Tom Parlon (Laois-Offaly, Progressive Democrats)

This will result in stamp duty savings for first-time buyers of second-hand properties and is another measure targeted at the lower end of the market. Changes are also being made to rent relief to help those living in rental accommodation. These improvements will make a real difference to those concerned.

In recognition of the cost of third level education, the maximum amount of qualifying fees allowable under the scheme of tax relief for such fees paid is increased from €3,175 per year to €5,000 per year for the academic year 2005 to 2006.

In addition, the Finance Bill 2005 will provide for stamp duty relief from the double charge arising from the switching of financial cards such as credit cards. This will facilitate greater consumer choice and improve competitiveness in the area of retail banking.

Regarding indirect taxation, it is significant that the Minister has decided to make no changes to the main VAT and excise rates. This will help to maintain the low level of consumer price inflation, while also being mindful of the impact such increases in indirect taxes have on the less well off in our society. However, the budget contains an excise relief to benefit small craft breweries.

In the area of social welfare, the Government continues to address the needs of the vulnerable in society. This budget demonstrates that the Government is keen to target the resources available at those most in need by announcing an additional full-year spend of €874 million in welfare payments.

I am glad to see that the full personal rate of old age and related pensions will be increased by €12 per week. This means that the old age contributory pension will be €179.30 per week from January 2005. The old age non-contributory pension will now be €166 per week. Unemployment assistance and all other personal weekly social welfare rates will be increased by €14 per week. The lowest full personal social welfare rate will now be €148.80 per week as opposed to €83.04 in 1997.

In recent years, there have been major increases in the level of child benefit. In this regard, I am happy to see that the monthly rate for the first and second child will increase by €10 to €141.60. The comparable rate in 1997 was €38.09. The rate for third and subsequent children will increase by €12 to €177.30. A range of social welfare improvements is set out in the budget summary. I highlight the increase in the family income supplement income thresholds, improvements to the maternity benefit scheme and to the support provided to carers, particularly in respite care.

Citizens rightly expect that they will get value for the money expended by Government on their behalf. There has been considerable improvement in public services in recent years and this year's Estimates as well as today's budget build on this development. The Minister has already indicated that he wants Departments and offices to intensify their efforts to ensure the best possible value for money from the very significant funds being provides in the Estimates. In this regard the Department of Finance will shortly be issuing revised guidelines on the appraisal and management of capital projects to Departments. Work is also ongoing on changes in public sector capital project contracts to ensure that risk is transferred to those best able to manage and control it. Striving for value for money is an ongoing process.

Last year the Minister for Finance announced the introduction of rolling five year multi-annual programmes for all capital investment areas. One result of that decision is that there is a carryover of funds from 2004 to 2005 of €237 million. Together with the additional Exchequer capital spending announced by the Minister, this means that almost €6,300 million will be available for capital spending in 2005.

The Government is committed to improving the infrastructure of the country, thus benefiting the quality of life of all in society. Specifically on transport, an area of great importance for the economy, I note that the 2005-2009 capital envelope includes almost €10.2 billion for investment in transport infrastructure. I am pleased to inform Senators that the Minister has agreed in principle with his colleague, the Minister for Transport, that an extended capital envelope of ten years in the case of transport is appropriate and proposals on this will be put to Government shortly. This is an important initiative which I anticipate will help to improve the planning and delivery of infrastructure in this area. This proposal better reflects the needs of a modern economy.

As Senators are well aware and as we debated at length last evening, decentralisation is of particular interest to me in my role as Minister of State with responsibility for the Office of Public Works. During the last number of days we outlined the progress in this area, putting an end to the speculation of those who are sceptical about this important regional policy.