John Lahart (Dublin South West, Fianna Fail) | Oireachtas source

I am talking about a tax on property. I regard most of the witnesses as left of centre thinkers. I would like to ask them about affordable housing. Which option do they think is better? I am not looking for a "Yes" or "No" answer. I ask them to consider the options. The Chairman and I were members of the same local authority for a number of years. The housing assistance payment can be up to €2,000 a month in the South Dublin County Council area. That is €24,000 a year or €48,000 in two years. Would it be better to invest that in a way that enables the State to take equity in an affordable home, rather than continuing to pour it into the big black hole of rental? I say that as a genuine response to what Dr. Healy has said.

I always look out for the themes that emerge in advance of the budget. I take Dr. McDonnell's point about budgetary transparency. Over the past two years, it has been frustrating for the Committee on Budgetary Oversight, having heard the themes that have come up in advance from the various players, to see the Government finding €500 million or €1 billion under the mattress the night before the budget, thereby giving us no opportunity to scrutinise it. Every Government does this. We have tried to make the point to the Government that the budgetary process needs to be more transparent.

Two themes seem to be emerging from the witnesses. I will take them on board and watch out for them. At an informal briefing approximately a month ago, the IMF flagged the issue of demographics with us in the context of this country's ageing population. It did not feature in any of the briefings we got last year. Climate change, corporation tax, carbon taxes, and petrol and diesel equalisation were last year's issues. A number of them were fudged. The issue of VAT on tourism was dealt with. Every piece of advice we get with regard to spare money or windfall money involves banking it. That message was reinforced by officials from the Irish Fiscal Advisory Council when they appeared before us last week. They spoke about the establishment of a prudence fund that would be available in the event of a downturn. That is completely contrary to what today's witnesses have been saying about non-recurring capital expenditure. It has been argued that we should stow away some money, particularly from corporation tax, in a prudence account. In one sense, it is like the irresistible force meeting the immovable object. I am convinced by that argument because it has been made by so many informed players. I am not pre-empting anything, but I would be really surprised if it is not part of the Committee on Budgetary Oversight's report to the Minister. The witnesses have been the first to say that windfalls should be spent on something else.

The other point that needs to be made about demographics relates to early childhood education. I will be watching out for these two areas. I do not understand why the State, since its foundation, has taken an arm's length approach to preschool education. I do not know why it has not got involved. I have said for a number of years, as a councillor and as a Deputy, that the school building programme provides great opportunities for preschool facilities to be co-located with primary school facilities. That would be exceptionally time-saving for parents. It would enable all after-school facilities to be provided on one site. Dr. Healy spoke about quality. There could be a mixture of degree-trained primary school teachers, who are qualified to work in preschools. We are not doing this. Alternatively, a commercial or private enterprise could be brought in to provide the education, with the State owning the buildings. In my constituency, I find that the cost of leasing and making repayments on the infrastructure that has been bought by preschools is the biggest single contributing factor to the fees they charge. I have made my points. I will not come back in again. I appreciate what the witnesses are saying. They might respond to the questions I have asked.