements has Iarnród Éireann made to shift freight from our roads onto trains? What advances are we making in terms of additional sources of public transport so that people can leave their cars behind? There are quality bus corridors, QBCs, with no buses on them. To worsen the insult, they are 24 hours per day, seven days per week QBCs, but I have yet to see a bus running at 4 a.m. It is shambolic symbolism.

What are we doing about our targets? We are sitting down and agreeing further cuts with our European partners despite not having achieved our current targets. For example, if someone wants to go on a cycling holiday to County Kerry, how can he or she bring a bicycle? I have written to Iarnród Éireann to ask whether it has small carriages at the back of trains in which to store goods. That way, one would have somewhere to put a bicycle, but what can one do with a bicycle now? We are being given grants for bicycles, but how can the latter be carried to County Kerry? Should one put it on top of a car and drive? It is a contradiction.

In most other countries, one can put a bicycle on a train. If one wanted to cycle into work from where I live and it is raining in the evening, surely one should be able to get the DART home and put one's bicycle in a small carriage at the back. It is simple. In Copenhagen, for example, taxis have been encouraged to carry rear fittings so that, if it is a wet evening, one can put a bicycle on the taxi and hop inside. We have not even reached that point, yet we are discussing entering into commitments on further cuts.

Transport is one of our greatest emissions problems, but agriculture is an equal problem. Will we halve our cattle stock? How can we achieve the targets? Have we negotiated within the EU to transfer our savings in other sectors to compensate for our inability to reduce agricultural emissions? If we are to be the food basket of Europe, surely it is in the EU's interests that we produce food for European citizens. Will we cut back, making food more expensive due to its scarcity? No one has attempted to negotiate on behalf of Ireland in this regard. We are blindly walking into and accepting targets without realising what we are entering into. It is not a question of simply brushing off the failure to achieve the targets as just another failure. If we do not achieve them, we will pay a considerable amount of money to purchase credits to compensate for our inability to effect reductions.

Before leaving the topic of transport, I want to mention something. In our final days in government some years ago, we considered opening Baldonnel Airport to commercial flights. As the then Minister for Defence, I held discussions with the Defence Forces. The Air Corps reverted to me to state that it would be only too pleased to see the airport being used for commercial flights provided facilities were ring-fenced for Air Corps activities. It would have suited everyone. The runway would have been used for both purposes and the Air Corps would have been relieved of maintenance duties. The airport at Collinstown is packed on a daily basis. I see no reason that internal flights should not leave from Baldonnel.

Paul Gogarty (Dublin Mid West, Green Party)
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Deputy Barrett's party leader has already opposed a similar proposal for Westin Aerodrome, which is only some miles down the road.

Séamus Kirk (Louth, Fianna Fail)
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Deputy Gogarty will have a chance to speak in due course.

Seán Barrett (Dún Laoghaire, Fine Gael)
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I ask Deputy Gogarty to continue playing with his laptop until I finish my contribution. He will have a chance to respond to my comments when his turn comes. In the meantime, I ask him not to interfere with my train of thought.

I see no reason that Baldonnel cannot be used for internal flights. It is located off the N7, close to the M50 and convenient to developing areas in Kildare and elsewhere. It could even be used for flights to the United Kingdom and for charter flights. This would relieve congestion at Dublin Airport and on the roads surrounding it. Every time there is a traffic jam, more emissions are released. We have gone to great trouble to regrade motor vehicle taxation in order to encourage people to purchase vehicles that emit less CO2, yet we are not dealing with the problem of traffic jams. A greater level of emissions may arise on Pearse Street on a wet Friday afternoon than may accrue from 100 cars driving in and out of the city centre. Will the Minister report back to the House on the difficulties, if any, that present in terms of using Baldonnel Airport for the purposes I have outlined? It makes perfect sense, offering an ideal location and with the prospect of helping to lower considerably our emission targets.

The current difficulties in the financial markets have arisen because there has been a breakdown in trust between banks. Banks are no longer prepared to lend to one other because they do not trust their counterparts' ability to make repayments. This breakdown of trust is a consequence of the sheer greed which saw bankers lending money to those who could not afford to make the repayments. Bad debts were bundled up and sold on and the result is that the trust between banks has broken down. We may ask about the role of the supervisors who were supposed to manage all this. The reality is that this type of supervision was considered unimportant as long as money was being made.

