Oireachtas Joint and Select Committees

Thursday, 23 April 2015

Joint Oireachtas Committee on European Union Affairs

European Semester - Draft National Reform Programme 2015: Discussion

2:00 pm

Photo of Dara MurphyDara Murphy (Cork North Central, Fine Gael) | Oireachtas source

Yes. It is a very important part of my job to bring to the General Affairs Council the observations and deliberations of this committee, so I will continue to ensure that process works. There was a strong intervention on Monday evening from Bulgaria. Many countries from the southern Mediterranean are deeply affected and concerned for the poor individuals involved, who continue to be trafficked. There was broad consensus on the initial deliberations of the Commission, but that is being discussed as we speak by the Prime Ministers.

There has been reform with respect to pharmaceutical spending. Nobody is suggesting that reform has been completed. That is the nature of reform. The State continues to seek further savings from the Irish Pharmaceutical Healthcare Association and we must also acknowledge that the process has resulted in the lowering of prices for branded drugs and will have to deliver further savings.

In response to Deputy Keating, it is vital to support people getting back into work and child care is key to this. Some 100,000 children are supported in the State each year. There is the community child care subvention and the early childhood care and education scheme. In budget 2015, the Government increased expenditure on children by €96 million, including increased child benefit payment and a new payment of €30 per child per week for people returning to work. We are fully aware that we are coming from a very difficult few years and work must continue in that respect.

To some extent, Deputy Durkan gave my answer to Deputy Crowe's questions about the objective that people would not be out of pocket by virtue of the changes. Deputy Crowe also asked about the demand level. Subject to demand, as I referenced in my note, the places are reserved in the first instance for the long-term unemployed. Fortunately, as is the case with all categories of the unemployed, the number of long-term unemployed is decreasing and there are also other options available. Places available on the courses may not be taken up, so it is possible that places available may exceed demand. We would have to see how that evolves.

In respect of the country-specific recommendations and how we compare, about which Deputy Durkan asked, on the country-specific report on budget 2015, Ireland was one of only five countries that were fully compliant with the Stability and Growth Pact. The compliance of other countries is very mixed, but we strongly support the process. When there are discussions about rules and how compliant we are, it is important to stress that it is for the Irish people that we are complying with these measures, which are delivering strong job creation. The Deputy asked how we compare generally. After some very difficult years, we have the fastest growing economy in the European Union for this year, with falling unemployment projected for next year and perhaps even for the year after. This compliance with these recommendations for countries is in the best interests of the Irish people. That includes the climate change targets, which the Deputy also mentioned. Just two or three months ago the European targets for the deliberations, which will take place in Paris, were decided by the European Council. The specific national elements of that have not been agreed, but they are under active discussion as we speak.

I strongly support the Deputy's comments about the continued role the banks will have to play in ensuring that solutions are found for people. The other committee of which I was a member before becoming a Minister of State was the Committee on Finance, Public Expenditure and Reform. The engagement of that committee with the banks has been productive in the past and was very productive yesterday. I congratulate the Chairman, Deputy Liam Twomey, and his committee on that engagement. All of us who are involved as politicians are aware that, notwithstanding the very positive figures and targets that have been met for some people in banking distress, there are still many people experiencing great difficulty. We must all must raise at any opportunity the important point that it is never too late for people who are in difficulty with lending institutions to engage, to talk to their lenders and to engage with some of the supports we have. A significant number of repossessions that take place by court order are a consequence of people not engaging.

The Chairman's questions were very detailed and I am sure that my answers to some of them were a bit brief, but I am aware of the time. I thank the committee for inviting me to this meeting.

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