Dáil debates

Wednesday, 7 December 2011

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

 

5:00 pm

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent)

I listened to the budget speeches delivered by the Minister, Deputy Howlin, and the Minister, Deputy Noonan and, as usual, I listened with an open mind. Because I am on this side of the House does not mean I will automatically disagree with everything I hear from those on the other side. There seemed to be principles around which the budget would be based, namely, fairness, reform, social inclusion, protecting the most vulnerable, dismantling barriers to employment, openness, transparency, accountability, ensuring a fair distribution of the tax burden and to get Ireland working again, all of with which I agree. It appeared we were moving in the right direction towards a more equal society, but it was a different story when it came to the small print, the further details in the comprehensive expenditure report and the budget. It is difficult to reconcile those principles with what is contained in those two documents. They both seem to be guided by so-called "obligation to pay €1.25 billion to unguaranteed senior bondholders" while many cuts are being imposed that will hurt the poor and the vulnerable. I read an article by Brother Kevin of the Capuchin Day Centre in Dublin which feeds several thousand homeless people in this city. He made the point that two or three years ago the centre gave out approximately 400 food parcels of a morning; last week it gave out 11,000 on one morning. I share his concern that the Government will penalise the underprivileged.

If we continue with the payment to bondholders, could we not at least tax the transaction of the transfer of the money? This group of bondholders are earning money, so they should pay tax or at least give a percentage back if the Government is to continue paying them. After all, the bondholders are getting all this money but they are certainly not creating jobs.

Multinational companies and very large Irish companies have set up businesses here. They can transfer profits to an Irish company in a tax haven with even more liberal laws than we have. Again, at a minimum could we not impose a tax on transactions transferring this money? This brings me to the issue of corporate tax. Could we at least ensure the full 12.5% is collected? It is difficult to get specific information on this. I tried to find out exactly how much corporate tax TalkTalk in Waterford paid but without success. Seemingly it was worth €3.9 billion in 2009 and that is when it was not all being collected. Some multinationals pay, on average, between 4% and 7% corporate tax here. I spoke on this issue in the last Dáil and I was the only person with any reservations about corporate tax. My concern is that we have become a tax haven for countries that do not pay their just taxes in the country of origin and now we are also allowing companies to avoid paying their just taxes in this country.

Turning to education, I thought it was great that the pupil-teacher ratio was being maintained but I received telephone calls from five junior primary schools in Dublin Central who will all lose teachers in the next few years. They will lose their support teachers and a few of those schools will lose that special teacher who deals with students with emotional distress. They face a dire situation. Those schools were fortunate in having quite a number of additional programmes which greatly benefited the literacy and numeracy skills of their students but that is now being undermined. There are no reductions in the overall number of special needs assistants and resource teachers, but fee paying schools are still being funded disproportionately compared to schools in disadvantaged areas.

Having worked as a guidance counsellor as well as having taught a subject, I know the work of a guidance counsellor very well. In a sense all teachers have a guidance role because teaching is not only about imparting knowledge or skills but about the well-being of the student. The guidance counsellor has a particular role. There was a battle to get the position ex-quota with an allocation for schools with under 500 pupils but that is now lost. The Government can dispense with guidance counsellors if the Department can provide the support services that every school needs to deal with the problems, behaviours and the issues presented by students. Schools do not have the services of psychologists, therapists, counsellors, career advisers and support groups; the guidance counsellor provides an invaluable service in that regard. With the plans for guidance counsellors, extra pressure will be put on schools. In practically every school I know the students are under additional emotional stresses and psychological distress, and they are now being abandoned. Yet we continue to go along with the quango of the Teaching Council and I have yet to meet a teacher who considers the fee of €90 a year to be value for money.

I welcome the capital programme, that schools will be built and that plans are being made to accommodate extra students. I hope that Gaelscoil Bharra which has operated from prefabs for many years will finally get the school that has been approved.

I cannot understand how a government would target a cut at any person with a disability, regardless of his or her age. It is most inhumane. I have said consistently that those with mental health issues, disabilities and their carers should not have an additional stress regarding the budget. They should be sacrosanct and I welcome that the Government is re-examining this. However, it should not have been in the budget in the first place. There are people with severe disabilities and multi-disabilities who will not work and they are entitled to an allowance that will permit them to live in dignity. Losing €88 a week and €44 a week is very significant for these groups.

The cuts in grants for community employment schemes will have detrimental and disastrous effects. These grants were used for materials and training to facilitate the delivery of courses in personal development, education, parenting, after-school services, services to the elderly and the disabled. Many on these schemes were early school leavers who got caught up on drugs or were homeless. The community employment schemes were a real way for people to train and acquire skills and were an opportunity for second chance education and to acquire literacy and numeracy skills. Many people have used it as a first step on the ladder to further education. The effect is that lone parents or those with a disability allowance will not be able to keep their allowances if on a community employment scheme.

Yesterday, I attended a lunch for senior citizens who were generally optimistic. They stated that they were prepared to take their cut, but the fuel allowance is a serious matter because they fear they will not have enough and this is causing distress. They will hold on to what they have in the fear that it might run out and this is causing many problems for them.

I voted in favour of the increase in excise duty on cigarettes and I would have supported an increase in excise duty on alcohol to address the availability of cheap alcohol. Every report, committee, community, health service and addiction service is in favour of this. Cheap alcohol, illegal cigarettes and regulated tablets are leading to shattered lives in Dublin's north inner city. Alcohol Action Ireland states that an increase would have generated €178 million.

I welcome the additional €35 million for mental health services to further advance A Vision for Change with the emphasis on eating disorders, early intervention in psychosis and suicide prevention including self-harm, which are areas which have long been neglected. I hope the HSE will take on the good practice of organisations such as Pieta House, the Oasis Deora project, Bodywhys and the eating distress counselling service in Fairview. I do not think the budget was fair and this is the bottom line.

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