Pat O'Neill (Fine Gael)

I welcome the Minister of State to the House and compliment him. He is one of the most accessible Ministers in the Government and I thank him for coming to the House today.

The Supreme Court has constantly ruled that one of the primary responsibilities of a Government is to decide where and where not to spend public money. Prioritising some areas for spending is never an easy task but the current Government is truly faced with the most severe challenge of any Government in the history of the State.

Even when this country was in ruins after the War of Independence, the Civil War and the economic war, a new Government was not constrained by the terms of an economic agreement of the nature of the EU and IMF deal. The Ministers of this Government face an arduous task. They must turn around the public finances and in order to do so they must address the fact that the country is currently borrowing €350 million each week to keep the show on the road.

In this context, the Minister of State faces the unenviable task of cutting the school transport budget. No Deputy or Senator would want to be in his shoes as he pushes through budgetary savings but if we are to be honest with ourselves we would recognise that he has little choice. The changes in question were introduced by the previous Fianna Fáil and Green Party Government in the last budget after the school transport value for money review.

I am from a rural village in Kilkenny and know that school bus transport is important to rural communities. It is desirable and parents do not want to face an increased charge or lose bus routes. However, the sad reality is that this country cannot afford to continue the same levels of services as in the past. The situation which the Government is faced with, which is sadly the same faced by many families in the country, is that there is not enough money to pay for all the things we could afford in the past.

The sad truth is that our economy was mismanaged and run into the ground. Charlie McCreevy's mantra, "When I have it, I spend it", rings hollow today when a new Government has to implement harsh cuts to pay the price for such an irresponsible regime. I welcome the local survey which the Minister of State has asked for. He has to find €17 million in savings in school transport between now and 2014.

People will ask why we do not cut other things or increase taxes. The reality is that every area of Government spending is to be examined and savings must be made. The task we face is too large for us to hone in on one area or another. As Senator Barrett pointed out, the cost of the school bus transport system has risen from €50 million in 1997 to €180 million last year despite the numbers using the service falling during that period.

The annual cost per pupil for school transport is €1,200. The situation is not sustainable in the current economic climate and these rises should be examined by the Minister of State. As he has pointed out, from next September primary school children will be charged a minimum of €50 per year for bus transport, rising to a maximum of €650 per family. The minimum number of children required to establish a bus route will rise to ten.

Children who had free transport to amalgamated schools will now have to pay and from next year children starting primary school will qualify for transport to the nearest school, which may not be in their parish. I add to the call by Senator Heffernan for the Minister of State to examine this aspect of the scheme as siblings from different families could be split under the measure.

These are not measures any Government would wish to introduce. However, many people can understand that in a situation where we are dependent on the IMF and EU to function from day to day, the menu of choices before the Government is not pleasant. With Fine Gael and the Labour Party working together as a competent Government the future of the country will turn around. We will right the ship of state. It will not be easy and cannot be done overnight but the new Government has the courage and ability to address the economic challenges currently facing the State.