John Gerard Hanafin (Fianna Fail)

I am pleased with the increase in the social welfare payments. Dependants, who were in an anomalous situation, have received a significant and welcome increase of €27 which, when combined with the increase of €14 in the contributory pension, makes an increase of €41 a week or more than €2,000 a year. Respite grants have increased. Supporting older people is one hallmark of the Government of which I am particularly proud.

In respect of family support, there is an increase of €6 each for the first and second children per month and an increase of €8 for the third child, making €20 for a family of three. There is an additional €2 million in funding for school meals, representing another significant increase for those in disadvantaged areas. I like to see this because looking after those who are less well off is the sign of a good budget.

Taxation has decreased significantly through the years. This is a vast improvement by any yardstick and using any inflationary figure. It is a great credit to all budgets heretofore. A married person with two children on the full rate of PRSI and earning €15,000 paid 11% of that in income in tax in 1997 but he or she pays nothing now. A person earning €25,000 in 1997 paid 20% and pays nothing now. A person on €120,000 paid 43% and still pays 27%, a significant amount, as it should be. It is, however, attractive for people to come to this country. Foreign direct investors look not only at the economic climate and taxation — we welcome the retention of the allowances for the business expansion scheme and film investment — but also at the provision for education and health services. We have a high standard of both and I was delighted to see a significant sum, in addition to ordinary resources, being expended on cancer care because this is present in all our minds. This is a commendable budget because within its constraints it concentrated on the less well-off.