Joe O'Toole (Independent)

——and create what he describes as fourth level education, which I am somewhat amused by. Whatever fourth level might be, I would like to see it established that institutes of technology have as much access to PhD courses as traditional universities. That is very important. As a representative of graduates, I liked the Minister's positive words about the quality of Irish graduates. I always knew my electorate were fine people and it is nice to hear that confirmed.

Over the past two years, I have asked that the minimum wage be taken out of the tax net. Last year and the year before, I deplored the fact that this was not done. I note that those on the minimum wage are out of the tax net this year. While I welcome that step, I think it is too late. One may say that I am being curmudgeonly about this, but nonetheless, this measure will give confidence to lower paid workers. I wish that the provision had come in last year's budget but, late as it is, I do welcome it as a positive step to which people will look forward.

In as much as I welcome the minimum wage being taken out of the tax net, I have also criticised the Government for the fact that the super rich could get themselves into a situation of paying no tax at all. I welcome the fact that that loophole is now being closed off, although I am not sure how. As I recall it, the Minister referred in his budget speech to complex legislation that would be necessary to achieve this, but I am convinced that he will do it. The matter needs to be examined.

Senator John Paul Phelan welcomed the budgetary measures concerning home heating oil. I hope he is right in what he said, but I thought the Minister referred specifically to kerosene and LPG while not mentioning diesel, which is the main home heating oil. Have I missed something or is it a typographical matter? Did the Minister refer to kerosene as including diesel? I would like to know what the situation is in that regard.

Twice in the past month, I spoke about the need to provide grants for alternative domestic energy. The Minister referred to this in his speech and stated:

To help develop a better focus on renewable energy my colleague, the Minister for Communications, Marine and Natural Resources intends to launch several innovative grant schemes relating to biofuels [I would like to hear a lot about that], combined heat and power, biomass commercial heaters and domestic renewable heat grants.

The important word there is "domestic", which should mean that if someone wants to install a waste water management system, solar panels or thermal heating in his or her home, a grant will now be available to do so. Senator Ryan has also referred to this point. Such a system might now be introduced in the same way as people received home improvement grants under certain conditions in the 1970s and 1980s. I think that is what the Minister was saying, but I would like it to be confirmed.

I agree with Senator John Paul Phelan that an opportunity was missed to reduce the extraordinarily high rate of VAT. That could and should have been done and this budget was the time to do so because it was probably the best opportunity we will ever have.

I welcome two aspects of the budget concerning openness. I am attracted to the new process of budgetary reform, which gives an impetus to legislators and other elected public representatives to become involved in it. I am also attracted to the idea in section B of the report, which outlines the views of consultants and others who examined the various tax-break schemes that are now being wound down. It is important for us to see that. I am sure that when we get down to examining the detail it may be overly selective, but nonetheless it is important.

I do not have the option to deal with many other issues. I am not quite clear, for example, how proposals for the elderly will work out in operation. Overall, however, I must say that there is far more to welcome than to criticise in the budget. It is a progressive budget which takes the direction I have been advocating for the past year. I am supportive of it, although there are some issues about which I am unclear and others about which I am unhappy.