Dáil debates

Thursday, 10 July 2008

National Development Plan: Motion (Resumed)

 

12:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)

Tá sé tábhachtach gur féidir leis an méid is mó Teachtaí agus is féidir, labhairt ar an ábhar rí-thábhachtach seo — geilleagar agus todhchaí na tíre seo. Inné, d'ímpigh mo chomhghleacaí, an Teachta Morgan, ar an Rialtas an méid atá le déanamh acu go gearr-théarmach chun an gheilleagair a shocrú, a leagan amach go mion agus go díreach. Níl na mionphointí mínithe dúinn go fóill. Cad atá molta ag an Rialtas go meán-téarmach i dtaca le plean tárrthála chun iomaíochta an gheilleagair a choinneáil? Cad iad na céimithe a thógfar láithreach chun oibrithe na tíre seo a athoiliúint — scileanna breise a thabhairt dóibh — os rud é nach bhfuil postanna ann dóibh go léir? Tá mé chun na héilimh sin a chruthú athuair inniu. Tá súil agam go mbeidh Airí in ann an méid atá romhainn, maidir leis an ngeillagar, a leagan amach go mion agus go díreach.

The cutbacks announced by the Minister for Finance and the Taoiseach on Tuesday were scant in detail and economically and fiscally short-sighted and they do not address the fundamental contractions in the economy due to inept policy decisions by successive Fianna Fáil-led Governments. Refusing to link investment in public services with GDP, as is the practice in other European economies, has led to the State's substantial deficiencies in public infrastructure, namely, school buildings, hospitals, social housing and public transport.

During the past two days, Minister after Minister traipsed through the House and minimised the current economic challenges while, in the same breath, defending their low-brow policy making of the past ten years that has led to this situation. Suddenly, the A, B, C of sound fiscal management ignored to date is the order of the day. Value for money in public expenditure should always have been a fundamental element of the State's budget management, but clearly it was not.

The Taoiseach stated that we are in the same boat as the rest of Europe, but we are not. Our economic decline is far more acute because Fianna Fáil and its Government partners believed it made sense to draw the State's income primarily from consumption and property. They have left the Exchequer in the unenviable position of being precariously over-dependent on revenue from both sectors. For this reason, the State is experiencing an acute decline in public finances.

In addition to being unable to manage incoming money, the Government has been equally inept in managing the money going out. Tuesday's measures testify to the wastage and inefficiencies that have been normal practice to date. Only now when our back is against the wall does the Government propose to deal with tribunal costs, project cost overruns and the absence of fixed pricing. One need not be an economist to know that value for money must always be central when public money is being spent.

Despite all the obvious failures in managing the public purse, the Government appears intent on continuing its record of bad practice. Assertions that the most vulnerable will not bear the brunt of the proposed cuts are not credible because experience tells us otherwise. For example, the Minister of State, Deputy Peter Power, has defended the clawing back of €45 million allocated to overseas development aid, justifying the decision by stating we have reached our overseas aid target for 2008. This is an appalling tack to take, considering the global food crisis, which is hitting the developing world the hardest. If there is extra in the overseas aid kitty, it should go to whom it was intended. It is also worth reminding the Government that the UN target of 0.7% of GDP to be allocated to overseas aid by 2012 is a revised target because Ireland changed it a number of years ago. If we have reached this year's target of 0.54% and if there is extra money, let us give it to those for whom it was intended and perhaps we will achieve the target of 0.7% this time.

In May of this year, preceding a meeting of EU development Ministers, NGOs from all 27 member states launched a report entitled No time to waste: European governments behind schedule on aid quality and quantity. If other European governments are behind, those of us in front have a responsibility to lead by example. The Irish Association of Non-Governmental Development Organisations, Dóchas, stated at the time of the launch:

In 2005, European governments promised with great fanfare to increase overseas aid. The targets they set themselves are being missed, and the need to step up international aid is becoming more and more urgent.

Dóchas is correct in its assertion. According to the UN Food and Agriculture Organisation, global prices of staple foods have risen by more than 40% or more in some cases in the past year, causing shortages of food, food hoarding and, in some instances, rioting for food in developing countries. Rice prices alone have risen by 76% between December 2007 and April of this year. While the global poorest of the poor have to fight for their food, the Government is withholding overseas aid budget allocations because it has reached an interim target figure. Shame on the Government.

With regard to how Government cuts will affect public services in this State, scant detail has been given with respect to how the Government will achieve €440 million in savings. How exactly will the 3% cut in payroll costs be achieved in the various Departments? What impacts will this have on service delivery? Asserting that frontline services will not be affected by cutbacks is simply not credible in the absence of detailed data.

How, for example, will the 3% cut affect the numbers of gardaí on the street and the provision of support services to tackle drug addiction? Only this week figures were released which show a record number of heroin addicts seeking treatment. Despite that, in the Dublin mid-Leinster area the HSE has already enforced a 1% cut in funding for addiction services. Will the 3% cut be on top of that? The 1% cut is affecting delivery of services already under strain.

How many gardaí will be taken off the streets or away from Garda operations that are tackling serious drug and gun crime? We need the data to evaluate what the Minister has put in front of us. Will Garda overtime be further cut? If so, this is a major decision that will have serious consequences, given that many of the major Garda operations against gun and drug crime in this city, such as Operation Anvil, are dependent upon Garda overtime.

Cutbacks in key economic and social infrastructure projects will result in the period of recession we are now experiencing being prolonged. Infrastructure has a critical economic and productivity value and must be protected and in turn delivered. The social cost of not doing so is immeasurable. Regeneration plans for the worst off areas in Dublin city are already falling apart with the announcement this week that the Bernard McNamara consortium is pulling out of four key projects. The publishing of the master plan for regeneration projects in Limerick has been delayed, which does not bode well for delivery of the projects. My Limerick party colleague, Mr. Maurice Quinlivan, is meeting the Limerick regeneration boards today to seek a commitment on the delivery of those projects on budget and on time.

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