Joe O'Reilly (Fine Gael)

There should also have been a provision to grant aid the marshalling of water from old corn and flax mills to provide power to alternators to create electricity locally. I should acknowledge that my colleague, Senator Burke, has raised the question of domestic wind turbines on a number of occasions in this House.

The increases in social welfare are just about adequate but do not take enough account of the fact that one in five old age pensioners lives in poverty. In recent times the prices of essential foodstuffs such as bread, milk, butter, eggs and so on have increased by 15% and in this context the increases in social welfare are paltry. It is a horrendous shame that the living alone allowance was not increased today because there are obvious extra costs facing those in this area.

I have always argued in every chamber available to me, including local radio, that we should remove the means test for the carer's allowance and Senator Wilson will corroborate this. The carer's allowance is the most effective way of keeping people at home, where they are happiest, and more should be done regarding investment in home care assistance. This is all missing from today's budget, which is strong on platitudes but low on detail.

The budget has failed to deliver on the election promise on the top rate of tax, which is 41%, and it is worth noting that since 2002 the burden of taxation per person has increased by €9,500. The move on stamp duty is probably too little, too late to cope with the slump in housing prices and represents the Government's acceptance of an identical proposal made by Fine Gael during the election campaign. The budget provides no relief for those who decide to take a year or two of leave from their jobs to look after a child at home but such an initiative needs support.

This budget should have seen the Government reducing wasteful expenditure, eliminating the notion of big government and reducing the use of the traditional Civil Service. The budget should also have taken a more realistic approach to environmental issues and made more provision for social welfare. More could have been achieved in this budget, which represents the Government's poor attempt to back track on its election promises.