The problem throughout the financial sector is that banks want to be building societies or insurance companies and vice versa. One calls to mind the old saying that plumbing is for plumbers. If I have a plumbing problem, I do not seek the services of a carpenter. Throughout Europe, we must restore standards in financial dealings so that people can have trust in the system. We must return to a position where utmost good faith is a basic principle in any contract law. For example, insurance cannot be underwritten unless there is good faith.

There is much talk of re-financing and so on in the financial markets. Ultimately, however, trust is everything. I read an article in the business section of the Sunday Independent which detailed how the Irish Nationwide Building Society has pitched in for Mohamed Al Fayed at Fulham Football Club. How is it that a building society which was established to provide mortgages is investing in Fulham Football Club? This is apparently the second time it has made such an investment, having already invested €22 million via a group of property developers involved in the purchase of Craven Cottage. The same article reveals that Bank of Ireland is involved with Arsenal Football Club and Wembley Stadium. We have spent recent weeks discussing how we may restore confidence. It is only through effective regulation and control that we can hope once again to enjoy the benefits of a successful financial sector.

Paul Gogarty (Dublin Mid West, Green Party)
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I propose to share time with Deputy Conlon.

Séamus Kirk (Louth, Fianna Fail)
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Is that agreed? Agreed.

Paul Gogarty (Dublin Mid West, Green Party)
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Deputy Barrett proposed that Baldonnel Airport should be used as an international airport.

Seán Barrett (Dún Laoghaire, Fine Gael)
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I did not refer to an international airport.

Paul Gogarty (Dublin Mid West, Green Party)
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He referred to it being used as a commercial airport of some description.

Seán Barrett (Dún Laoghaire, Fine Gael)
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There is a great difference.

Paul Gogarty (Dublin Mid West, Green Party)
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His colleague, Senator Fitzgerald, may have something to say about that. Deputy Barrett dismissively suggested that I should busy myself in twiddling with my laptop. That is precisely what I did during the conclusion of his speech. I used the time to respond to constituents and also to do some searching via Google, which yielded two interesting articles from the Sunday Independent of 14 January 2007. These relate how a confidential document shown to the newspaper indicated that Deputy Kenny and Fine Gael rejected plans to develop a second airport at Baldonnel while in government 11 years ago. The article notes that this revelation comes "as the country's main Opposition party leader pledged to build a second airport in the west Dublin area if elected Taoiseach this summer". Deputy Kenny has made a similar suggestion in regard to Westin Aerodrome, which is in my constituency, before executing a U-turn after coming under pressure from Senator Fitzgerald. Therefore, I respectfully suggest that Deputy Barrett discuss the matter with his party leader before floating his ideas for Baldonnel Airport. My constituency colleague, Senator Fitzgerald, will have much to say about the matter.

Seán Barrett (Dún Laoghaire, Fine Gael)
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Members on the other side of the House cannot stand up to speak without mentioning 1997. That was 11 years ago.

Paul Gogarty (Dublin Mid West, Green Party)
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I referred to a statement made by Deputy Kenny in 2007.

Séamus Kirk (Louth, Fianna Fail)
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I ask Deputy Gogarty to desist from inviting retaliation.

Paul Gogarty (Dublin Mid West, Green Party)
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I enjoy a debate. However, I will proceed to talk about the budget. I welcome the changes to the income levy and to the medical card scheme for the over 70s. I worked with my Green Party colleagues to secure changes to the original plan once the stress, hurt and anxiety being caused to elderly people became apparent. I take this opportunity to apologise personally to my constituents for any hurt or distress caused to them and for which I am collectively responsible.

Since the announcement of the attention to withdraw universal provision of medical cards to over 70s, I have made various suggestions in writing to the Minister for Health and Children, Deputy Harney, and the Minister for Finance, Deputy Brian Lenihan, as to how the moneys involved might otherwise be saved. I also wrote to the Minister for Arts, Sport and Tourism, Deputy Cullen, to suggest that the greyhound and horse racing fund, which amounts to some €70 million in this year's budget, be diverted. That particular fund accounts for almost one third of sports funding which might be better allocated elsewhere, such as minority sports, swimming pool programmes and so on. In my constituency, for example, Collinstown Park Community College's sports hall faces the possibility of closure, as does Pobalscoil Isolde's public community facility. As I said in my letter to the Minister, a root and branch analysis of these profitable industries — horse racing and greyhound racing — might be helpful. The latter is associated with a significant degree of wanton cruelty. Such an analysis might indicate a capacity for self-funding. If some Exchequer funding is required, I would suggest the introduction of a betting tax.

