Tom Parlon (Laois-Offaly, Progressive Democrats)

It is obvious that this is not a global trend. Ireland is practically unique, as Senator Dardis said, in having a Government that is able to stay under budget when providing for significant expenditure on social welfare benefits like old age pensions and various forms of infrastructure, at a time when its debt to GDP ratio is just 25%. The only other countries which are able to do that are countries with massive economies which are associated with oil barons. No other country has been able to manage its economy in the way Ireland has done.

I would like to respond to a few issues which were raised. Senator O'Rourke said that I would clarify the point made by Senator Ulick Burke about the rural environment protection scheme. The payments under the new scheme which is being introduced — REPS 4 — will be 17% bigger than the payments under REPS 3. Farmers who are currently operating under REPS 3 are free to transfer to REPS 4 and to avail of the 17% increase in the payments.

Senator O'Toole spoke about mortgage interest relief. The Minister's decision to extend mortgage interest relief means that a couple who are first-time buyers can get a 33-year mortgage over of up to €379,000, which is more than the price of the average house that first-time buyers are choosing to buy. Indeed, the average price of a first-time buyer's house in Dublin is more than €379,000. The relief that has been announced is certainly substantial.

Senator O'Toole raised some concerns about the accuracy of the revenue forecasts. We are living in a dynamic and fast-changing economy. The economy's revenue streams have been impressive and unprecedented. The Department of Finance adopts a very prudent approach to forecasting tax revenue, as it should do. It would be irresponsible of the Department to do otherwise. The production of accurate forecasts is challenging because the workforce is growing very fast, business is booming and asset values are increasing rapidly. I think the Department of Finance has done well.

Senator John Paul Phelan asked earlier about home care packages. The Minister for Finance mentioned in his speech that the Minister for Health and Children will announce the details of the health package tomorrow. That announcement will include references to home care packages and home help.

Senator Phelan also made some comments about transport. Details of capital investment over the next seven years will be included in the 2007-13 national development plan, which will be published by the Minister for Finance in January. The Senator is aware that Transport 21 will form a significant part of the new plan.