Oireachtas Joint and Select Committees

Thursday, 12 June 2014

Joint Oireachtas Committee on European Union Affairs

European Commission Country Specific Recommendations for Ireland: Minister of State at Department of Foreign Affairs and Trade

2:30 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

I, too, welcome the Minister of State to the meeting. I would like to follow on from some of the comments made by Deputy Halligan. The objectives of European Semester 2015 include pursuance of differential growth, friendly fiscal consolidation, restoring lending to the economy, promoting growth and competitiveness, tackling unemployment, social consequences of the crisis, modernising public administration and so on. No one here has any problem with any of that. However, what we would like to know is how this is to be achieved.

I am disappointed that the Commission's recommendations appear to call on the Irish Government and other Governments across Europe to continue with their austerity programmes, which have been disastrous for middle and low income families. The message following the European elections not only in Ireland, but across Europe, is that people want a different approach. The approach suggested in this report while at face value is fine will not deliver for people in difficulty. We have a two-tier Europe. The growth necessary to create employment has not happened. Many economies across Europe are in the doldrums.

The anticipated growth rate of forecasts is never met. What steps are being taken to ensure a more accurate picture in this regard and, more important, what steps are being taken to ensure real growth in the economy? The Minister of State referred to active labour market policies, including the roll out of the Intreo one-stop shops and a significant expansion in training and work placements. Yesterday, I raised in the Dáil the reduction by 20 in the number of VTOS places in my constituency. For no logical reason, these places are being allocated to Balbriggan. While the population of Tallaght and Walkinstown is double that of Balbriggan, the latter is getting 20 additional places. There is no logic in relation to what is being done.

The Minister of State also said in relation to social inclusion that there is little doubt that increased labour market participation remains the best route out of poverty and that affordable child care will continue to play an important role in this context. I know from speaking to lone parents and parents in general that the problem is a lack of affordable child care. What is being done to address this problem? Other issues addressed in the report include a reduction in the cost of legal services and so on, which is positive. Reference was made to the Commission's conservative attitude in regard to how growth in an economy is brought about. In regard to its proposals for a widening of the tax base, a sharpening of environmental taxes and wider application of the property tax, what is the Irish Government's reply in light of people saying they have had enough and cannot afford to pay more? In taking more money out of local economies we are creating more unemployment.

While I am critical of the overall tone of the recommendations, I do not have a problem with some of them, including the need for progress on reducing legal services and drugs costs and so on. It is often stated that Ireland has a small population and should work out its own drugs bill. Is there a need for a European-wide review of the cost of drugs? Many drugs are produced by pharmaceutical companies located in Ireland yet drugs cost more in Ireland than anywhere else across Europe. The companies that have located here are welcome. Ireland has no separate agreement with these companies. While I would welcome health savings, how will these be achieved?

Other recommendations include reform of societal issues such as mortgage arrears, taking on vested interests in health and legal services and so on. We are at the top of the class in relation to austerity but at the bottom of the class in relation to most other issues. At the end of the day, one can take what one likes from this report but there is a democratic deficit within the EU. This is being said not only by Sinn Féin and the Independents, but other organisations dealing with poverty. In my view, we are only going through the motions today. Unless there is substance in terms of what Government is doing, we are only going through the motions.

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