I propose to deal mainly with the education provisions in the budget. We all must acknowledge that this could never have been other than a very difficult budget. Growth for this year is -1.5%, with an expected rate of -0.75% in 2009. That situation has not arisen, as I understand it, since the 1980s. While I was only a child in the 1980s, I knew times were tough. Once again, we must prepare for tough times.

There has been much comment in regard to the Minister for Finance's call to patriotic duty. I am happy to answer that call and to act in solidarity in regard to the collective hard times facing us. However, let this not be seen as my condoning certain aspects of the budget which, I believe, could have been better and could be improved. The Green Party made representations in regard to medical cards and is currently making representations in regard to the education budget. In a few minutes I will read into the record an open letter to the Minister for Education and Science, Deputy Batt O'Keeffe, in regard to the cutbacks I am unhappy about and from where possibly this money can be recouped.

In the meantime, as a Green Party Member I very much welcome the protection extended to local government funding in terms of the 19% increase in water funding, the strong green measures within the budget, the retention of a number of public transport initiatives, substantial increases in social welfare spending, the ongoing progress of the carbon budget and increases in indirect taxes on petrol, which I welcome, and on tobacco. I believe more could have been done in regard to alcohol and betting but I will deal later with these issues.

I welcome the airport departure tax as a painless way of raising revenue. Reference was made only a few minutes ago to Weston and Baldonnel airports. It strikes me as odd that private airports are not subject to a similar tax. Perhaps the more well-off travellers taking off from and landing at these airports should be asked to pay a higher levy. I would welcome an initiative in this regard.

My colleague, the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, will bring forth a raft of measures in the coming weeks to build on the progress made last year in regard to energy, including tax allowances for the purchase of sophisticated equipment for electricity provision and more efficient data server systems. I welcome the ending of decentralisation and the costs associated with same. I stated that I welcome the social welfare allowances, including the €10 increase in the threshold for the family income supplement.

I want to deal with education. There is much to welcome in the education budget. While I am conscious the increase in the budget for the Department of Education and Science was not enough, it is one of three Departments that received an increase. There are some measures worth welcoming, including the €80 million increase in the allocation for 2008 on the capital side. This includes €581 million for the schools capital programme which is, unfortunately, marginally down to a figure of €586 million. However, it will allow the Department, as the Minister outlined, to complete 26 major projects, commence construction on a further 62 projects and meet the requirements of 100 other smaller projects.

I welcome the 44% increase in third level funding and the increase in research and development. I pay tribute on the substantive increase in capitation funding by €21.42 at primary level, giving a total of €200 per pupil, which is real progress, and the continuing progress on the second level side. I welcome the additional €10 million to fund and enhance measures for children with special educational needs pending full implementation of the Education for People with Special Educational Needs Act. I regret that Act has not yet been implemented and I concur with the remarks made by Opposition Deputies in that regard. The increase of €40 million to cover the full-year costs of additional special needs assistants is also welcome.

While one cannot criticise the entire education budget, some valid concerns have been raised. I am aware the Minister for Education and Science, Deputy Batt O'Keeffe, is in China. I will e-mail the following letter to him later. It is an open letter which I will read into the record lest anyone thinks I am not willing to go on the public record in respect of this matter.

Paul Connaughton Snr (Galway East, Fine Gael)
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Why did Deputy Gogarty not give it to him before the budget?

Séamus Kirk (Louth, Fianna Fail)
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Deputy Connaughton, please desist from interrupting Deputy Gogarty.

Paul Connaughton Snr (Galway East, Fine Gael)
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The Deputy said he spent all day speaking with the Minister on budget day.

Paul Gogarty (Dublin Mid West, Green Party)
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I have been in touch with the Minister. Members heard my budget speech last year. I am not afraid to put my money where my mouth is. I will read the letter following which Deputies will have an opportunity to respond to it.

Paul Connaughton Snr (Galway East, Fine Gael)
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The Deputy did not walk when he should have.

Pat Rabbitte (Dublin South West, Labour)
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I would like to see the Taoiseach's face when the Minister, Deputy Batt O'Keeffe, gives him this letter.

Paul Gogarty (Dublin Mid West, Green Party)
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The letter reads:

Dear Minister O' Keeffe,

I have not until today been given the opportunity to comment publicly on the Education Budget and to put my feelings onto the Dail record.

We are living in tough economic times and I do admire your ability to stand firm in the face of public criticism of the difficult but necessary budgetary constraints you have been placed under.

Pat Rabbitte (Dublin South West, Labour)
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Hear, hear.

