Dáil debates

Wednesday, 7 December 2011

Financial Resolutions 2012: Financial Resolution No. 13: General (Resumed)

 

4:00 pm

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)

Many who sat at home listening to the speeches by the Ministers, Deputies Howlin and Noonan, on Monday and yesterday, respectively, found themselves in utter despair at what the next few weeks, months and possibly years would be like for them. The comprehensive expenditure reports were published this morning and read like a litany of punishments to society's least well-off. Carers, the disabled, children, migrants and women are being punished for the sins of others. These sections of society received little or nothing during the Celtic tiger years and will continue to receive little or nothing other than more political rhetoric from the Government. It will tell them that, although the deep financial trouble we are in is not of their making, they will be responsible for paying for it. They are on the margins of society and must shoulder the blame for what a small minority has inflicted on us. There is no doubt in my mind that the budget was designed cynically to protect that small minority at the expense of the most vulnerable. I reached this conclusion in listening to the two Ministers' speeches and reading the material provided.

Let us consider carefully the Minister for Finance's comments on last night's "Prime Time". They were telling where the Government's attitude towards the less well-off is concerned. They were also telling in respect of the Minister's attitude towards former members of his party. He referred to a mysterious group of lobbyists who had approached the Government to seek a reduction in payments to young people with disabilities. He had the cheek to call them wayward children. I hope he apologises for that disgraceful comment.

I began to wonder about who the mysterious group of lobbyists were. We found out from the Taoiseach during Leaders' Questions today and yesterday that the lobbyists were the parents. As we have rules on parliamentary language, I will not call anyone a liar, but someone is, undoubtedly, telling an untruth. In my 11 years as a local councillor on Cork City Council and in my nine months as a Deputy, not once have I received a lobbying e-mail, letter or telephone call from the parent of a disabled child asking that his or her income be cut. I doubt whether any Deputy has received such a request. I do not believe the Taoiseach and the Minister when they suggest those who lobbied for changes were parents of disabled children. It does not make sense. The Taoiseach has confirmed that the proposed changes to the disability allowance are now on hold. This is welcome. Let us be clear, however, that the review does not mean a reversal which is needed. The Taoiseach spoke about a review taking place, but there was no indication of how long it would take. Perhaps a member of the Government might confirm how long it will take and when a decision will be taken on whether the cut should be reversed.

I have listened to some of the reasons given for the increase in VAT. The Minister for Finance implied that those on lower incomes spent a higher percentage of their income on items such as cigarettes, public transport and alcohol, while those on higher incomes spent a greater proportion of their income on pension schemes. Taking this into account, I conducted some research on the VAT figures. The poorest 10% of the population spends 14.9% of their income on VAT, of which more than 75% is at the higher rate, while the richest 10% of society pays 7%. These figures show that those on lower incomes will be hit by the rise in VAT. There is no doubt in my mind that the budget has been designed by people who talk about eliminating poverty but who have no political ambition, will or policy to achieve it. There is no doubt that the less well-off in society receive the minimum and that sometimes they do not even receive their basic rights, as we saw in the case of disability allowance.

I recently read an article by Vincent Browne who quoted W. T. Cosgrave who many on the Fine Gael benches admire:

People reared in workhouses are no great acquisition to human society. As a rule, their highest aim is to live at the expense of the ratepayers. As a consequence, it would be a decided gain if they took into their heads to emigrate.

When I read it, I thought about the current economic position and it is great to see Fine Gael has stayed true to its politics. It now sees emigration as the only safety valve and solution to our economic woes, in other words, out of sight, out of mind.

I refer to the role of the Labour Party in the budget. There were prolonged backroom discussions during the negotiations in the drafting of the budget. Some elements of the Government considered they had to protect the wealthy rather than the less well-off. Sinn Féin Deputies were not privy to that debate, which is a shame because if we had been privy to it, we would not have rolled over as easily as the Labour Party on some issues. I can picture the scene, with the Minister for Education and Skills, Deputy Ruairí Quinn, in one corner sulking at being forced to accept Fine Gael's way rather than Labour's way on the subject of registration fees. He is probably thinking that Frankfurt's way is probably not as bad as Fine Gael's way. I can see the Minister for Social Protection, Deputy Joan Burton, attempting to make her position on disability services as Thatcherite as humanly possible in a cynical attempt to endear herself to the Taoiseach. In another corner I can see the Minister of State, Deputy Kathleen Lynch, trying to work out how she would explain away the changes to the disability sector which she had allowed to happen on her watch.

The changes to disability allowance are not the only attack on the disability and equality sector in the budget. The funding for disability awareness initiatives was cut by 72%, for the National Disability Authority by 5% and for victims of crime by 12%. The Minister for Justice and Equality is present in the Chamber. The funding for crime prevention measures was cut by 28%, on top of the closure of 31 Garda stations. SAFE Ireland, a group which represents domestic violence refuges, had its core funding cut by 100%. This follows last week's news that People with Disabilities in Ireland had its funding cut by 100%. These are disgraceful measures and there is nothing in the budget to which anyone on social welfare, low and middle incomes can look forward. A family on social welfare with three dependent children is subject to the same cut in income as a family with three children on a gross income in excess of €150,000. There is nothing fair or equal about this.

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