Martin Mansergh (Fianna Fail)

I am glad we did not hear anything about stealth taxes because if one measures the expansion of the standard rate band from this budget back to 2002, one finds it is fully in line with the rate of inflation. It is prudent that Governments maintain a certain degree of flexibility to increase bands above or below the rate of inflation, depending on the circumstances.

A marked feature of the budget, which should particularly recommend itself to more left-wing minded Senators, is the decision to phase out or cap the various tax incentives to ensure wealthy people contribute to the tax yield. To be fair to most wealthy people, they contribute a great deal in taxation, as most figures indicate, but there are some who use tax incentives to avoid paying any income tax. Two incentives on which there has been particular focus are the tax exemption for artists and writers who will now be able to earn €250,000 tax free, a change which substantially leaves the spirit of the exemption intact, and the phasing out of the exemption for stallion fees. The regime to replace this exemption must, I regret, be negotiated.

On the Order of Business this morning, the House discussed rail services, on which the Budget Statement includes a number of specific announcements. I am pleased the Minister of State at the Department of Finance, Deputy Parlon, referred to the decentralisation programme, including decentralisation to County Tipperary. In recent days, a sustained attempt has been made to rubbish the programme but it is on track, certainly as far as County Tipperary is concerned, and has delivered substantial benefits. May that continue.