Paul Gogarty (Dublin Mid West, Green Party)
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The letter continues:

However I cannot in all credibility stand by some of the proposals made by your Department. I welcome many of the progressive elements of the Education budget, which I alluded to earlier in my contribution. But I must take issue with many of the cutbacks.

Sometimes a decision is just plain wrong and in this context I am asking you and the Minister for Finance to revisit some of the more questionable cuts to our Education service.

For many years, both as a member of a Government party and in opposition I have been unwavering in my calls for education to be taken seriously and given the funding it deserves.

I do not have to repeat what I have said about education being a building block for future prosperity and social cohesion and the collective failure of the body politic — Government and opposition — to give real commitments to education so that we may reap the real rewards, albeit in some cases beyond the narrow five year electoral cycle. Funding education pays back in so many ways. And making cuts in the wrong place can cause irreparable damage.

Pat Rabbitte (Dublin South West, Labour)
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Has that letter been sent to the Minister?

Paul Gogarty (Dublin Mid West, Green Party)
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The letter continues:

Having been consistent in my calls for much greater education funding, I must once again say that we have missed an investment opportunity. Additional borrowing or additional income tax could have provided the necessary leverage to take advantage of any change in economic circumstances.

However I am not so optimistic as to hope beyond hope that this Government or indeed any potential Government is suddenly going to wake up with a messiahanic zeal for turbo charged educational investment. At this stage all I can hope for is that the hardest hitting of the educational cuts can be reversed and funding found from other sources.

A response in this manner would show that this Government will listen and respond to the cries for help that are now coming from teachers working on the ground and the parents of the children they teach.

Paul Connaughton Snr (Galway East, Fine Gael)
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There will be a response when the 10,000 teachers turn up outside the gates next week.

Paul Gogarty (Dublin Mid West, Green Party)
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The letter continues:

We responded to one vulnerable part of our society over the medical cards issue. We responded in relation to the income levy for those on the minimum wage. Now we must respond, proactively, on a number of areas, if not to increase funding, but at least to try and maintain the status quo.

Class sizes is the single biggest issue. Various figures have been bandied about ranging from the 400 overall cuts you have suggested, to a figure of over a thousand at each level by the teaching unions.

I think at a minimum in these times of dwindling state revenues, we must ensure that the pupil teacher ratio is not reversed. It should be further increased but in the worst case scenario, it must remain at current levels at both primary and second level.

Taking an average figure for retaining the ratio which ignores the higher wages of retiring teachers, I estimate that the total cost of keeping the class size average of 27 per class at primary and 18 per class at post primary is in the region of €151 million.

Another area that has been cut back is in the area of school books. This to me is an essential part of a child's development and in this context the €7.5 million cost for school book aid and the €2.19 million in library grants has to be reversed. The figures are so small relatively, but the impact goes way beyond that.

I am surprised Minister and disappointed that the €97,000 for the Centre for Talented Youth has been cut. By all means carry out a cost benefit analysis, but to curtail a service that enhances and encourages our best and brightest who could have a major role to play in our future development does not make sense, particularly for such a paltry sum.

Speaking of Youth, our Youth Services were bracing themselves for no real increase in their budget, but little did they imagine that their budgets would be cut. This €4.4 million cutback will have a devastating effect on frontline provision which will well outweigh the saving. Again it needs to be reinstated.

Similarly the €8.5 million grabbed out of the Back to Education initiative is a regressive step when this facility will be needed by more and more people. Under the current proposal 500 people will be affected, 500 who could be major net tax contributors in a few years time.

The Education Welfare Board should at least have had its current funding retained, for the sake of €120,000. If anything this should be increased of course, given its important role.

Then there are the amalgamated grants to post-primary schools, including those for choirs and orchestras, home economics, physics and chemistry, the junior certificate schools programme, leaving certificate applied, LCVP and transition year. These combined will save the state €5.35 million but will actually probably cost the state more in the long run.

Paul Connaughton Snr (Galway East, Fine Gael)
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Does Deputy Gogarty think the Minister will read the full letter?

Paul Gogarty (Dublin Mid West, Green Party)
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The letter further continues:

There are other issues that I would like you to reconsider including Traveller Education funding, after a review of outcomes has been carried out. Not to mention a reassurance that the special protection afforded to the minority Protestant Education community is not being stripped away by the regulation of the situation vis a vis the majority Catholic fee paying schools.

Pat Rabbitte (Dublin South West, Labour)
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The Minister will be up all night reading this letter.

Paul Connaughton Snr (Galway East, Fine Gael)
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He will be delighted to see it coming.

