John Minihan (Progressive Democrats)

I welcome the Minister of State to the House. The Progressive Democrats believe economic policies can be an instrument of social justice, and I have stated as much before. Contrary to suggestions from some quarters, we do not decouple the economy and society. Our central political economic philosophy is the belief a strong and dynamic economy can deliver for all society, particularly those who are vulnerable.

Our parties policies have helped deliver the economic growth and increased tax revenues, which has led to more resources for social provision. That has allowed substantial real increases in social welfare payments, health and education. The 2007 gross pre-budget Estimates are further evidence of the correctness and the application of the Progressive Democrats ethos.

The Minister and the Government are to be complimented for striking the appropriate balance between making necessary provision for our public services and ensuring maintenance of a prudent and sustainable budgetary position. Delivering economic growth is just one side of the coin. We must utilise the added revenue generated to improve public services for our people. We have delivered the growth, which is demonstrated by an annual average growth rate of more than 7% in GDP terms between 1997 and 2005. The debt to GDP ratio will be approximately 25.5% of GDP in 2006, the second lowest in the euro area. The unemployment rate of approximately 4.25% is one of the lowest in the European Union, where the average unemployment rate of 8% is nearly double the rate in Ireland. The level of employment this year exceeded 2 million for the first time in the history of the State.

We continue to deliver the resources for public services. The Estimates provide for expenditure of just over €54 billion; €46.7 billion on current spending and €7.6 billion on capital spending. This is an increase of just over €4 billion, or 8.1% on 2006. It amounts to an additional €6,700 to be expended on public services for every man, woman and child in the country than in 1997.

Senator Mansergh referred to stamp duty. The Progressive Democrats started the debate and I have made my contribution in this area. Regardless of the differing views that people may have, we can all agree that there is now cross-party political support and public support for reform in this area. When all the submissions are made I am confident the Government will make its decision in this regard as to what is in the best interests of the economy.

The Tánaiste and Minister for Justice, Equality and Law Reform, Deputy McDowell, and the Minister for Health and Children, Deputy Harney, continue to demonstrate dedication and prudence in their departmental Estimates. The total public spending on health provided in the Abridged Estimates Volume published today amounts to €14 billion gross current plus €657 million gross capital. In real terms this means that eight new hospital units are to open in 2007; priority will be given to older people in the Estimates and in the budget; the spread of BreastCheck is on target for 2007 while the Government is again providing for a substantial annual increase in public spending on health of over €1.1 billion. This amounts to more than €3,300 per person. It represents a quarter of Government current spending and more than the entire income tax take from 1.4 million income tax payers.

The spending increases in health since 1997 have always been well above the rate of inflation, in fact, double or treble the rate of inflation and well above the increases provided in the 1990s. Each year, health has always received high priority from the Government and that is the case again this year. These increases and the total we have reached are made possible only by the strength of the economy and the sound economic policies of the Government.

It is worth focusing on service improvements achieved since 1997 with the overall level of funding. The total patient admissions to hospitals are up by more than 300,000 to over 1 million. Waiting times for operations have been dramatically reduced from years to months. No longer do 75% of children and adults wait for more than a year for heart operations. There are nearly 40,000 more cancer patient hospital admissions. More people are being treated and surviving cancer. Infant mortality has fallen by one third. BreastCheck is in place and will provide a service for all women in the country in the spring of next year. There was no breast cancer screening programme in 1997. Preparations are under way for cervical screening.

There are more than 3,000 home care packages for older people, where there were none in 1997. There are approximately 1,500 additional acute hospital beds in use. We are providing 1,700 more residential places and nearly 3,000 more day places for care, as one part of the first ever multi-annual programme for services for people with disabilities. Recognition has to be given to people at the front line who are delivering these service improvements. Their contribution and the reforms being introduced are all helping to bring about a first-class health service delivered to the people where most needed.

In the area of justice, the Government has again shown its commitment. We welcome the fact that the allocation for the justice and equality sector, current and capital, has risen by 9%. The gross allocation for justice is up by €181million to €2.4 billion. Allocation for the Garda Vote is up by €135.3 million to €1.445 billion, an increase of 10%. The Justice Vote has risen dramatically. Youth justice is to receive €16.3 million and there will be an extra €17.6 million for the Courts Service. Capital allocation for the Vote Group is up by €26 million. The resources are being given to the areas targeted. This means successful anti-crime strategies and operations such as Operation Anvil will be continued and intensified on a nationwide basis. The year 2007 will see more than 275 fully trained gardaí graduating from Templemore every quarter and 1,100 in total over the year. This will allow the Garda Commissioner to focus on providing a highly visible policing presence throughout the country.

Despite what the Opposition says, the Government's commitment with regard to Garda numbers has been met. The Tánaiste has asked the Commissioner to devote significant resources to policing RAPID programme areas where residents experience persistent vandalism, intimidation and other forms of anti-social behaviour. Funding for the IT infrastructure, which is a key support for successful policing and crime fighting, is up by €3 million to €38.4 million. The national digital radio will be rolled out to significant areas of the State next year. Expenditure this year on Garda vehicles will be more than double that of last year and will result in the purchase this year of 1,200 vehicles, more than half of the entire Garda fleet. This progress will be continued in 2007. The Garda traffic corps strength will reach over 1,000 next year, a doubling of its strength since 2005 and progressing towards the target of 1,200 by 2008.

The Government continues to provide record resources for anti-crime strategies. The publication of today's Estimates, which show an increase of 10% on this year's budget, serve to underline the Tánaiste's commitment in this respect. The additional overtime allocation will yield almost 3 million extra man hours of policing by uniformed and special units throughout the State. This significant increase in funding and the continuing increase in the strength of the force, will enhance the capacity of the Garda Síochána to combat crime, focusing on the policing priorities for 2007.

As the Minister for Finance, Deputy Cowen has stated, the 2007 Estimates are fiscally sustainable, economically appropriate and politically responsible. The maintenance of stability has been the cornerstone of our economic success. Stable and sensible policies have enabled us to generate the resources necessary to tackle poverty and social inequalities and to improve public services. The budget will provide for a social welfare package and some additional expenditure on health.

The Government will publish the National Development Plan 2007-2013, in January. This will set out the seven-year investment programme and financial framework for sustainable social and economic development over the medium term. The Progressive Democrats are pleased to have played an integral part in the Estimates, budget and NDP processes. I commend the Minister and the Government on their continuing determination and prudence in this area.