Martin Mansergh (Tipperary South, Fianna Fail)

I think Senator Ross is wrong. A more pragmatic point is that because the annual contribution to the fund is not reckoned in the calculation of the general Exchequer balance, it does not impact on Government expenditure. High borrowing costs are a temporary phenomenon and if we succeed, as I hope we shall, in getting the financial situation under control, any additional borrowing costs will subsequently fall. The fund is a symbol of commitment to fiscal responsibility for credit rating agencies.

Senator Harris referred to agricultural inspectors and suggested that more valuable work is done in other Departments. I believe the agricultural sector remains important to this country in particular in terms of the development of the regions. It is an important part of society outside city areas. Senator Harris spoke about the progressive land tax, a proposal put forward by former Taoiseach, Garret FitzGerald in 1986. It is one of the battles I, as an adviser, fought with former Leader of the Opposition, former Deputy Charles Haughey, in conjunction with the Irish Farmers Association. Our purpose was to defeat that proposal which was introduced as a substitute for income tax.