Paul Gogarty (Dublin Mid West, Green Party)
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The letter continues:

And I could go on. One does not like the increase in registration fees, even in the current economic circumstance. However this is nothing compared to my views on the reintroduction of third level fees. But I suppose I will finish with the decision to amend substitution cover for absences arising from uncertified sick leave in all schools, as well as for school business absences in post-primary schools. This needs to be reviewed. I have not been able to work out how much will actually be saved here in not employing substitutes without certification. But if one assumes it will cost no more than €5 million annually, what about the loss to the educational welfare of our children? By all means investigate absenteeism but come back next year with a more focused proposal that does not affect front line services.

To briefly break from reading the letter to the Minister, I am sure all of us as Deputies have been receiving e-mails about how these frontline services will be cut according to the schools in question. There is an element of pressure but there is also a real truth behind those figures.

I return to the letter:

The amount of savings referred to above by my calculations comes to an approximate total of €184 million. I do not have the information to be entirely accurate, but assuming the general thrust is correct, would you not agree, Minister O'Keeffe, that if funding can be found elsewhere, these cutbacks could and should be reversed?

Pat Rabbitte (Dublin South West, Labour)
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The man will be up all night.

Paul Gogarty (Dublin Mid West, Green Party)
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I hope he will be up for days.

Emmet Stagg (Kildare North, Labour)
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The Deputy can always vote against it.

Paul Gogarty (Dublin Mid West, Green Party)
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The letter continues:

I suggest, for example, adding a travel surcharge to private jets or increasing the second home tax by a measly €100 euro. What about increasing the levy on incomes over €200,000 or placing more on the cigarettes? I was amused to see one of the headlines refer to the pint as having been saved in the budget. Slap more excise duty on the pint of plain if it means extra funding for our children any day. And what about the dogs and horses grant referred to earlier, although I would prefer if that went towards minority sports? I was also interested to hear about savings in Minister O'Dea's Department. Is any of this up for grabs?

Pat Rabbitte (Dublin South West, Labour)
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There are many aspects which could finance education.

Emmet Stagg (Kildare North, Labour)
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There are two other lads in the Cabinet.

Paul Gogarty (Dublin Mid West, Green Party)
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It continues:

Specific suggestions include:

Halving the reductions in stamp duty on commercial properties, which would raise €90 million. Reverse the reduction in the charge on ATM cards from €5.00 to €2.50, which would raise €14 million. Redirect 10% of the home choice loan fund of €500 million, which would raise €50 million.

Pat Rabbitte (Dublin South West, Labour)
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Is the Deputy sending a copy of the letter to all of us?

Paul Gogarty (Dublin Mid West, Green Party)
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The letter continues:

According to CSO figures on second properties, the levy of €200 should bring in €80 million rather than €40 million as estimated in the budget summary, which frees up an additional €40 million.

The total of these suggestions equals €194 million, which exceeds the cost of the cutbacks. And if any specific suggestion is unpalatable to any specific Minister, there are more suggestions that can be made in relation to the general taxation, the PRSI, an increased income levy etc.

To once again take a brief break from the letter to the Minister, constituents to whom I spoke on the medical card issue have indicated they are more than willing to take up some of the flak in hard economic times but they do not want the young or the elderly to be affected.

The letter concludes:

Thank you for taking the time to read this letter, Minister. I hope you will have the courage and the common sense to work with the Minister for Finance and other colleagues to redress these damaging cutbacks by obtaining the funds from other sources. It is not a capitulation to take a position but change it in the light of new information regarding the impact of such a position. I would say, Minister, it takes more courage to reverse the cutbacks than it does to defend them. You have already shown yourself well able to tackle various interest groups. However our children are a particularly special interest group who cannot speak up for themselves.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Hear, hear.

Paul Gogarty (Dublin Mid West, Green Party)
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I conclude:

Make the right decision Minister. Reverse the most damaging cutbacks.

Yours sincerely,

Paul Gogarty TD, Green Party Education Spokesperson, Chair of the Joint Oireachtas Committee on Education and Science.

Paul Connaughton Snr (Galway East, Fine Gael)
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Fair play to the Green Party Deputy from Dublin.

Margaret Conlon (Cavan-Monaghan, Fianna Fail)
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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.

Paul Connaughton Snr (Galway East, Fine Gael)
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Has he gone to China?

