Dáil debates

Wednesday, 7 December 2011

Financial Resolution No. 13: General (Resumed)

 

9:00 pm

Photo of Jerry ButtimerJerry Buttimer (Cork South Central, Fine Gael)

The budget is about facing up to the country's realities, addressing our problems and tackling difficulties at home and abroad. The circumstances in which we find ourselves limit the Government's options and present choices that are neither easy nor pain free. As Deputies, it is important to acknowledge that many people are in significant difficulties and suffering. This is not easy for any Member, be he or she in government or opposition. We wish the situation was different, but we have an obligation.

Last Sunday, the Taoiseach stated that the ordinary Irish person did not cause this problem. I listened to Opposition Members. While recriminating about who caused this mess will not get us out of it, it is about time for Fianna Fáil Members in particular to recognise that they and their policies brought us to this point. I would love it if members of the former Government were held to account in some shape or form other than politically by the electorate. The policies they pursued, their lack of regulation and their friendliness with certain cosy cartels left much to be desired.

This budget is about a road to recovery, growth and putting in place a package of measures that will help our country rise again and our people to become economically sovereign once more. Each of us loves and believes in this country. We have an interest, not just in the past, but in the future. That is why we, as parliamentarians, and those who have been handed the seal of government have a unique opportunity to play a role with the people in this recovery. In the short term this may cause profound difficulties but by taking these decisions, we can and will generate growth and recovery.

I welcome the decision by the Government on disability allowance. I welcome the decision to pause the change. While I accept that the numbers are not huge, it is an important decision.

Despite all of the difficulties we face as a nation, the Government has taken a range of targeted and focused decisions that demonstrate clear priorities. Two important Government commitments in respect of health policy have been delivered on in the budget. A universal single tier health service is the long-term objective of the Minister for Health and providing €35 million for mental health services and €15 million to provide free GP care for people participating in the long-term illness scheme are the Minister's initial steps towards achieving this objective. These initiatives will enable implementation of A Vision for Change and the delivery of free GP care to almost 56,000 people. The Minister, with the Ministers of State, Deputy Kathleen Lynch and Deputy Róisín Shortall, has set out an ambitious and much needed reform agenda in the health system which needs massive change. The Minister has demonstrated leadership and needs our support, along with that of stakeholders such as VHI, the HSE, the consultants and the INMO, in order that we can deliver an improved health service. Those on the front line of the service are doing Trojan work. However, they require leadership and reform from those at the top of the HSE. I call on it, its chief executive in particular, to join the Minister in bringing about reforms.

A key commitment in the Fine Gael election manifesto was to increase mortgage interest relief to 30% for first-time buyers who purchased homes between 2004 and 2008. In our first budget we have delivered on this commitment, in providing help for those who have become known as the negative equity generation. This measure alone will not solve the problems faced by those who were enticed to buy homes in the bubble years, but it will provide much needed assistance in helping them to cope with the challenges they face. The property market accounted for 20% of GDP but that figure has fallen to just 5% today. While no one in the House is promulgating a return to that market position, the market should be restored. It is in the interests of the economy that we re-establish a functioning and realistic property market. Reducing stamp duty on non-residential properties will stimulate the commercial market, while continuing and increasing mortgage interest relief for first-time buyers through 2012 will stimulate the residential sector. The Minister's proposals are targeted initiatives designed to restore confidence and encourage purchases by those fortunate enough to have access to the necessary funds.

Access to funds is not just a problem for those who want to buy a home. It is a daily problem faced by businesses. Business people I meet talk about the difficulties encountered in dealing with banks and the banks stating one thing to the Government and the opposite to viable businesses. The Minister of State, Deputy John Perry, spoke about the importance of SMEs and setting lending targets for banks. This is welcome, but there must be constant vigilance and negotiation with the banks to ensure they are delivering to the SME sector which is the driver of growth and employment creation.

The international financial crisis shows that no country can survive by having perpetual budget deficits. Like any home or business, a country can only survive and provide for its people if its income exceeds expenditure. It is because we have a shared, common future that we all have a role to play in the recovery of Ireland. If we are to benefit, we must establish the basis on which it can return to growth. We cannot shirk that responsibility. We cannot walk away from the fact that we have a generation of young people who require leadership. We cannot be catch-all, with everyone in favour of everything. Membership of the Government requires responsibility to lead the people back to a new prosperity. The budget marks a beginning and is difficult. It is unfortunate that hard decisions have to be made, but we must take them.

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