Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank my colleague, Deputy Michael McGrath, for opening Fianna Fáil's response to the budget. The budget is all about making choices. In the past three years we have seen three regressive budgets which cut expenditure on essential public services and the incomes of those who could least afford it. We on this side of the House welcome the improvement in the economy and the Government's finances, but these improvements are not being shared equally in society. Many have seen no improvement in their situation and are still coping with serious reductions in their incomes and the public services on which they rely. On the other hand, some see a significant improvement in their financial situation.

Today presents an opportunity to bring forward a socially balanced budget. For the first time in a number of years, there are available resources. These resources should be allocated to those who need services most. We need to reinvest in health, education, child care, social housing and getting people back to work. This would help to build a fairer and more caring society. We in Fianna Fáil have learned lessons in recent years and the public has, too. There must be no return to auction politics, but anyone looking in today can see the Government has learned nothing from the past. Despite its agenda of political reform, it is heading in the opposite direction. There has been an unexpected surge in economic growth in recent months, but we must not blow it all immediately. We must see growth fully bedded in before we start to offer tax cuts to those on the highest incomes in order to buy their votes in the next general election.

Everyone will understandably welcome a cash improvement in the budget, but I caution that it is only half the picture. The Government is giving with one hand and taking back with the other. The new water tax which came into effect on 1 October and for which the bills will arrive early in the new year will cancel out any of the sweeteners announced by the Government today. When people weigh up the full picture, they will find that most will be no better off next year. It is worth remembering that Ireland will run a deficit next year of the order of almost €6 billion. The Government is borrowing money to give it away today. Surely, we have learned that the money we borrow today must be paid back with interest which will leave less money for resources for essential services in the years to come. I look at the document produced by the Government today and it tells us that the opening Government debt - it islisted at C60 for anyone who wants to look - at the beginning of 2015 will be €203 billion. The opening Government debt at the beginning of 2016 will be €210 billion. The opening Government debt at the beginning of 2017 will be €212 billion and the opening Government debt at the beginning of 2018 will be €215 billion. The Government predicts in the next four years an increase in the Government debt of €12 billion but is offering tax cuts today, even though we will have to borrow to finance them.

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