Margaret Conlon (Cavan-Monaghan, Fianna Fail)
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I can sympathise and empathise with those who are worried about the education budget. As a former deputy principal, I too have concerns about the potential impact on the day-to-day management and running of schools and how it will affect the pupils. While I will not be writing letters or sending e-mails, I will discuss my concerns with the Minister for Education and Science as soon as he returns from China. I have no doubt that other savings can be made to ensure that our children will not suffer. I encourage all partners in education to discuss potential savings with the Minister, as I believe there are areas in which savings can be made. I appeal to all sides to engage in meaningful talks to ensure this happens.

Members must rise to the challenges presented by the dire economic situation. Were Fianna Fáil and the Government trying to be popular and populist, they would not have taken any tough decisions in the budget. However, Governments must take tough decisions and govern, while Oppositions will oppose. Before the budget last Tuesday week, everyone agreed that tough decisions and sacrifices had to be made. This budget directly affects everyone. While it may be unpopular, tough times call for tough measures to be taken and we must cut our cloth according to our measure. The beauty of being in opposition is that one can call for everything to be increased and retained without raising taxes. However, such an easy policy is totally unrelated to the reality of being in government.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I agree with my constituency colleague that when times are tough, tough decisions must be made. I remember that some years ago, such tough decisions were made by Governments, only to be voted down over small technicalities. I can remember that not much support was forthcoming from the Opposition during the BSE crisis. The only thing done was that people were dragged through this House in the worst possible situation.

While the Taoiseach and the Government have tried to hide their miserable performance behind the international banking crisis, no one can deny that in two years, they have brought this country from being €6 billion in surplus to its present position in which it is €15 billion in debt. Unquestionably, this is a remarkable achievement and certainly constitutes a record within the European Union.

On 24 April 2007, the Taoiseach advised people how he, as Minister for Finance, had brought about such a successful economy and claimed full responsibility for it. Consequently, he now must take full responsibility for the current disaster. While addressing the Federation of International Banks in Ireland on that date, he stated:

Our economy is stronger than at any time in our country's history. The fear of unemployment has been replaced with the reality of good jobs paying good wages and offering good prospects. . . . We live in truly exceptional times.

He further advised that the Government would:

invest in education, skills and infrastructure to raise productivity, to enhance competitiveness and protect prosperity, reduce taxes to reward work, promote enterprise and spread the burden fairly across society [and] increase spending on services to improve the lives of citizens.

How could things have gone so badly wrong?

In recent weeks, the people of Ireland have been indoctrinated through the media to expect a harsh budget and were assured by different Government spokespersons that it would take the necessary steps to bring about a recovery. While the Taoiseach consistently advised that the Government would deal with the overstaffing of the HSE and other organisations, he has opted out completely from any responsibility for curtailing costs and has opted solely for a budget that ensures a cost to every individual, regardless of how little they earn.

I believe this budget will cost a family that earns €60,000 per annum an additional €2,500 between indirect taxes and direct charges. While I wrote the following comment a few days ago, it is still relevant. Possibly the most difficult cut of all is what was done to those who are over 70. The excuses proffered by the Taoiseach and other Ministers about not understanding the position of those over 70 and putting them and their families through such trauma in recent days are nothing but a complete disgrace. The feelings of those people about how they were let down by the Government were to be seen outside Leinster House today. While I welcome the U-turn, it did not go far enough. It should have involved a complete reversion to the previous system. I also welcome the U-turn in respect of the 1% levy. This also was a measure that, good bad or indifferent, was not thought out.

It must be remembered that when the scheme for the over 70s was brought into being in 2002 for election purposes, the then Minister for Health and Children advised that the scheme would cost between €17 million and €19 million. I heard the Taoiseach remark recently that he had thought it would only cost €15 million. However, in the scheme's first year of operation, it cost €57 million, due to mismanagement and an inability to deal on behalf of the public. In general, health cuts clearly will have a serious effect on the aged and disabled. The fair deal proposal again has been put on hold for up to 12 months and no two members of the Cabinet can give the same advice on what will happen to those needing long-term care in the meantime.

In the limited time I have available, I must condemn the closure of the Army barracks in Monaghan. It has served our country well during one of the most delicate periods in the history of our State. While the Good Friday Agreement and the St. Andrews Agreement have improved the situation dramatically in the North and the Border areas, one has only to recall the tragic death of Paul Quinn 12 months ago, the efforts in recent months to take the lives of PSNI personnel and the closure due to a bomb threat of the main road from Clones to Cavan at Wattle Bridge to realise the continuing need for proper security. It is cause for further concern that it is proposed to transfer personnel from Monaghan to either Athlone or Dundalk. The failure to mention Cavan barracks, which is the nearest base, raises questions regarding its long-term prospects. I visited Monaghan barracks on numerous occasions, most recently last Saturday. Dundalk barracks must be a marvellous facility if, as Deputy Conlon suggests, it is an improvement on Monaghan. She must not have visited Monaghan barracks because it is a first-class base which I hope will continue to be used. It is located on a valuable 20-acre site. Why are all the barracks due for closure located in the north of the country? None is located in the Minister for Defence's constituency or, for example, in Clonmel.

