Tom Parlon (Laois-Offaly, Progressive Democrats)

It has been demonstrated clearly that there is substantial interest in the programme among civil and public servants and this year's budget contains provision for the property related costs associated with our policy on decentralisation. Considerable progress has been made and the implementation of this multi-annual plan is well on track.

I am particularly pleased that the budget contains a special focus on those with disabilities. In the limited time available to me, I will highlight a couple of the significant developments in this area. Senators will be aware that considerable information on this topic is set out in the budget book published today. In the recent Estimates process, the Minister announced an increase in resources for this area of €290 million on the 2004 figure. Today, the Minister has announced a special disability multi-annual funding package with a total value of close to €900 million over the years 2006 to 2009. This includes guaranteed additional current spending of almost €600 million together with an allocation of €300 million out of the revised capital envelopes. I am sure that Senators will join me in welcoming this decision. The bulk of this funding package will go towards investment in services for persons with an intellectual disability and those with autism, services for persons with physical or sensory disabilities and mental health services. It is to focus, in particular, on the provisions of extra residential, respite and day places, extra home support and personal assistance and extra places in community-based mental health facilities.

Finally, I will highlight a number of important measures for the agricultural sector. It is important that we recognise the need for vibrant rural communities. The Estimates process has already delivered a gross Estimate provision of over €1.4 billion for the Department of Agriculture and Food in 2005. In addition to the national Estimates provision, EU direct funded payments to farmers and market supports will amount to almost €1.9 billion in 2005. Some of the features in the Estimates include a significant increase in funding for the rural environment protection scheme and an increase in the allocation for the farm waste management scheme.

In this budget, in order to ensure the viability of a competitive farming community in our modern economy, the Minister has announced the following measures: A new stamp duty relief for exchanges of farmland between two farmers for the purpose of consolidating each farmer's holding will be introduced in the 2005 Finance Bill. This concession will ensure that there is no charge for two years on exchanges of farm land of the same value for consolidation purposes. At present, each farmer is liable to the full stamp duty on property he or she receives. This will be a once-off relief and will apply for a two year period. The measure should assist those in the farming sector to consolidate their holdings in a more sensible and efficient manner; the writing down period of the special tax relief scheme for expenditure on farm pollution control measures will be reduced from seven to three years. This will be of assistance to farmers to help them comply with the EU nitrates directive and is also a welcome environmental development; a provision will be included in next year's Finance Bill to enable farmers not already using income averaging for income tax purposes to average certain payments outstanding under FEOGA direct payments schemes in three equal instalments over the three years 2005, 2006 and 2007; the farmer's flat rate VAT will go up from 4.4% to 4. 8% from 1 January 2005. The rate change will ensure that unregistered farmers are compensated in full for the VAT they bear on their business inputs. There will also be a corresponding increase to 4.8% for the sale of livestock by VAT registered farmers; and finally, the 100% stock relief for young trained farmers and the general 25% for farmers are to be continued for a further two years from 1 January.

I remind the House of the Government's commitment to a fairer share of the resources for all in society. The budget honours this commitment in a number of respects. We have taken those on the minimum wage out of the tax net. Through the widening of the bands we have taken 52,100 taxpayers off the higher rate of tax. We have focused funding on those in most need, such as people with disabilities, and targeted expenditure on increasing social welfare rates well above inflation. We have taken an appropriate approach towards managing the economic conditions which allow for these improvements. We have taken the responsible decisions demonstrating our commitment to invest in our community at all levels.

As the Minister said earlier today, the budget once again demonstrates that the well-being of this society and all of its citizens is in safe hands. I hope Senators will welcome this budget and I look forward to hearing their views.