Cyprian Brady (Fianna Fail)

The Government must be doing something right to exercise the other side so much. I congratulate the Government and the Minister, Deputy Cowen, on producing a progressive and far-sighted budget. It is a budget that will build on the significant strides forward that we, as a country, have taken in a relatively short space of time. These strides do not happen by accident. Over the two previous budgets, the Opposition was baying that we were cutting back on this, that and the other instead of, as we saw it, prudently managing our resources. When the economies of other countries in Europe, in particular, and throughout the world were faltering — some of them are still doing so, with rising unemployment figures — we managed to maintain a steady course over the past two or three years, and that has brought us to today's budget where we have €43.8 billion to put back into the economy. The Government and the present Minister must be congratulated on achieving this at a particularly difficult time.

I want to focus on a couple of areas in particular. The first is the environment. Again, the Minister has proved that the Government takes our environment, and that of our children, extremely seriously. I welcome the exceptionally progressive steps being taken, particularly in respect of incentives for the promotion of biofuels, which will have an immense benefit in the long run for our whole community, including farmers. Farmers play a particular role in this regard and the incentives announced today will be of great benefit to them. Our children's future is extremely important to us and today the Government has proved that its concerns regarding the environment and its obligations, particularly under the Kyoto Protocol, are genuine. The Government recognises that serious measures must be taken to protect our supply of energy, while simultaneously protecting our environment for future generations.

The issue of carbon emissions is a major talking point at present. The Montreal discussions are under way and this is a challenging issue. The establishment of a carbon fund is the first step in what promises to be a comprehensive approach to this issue. The multi-annual funding, starting with €20 million in 2006 will ensure that we can build on this. The development of biofuels is an emerging area of expertise and it is essential if we are to come anywhere close to our targets. The level of excise relief which will start at €20 million this year, with €30 million next year and €50 million in each of the three following years, will support the production and use of hundreds of millions of litres of biofuels per year. The input of the farming community will be essential in this respect and will provide opportunities. While the environment will benefit, we will also benefit from the creation of jobs. Research and development in this field is a significant industry and we have only begun to tap into it. We have a young, well-educated population and have proved in the past that we can hold our own, particularly in areas such as pharmaceuticals and technology. This is another area where I feel we can make major strides in the future.

Moreover, the extension of VRT relief for hybrid fuel cars is to be extended to flexible fuel vehicles, which is another step forward. This is the future for Ireland. If we are to maintain the progress we have made to meet our obligations, particularly under the Kyoto Protocol, this is a particularly good start. It shows our seriousness about the environment and our willingness to take exceptional measures and progressive steps to try to fulfil those obligations.

Although it only formed a small part of the Budget Statement, I also welcome the social finance initiative, which will encourage banks and other institutions to become involved in social inclusion and community development throughout the country. In particular, the banking community will be given a chance to build relationships and participate in the community as never before. While there has been much negative publicity, particularly in respect of banks and building societies, this will provide them with an opportunity to become involved. It will entail the provision of seed funding and expertise for various community projects and other institutions will be invited to participate. This excellent and welcome initiative will provide an opportunity for these institutions to become involved at a local level in their communities.

Another section of the speech pertained to property-based tax schemes. I am particularly interested in two of them. The first is the park and ride scheme which has not proved to be as successful as was hoped. It is prudent to remove it and opt for State funding in this regard as it will be an essential part of the implementation of Transport 21. I remember that it was mooted in the early 1980s as part of the Dublin Transport Initiative. One of its main planks was the provision of park and ride facilities. A start has been made at the Red Cow roundabout in conjunction with the Luas, as well as in a number of locations on the outskirts of the city. It will be worth investing money in this respect because it will prove to be beneficial in the future.

I welcome the retention, to a great extent, of the urban renewal schemes. I have seen their benefits at first hand, particularly in the inner city of Dublin. In some areas, they have completely transformed communities. They have had a catalysing effect on development and regeneration and some of the most deprived and rundown areas of the city have been transformed. Through the integrated area plans, in conjunction with Dublin City Council, councillors, public representatives and the communities themselves, many areas have improved dramatically. The plans are crucial to the development of districts in an integrated and community-friendly manner. By taking the needs and views of local residents into account, they have led to major improvements in the design of urban dwellings and of housing in particular, as well as the provision of facilities at community levels. I welcome this budget's retention of the urban renewal schemes.

The Government must be doing something right to have the Opposition so agitated. This is a progressive, far-sighted budget which I warmly welcome.