As a representative of counties Cavan and Monaghan, which have a proud record in agriculture, I am extremely disappointed with the removal of the early retirement pension scheme and the young farmers installation grant, as well as the payment reductions under the disadvantaged areas scheme. The new suckler cow scheme is not even in place. In light of the amount of red tape with which farmers must contend, how can any Government Deputy claim that the schemes will still be worthwhile after being cut by 50%? The money will not even be sufficient to pay them for the difficulties they face. Deputy Connaughton will be able to outline these issues more clearly. The cuts in farming generally will be in the order of €3,500 to commercial farmers. That is extremely serious.

It is difficult for farmers to understand that the Minister for Agriculture, Fisheries and Food failed to get an extension for slurry spreading until the end of the year, which is the period achieved for their counterparts across the Border in Northern Ireland. Clearly, the Green Party has once gain made its influence felt, and not for the good of farming or the environment.

Cavan-Monaghan has lost out under the decentralisation programme. While it was clear from the beginning there was no chance that the Combat Poverty Agency would come to Monaghan town, the loss of 85 jobs in Carrickmacross and 250 in Cavan will have serious consequences during a turn-down in industry and job creation generally. It is interesting to note that decentralisation will come up for review in 2011, which is some time before the next election. Fine Gael has always been in favour of decentralisation provided it is properly organised rather than done purely for political purposes and without pre-consultation. Furthermore, everyone living in rural Ireland will be hit by the increased costs associated with buying, taxing and running cars. The increase of 8 cent on a litre of petrol cannot be justified and may lead to further losses of revenue in the Border areas.

The closure of Monaghan Army barracks is one matter but the almost certain closure of Monaghan General Hospital from tomorrow is quite another. It is nothing short of a disgrace. The Government at least had the guts to change the regulations on medical cards for the over 70s. People have died while Monaghan hospital was previously off call because they could not reach alternative hospitals in time. As the party in power, Fianna Fáil can decide whether the Minister for Health and Children, Deputy Harney, will allow the hospital to remain open and it has one more chance to do so. I urge the Minister to stop the meeting from proceeding tomorrow and ensure that the people of Monaghan retain their service. We were guaranteed that alternative services of equal or better quality would be made available before Monaghan hospital was closed or downgraded, but that guarantee has not been met. We will be given four beds in Cavan hospital to replace 58, including an intensive care ward, in Monaghan. My colleagues from Ennis and Galway, Deputies Breen and Connaughton, respectively, will have to deal with similar issues if the Government is not stopped from breaking down our services even as it wastes our money on major increases in administration.

Paul Connaughton Snr (Galway East, Fine Gael)
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I regard last week's budget as one of the most unbalanced in the 30 years I have been in this House. Like other Deputies, I realise that we have a huge economic problem on our hands and that if we were to convince the Irish people that they would have to face pain we would need to introduce a budget which balanced pain with the ability to pay. That did not happen, however. The budget struck the wrong balance because it was flawed from the outset. Last week was the first time in many years that every Government Member, including Deputy Gogarty and his Google, stood up to applaud a Budget Statement. As far as Government backbenchers were concerned, there was nothing wrong with the budget. They would not have accepted it if they thought otherwise.

This gives rise to a fundamental question. The elderly people who protested outside the gates today had to ask themselves whether the Government genuinely knows what a medical card means to ordinary people. After what they have heard in the past week, they would have to say the Government does not understand the importance of what I regard as a passport for ensuring the elderly have access to the medical services they need. I do not have time at present to develop this argument but I will get a further opportunity to do so tonight.

I have been an observer of the Government for many years. I was a Deputy in 2001, when the decision was made, correctly in my opinion, to give a medical card to everybody over the age of 70. The problem with the decision was, however, that a general election was held in 2002. I was here on the day in 2004 when the former Minister for Finance, Charlie McCreevy, stood up to announce out of the blue the decentralisation of 10,000 civil servants. That programme was to be in place by 2007. We decentralised the Department of Defence to Renmore and the Department of Agriculture, Fisheries and Food to Castlebar during the worst of times 20 years ago. It is a good scheme but the Government has managed to give decentralisation a bad name forever. It also gives part of the health scheme a bad name every time a Government Deputy stands up. All Deputy Gogarty could do was come in with a letter he sent this evening to the Taoiseach in faraway China. I am sure the Taoiseach will be delighted to get a letter from him, given that Deputy Gogarty saw nothing wrong on budget day. It only changed when the decent people of Ireland, many of whom spent a lifetime working in the worst of conditions, had to take to the streets. That is why the letter was sent to the Taoiseach in China, not that he will spend too much time reading it.

