Fiona O'Malley (Progressive Democrats)

It is madness to think that everything could be delivered today because this process is more a marathon than a sprint. We should take the time to recognise that a programme for Government is to be delivered over five years and items in the programme will be delivered in that timeframe. This Government and the previous Administration has form and has delivered on previous commitments, which is one of the reasons I am pleased to see an increase in old age pensions today. We are well on the way to reaching the figure of €300 that is indicated in the programme for Government and this is to be welcomed. One might have expected the first budget of a new administration to be parsimonious with contributions to social welfare because it will be some time before it faces the electorate again but the Minister has honoured commitments in the programme for Government. He is furnishing the appropriate increases to arrive at the levels sought by the time the administration ends.

I am particularly pleased with the Minister's comments on research and development, especially in the energy field. I have always contended that there are major opportunities for the State in terms of advancing our knowledge economy. The Minister has given a commitment that where investments show scope to go further, he is willing to assist them in doing so. I applaud him for this tremendous initiative. This is the correct way to approach the challenge posed by climate change and the energy supply crisis. I am pleased to see the Minister investing heavily and appropriately at this level.

The Minister is wise to reform the stamp duty system so fundamentally. The attractiveness of his initiative in this area is its simplicity. The Progressive Democrats Party has indicated its preference for streamlining the bands to make fairer what has been an extremely unfair tax. The Minister wisely kept close counsel about this. Having observed what happened in the housing market in the past year, his response is appropriate. It is not a minute response but a fundamental reform of the system. Stamp duty was the most unfair of taxes; in no other area of taxation did one pay tax at the higher rate on the full amount once one exceeded the defined thresholds.

The Minister deserves to be commended on his initiatives in many other areas, including motor taxation. One of the fundamental features of this budget is that it upholds the principle that those earning the minimum wage should remain out of the taxation system. This is important in terms of encouraging people on modest wages to continue working. Ensuring that four out of five taxpayers pay tax at the standard rate is a good principle to maintain. Economic stability is prudently safeguarded in the budget. I commend the Minister greatly on his achievement.