Martin Mansergh (Fianna Fail)

There is a heaven of a lot in this budget and as Government finance spokesperson in the Seanad, I am proud to speak on it. This budget has few downsides, as it contains no indirect taxation increases and includes some tax cuts. I suspect part of the motive for these cuts was to eliminate smuggling on the Border and build a single energy market on the island, a project on which the Leader worked as Minister for Public Enterprise.

The budget is a reflection of the excellent management of the economy over a long period. In only one year since 2002, including the current year, has there been a general Government deficit and even that was small. Growth rates, at 5% in 2004 and 2005 and with a projected figure of slightly under 5% for 2006, are highly satisfactory. The workforce has increased to almost 2 million and we will soon have 1 million more people in work than in 1987. Inflation is under 3%. As we saw in Britain just two days ago, budget-making in most countries is a struggle to make ends meet and one which governments frequently barely accomplish. Governments here knew all about this problem in the past.

While the credit for the current financial position stretches back through all the Governments that have been in power over the past 20 years, the current incumbents have been in charge for the past eight years. The credit must also be shared with the social partners. I have the highest admiration for the social partnership process which has repeatedly, even in the most recent times, proved its usefulness and value. I hope the budget, together with the discussions taking place on Irish Ferries, will be the prelude to the start of new social partnership negotiations.

I am sure other Senators wish to speak about the child care initiative, the centrepiece of the budget. I pay tribute to Senators, particularly my colleague, Senator White, for highlighting the issue of child care. Senator Minihan also deserves thanks.