Dáil debates

Thursday, 23 October 2008

Financial Resolution No. 15: (General) (Resumed)

 

2:00 pm

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)

He should do so, as always.

I have just come from a three and a half hour meeting of the Committee of Public Accounts. As Chairman of that committee, I note this budget makes clear the Government has learned nothing from the serial wastage of public moneys that comes before the committee every week. While public money is a precious resource to be used for the public good, unfortunately the Government has perceived it as a means to buy votes and help the friends of Fianna Fáil, especially those from the Galway tent. The medical cards for over 70s service was announced without having done ground work on the necessary costing and negotiations. The Government failed to prepare and now seeks to burden many of those who are over 70 and the taxpayer with that burden, because the doctors negotiated a better deal than did the Government. My consolation is that at least Deputy Reilly now is on the people's side. Unfortunately for the people, they still are stuck with the same Government to negotiate for them.

The same Government decided that instead of preparing a plan, a decentralisation program was to be initiated with lofty goals and with no prior negotiation. It was turned from being a good concept into a gimmick in which both taxpayers' money and civil servants were used for political gain and not for public good. The same people who brought us the HSE are still in charge. They have failed to gain for the people proper improvements in the health sector. For all the major financial increases in recent years, the health service has worsened. While such major financial increases will not recur, thanks to the Government we still have a substandard service. Health also has been used by Fianna Fáil and the Progressive Democrats as a political tool.

At the end of 2006 the HSE knew its budget for 2007 was going to be over target but it did not look for detailed cutbacks until the summer of 2007, which was subsequent to the general election. This issue is relevant to the budget debate because it is central to the Government's weakness in terms of dealing with its finances. A culture within the HSE of expecting historic allocations plus inflation has allowed for limited systematic change in health services because most of the new money invested chases after old money to prop up services under pressure and, as a result, little is left for new services. If something is inefficient in our health services, it will not improve if it simply gets more money.

In regard to the significance of the summer of 2007 as the beginning of the cutbacks, a tradition has developed within the HSE to expect Government bail-outs above and beyond original allocations. Naturally, therefore, various managers decided to try their luck. This tradition has led to a dysfunctional budgeting system within the HSE and it exposes the Government's detachment from the reality of the health services. Without some control the public good will not be served. Another reason the Government chose the summer of 2007 was that it did not want to cut services until after the general election.

Far from taking care of the old, the sick and the vulnerable, after the election the Government found savings in services for older people and the disabled. This year's report by the Comptroller and Auditor General contains a key section on our health services which probably passed the Government by. It does not want to admit its mistakes and certainly does not want to learn from them. Its money-saving sights are still set on older people, but this time they are focused on their medical cards.

It was formerly difficult to understand the Government's priorities given that it was able to give money to everyone on the back of massive property tax revenues. However, now we know where it has hitched its wagon. In the aftermath of the budget, the only sectoral representative who stood out like the cat that got the cream is our former colleague, Tom Parlon. He has continued the Government's representation of the building industry by becoming the director general of the Construction Industry Federation. Never forget that when it comes to priorities, Fianna Fáil will choose the builders over anyone else. For far too long, Fianna Fáil bet the economy on the building industry and now we are being asked to pay for its gamble. When its developer friends were milking it on the backs of first-time buyers, the Government was happy because it was getting its cut. When the builders need a dig out, the Government's first priority is to find equality of pain for the lowest paid in our society through an income tax levy. It is funny, or tragic, that equality of gain in the good times was off the agenda for Fianna Fáil's friends in the building industry.

When Fianna Fáil backbenchers gave a standing ovation to the Minister for Finance, Deputy Brian Lenihan, on the income levy, the medical card cuts, the education cutbacks and the cutbacks in agriculture, we saw what they really thought. They were so out of touch with the people that they cheered and clapped. How many voters are now wondering how they could have voted these Deputies into power? Almost 50% of the electorate voted for Government parties in the last election. The only people with less to be happy about are Green Party voters, who did not realise they had given Green Party Ministers a mandate to blindly follow Fianna Fáil no matter where they were taken.

Education is the foundation for our economic future. By increasing class sizes the Government has ensured that each student gets less time from his or her teacher and that each teacher must expend more effort in trying to control his or her class. It means that education is not ring-fenced to secure our future prosperity. Deputy O'Rourke, who I respect very much, gave out the spin that no permanent teacher will lose a position. Certainly, however, those who are substitute teaching after spending as many as seven years in university in the hope of a career in education no longer have any hope. Last Saturday night I was told by some of these young people that they were planning to emigrate to Perth in Australia for a few years. It is sad that the emigrant boat is leaving once again because it will affect every family represented in this House. It is a pity that the hopes and talents of our young people will again be lost to other countries. After 28 years in this House, I see that we are almost back to where we started. I recall the early 1980s, when the IMF hovered threateningly and there were protests outside our doors, hunger strikers and disgruntled teachers. We are back to square one.

It was a mistake not to include in the bank guarantee a provision for a Dáil committee to scrutinise the banks and their behaviour. The Minister for Finance has taken too much power to himself and avoided proper accountability. He considers it sufficient to receive a report every six months. It is well understood within financial circles that events move so fast that a report should be made to a committee of this House, be it the Committee on Finance and the Public Service or the Committee of Public Accounts, on a monthly basis at least. The committee in question should have its experts who could report on progress made. Even though the banks got into this mess because of their lack of accountability and transparency, the Minister is proceeding on the same basis. It is foolish to believe circumstances will not change significantly over a six-month period.

This budget does not prepare us for the future. It targets young, lower paid and older people while giving the construction industry what it wants. Fianna Fáil has lost sight of the people of Ireland and Fine Gael is more representative of them. It is a sad day when, even after its display of incompetence, the Government has not yet given older people a clear picture of what lies ahead for their medical cards. It has failed to prepare for the future and has fallen short in terms of leading the country when times are not so good. We are now paying the price for Fianna Fáil's stewardship of the country. Unfortunately, matters are getting worse because of the shambolic party that forms the centre of the Government.

The Government is so incompetent that it cannot even do a proper U-turn on medical cards. It looked dumb-founded at older people's so-called ingratitude to its out of touch attempt at a U-turn. It is now wounded and its chaotic leadership style will further damage Ireland. I am glad the Taoiseach has taken off for China because he has been a source of confusion in the medical card debacle. Fianna Fáil Ministers and backbenchers have shown such a pathetic grasp of reality that they gave a standing ovation to this budget. The Cabinet was so out of touch that almost a full week had passed before it realised the depth of public anger. It has blown the goodwill it needed from the people to get through the tough times that lie ahead. Its leadership is now in question and we may be heading for a general election sooner than we think.

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