Dáil debates

Thursday, 7 December 2006

Financial Resolution No. 6: General (Resumed)

 

6:00 pm

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)

As I read and listened to the Budget Statement yesterday I waited to see where the vision was. The budget was about making sure everybody got a little bit of something but no particular group requiring attention received a big gain. Some matters were incredibly disappointing, including child care which was one of the key features of last year's budget. We were told a great deal of catching up had to be done and that it needed to be done over a number of budgets. An expectation existed that this budget would contain something but sadly it was a disappointment in that respect.

The Minister for Finance gave an election commitment to reduce the top rate of tax to 40% should the Government be returned to power next year. No similar commitment was given on child care. The Government was caught off guard by the strength of feeling on this issue in the by-elections in Meath and Kildare North in 2005. I expect it to be a dominant issue in many other constituencies, including the two I mentioned, when the general election is called. Nothing is more sobering than knocking on a few thousand doors and hearing the same issue constantly arising. Opinion polls rapidly go out the window when one meets real people with real concerns.

People tell me the amount they pay for child care is the same as a second mortgage. Try and take that on board given the type of mortgages people have at present. It does not seem to be a problem for people to take on board the necessity of mortgage relief. However, the same level of concern does not exist for two people in a household who must work because house prices are so high, or for a single parent who works and must pay child care. This major issue required courage which I am afraid was sadly lacking. The issue is not confined to children under the age of five. Often, children over the age of six must be dropped off to a child minder at 7 a.m. and collected in the evening. The parents who pay are those who work and drive the economy.

I was extremely critical of the €10,000 tax exemption for child minders which was substantially below the minimum wage. Those who mind up to three children in their own homes do not have holiday pay or worker protection. The amount of €10,000 was a downright insult. Although the increase to €15,000 will not produce a stampede, it is welcome.

Pre-school is the research and development ground of the educational system but we saw nothing on it, which is disappointing. I welcome the increase in paid maternity leave. Many cannot afford to take the unpaid element. Child care places for babies are particularly expensive and some child care providers will not accept babies under one year old because of the ratio of staff to children and the expense involved. This is becoming a serious problem.

There were some very interesting proposals from the National Children's Nurseries Association, which carried out a very good survey on this issue which discussed issues like VAT and commercial rates. These are serious areas to examine in terms of dealing with the cost of child care. The association also sought a reassessment of the capital allowance scheme. Simply increasing the supply of child care facilities does not address the affordability of child care. There is much that can be done in the community and voluntary sector in this respect which would not be expensive. Part V of the Planning and Development Act 2000 could be used in this respect. A considerable amount that is not hugely expensive can be done, but there was little or no imagination in the budget in this respect.

The second element of the budget on which I wish to focus is the disgraceful way of dealing with commitments under the Kyoto Agreement. A total of €270 million has been committed up to 2012, which is basically investment in other countries. There was a line in the budget about keeping Ireland green, which is the biggest joke ever. Instead of investing in things like buses and dealing with the transportation sector, which is one of the biggest areas where our commitments are not being met, we are investing in Second and Third World economies to buy our way out. It is a cheap way and we can do much better than that. We have a particular genius for building infrastructure in half the countries in the world, yet we cannot deal with something like our obligations under the Kyoto Protocol. This is hugely disappointing and we can do much better. This area needs to be revisited. I do not know what kind of example is being set for ordinary householders when one asks them to separate waste and modify their behaviour when the Government is showing that we can buy our way out. Imperialism is the right terminology to use in this respect.

The Minister for the Environment, Heritage and Local Government recently announced that he intended to introduce new measures to improve value for money relating to local authority budgets of €9 billion. The fact there will be some control over these extensive budgets is very welcome. Critical services are provided by local authorities, however, a €4.5 billion capital and current debt has been accumulated by them. This information was contained in a reply to a parliamentary question last week. It is not just a question of looking at budget controls; it involves looking at the ability of local authorities to provide services.

The issue of value for money must be taken on board by the Government. There is a considerable amount of outsourcing of Government, whether it is the HSE or a huge number of organisations. It is only at times when the Government runs into financial difficulty that these matters get the attention they require. If there had been a serious examination of the waste currently taking place, there would have been considerably more money to spend on areas like carers and extending limits, disability services and child care. The funding announced in the budget in respect of the Disability Act 2005 only covers a very important commitment that relates to children under the age of five. All it provides for is an assessment when we know there is a critical shortage of some of the services required to address issues identified in this assessment.

The final area on which I will focus is waste. I know there will be an announcement in respect of money that is being spent in the health services. We were told a few years ago that the problem with the health boards resulted from local public representatives being members of them. When these representatives were taken off the health boards, the problem got significantly worse. One cannot even get an intelligible reply from the HSE. While I have regard for individuals who work in the HSE, we have a serious problem with that organisation which we must address. It is not a question of just throwing money at the health care issue. It is a question of understanding what kind of return we are going to get from this. We are doing very poorly in this regard. Health is one of the most inequitable services in the country. One sees wide variations in the quality of services provided, depending on the part of the country in which one lives. Areas that have experienced rapid population growth are some of the worst areas in terms of waiting lists and difficulties. It is only a matter of time before there is a serious debate on and a vote of no confidence in that organisation, such is the reaction from people who interact with it.

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