I could see straight away that the 1% levy would run into horrible trouble. Why would one ask people on the minimum wage, living hand to mouth, for even the smallest subscription to the Exchequer? It made no sense at all and would have cost more to collect than it was worth, but nobody around the ministerial tables knew that.

That was nothing compared to what was coming down the line. Through the years, we have believed that education is our touchstone. We related any economic success we had over the years to what we have done in education. Primary education is the foundation stone and all Governments have done their best with the resources available to reduce the pupil-teacher ratio. It has not come down nearly enough. It is hard to believe that any Government would be so insensitive as to increase the ratio, thereby ensuring we will lose several hundred teachers. There are two three-teacher schools in my constituency at Fohenagh and Clontuskert. There are 48 pupils in each school and those schools will each lose a teacher next year. Instead of a very good pupil-teacher ratio, there will be a very poor one. If one of the two teachers gets sick, under the details of the budget it may be that one teacher will have to teach 48 pupils alone for a week. That is the poor thought put into the budget.

Particular treatment was given to the farmers of Ireland. In 25 years I never saw this country without an installation aid grant to get young people into farming. I negotiated it in Brussels in 1983 with the then Minister for Agriculture, Deputy Austin Deasy. We train carpenters and plasterers through FÁS and it is money well spent. Why would we not train and pay a young person to go into agriculture? If they are not trained and highly skilled, we are going nowhere. In one fell swoop, the Government took €15,000 from the pockets of those small farmers. In a double blow, it ensured the EU retirement pension scheme was scrapped as well.

The Government went further in putting its hand into the pocket of every Irish farmer. When the Government brought the hand out it had an average of €4,000 in it. This was done on the basis of the €80 suckler cow welfare scheme, introduced before the last election by the then Minister for Agriculture and Food. Many in the House know that farming is my background and I am involved in the scheme. The ink was not dry on the contract between the Department and me before I was told, after the election three months later, that the sum was not €80 but €40 and, worse, I would have to wait an extra year. That is not a way to do business. One cannot engage in forward planning.

Since we joined the EU in 1973, we have always had headage payments for the worst land areas in the country. The Acting Chairman, Deputy Kirk, was involved in this. We always ensured there was an area-based payment or headage payment for the poor land areas. What did the Government do? Down with the hand again, taking another €1,000 from the top rate. The Government talks about balance in government. I do not have time to go into other things the Government has done. Sectoral interests will be outside the gate because the Government has hit them too hard and is showing that it is not in charge of the ship. I assure Deputies that it will be a winter of discontent.

Pat Breen (Clare, Fine Gael)
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I am delighted to speak on the budget. Many Ministers were not too happy in Government Buildings today when they read the report about what they thought would solve the problem of the medical cards. A political correspondent had three wise words in the Irish Independent, "listen, learn and inform". Unfortunately, this Government does not listen, does not learn and fails to inform the public. It will pay the political price for its incompetence.

This was the worst budget in history, as previous speakers have said, and it has tarnished the reputation of the Taoiseach, the Tánaiste, the Minister for Health and Children and other Ministers. Hubert Humphrey, the American politician, stated: "It was once said that the moral test of Government is how that Government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadows of life, the sick, the needy and the handicapped." This budget failed miserably with all those groups, particularly our older people. Many Deputies, particularly those in Opposition, saw the large crowd turning up in Dublin, more than I have ever seen gathered in frustration and despair. The decision to withdraw medical cards for the over 70s shows how out of touch is this Government. A budget that was supposed to tax the fat cats and protect the vulnerable achieved the opposite effect. Since the budget was announced, we have had a series of announcements from the Minister for Finance. We had a panic reaction from him, the Taoiseach and various Ministers. The Taoiseach's intervention failed and prolonged the anxiety for many people.

We must have a universal health system. For those who have lived their lives, paid their taxes and reared their children, this is what they call patriotism, not what the Minister does. The Government must admit it got it wrong. During Private Members' Business, there will be an opportunity for the Government Deputies to support this Fine Gael motion.

The Government also got it wrong for our children.