Michael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

I may not take 20 minutes.

The past couple of days around Leinster House have been a bit surreal. It was not the usual week in Leinster House. I was trying to think what it reminded me of and then it struck me: the weather. Last week it was nice, warm and sunny and held out the promise of good things to come. However, this week reality is back again, and it is cold and damp. With all the talk about the spring statement, people were genuinely looking to see if there was good news here and if there was something that would make a difference to their lives. People were genuinely looking forward to hearing something, but they did not get it. That is why I compared the good promise of last week with the cold, damp reality of this week.

It is important to judge the context of the spring economic statement by the facts. It is the boring bit, but it needs to be said. Let us consider Fine Gael and Labour’s predictions when they took the reins of power in 2011. The Government's stability programme published in 2011 estimated that the economy would grow by 8.7% between 2012 and 2014. I hate statistics, but we need to set the context. In that period the economy only grew by 4.7%, little more than half of what had been forecast. This is because the policies of austerity have failed to deliver growth and sustainable jobs. It is not complicated. Personal spending is still 7% below where it was in 2008 and yet we talk about an improving economy. It is even lower now than it was when Fine Gael and Labour took office and the Government needs to take that on board.

Austerity is the agenda and it is choking the economy. Between the start of 2010 and the end of 2014 there was a cut of €9.6 billion in Government expenditure in this small country of ours. That is €9.6 billion was taken out of the pay packages of public sector workers, out of capital projects, out of schools and hospitals and out of other services. It comes out of personal social services. That is €9.6 billion was taken from our local shops, pubs and other local businesses, services and employers. It is not a smart or successful way to run an economy. The introduction of family home taxes and water charges takes money from the pockets of citizens. By 2014 Fine Gael and Labour had slashed public investment to just €3.5 billion, down from €5.6 billion in 2010.

The worst part of it is that there is an alternative. Sinn Féin does not get credit for the alternatives that we propose and we cost before putting them forward. The alternatives we put forward are based on figures we get from the Departments. We have consistently argued there is a realistic alternative to Government policies.

We have seen dramatic evidence of what has happened in this country. The wealthy, the powerful, the bondholders and those who have sucked the blood from the country have seen their wealth immeasurably improved during the period of austerity. So somebody gained from it. The Government's policies worked for a small number of very wealthy and very powerful people. They gained but the people of Ireland did not gain and they are not gaining. The approach is wrong and it will not create jobs. Investment in the real economy and not in a notional economy will create sustainable jobs.

Government policy has shown a reduction in total expenditure and a reduction in total revenue. The Government predicts that by 2020 the total revenue will fall to 31.6% of GDP and total expenditure will fall to 29.9%. How could any government provide high quality public services while allowing total government income and expenditure as a percentage of GDP to fall to historical lows? That does not make any economic sense and I am surprised that even if the Government was thinking of that ratio of cuts it would commit them to paper.

The Government is at risk of repeating the same mistakes of Fianna Fáil. Tax cuts, which benefit the wealthiest in society most, will not provide homes, schools or public services. The tax measures are moving the burden from those who can afford to pay onto those who cannot afford to pay any more. It is exactly the opposite of what is needed. The record of the Government shows that tax cuts benefit the rich more than the general public. Long-term economic management must be about making decisions that will improve the lives of our people today and into the future. It is not about attempting to spin tax cuts in the run-in to a general election. The last thing people need now is false hope or hopes that cannot be met sustainably.

The Government still has to tackle the issue of low-paid work. The type of jobs that are becoming available, especially to young people, are often low paid and precarious. There are those who seek to make profit on the backs of low and middle-income earners so that their own profits can be built up. Ireland is a high cost and low pay society. When the purchasing power of Irish workers is accounted for, Ireland falls 13% below the EU-15 average. Nearly 350,000 of the workforce suffer from multiple deprivations.

Ireland is one of only two EU countries that do not recognise collective bargaining. Since the foundation of the State, successive Governments have failed to introduce statutory collective bargaining. This ensures that organised labour, especially in the low-paid sector, does not have adequate means to push for better pay and conditions.

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