Ann Ormonde (Fianna Fail)

Having examined the Bill in detail, I wish to comment on the changes contained in its provisions. This debate gives us an opportunity to tease out the proposals on areas such as taxation and expenditure policies. I begin by welcoming the Minister for Finance's commitment to reform the presentation of the budget. I have been in this House for some time but continue to feel apprehensive and uncertain in understanding the budgetary process. Despite possessing a degree in commerce, I have difficulty in deciphering the language conveyed to me through the Civil Service. This is no reflection on the officials involved but merely an expression of the desirability of providing information in layman's terms. In this regard, I welcome the Minister's proposal to set out a different type of presentation in future budgets. Such a process of simplification will ensure that we, as public representatives, will be able to explain changing policies and proposals to voters.

This is an important Bill which is based on a healthy economy and oversees various changes that are taking place and will affect future development in areas about which we are anxious. Since 1997, there has been a reduction in income tax from 28% to 20% and a reduction in corporation tax from 36% to 12%. Whenever I visit continental Europe, I am asked about the formula for Ireland's development as a model economy. We are doing well in many regards but we are our own worst critics. Begrudgery is evident in the attitude of those who dispute our achievements and point to a lack of emphasis on a particular area.

This is all part of politics. I try to be constructive rather then destructive but I am the first to point out when things are not being done right. However, I do not like being criticised when the correct approach is taken. Politics is not about fair play but it is a concept I support. Senator Quinn understands my point that this approach must be borne in mind.

The reduction in stamp duty for first-time buyers of second-hand homes is a significant change about which I have already received positive feedback. Another welcome change is the updating of tax law to bring it into line with international accounting standards and stimulate competitiveness. Changes to tax reliefs on pensions, foster care, share options and international financial services are also welcome. The Bill also provides for the upgrade of tax administration to provide all citizens with a better understanding of how the tax system works by, for example, providing information through the Internet.

The provision of on-line service facilities represents a great step forward in terms of catering for younger people. However, there are many who cannot access the Internet or who are not comfortable doing so. A woman told me about her experience of telephoning Bord Gáis during which she was instructed to press various keys for different services. A person who is unable or reluctant to use the Internet should not have to deal with this type of gobbledegook on attempting to make a telephone inquiry in regard to a tax issue. I welcome that some two thirds of the population will be able to access this facility but those unable or reluctant to use it, particularly the elderly, should not be isolated through an excessive focus on on-line services.

The Minister has pledged to tackle the issue of tax avoidance and evasion. That is to be welcomed considering the number of wealthy people — we all know them — who have the skills to knock the system, thereby reducing their tax obligations. I am glad the Minister will find a way to close this loophole.

The cut in stamp duty for first-time buyers of second-hand houses means that those who want to buy second-hand houses can now do so. They may now be able to afford to buy them in areas in which it would not have been possible for them to buy heretofore. The provision allows young couples to move into estates with a more elderly population, thereby creating a social mix.

It is only two or three weeks ago that I was canvassing in a few big estates. I began at 2 p.m. and was lucky to have met ten people by 5.30 p.m. The change to the stamp duty rates will bring the soul back to such communities. Anything that changes the concept of society in this way is welcome. I am referring, for example, to giving young people an opportunity to buy second-hand houses and live close to their grannies.

Let us consider the issue of child care. Will the Minister consider an allowance for relatives to look after children so they will not be taken from their home environment and placed in crèches with a factory-like environment? I would hate it if young people found themselves in this position. I would like to see the concept I advocate developed. Perhaps the child care system can be developed around it.

I agree with Senator Quinn on public spending, which has been increased significantly. Over €49 billion is to be spent on health, education and social welfare. This is a great commitment on the part of the Government. While I welcome this fact, it is very important that we have value for money. It is important to scrutinise how money is spent and to examine the role of Departments in this regard. I have often stated that one should give people a fishing rod rather than a fish. In other words, we should teach people how to do the job.

It is important that we do not throw money at the problem any more. There are considerable sums of money available and there are still blackspots. Senator Quinn referred to them in respect of disadvantaged areas. We must consider how best we can use available funding in the primary and secondary education sectors to help those who cannot help themselves. It is not so much a question of throwing money at the problem, because this does not solve it, but of how we go about solving it. Will the Minister of State bear this in mind? He has acknowledged that he intends to scrutinise how Departments are spending their money. It is a question of value for money.

Senator Quinn also spoke about skills shortages. There is not enough co-ordination between the Departments of Enterprise, Trade and Employment and Education and Science in terms of skills training. Further co-ordination would be of assistance in areas with a skills shortage. Will the Minister of State bear this in mind?

This Bill is a start and an indication of the Government's commitment. We should use tax provisions to complement economic development. We should be aware that there are still quality of life issues to be addressed. They are only small issues and we can address them. Let us get it right in the year available to us.