Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I welcome the opportunity to contribute to Report Stage of the Fiscal Responsibility Bill. I did not have much success with the amendments I tabled on Committee Stage and so did not repeat them again on Report Stage. However, I wish to make some comments on the amendments tabled by Deputy Pearse Doherty, many of which relate to the plan the Government is required to introduce under the correction mechanism to comply with the budgetary rule. Amendment No. 5 would provide that such a plan would "prioritise the generation of economic growth, job creation and delivery of high quality public services". In many respects it is a statement of the obvious because those should be objectives that any democratically elected Government in this State would pursue and I would expect that to be the case. I have no objection to providing specifically for such a plan to include recognition of that. Amendment No. 6 is consequential on amendment No. 5.

Amendment No. 7 proposes that such a plan would "outline how revenue and expenditure measures will contribute to the objectives of greater income equality, social inclusion and poverty reduction". My philosophy and the philosophy of my party on income equality is that the objective of Government should be to give individuals and families the means by which they can advance themselves and can over a period of time improve their income-earning capacity while at the same time having a floor or a backstop through the social protection system to ensure at least a minimum standard of living is provided for every individual and family in the country should they require it. There is much talk about the objective of income equality - I have a different philosophy. We should give everyone the opportunity to improve their own prospects and improve their income earning capabilities while at the same time having a necessary safety valve through the social protection system, which is essential. I do not believe anybody in this House would disagree with the references to social inclusion and poverty reduction.

Regarding amendment No 8, much depends on the level of detail in the plan that would be introduced in the event of the correction mechanism being triggered. Deputy Doherty read out sections 6(2)(c) and 6(2)(d), which will require an extensive level of detail in terms of the revenue-raising elements and the expenditure reductions that would be provided for in such a plan. I note the Minister's comments on Committee Stage about the need to provide equality and anti-poverty impact assessments in respect of every element of that. However, in a broad sense it is an objective that we should aspire to achieve and I support the amendment in that respect.

The Minister should seriously consider accepting amendment No. 9. While the Bill as drafted requires the Government to prepare and lay before Dáil Éireann such a plan under the corrective mechanism to achieve the budgetary rule, the legitimacy of any such plan would be enhanced if it were put to a vote of Dáil Éireann. As a backbench Deputy in the previous Government when the programme was negotiated with the troika, I was one of the Deputies who pushed the issue quite strongly in our parliamentary party that the deal and the programme agreed should be put to a vote of the House, as it ultimately was. Others called for a vote by referendum but I felt at the time that the particular deal required the consent of the elected Members of this House. That was ultimately forthcoming and it was the right thing to do. I believe amendment No. 9 should be accepted.

Amendment No. 10 appears to presume that the Government considers non-compliance with the budgetary rule to be in the best social and economic interests of the citizens and the State, which presumably will not be the case at all times. I would be interested to hear the Minister's comments in that regard.

In general terms, my party will support the Bill when the final vote on it is taken. As a country we have no option, whether it be under a troika agreement or under the fiscal stability rules, to get to a point where we are only spending what we take in by way of revenue. Even the most recent Exchequer returns up to the end of October indicate that the cost of servicing the national debt stood at just over €6 billion, which meant more than €1 in €5 that we received by way of revenue went to service the debt alone. Ultimately, if we do not get on top of the deficit situation, an ever-increasing proportion of our tax take will go towards servicing the national debt, which means less money available for the provision of essential public services and less money available by way of social welfare support for families who need it. Ultimately, we need to reach that point and the Bill essentially implements the will of the people by way of their consent to the fiscal stability treaty and putting the Fiscal Advisory Council on a statutory basis.

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