Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I concur with the Deputy’s point on the labour market. It is a remarkable performance across the economy. It is across a whole range of different sectors, which is heartening to see. Ireland is an attractive country for inward investment. We continue to perform exceptionally strongly. The foreign direct investment, FDI, base is gaining strength all the while and we are seeing more and more indigenous firms grow and become successful from an Irish base. It is certainly the case that, across a whole range of sectors, we are seeing quite a tight labour market and shortages of staff.

On the budget, it is early days. This is an important step on the road to the preparation of the budget. We will have the national economic dialogue again on 12 June, so that will be a further significant milestone, and then the summer economic statement, which will follow extensive engagement between the Minister, Deputy Donohoe, the party leaders, the Government generally and me. We value the input of this committee. We respect this process and that is why we gave the draft SPU early, as we had agreed at Government level. It was made available and it was published. The Parliamentary Budget Office had an opportunity to assess it and today issued a publication in that regard as well. Later this week, we will issue it to the European Commission, as we are required to do.

The economic backdrop will shape and determine the budget make-up; for example, where we will be come the autumn in the context of inflation, what the situation will be with the war in Ukraine, where we are on energy prices, where we are in terms of monetary policy and the impact that has, the cost-of-living pressures generally for households and businesses and the up-to-date data at that point in time. Protecting competitiveness will be a key factor for Ireland. That is where we have done particularly well. There will once again be a strong public capital programme that the Minister, Deputy Donohoe, can cover. There will certainly be a taxation package and a welfare package in the budget. We have given commitments in the programme for Government that we will be in the position to honour in respect of both of those areas. There will be continued improvements in public services in terms of efficiency and getting good value for money. There will be increasing capacity in areas such as healthcare and, of course, delivering on housing, which is a top priority for the Government in the context of the forthcoming budget, as it will be for the remainder of the life of this Government. That will be a top priority and that is why there were announcements such as the package that was made yesterday.