Hildegarde Naughton (Fine Gael) | Oireachtas source

Today’s budget means we have managed to turn the economy around. The economy is growing again, and it means we have righted the sinking economic ship left to us three years ago. The Government took some very difficult and unpopular decisions in order to do so. We have had three years of deflationary budgets. Every year for the past three years, the Government took money out of the economy either by tax increases or cutting services. That is over. The budget has two distinct elements, namely, a reduction in the tax people are expected to pay, and greater funding for our public services. The Government has reduced the marginal tax rate to 40%, increased the entry point, at which people start paying the marginal rate, to €33,800 and, most important, increased the entry level at which USC is paid to €12,000.

In addition, the first and second rates of USC have been reduced by 0.5% each. The additional fourth level of USC just introduced by the Minister for Finance will ensure low and middle income earners will be the main beneficiaries of this change. This is not a once-off measure. The Government is committed to reducing and spreading the taxation burden over the coming years, but it can only do that by continued prudent management of the economy.

On the public services side of the equation, I am very pleased to see that the Minister for Health, Deputy Varadkar, has received major additional funding this year amounting to €305 million. The health service is demand led and we have an ageing population. The health budget has overrun every year for more than ten years. It is impossible to predict the demands on the health service annually. The Minister has taken a very pragmatic view of his Department's requirements and has secured this money to ensure continuity of service next year and to commence the rolling out of new services to meet the needs of people.

The Government recognises the value of education and the budget funding for 1,700 teachers, resource teachers and special needs assistants, mostly at primary level, will ensure demand for places is met and the pupil-teacher ratio does not increase. The plan is to reduce the ratio in future.

Whether young or old, urban or rural, we all like to feel safe in our beds, and in that regard, the Minister for Justice and Equality, Deputy Fitzgerald, has secured funding of €10 million for the purchase of 400 new Garda vehicles. She has also secured funding to replace retiring officers and to continue the Garda recruitment drive which recommenced this year. There will be another 200 Garda recruits by 2015 which means we are increasing Garda numbers for the first time since the downturn.

Those retired or about to retire will be glad to hear that the 0.6% pension levy will cease at the end of this year and the 0.15% levy will cease at the end of next year. Government policy should be to encourage people to invest in their pensions. Now that the urgency to collect additional taxation is abating, the Government will move to abolish the levy all together.

I have said before that no Government should be bribing people with their own taxes and we have not done so. We have made prudent decisions to reduce the burden of taxation while maintaining public services. We have not made outlandish promises such as committing to abolishing water charges.