Peter Fitzpatrick (Louth, Independent) | Oireachtas source

I very much welcome the opportunity to speak today. First of all, it is important to acknowledge the efforts the Government has made to improve the circumstances of both the people and businesses as we all attempt to emerge from the Covid-19 pandemic.

There are a number of things I would like to mention. I acknowledge the €1,500 increase in the rate bands, the increase of €50 in the tax credits and the increase in the minimum wage, although I strongly believe the minimum wage, now set at €10.50, is still well below a living wage. It is important the workers of this country see light at the end of the tunnel. Through thick and thin, they have consistently put their shoulder to the wheel to ensure the economy, along with the many essential businesses, remained open during the pandemic. It is only right their efforts are rewarded.

I also acknowledge the extension of the employment wage subsidy scheme to April of next year. I have spoken to many business owners in Dundalk, Drogheda and other parts of Louth and east Meath and they have outlined in no uncertain terms how important the wage subsidy scheme was in ensuring their businesses remained open. However, I must say I have concerns for business in general when the subsidy schemes are eventually withdrawn.

I welcome the extension of the 9% VAT rate for the hospitality sector until August 2022. This is great news for the sector and gives businesses within it some assurance as they prepare to reopen fully. The hospitality sector has been one of the sectors hit hardest by the pandemic. In my own constituency of Louth, I know from speaking to many people in the tourism sector, both in the north of the county, where we have the wonderful Cooley Peninsula, Carlingford and Omeath, and in the south, where we have the exciting Boyne Valley, that the past 18 months have been absolutely terrible for them. However, they are a resilient bunch and I have no doubt that, with the right support from Government, they will bounce back stronger than ever.

With regard to childcare, I welcome the €716 million package. It will extend the national childcare scheme subsidy to all those aged under 15, and preschool and school hours will no longer be deducted from subsidised hours, thereby benefiting more than 5,000 children from low-income families. I was coming to work this morning and I heard a lady on "Morning Ireland" saying she and her husband are caught in the middle. She is spending more than €20,000 a year on childcare. This is of no benefit to her. I plead with the Government to have a look at this. This €716 million is a lot of money but it is important everybody gets some kind of money out of it. If you and your wife are working and spending that kind of money, €1,700 a month, it is like having another mortgage. It is very important we all get something out of it. The budget will also extend parental benefit by two weeks and increase the back to school allowance by €10.

With regard to climate action, I welcome that €202 million is being set aside for 22,000 home energy upgrades, along with a further €174 million for energy efficiency measures. The Government is pushing for heat pumps as part of the home energy upgrades. While I acknowledge that heat pumps are the future, the one question nobody seems to be asking is where all this electric power is going to come from. At present, if we are to go by reports, we are at breaking point with regard to the national grid. What is going to happen when all these heat pumps are brought onto the grid? That is a serious issue.

With regard to social welfare, I welcome the increases in the various schemes. I particularly welcome that pensioners will get an increase in their pensions along with an increase in the fuel allowance. I appreciate that very much but my problem is the increase in carbon taxes. I fear that might wipe out any gains pensioners make. It is important to have balance in that regard. Unfortunately, many people, especially the elderly, are living in fuel poverty. While the increase in the weekly fuel allowance is welcome, it will not really benefit those most affected due to the ever-rising cost of fuel.

On housing, I feel the Government has again missed a big opportunity. The housing crisis is felt in every part of the country, not just in Dublin. In Louth, we have a severe housing shortage and spiralling rents. If we are to tackle this issue, we need to take a much more direct route. I have a major issue with vacant houses. In Dundalk alone, I can guarantee there is at least one vacant house on every street. These houses are already in established communities where we have appropriate services like schools and shops. Why are these houses continuing to be kept vacant? Surely the Government can support the local authorities to fund the upgrade of these vacant homes so that they can be brought back into the housing stock. If this does not make any sense to the Government, then something is seriously wrong.

Surely the Government can have a look at the scheme and introduce a vacant house levy just like the one for zoned land. In these times of housing crisis, we cannot have a situation whereby houses are left to lie vacant. I have spoken about this on many occasions and, if I am honest, I have been extremely disappointed with the Government's response. There should be a vacant house register and those houses on the register should be targeted by the local authorities to bring back into the housing stock. In this regard, it is important to acknowledge the great work done by Louth County Council which led the way on this, although it has a similar story in that it requires more funding from the Government.

There is not a day in my constituency office that families do not come in to me to look for homes. There are hundreds of homes in Dundalk, Drogheda and elsewhere in County Louth, which is the smallest county in Ireland. It does not make a lot of sense. If we are looking for a quick fix and to get these families into homes, surely it makes sense to give local authorities the money they want. I cannot understand why every time I contact a local authority I am told it is waiting for money. I am aware of houses that have been left vacant for 12 or 18 months. Initially it costs a few thousand euro for them to be fixed. All of a sudden, the cost increases to tens of thousands of euro. This makes no sense.

On the proposed new zoned land tax which was due to be introduced, I am disappointed to note it appears likely that it will be delayed for at least two years. If we are serious about tackling the housing crisis, we must bring these measures in immediately.

To conclude, I want to acknowledge the measures introduced by the Government yesterday. People will definitely have more money in their pockets which, in theory, should stimulate the economy, but I would like to urge caution. Costs in this country are starting to spiral. I have spoken to many businesspeople in Dundalk over the past number of months and have been alarmed at some of the cost increases they are facing. Not all businesses will be able to sustain these increases in costs and they will eventually have to be passed onto the end user. My fear is that while people will have more money in their pockets after yesterday's budget, they might in fact be worse off when inflation starts to affect what they buy on a daily basis, such as food and drink, fuel and general day-to-day living.

I am getting a lot of flak from people who will have to pay an extra 50 cent for a packet of cigarettes. They suggested that the extra 50 cent should be engaged in some way to help people combat their addiction. I spoke to the Tánaiste last night and I want to say the same to the Minister of State today. Can we please use the 50 cent increase in tax on cigarettes to help people to combat their addiction?

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