Tom Shehan (Fine Gael)

If I may borrow a comment from Professor Brendan Walsh on last night's "Prime Time", this had to be done. No Government takes pleasure in implementing cuts of the nature announced today. I want to address, and commend, several aspects of the Budget Statement. I do not recall a previous budget which focused so much on agriculture. This is a positive outcome because, when one considers Harvest 2020 and the way the Minister for Agriculture, Food and the Marine has protected and enhanced the products grown in this country, agriculture can make a significant contribution to society and the Exchequer. The measures on transferring property will offer an incentive for dynamic young farmers to remain in a sector on which our economy is reliant. Agriculture is indigenous and, as my father always said, farmers will spend money when they have it. This budget will benefit the entire economy.

One might ask how the measures on commercial property transfers and the reduction in the rate of stamp duty from 6% to 2% will benefit the Exchequer or the economy. The measures offer incentives for foreign direct investment and indigenous entrepreneurs, who may decide to purchase rather than rent commercial property. The restoration of the rate of interest relief for those who purchased homes between 2004 and 2008 will be welcomed by couples in every corner of the country. I anticipate young couples will be going out to view properties this weekend as a result of the changes to mortgage interest relief for first-time buyers. I urge people to grasp the incentive they have been offered by the Minister for Finance. However, this initiative will be futile if the banks do not offer loans to first-time buyers.

On VAT, let us not forget that food, clothes and oral medicines are not subject to VAT. The majority of the money held by the less well-off in society is spent on these products. The exemption to the universal social charge will increase from €4,000 to €10,000, which is welcome. The budget sets out to protect the weakest and most vulnerable. Over the last two weeks I have been calling for an evaluation of who the weakest and most vulnerable are in society. To that end, special needs assistants have been retained, the pupil-teacher ratio has been maintained and the carer's allowance and the old-age pension have not been reduced.

The Minister must be commended on his prudent management of the economy given that the deficit will be 10.1% at the end of the year, compared to a projected 10.6%.