Jim Walsh (Fianna Fail) | Oireachtas source

I thank the Leader for extending the time as it is appropriate that we should have the opportunity to talk about the budget.

I will start on a positive note. Even though it is belated and should have happened last year, I welcome the reversal of what was a terrible decision to raid people's pension pots. Pensions are a huge issue, given our demographics, and it was totally the wrong thing to do. Private people have lost €2.2 billion from their funds and many of them are workers who are depending on their pensions when they retire. I understand the 0.15% rate is being continued, although there has been a commitment to remove it. That should have been done this year. I hope the commitment will be honoured.

There was one aspect of pensions that was not dealt with but could have been and probably would not have cost a whole lot. There is an imputed 5% distribution from pensions. I accept that, during the economic growth of the 1990s and first decade of this century, very considerable amounts of money were put into pension funds. We heard of pensions pots of €40 million or €50 million. I have no difficulty with those. However, many people have small pension pots, maybe €500,000 or €1 million or €1.5 million. I do not think that they should be forced to pay tax on 5% of that. With healthcare and people living longer that should be discontinued up to the threshold, which is €2 million at the moment.

I am disappointed to see the trend that the Government has taken on the USC. There is a disconnect between the public and the established political system and it is there for a very good reason. It is because people make promises and do not honour them. In this instance, there was a clear signal given when the USC was being introduced, albeit a by different Minister and a different Government, that it was in fact a temporary measure to meet the fiscal crisis that would be reduced as soon as public finances improved. Instead of that, the Government has increased it. That is totally the wrong direction to take. The threshold in terms of the imposition of the 8% rate has been reduced to €70,000. That is wrong.

Another matter which I suggest could make an impact would be capital gains tax. It has increased from 20% to 33%. The former Deputy, Mr. Charlie McCreevy has been mentioned and criticised but he did a lot of very good things, and one of them was reducing capital gains tax from 40% to 20%. This doubled the revenue that came from it. We need investment and we need to release assets for that investment.

There is more than €300 million unaccounted for in the health service budget. People are wondering where that is going to come from. There is a perception that charges are going to be heaped on the private health insurance sector again. It is a disgrace that people who have paid their health insurance all their lives, as I have along with many others, and who have also paid their social insurance now find that they are being deprived the benefit of the social insurance, which was entitlement to the use of a public bed. It is being charged back to the health insurers who in turn charge it to the people taking out private health insurance. As a consequence, there is a haemorrhaging of people from private health insurance.

There is no cohesive policy on housing. Although I acknowledge the small step the Government has taken on this it is inadequate. It is not going to solve the extent of the homelessness problem and it will not do anything to encourage people into home ownership. We have a proud record in this country which removed the cost of people purchasing their own houses from the State.

There is a range of issues, including the Central Bank matter recently. I would like a full discussion on housing, including both of those issues.

I am a little perplexed. There is a pension provision of €1,037 million in the Department of Education and Skills, whereas it is €638 million for the Department of Health. It seems an anomaly that the Department of Health, which has a lower budget and a somewhat lower pay budget, would have such a significant pension provision.

It is the first year in six that there has been some relief in the fiscal position and there has been some flexibility for the Government, but while some are clapping themselves on the back-----