Oireachtas Joint and Select Committees

Wednesday, 19 June 2019

Committee on Budgetary Oversight

Fiscal Policy and Budgetary Planning: Discussion

Photo of Tommy BroughanTommy Broughan (Dublin Bay North, Independent) | Oireachtas source

In respect of carbon tax we have been giving a great deal of attention to the report of the Oireachtas Joint Committee on Climate Action and the Minister's carbon action plan. It could be seen as people asking us for a total game-changer, not just in terms of retrofitting but with all the changes to transport, food, housing and so on. The people I represent are very suspicious of the intent in this. Some regard the Green Party as a party of the right and have always so regarded it. They see this as a regressive policy. They are suspicious because NERI's and ICTU's analyses of past taxation show that it has been very unfair. There was a huge reliance on consumption tax. It could be said that our reliance on excise taxes which affect the family car etc. discriminated grossly against working class and lower income households. There is a huge suspicion that we are being led by my constituency colleague, Deputy Bruton, and others, into a new world, that we do not know where we are heading but it will be much more expensive for ordinary citizens. We mentioned fair mitigation in the report. Will it be serious or will it be the little people who carry the can?

That is the problem. One proposal is the five-year carbon budgets. Would there be merit, for example, in having a five-year general budget so that we know where we are going overall or that the next Government after the election will know where we are going five years down the road and we can see all the analysis? That comes through very strongly. We pick it up in the media and on the doorsteps and so forth.

Dr. Healy first alerted the committee very strongly to the consistent underestimation of the health budget. We know that unfortunately in the coming days we will face this again. We are not prepared to put enough expenditure into that area. Is Social Justice Ireland able to show the Minister for Finance exactly what it wants him to do, as we in parties and as individuals do, for example, last year I advocated equalising diesel and petrol, and picking up €150 million here and there. Is Dr. Healy saying of those "lucky enough" to be earning over €100,000 a year that we should go for a 45% or 48% rate on those lucky 300,000 tax units? We have been watching with interest Jacinda Ardern and the government in New Zealand talk about a budget and economic evaluation based on well-being. When Deputy Bruton was Minister for Education and Skills he pushed the idea of well-being in our education system for teachers, pupils and parents. Has any of the witnesses done any work on this and what extra resources or expenditure it would involve if we really wanted for nobody to be homeless?

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