Tom Parlon (Laois-Offaly, Progressive Democrats)

Taking into account the need to keep inflation down, the Minister has decided to make only minor changes to indirect taxation. Taxation on cigarettes and other tobacco products will increase by the equivalent of 25 cent per packet of 20 cigarettes. The VAT-inclusive excise duty rate on petrol and diesel will be increased by 5 cent per litre. These increases will take effect from midnight tonight and will raise €243 million next year.

I turn next to the agricultural sector with which I am very familiar. The budget contains a number of measures that will benefit farmers. I am particularly pleased by the Minister's decision to establish a new rural social scheme. This scheme will provide worthwhile, locally based jobs for members of families eligible for the farm assist scheme. It is envisaged that up to 2,500 places will be available on the scheme. The effect will be the improvement of rural services and the provision of income to small farmers through a working week which is compatible with farming. Details of the scheme are set out in the budget summary.