Dáil debates

Tuesday, 24 February 2009

Financial Emergency Measures in the Public Interest Bill 2009: Second Stage (Resumed)

 

10:00 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)

The heavy boots of war are on and Ireland is being attacked, not by a foreign aggressor but by its own Government. The democratic process is under fire. The voice of the electorate is being ignored and it is time for the people to fight back. We saw evidence of that last week and will see more tomorrow and the next day.

As in all wars, lives will be lost due to lack of medical provision, families will be left homeless, employment will be lost, education will be inaccessible for those with special needs. The public sector is in the front line of the war, as this Bill is primarily concerned with deductions in the form of a pension levy to be made from the pay-packet of public servants. This does not, however, apply across the board to everyone in this category. Last week, under Standing Order 32, I raised the exemption of the Judiciary. I am fully aware that the remuneration of judges is copper-fastened under the Constitution to protect their independence, which is undoubtedly valid. I ask the Minister to amend this legislation or the Oireachtas Allowance to Members and Ministerial, Parliamentary and Judicial Offices (Amendment) Act 1997, to allow the Judiciary to join the rest of the public sector in making a contribution at this difficult time.

Section 8 of the Bill exempts the Judiciary from deductions under the pension levy. Perhaps the public will argue that the Judiciary is hiding behind the constitutional protection afforded to it by Article 35 of the Constitution. This is not a desirable example from a group at the top of the public sector. The general perception is that as judges pay tax, they should pay the levy. Why should those who are struggling to make ends meet have to tolerate the members of the Judiciary, who are at the top of the public service pay scale, escaping the payment of this levy? The levy, which would not noticeably affect the standard of living of the Judiciary, will cripple those on low and middle incomes. If our judges cannot be compelled to contribute in this way, perhaps they could make a voluntary contribution in the spirit of showing solidarity and setting a good example.

The pension levy is a bitter pill to swallow for those whose lives are endless struggles for survival. It is particularly difficult to accept that this jaded Government, which is out of touch, is led by a Taoiseach whose annual salary exceeds that of the most powerful politician in the world, the US President. The Government is top heavy with Ministers of State and is burdened with costs such as ministerial cars and Government jets. There are too many Oireachtas committees and too many Deputies get extra allowances in respect of them. The position of chairman or convenor of an Oireachtas committee should not be regarded as an honorary one.

Section 12 of this Bill relates to the farm waste management scheme, the mishandling of which by the Government is driving many people in the farming sector to bankruptcy. The farmers of this country have been plunged into a cash-flow crisis. The Government can afford to plough in excess of €7 billion into the banks, but farmers are being abandoned. They were forced to borrow heavily to build slatted sheds to meet regulations under the farm waste management scheme. They are now facing ruin. Who will bail out the farming sector? The Minister for Agriculture, Fisheries and Food has failed to deal with this matter in a balanced way that would support our farmers. The current situation is scandalous. Farmers were forced to make untenable financial commitments to meet the provisions of the EU directive on the disposal of farm waste. They made those commitments on the understanding that grant aid would be forthcoming.

Last October, I argued in this House that the failure of the Minister, Deputy Smith, to extend the deadline for the farm waste management scheme beyond 31 December 2008 was another nail in the coffin of the farming industry. Farmers were already suffering undue hardship as a result of the Government's inability to manage the scheme effectively, for example, by paying approved grants on time. This mismanagement is threatening the viability of the farming sector. It has echoes of the manner in which the nitrates directive was bungled. I am reminded of the inability of successive agriculture Ministers to handle the delicate balance between the well-being of our farmers and the need to negotiate constructively with the EU. The refusal of the Minister, Deputy Smith, to extend the deadline for the scheme showed a criminal disregard for the economic viability of the farming industry. An extension would have eased the frantic demand for payment and diluted the impact of the Minister's breathtaking blunder. The Department is unable to pay the bill of €400,000 that is owed to our farmers as a result of that error. The Minister's incompetence is driving farmers off the land and into bankruptcy.

Some 18,000 Irish farmers have applied for the waste management grant to enable them to repay the loans they took out on the basis of a promised payback. What are they supposed to tell their banks? Should they refer them directly to the Minister for Agriculture, Fisheries and Food? The farmers in question were disproportionately affected by last year's budget. The future of the farming industry was threatened by the attack on grants for young farmers and on allowances for older farmers who want to take early retirement. The dioxin crisis shattered global confidence in Irish pigmeat. Payments under the rural environment protection scheme continue to be delayed. I ask the Minister, Deputy Smith, and his Cabinet colleague, the Minister, Deputy Brian Lenihan, to separate REPS 4 from the waste management scheme. The many Irish farmers who are involved in organic farming are being denied their REPS 4 payments. Fair play should prevail in that sector, just like every other sector of the community.

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