Tom Parlon (Laois-Offaly, Progressive Democrats)

I will make a brief comment as there has been a general appreciation of the budget and the positives therein. It is important to note that the budget maintains the Government's policy of sound economic management. Were it not for this good management, we would not have had the resources in this budget to distribute the benefits of our prosperity across all of society. In any budget, but particularly in this budget, sustaining economic growth and improving equality and opportunity for all is most important.

I remind Members that since 1997, the numbers of those in the tax system who pay no tax has increased from 380,200 to 741,000. Approximately a third of workers pay no tax, a further third pay at the lower rate and less than a third pay at the highest rate.

Senator John Paul Phelan was critical of the value for money aspects of public expenditure. This is unfair, as the Minister placed particular emphasis on this issue previously and in his Budget Statement, referring to a number of specific measures. In particular, these are the new forms of contracts for construction projects; the new requirements for evaluation of projects costing more than €30 million using cost-benefit analysis; and the tighter monitoring of spending by the Department and its agencies.

Senator O'Toole queried the early child care supplement. I confirm this particular payment will be in respect of each child under six years of age. It is universal and not tied to any child care costs. It is not a voucher approach and it will be paid to everybody.

Senator O'Toole also asked why the reduction in excise for heating oils did not apply to diesel. The answer is reasonably straightforward, as marked gas oil, or green diesel as it would be termed in rural areas, is most commonly used in tractors for agricultural purposes. Some people use it for heating purposes, although green diesel is a very different product from kerosene. There is a host of issues that can then arise, with the Revenue Commissioners having a constant fight to avoid green diesel being used illegally. It would be difficult to apply excise at differentiated rates, and green diesel also has a higher sulphur content than kerosene, making it less environmentally friendly. These are valid reasons the reduction has not been applied to diesel.

With regard to decentralisation, I thank the House for its support on the programme. I reject any comments that it is not progressing, as it is well managed.