Liam Fitzgerald (Fianna Fail)

I welcome the Minister of State at the Department of Finance, Deputy Parlon, to the House, and thank Senator White for sharing her time with me.

I welcome the Finance Bill which builds on the progress made over the past seven or eight budgets and their respective Finance Bills. Much has been said about planning, evaluation, review, a change of economic circumstance and climate, and how we plan for that. That constant evaluation and reform is also necessary in the tax system. This has been ongoing from the day this Government and its coalition predecessor took office in 1997. The Government has striven to make the tax system fairer and more transparent and to identify and eliminate the devices used by professionals to get around our tax laws. By making the system more transparent and equitable, the aim is to encourage greater compliance among taxpayers in general.

Tax policy must achieve a delicate balance between promoting enterprise and employment for the creation of jobs and providing for, and facilitating the creation of, a better quality of life for everyone. This Government presides over one of the best performing economies in the world. The standard indicators bring that home forcefully, including, the lowest unemployment rate, the 2 million employed, which is a record for the State, the increase in the number of jobs created last year, and the tax system which remains highly competitive and is ranked first for both personal and corporation tax, inflation or investment.

Opposition spokespersons and the media have recently teased out the question of investment in infrastructure. Some say that despite the recent remarkable increase in infrastructural investment which was used to promote economic development, competitiveness and regional balance, we should fast-track it further and borrow more to spend more on infrastructure. That is neither wise nor prudent. The Government's massively increased funding for development reflects an attempt to make up for a significant deficit in this area, which retarded the potential for economic development and job creation. Our economic progress reflects the increase in this respect. The plans for the future are prudent and achievable.

Some speakers referred to capital investment. The Government seeks value for money, is committed to proper management of public spending and is determined to get the best possible return for this. There are many examples to support this.

The Minister announced 12 new measures late last year to increase the efficiency of returns from capital investment. These measures are aimed at eliminating occurrences of wasteful expenditure. Of the most prominent examples, 19 of the 22 major road projects valued above €15 million are on budget and ahead of schedule. That is not to say that everything is perfect. The Minister's actions and decisions late last year are clearly indicative of his appreciation that much more needs to be done to bring about even greater efficiencies, a greater degree of value for money and thereby greater competitiveness.

I did not hear Senator John Paul Phelan speaking so I cannot comment on his contribution but Senator Quinn and others referred to planning for the future. I compliment Senator McDowell for being balanced and positive in his approach. I have served in both Houses since 1981, and if one looks back on the history of Governments through the years and at the planning or lack of it and the rollover of policies, programmes and finances from year to year, any fair-minded or objective observer would have to compliment this Government, the Minister for Finance, the Minister of State, Deputy Parlon, and the Minister's predecessor, Mr. McCreevy.

There is ample evidence of forward planning. I accept it was never more necessary, essential and vital because coming from where we were in the dark times of the 1980s. Our current phenomenal success, both economically and socially, is unsustainable without ongoing evaluation, review, reform and planning. We are frequently reminded we are a very small and open economy and are exposed to changes in the world market over which we have no control. Accordingly, we must play to our strengths at home. There are now fewer manufacturing jobs than there were ten years ago. We have a major reliance on the building industry. Our cost competitiveness has declined, relatively speaking, and we must ensure our inflation rate is lower than in competitor countries. Our dependency ratio is an added factor. These are the main target areas on which the Government has focused and for which it is planning ahead. I compliment the Government on the various, extensive programmes it has set out.

Senator White referred to ageism. The pensions area has been targeted by the Government from an early stage. It might seem trivial to the casual observer but it is very significant in terms of future implications and contingency plans which need to be in place for the ageing profile of our population. The former Minister for Finance, Mr. McCreevy, set up the National Pensions Reserve Fund to take on the burden which will inevitably be placed on State pensions in the next 25 to 30 years. His successor as Minister, Deputy Cowen, and the Minister of State, Deputy Parlon, are taking on a related aspect, the inadequacy of private pension provision by those in employment.

I commend these approaches. It is significant in terms of long-term planning and the implications it will have for the finances of the State. Important basic ground-work and planning has been done. I also commend the measures to close off the loopholes which have been availed of by certain very wealthy people. The figures indicate it is not the great number of dodgers we are led to believe, nevertheless, the few involved have used very clever devices. I commend the Minister for taking on that issue and making firm decisions on it.