“Leas-Chathoirleach,

I welcome the Minister of State, Deputy Mansergh to the House as this is my first time here when he has been present.  I look forward to his reply.

Yesterday’s budget was tough, but necessary.  It would certainly not be fair to weigh down the generation in my age group in their 20s or the next generation with excess debt.  By the end of this year, the national debt will be approximately €76 billion, double the level at end of 2007.  Delaying action accelerates the increase in the national debt and, consequently, the cost of funding will rise substantially.  Every extra €1 billion in interest on the national debt would be the equivalent of the annual salaries of 21,500 new teachers or a 6% reduction in general social welfare rates, none of which we want to see.  Postponing action would result in additional cuts of this nature in the years ahead, leaving future generations with the bill.  This is what was done previously and it can never be allowed happen again.

There were positive elements in yesterday’s budget.  The car scrappage scheme is a win-win situation from an environmental and an economic perspective.  At least €1 billion has been lost in tax revenue following the collapse of the new car market which resulted in the loss of up to 10,000 jobs.  At least that number of jobs again is under serious threat in the sector.  A scrappage scheme will have the dual purpose of increasing the number of more environmentally-friendly cars on the road and help to stimulate the industry protecting jobs, and bringing much needed taxes into the Government coffers.  The scheme will run from 1 January until 31 December next year.  Those participating will be able to avail of VRT relief of up to €1,500 per new car purchased when trading in cars ten years old or older.  The Government will also focus on environmentally-friendly cars and the development of new technology in this field.  The Government needed to provide a strong stimulus package in conjunction with the necessary cuts introduced yesterday, and we need to provide every encouragement possible to get people spending again.  A car scrappage scheme has the potential to go a long way in this regard.  It has worked in both Germany and the UK and I am confident that it can work here also.

The provision of €130 million for energy efficiency measures, including a national retrofit programme in the 2010 budge will help create and maintain jobs in County Louth and east Meath, which I represent.  Some €130 million is being provided in next year’s budget for energy efficiency programmes, including a new national retrofit programme, which I mentioned earlier in my speech on climate change.  This is the future, at least in the short term, for the construction industry.

Boosting energy efficiency is good for the environment and for the economy and it has significant benefits at both local and national levels.  It is a practical and forward-looking move because it will help create and maintain jobs, and also lower energy bills in the future.  It is hoped up to 5,000 jobs will be created across the country next year alone in this sector.  This significant fund will help build on the good work done already.  I have personal experience of the warmer homes scheme and the home energy savings scheme which have been an overwhelming success.

Obviously, no