John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I welcome the opportunity to speak. I agree in some ways with the thrust of the motion in the sense that vulnerable people need to be protected in our society, especially those who have suffered most since the economy crashed onto the rocks in 2008. We all agree that, once funding becomes available, those who have suffered the most should be looked after. Where we differ is in how we actually do that. As previous speakers pointed out, the best way to do it is by bringing jobs to the country and giving people sustainable jobs so they can raise their standard of living. There are 80,000 people working in this country now who did not have jobs and were supported by social welfare. As Deputy Tuffy said, that funding can now be put into something else.

Since we took over in 2011, various measures have been taken in an incremental way. For example, our first budget took an extra 330,000 people off the universal social charge and raised the minimum wage. These measures may have been well regarded at the time but they are almost forgotten now. It should also be noted that the universal social charge was increased in the recent budget for very high earners while a further 80,000 people were taken off USC, and this will continue. Some 40% of workers do not pay any income tax, admittedly because of their low wages.

There is general agreement that there needs to be restoration of jobs and funding targeted at lower income earners. We are all agreed there is a need to restore a reasonable standard of living for people. However, we cannot do that at the stroke of a pen. We put so much effort into the economy, and the people were so patient in allowing us to do this, that we cannot wreck it all again by trying to do everything in one go.

I have not seen any costings on the measures proposed in the motion, although there is a suggestion they would cost €4 billion. Where will that come from? Will it come from higher taxes that will run people out of the country again and lead to a loss of competitiveness which we had to struggle to achieve? For example, we made ourselves competitive again in the tourism and hospitality sector, thereby creating 30,000 jobs. If higher taxes are introduced, those people would have to get higher wages, again making us less competitive.

In summary, there is agreement that lower and middle income Ireland needs to be first on the list for the restoration of the standard of living. The best way to do this, of course, is to create employment. As I said earlier, 80,000 extra people are now working and have sustainable jobs, which will continue this year, for which we have a target of 40,000 extra jobs. That is the best way of demonstrating to people that there is light at the end of the tunnel.

There is another issue that affects all of us living in rural Ireland. While everybody accepts there is a recovery in the economy in the urban areas, there is an issue with spreading that through the regions. I have no doubt this is something that needs to be and is being attended to. I believe the jobs announcement on Monday for Athenry, a small town in Galway, is an indication that there is more to come on this and that there will be a regional spread of the recovery as the year goes on

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