Dáil debates

Wednesday, 13 May 2009

Finance Bill 2009: Second Stage (Resumed)

 

4:00 pm

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)

The Minister's Second Stage speech warrants some examination. In it he told us, "We are continuing to invest in education at all levels in order to ensure we have the skills demanded by our knowledge-intensive economy". The opposite is the case, the Government has just cut €30 million from the education budget. That is a poor response. The Government spends €113 million per annum on prefabricated huts in school grounds. Many of these huts are damp and leaky, draughty and cold. The Educate Together school on Mornington Road outside Drogheda, in my constituency, comprises over 20 prefabricated huts. These cost the taxpayer an average of €12,000 per annum each. That is some investment. Will the Minister explain how he can stand over the part of his speech in which he states that the Government continues to invest in education? Many of these prefabricated huts are also rat infested, and are not a good environment in which to educate children. In other cases the toilets are not in the main school building and children must scurry through the rain or frost or snow to use a toilet which is sometimes a considerable distance away.

The Minister also stated: "The Government remains committed to providing a pro-enterprise environment and to maintaining our relatively low tax burden on business". That also warrants a challenge because whatever about low taxes such as the modest 12.5% corporation tax, businesses must endure steep charges well in excess of those affecting businesses in most other European countries. We know about the waste management charges, the development levies but what about the lack of infrastructure for those businesses? I have received representations for several weeks from a precision engineering business which has some expert capacity and is engaging in expert activities but there is no broadband in its area. This company grew from a modest family business into one with significant potential but it is struggling to develop because of the lack of broadband yet the Government says it is pro-enterprise. The Green Party says that it will ensure broadband is rolled out by 2013. I will believe that when I see it. The business community does not have the same patience in respect of these services.

The Minister also told us: "Our agility in responding to this most difficult of economic crises has been acknowledged by Mr. Jean-Claude Juncker". Mr. Juncker said Ireland is "making some very brave efforts and we very much welcome the feeling of national consensus that we detect in Ireland". The only national consensus we have is that the Government is totally incompetent and has no clue what it is doing. An official from the Department of Finance must have written that speech for Jean Claude Juncker because everybody here knows it is nonsense. The Government spent €440 billion of taxpayers' money to underwrite the bail-out of the banks in September, it recently recapitalised some banks and nationalised Anglo Irish Bank, all measures that have required it to re-visit what it has been doing. The national asset management agency is the latest episode in the saga. The Minister stated:

The purpose of the supplementary budget was to restore order and stability in the public finances so that we can protect existing jobs and generate the essential economic confidence that will lead both to further employment creation and to a return to prosperity.

In his dreams. Where is there a single measure for job retention and job creation in the supplementary budget? I cannot find it so I would appreciate it if the Minister, in summing up, could point out to me where it is. It is not there, yet the Minister continually uses bland phrases that mean absolutely nothing or bear no resemblance to reality.

The Minister also stated, "We must demonstrate that we have the ability to make the right choices for everyone in this country". My goodness, that would be some demonstration and I would certainly like to see it. However, there is no sign of it or of the right choices being made. I must therefore ask whether the Minister is serious.

The Minister stated, "We must never lose sight of the principle that economic and fiscal renewal cannot be achieved at the expense of fairness." Is it fair to close two wards in a children's hospital in Temple Street? Is it fair to rob pensioners of their bonuses at Christmas? All the language in the Minister's statements needs to be challenged specifically line by line because it is all wrong. The Government is misleading this House and the people of the State, and that is grossly unfair.

The Minister also stated tax increases are required although he advocated the complete opposite. Perhaps the increases are required but he needs to explain that, at the last general election, which was nearly two years ago, the Government parties were advocating the absolute opposite to tax increases. They were advocating tax cuts. This is how the Government received its mandate; it was not on the back of tax increases. There is a very strong argument that a completely fresh mandate is required for exercises of the scale envisaged.

The Minister referred to the "redistributive impact of the budgetary measures". I assume he is referring to the redistribution of wealth. The National Asset Management Agency is to shift wealth on a scale not seen before in this State and probably never seen before in any European State. The Government is proposing to move a sum in the order of €90 billion, not from the wealthy to the poor but, rather, the complete opposite. It proposes to move this sum from the poor to speculators and bankers. The scale is such that an explanation is warranted.

The Minister stated, "The Government will continue to protect the vulnerable in this difficult period but in doing so it must be borne in mind that we all have a responsibility to accept a proportionate share of the burden of adjustment needed in this economy." A sense of proportion is required. Is it reasonable and proportionate to underwrite the banks to the tune of €440 billion and to bail out Anglo Irish Bank entirely? Allied Irish Banks and Bank of Ireland are receiving €3.5 billion each, which we know is not nearly enough. This is regarded as fair and equitable by the Government. It is disenfranchising children by removing their opportunity to have a decent education and to sit in a dry and reasonably warm classroom, and it is removing the opportunity of those in receipt of welfare to have some tiny bonus at Christmas with which to deal with the issue of Santa Claus or pay bills they owe. This was regarded as proportionate by the Government but I do not see it that way, and cannot do so by any stretch of the imagination.

The Minister made more very interesting remarks in his speech. With reference to sections 3 and 4, he referred to the making of supplementary budgetary measures for mortgage interest relief. The relief is being cut for anybody who has held a mortgage for more than seven years. We must remember that the people who took out huge mortgages did so to the cheers of the Government and its regulators. They were happy to cheer on those taking out mortgages for grossly overpriced properties because their doing so enriched the speculators who had been friends of the Government for so long.

The Green Party has a great responsibility in respect of what is taking place. Until now, it has told us that every aspect of the mess we are in is not of its creation and that it has no responsibility therefor. However, it is on the other side of the House voting for cutbacks, voting against proper education facilities for children and voting against pensioners. It now has a duty to explain to the people where it stands. It got into power on the basis of an election manifesto and election promises that represent a position totally the reverse of its present position. It cannot get away with this any longer and needs to explain its position.

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