Oireachtas Joint and Select Committees

Wednesday, 20 September 2023

Committee on Budgetary Oversight

Pre-Budget Engagement (Resumed): Irish Fiscal Advisory Council and Nevin Economic Research Institute

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I have a couple of points to raise on foot of what the witnesses have said. It was acknowledged that we have the highest cost of living in Europe, wages are not where they should be and there is an ongoing issue regarding a public pay deal and public finances provision. We cannot have a situation whereby if wages are increased, taxes are also increased. There has to be an adjustment there. Dr. McDonnell said he would rather see improvements in welfare than one-off targeted measures. However, because of the nature of the cost-of-living crisis and its linkage to the energy crisis and the war in Ukraine, the Government has sought to target those areas where households can benefit, including by way of reductions in public transport costs, the cost of healthcare, including, for example, overnight hospital charges, dealing with the cost of education, with free books and so forth, and the provision of the one-off energy payments. Of course, those on welfare payments should be targeted and helped. They should be the first port of call. Of course, there should be improvements in their payments and in pensioners' payments. However, as Deputy Durkan said, there are households that are also feeling the crunch that do not have the same access to supports. They need specific, targeted help, whether with education costs, such as by reducing fees, or otherwise. How does that sit against Dr. McDonnell's contention that there should not be one-off payments and all supports should be geared towards welfare recipients? With all due respect, that means there is a cohort of people who cannot benefit.

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