Martin Mansergh (Fianna Fail)

Child benefit has increased to €150 per month for first and second children and €185 per month for subsequent children, a significant improvement on the 1997 figures of £30 and £39, respectively. The budget also provides for a special payment for children aged under six years. Increases in paid and unpaid maternity leave mean women may take practically a year off work following the birth of a child. The budget also includes an important child care investment programme and having been present at the opening of family resource centres around the country, it is clear the programme will play a significant role. The €10,000 tax-free exemption for people who mind children at home has not yet been highlighted but may be as significant as any other measure in this area. In a sense, this initiative formalises the informal economy but there is no harm in that.

Contributory pensions have been increased by 8% to close to €200 per week, while the non-contributory pension has been increased by 9.6%. With increases in another lower social welfare payment of €17, the Inchydoney agenda clearly continues. The percentage increase in social welfare benefits of 11% is far ahead of inflation. All of us will remember that, with the exception of the late 1980s and early 1990s when a Fianna Fáil Government took steps to fulfil the recommendations of the Commission on Social Welfare report, general social welfare increases prior to 1997 tended to be between 2% and 4%. We have greatly exceeded this range which is an excellent development.

The focus of tax measures is to remove the lower paid from the tax net. As the figures demonstrate, every budget since 2002 has been strictly progressive. In the past three years, the European Commission has stated several times that Ireland has the most favourable taxation system of any country in the European Union for those on low to middle incomes. However, the Fine Gael spokesperson is worried about the poor people earning high incomes.