Martin Conway (Fine Gael) | Oireachtas source

One element of the budget about which I was unhappy was the fact that the cost of a packet of cigarettes went up by only ten cent. The Minister had scope to increase the price of cigarettes significantly. There is a serious public health issue with cigarettes and smoking which is costing a serious amount of money in terms of health care and we must tackle it as if we were in a war with the tobacco industry. I was disappointed that the increase was only ten cent. It should have been €1.

However, all other aspects of the budget were very positive. I am delighted that the Minister took on board the submissions from the hospitality, hotel and tourism industry and retained the VAT rate at 9%. That has certainly given people involved in the tourism industry a significant shot in the arm and will help this country build on what has already been achieved through The Gathering and other important tourism initiatives.

I must also commend the Minister's actions in trying to ensure that the construction industry gets back on its feet. The tax credit system of 13.5% for people who renovate their homes will certainly jump-start the construction industry. That coupled with the fact that people with construction skills on the live register will get a tax holiday for two years if they set up their own businesses will certainly deal with the issues around the black market in the construction industry.

What has been done with the suckler cow scheme for farmers is very welcome. We are now looking at a situation where €40 million will be invested in this area. It is a good budget for tourism and rural Ireland. It is a balanced and fair budget. There are many people who will be disappointed by the fact that it has been such a good budget and that it has been so well received. Even this morning, KPMG, which is one of the leading accountancy firms in the country, wholeheartedly welcomed the various initiatives. Many other businesses and interest groups have come out in support of the budget.