Joan Collins (Dublin South Central, United Left) | Oireachtas source

Most people will be relieved that none of the savage austerity cuts of the past seven budgets is in this budget. However, nobody should be under any illusion that austerity has ended. The Government is making a big deal of the fact that a €1.2 billion increase in services and tax cuts is contained in the budget. More than €30 billion has been taken out of the economy, people's pockets and essential services over the past six years and seven budgets. There is a long way to go to repair the impact the savagery has exacted on the economy, social services, jobs and people's lives.

I want to give three examples of previous budgets. The first budget announced by this Government for 2012 allocated just under €21 billion for social protection. In this budget the allocation is €19.4 billion, a cut of €1.5 billion since 2012. The allocation for health spending in 2012 was €14 billion. In this budget it is €13.1 billion, representing a cut of almost €1 billion. The allocation for education in 2012 was €8.7 billion. It is now €8.3 billion, a cut of €400 million.

We are completely tied into austerity, perhaps for decades, by the terms of the fiscal treaty which limits our borrowing requirement to below 3% a year and targets a reduction of GDP to debt ratio of 60%. We are paying €8 billion a year in interest payments, a large chunk of which is paid on the odious bank debt. I noticed the Minister, Deputy Noonan, made no mention of any possible deal on our bank debt.

I refer to the restoration of 25% of the Christmas social welfare payment. The Christmas bonus was an important payment for people on social welfare which helped them deal with the demands of extra spending over the Christmas period. It helped keep many people out of the clutches of moneylenders. Instead of making this 25% a one-off payment, the Government should at the least have announced a full restoration of the payment over the next year or two.

I refer to the examples of the budget income tax changes given by the Minister. He gave an example of a single person working in the private sector on a salary of €15,000 per year and said this person would be better off by €2 per week. That is the cost of a latte in the Dáil restaurant. That is what the Government is giving to take people out of austerity. It would be a joke if the situation were not so serious. Another example given was that of a married couple with no children on one income of €15,000 a year. Again, this couple is better off only to the value of one latte per week. A married couple with two children will be better off to the value of two Dáil lattes a week. Meanwhile, top earners will earn €15 a week extra to help them pay for their water taxes - a good move by the Government to assist the better off in our society.

These tax changes are completely illusory and pathetic, particularly when we take into account the introduction of water charges. What is given in tax reliefs will be taken back if the Government forces people to pay water charges. I believe people will not pay for water. It is not that they will not pay but that they cannot pay. Last week, when Fr. Peter McVerry heard one of the numerous leaks from Government sources, he said he fully supported any relief that could be given to our many middle- and low-income people but that reducing the top rate of tax excluded those people and only provided for those who were better off, which he found pretty obnoxious. I too find this pretty obnoxious, as I am sure do many on both this side and the Government side of the House.

On the issue of mental health, I received an e-mail from the Liberties Counselling Service, which is being threatened with closure coming up to Christmas due to a cut of 48% in its funding. The issue of mental health services is not being addressed and has not been addressed in this budget. I spoke to a young man from Ballyfermot who had reason to access mental health services recently and he told me he was shocked at the level of service provided to him - practically no service.

If people in the Labour Party believe this budget will save their skins, they should think again. I told the Tánaiste last week that there would be a rude awakening for the Government on Saturday. I was proud to be involved in the demonstration and protest by 100,000 people. These people will be back out on the streets on 1 November and I believe there will be even more people out that day, because they will not buy into this illusory budget.

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