Dáil debates

Thursday, 18 December 2014

Appropriation Bill 2014: Second Stage

 

11:00 am

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

As the Minister of State described it, the Appropriation Bill 2014 is necessary to give effect to the constitutional requirement to validate payments before the end of the calendar year, and thereby to give statutory authority for the amounts voted by the Dáil for the original Estimates, Revised Estimates and Supplementary Estimates. It also provides for the capital carryover from one year to the next, for the authorisation of certain receipts as appropriations-in-aid of specific services, and a mechanism to advance funds from the central fund to the Paymaster General's supply account in December to transfer and discharge liabilities due on 1 and 2 January. In other words, this legislation provides for a series of year-end clearance issues. Consequently, it must be enacted prior to the Christmas recess.

Every year since 2003, with only two exceptions, the Appropriation Bill has passed all Stages without either debate or vote. The first exception was in 2009 when the Labour Whip, without explanation, called a vote. In that first full year of austerity budgeting, Sinn Féin voted with Labour against the Bill, in protest. The second exception is this year, when for the first time the Government has allocated an hour for a mostly symbolic Second Stage debate.

This arises because of the strenuous objections made by my party colleague, Deputy McDonald, and others last week to the Government's insistence that the Supplementary Estimates be voted through, not only without Dáil debate but also without the spokespersons being provided with full information in advance with respect to Supplementary Estimate No. 12, despite having requested this information in committee. As the Minister admitted at the time, this information was reasonably requested. I understand that today's debate has been conceded as a consequence of these valid objections.

We are dissatisfied with the expectation that we pass the Supplementary Estimates in the absence of necessary information. We do not, among other things, want to hold up people's pension payments before Christmas.

Today's break with the appropriations rubber stamp tradition is something that I wish we could simply welcome. Unfortunately, it is virtually an empty gesture. Opposition Deputies are categorically excluded from putting down substantive amendments, due to the ongoing constitutional restriction pertaining to money Bills. Any serious counter-proposals cannot even be democratically debated or defeated, much less passed by way of majority vote. The House is simply not allowed to actively consider alternatives. In the interests of democracy, my party earlier this year drafted and attempted to move the 34th Amendment of the Constitution Bill that would have remedied this anti-democratic provision, and in doing so given effect to a recommendation of the Convention on the Constitution in this respect but so restrictive are the current rules that we were prevented from even doing this.

Last week the Economic and Social Research Institute, ESRI, confirmed what we already know about this Government's budgetary allocations, in this year and in previous years. The percentage losses were greatest, not just for those with the highest incomes, but also, and most unfairly, for those with the lowest incomes. Successive budgets since this Government took office in 2011 have imposed higher than average losses on the poorest 10% of households. The greatest proportionate losses were experienced by single unemployed people but the ESRI also found that middle income families have not been insulated from loss.

It found that families at all income levels had been squeezed as a consequence of successive budgetary decisions taken by the Government. Budget 2015 will result in those on the lowest incomes losing the most household income. Contrary to Government claims, this remains true, even when one takes into account the revised flat rate water charge. The ESRI's analysis of this issue chimes with Sinn Féin's view of it. The top 10% of households gained the most from the budget, with patterns of loss concentrated in the bottom half of income distribution. Fiscal prudence, economic stability and budgetary sustainability could be achieved by means of a fairer distribution of budgetary pain. It is interesting to note that the Fine Gael Party's policy of protecting its target electorate, namely, those in the upper income bracket, has overcome the Labour Party's pretensions of protecting those on lower incomes.

The legislation will give statutory authority to the largest Supplementary Estimates in the history of the State. Last week the Minister for Public Expenditure and Reform tried to have the House pass them without debate. This followed a discussion in committee during which he had failed to provide the final figures which had been prepared and were available, despite Opposition spokespersons, including my colleague, Deputy Mary Lou McDonald, having requested and discussed the very same information last year.

The Minister claims Supplementary Estimates of nearly €1.2 billion spread across nine Departments will be covered by tax receipts that are running ahead of the deficit target as a consequence of Government prudence and largesse. He further insists that only €510 million of this figure is new money, as the rest arises from savings. He denies this allocation effectively amounts to an admission that, at the time of the budget, the Government under-funded the health sector by a minimum of €680 million, the agriculture sector by as much as €177 million, the transport sector by €162 million, the education sector by at least €103 million and the environment sector by €34 million. As time prevents me from examining each of these sectors in detail, I will focus briefly on expenditure on health services and pensions.

The additional allocation includes a Supplementary Estimate for the health sector that is the largest in the history of the health service. It stands at €680 million, including a €510 million overrun, the scale of which is more than €100 million larger than expected. This irrefutably demonstrates that the level of spending cuts previously imposed on the Department of Health and the Health Service Executive was not sustainable or consistent with the delivery of an acceptable level of health care to citizens. On a number of occasions this year, the accident and emergency service in Our Lady of Lourdes Hospital, Drogheda, was forced to close to new admissions, such was the level of pressure on the service. In some cases, 30, 40 or 50 patients were lying on trolleys and staff faced severe pressure as they tried to deal with patients. Patients on trolleys experience delayed diagnosis, which means reduced levels of care and causes the poorer outcomes that have become the hallmark of the Government. While a full and frank confession has not been forthcoming, the Government has been forced to finally acknowledge this by way of deed. Deputies on this side of the House are all ears if the Minister of State wishes to make a full and frank confession. It could be therapeutic for him as it would allow him to enjoy Christmas more. The Minister for Health has insisted that the supplementary allocation will not affect the health funding available next year. I hope that proves to be the case.

The total additional spend on pensions will be €22.25 million. The Minister for Public Expenditure and Reform correctly insists that the hard earned pensions of workers who made lifelong contributions to the Civil Service should be paid on time for the holiday season. I fully agree with him and also accept that it can be tricky to predict the final number of retirements in any given year with accuracy. However, it should be noted that nearly 20% of these pensions involved payments in excess of €100,000. Some 263 of them are lump sums of more than €100,000, of which 24 are in excess of €160,000 and 169 are worth between €100,000 and €130,000. At the other end of the scale, 176 people received a meagre pension of less than €10,000. The Minister is asking the Dáil to stand over his failure to redress significant pension income inequality and the ongoing payment of gold plated pensions. My party's consistent concerns and demonstrated viable alternatives have been repeatedly ignored, most recently in October. Nonetheless, the individuals due to receive the financial supports and incomes detailed in the Supplementary Estimates should not face delays in payment.

Sinn Féin does not endorse the philosophy of austerity underpinning the Government or the consequent persistence and aggravation of economic inequality. It is vital that the Minister reconsider the political direction in which the State is moving and realise that the Government has an opportunity to achieve its objective of fiscal prudence, while delivering a fair and equal society.

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