Dáil debates

Wednesday, 14 October 2015

Financial Resolutions 2016 - Financial Resolution No. 5: General (Resumed)

 

6:40 pm

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent) | Oireachtas source

Tá rudaí dearfacha ann sa bhuiséad seo agus tá daoine áirithe níos sásta leis an mbuiséad seo ná mar a bhí siad leis na buiséid a bhí againn le déanaí ach bhí sé dochreidte a bheith ag éisteacht leis an Aire agus é ag rá gur thug an Rialtas cosaint do dhaoine óga, do sheandaoine agus do dhaoine ar an imeall sna buiséid roimhe seo. I know only too well from my constituency that the people who have been suffering most because of recent budgets are children and vulnerable people. I was incredulous to hear the Minister deny that inequality had risen. We have the statistics to show that inequality has increased. I do not know why anyone would not believe the CSO when it tells us this.

Those with the most have not given the most. All the NGOs working with those in vulnerable situations are aware of that and tell us so. It would have been more admirable to have acknowledged that and to have said that the driving force behind the budget was to address those inequalities. So were they addressed? The overall feeling about the budget is that the tax cuts still benefit the top one third of income earners more than those on lower wages in cash terms.

The Government claims the budget deficit has reduced and it has provided various statistics. However, we know that is not being felt by everyone. The next few months will tell the tale if the percentages and statistics translate into real improvement for those most affected by previous budgets.

The most pressing and urgent issue for this country is housing and homelessness. It is almost a year since the death of Jonathan Corrie across the road from the Dáil and there have been two other deaths since then. For many, living on the streets, in emergency accommodation in hotels and bed and breakfast accommodation or staying on couches in the houses of relatives and friends, it is almost like a slow death for them. It completely and utterly takes their dignity away.

The Minister was correct to refer to the underinvestment in social housing in the past and we can add to that the cuts to funding for local authorities. We all have examples of people with a disability who have waited two to three years in order to get the grant for an extension which will make a difference to them. One such case is currently on my desk. I thought the situation was improving. I was waiting to see what the budget would do about the housing situation. Unfortunately, it was the same rhetoric. The Minister said last year the Government announced a €2.2 billion package to begin to deal with legacy, but one could ask where is the action following those words. A total of €500 million is available this year. I would like to see the plan for that €500 million, the locations and the type of housing. Has it been broken down into size of unit, whether one, two, three or four-bed accommodation? A further €69 million was allocated to enable local authorities to secure accommodation for an additional 14,000 households. How exactly will that happen so it is not just a case of empty words? I was told local authorities have the funding to clear the voids but why is that not happening?

I accept the main budget speeches are not about the nitty-gritty of how exactly the funding will be allocated, but housing is such an emergency that more detail is needed and the Government had an opportunity to show its seriousness on the issue by not speaking in figures alone. In 2008 the Peter McVerry Trust worked with 383 participants but by 2014 the number had risen to 4,460 and that is just one organisation. We are told that 20,000 units are guaranteed by 2020 but that is not a comfort to children staying in emergency accommodation which is not suitable for them to do their homework and does not provide facilities for families to cook and do their laundry, not to mention the mental strain on parents who have to live with the possibility of having to move.

The housing lists are increasing all the time. One of the contributing factors is the private rented sector. Rent is being sought in this landlord’s market that cannot be matched or reached by those renting, whether they are on rent allowance or paying the rent from their income. When rent is increased for those on rent allowance and the rental accommodation scheme, RAS, they have the option of seeking assistance from the community welfare system. The Minister keeps telling me that and I know good work is going on to increase the allowance. I am not into lining the pockets of landlords who can increase rent at will, with no additional improvements or additions, by between €100 and €400 a month. Therefore, it is vital that there is rent certainty. Nobody wants to use the term “rent control”, but many cities in Europe have many people living in rented accommodation and they do not have the crisis we have. Those who rent privately who are not on an allowance have nowhere to turn when faced with a rent increase. We all want to see people in employment but if those who are employed cannot afford the increase in rent that will add to the numbers on the homeless list, which will interfere with their ability to work and result in them needing emergency accommodation. I get such calls every day from lone parents who work and who pay their rent but when it is increased, which can happen at any time, and that jeopardises their employment and the contribution they make to society.

Landlords are entitled to make a return on their money. They are not into renting property as a social service but there must be some way to assist landlords who are tax compliant and registered to buy into rent certainty or rent control, perhaps by means of a tax relief. I have a suggestion concerning people who are living in overcrowded accommodation. The situation could be alleviated if we introduced grants for extensions and that could reduce the number of people on the housing lists. People could be taken off the list who previously had no room to stay in their accommodation. We are told that NAMA could provide the answer but serious issues arise in that regard.

There is a diversity in reactions from organisations. However, it is the case that resources have not been targeted at the poorest. The European Anti Poverty Network Ireland put it succinctly in saying that the resource measures are welcome but they are not nearly enough to undo the damage of eight years of policies. The ESRI has shown that the poorest 10% have paid more than any other group. I endorse its welcome of the restoration of 75% of the Christmas bonus because I know the impact of its abolition, in particular on elderly people on the State pension, especially grandparents.

The 50 cent increase in the price of a packet of cigarettes will not stop those who are addicted but what it will affect is the local retailer because smokers will again turn to illegal traders and pay between €3.50 and €5 for a packet. The sale of illegal cigarettes is rampant in the inner city. I acknowledge the work of Customs and Excise, Revenue and the Garda have done to intercept illicit tobacco products but there is a loss to the Exchequer. A recent reply to a parliamentary question indicated that in 2014, the loss was €210 million. It is a dilemma that we are making money out of something that is harmful to people’s health. That begs the question of the lack of a tax on other unhealthy products such as fast food and drinks that are high in sugar. Small local retailers have no difficulty with a complete ban on cigarettes and they are supportive of any initiative to promote further healthy options. As I indicated, the 50 cent increase in the price of cigarettes is adding to the black market trade. We have enough young people who turn to the black market to make money. I would like to think the extra 50 cent would stop people from smoking, but all it will do is encourage more people into the illegal trade where they will not know the tar content of the cigarettes they smoke.

One group of which I am particularly mindful when it comes to the budget is those with a disability. Apart from housing, this is an area of great disappointment. Their reaction is one of bitter disappointment and deep concern. The Disability Federation of Ireland reminds us that when the Government came to power, its commitment to disability was its first social justice priority. There are some long-awaited reliefs for people with disabilities and their families but the budget does not go sufficiently far to show a real commitment to people with a disability.

An employment strategy was launched for people with disabilities but one could ask whether it is just words. The feeling among people with disability is that inequality will rise for them. Poverty and exclusion are part of their daily lives. At meetings I have attended, it has been heartbreaking to listen to their stories of how difficult it is for them and the additional stress coming up to budgets because they feel they will be again targeted.

I am a member of the Oireachtas group on mental health which agreed to a pre-budget submission. I did not have an opportunity to hear what the Minister said but we sought additional funding for suicide prevention. We hear about the magic sum of €35 million each year but we need a monitoring system to see exactly where it is going. My personal focus is on the area of intellectual disability nursing. The Government must guarantee that the course will continue. There is a need for such nurses in accident and emergency departments.

Last week some Independent Members tabled a Private Members’ motion on tax justice. It was not a very radical approach. All it sought was full financial transparency from multinational companies in terms of making annual country-by-country reporting public and closing the tax loopholes. Work has been done on the double Irish but can the Government guarantee that the knowledge box will not become another mechanism for large-scale tax avoidance and tax evasion by multinationals? We know the increase in the tax take from such companies recently, so let us imagine if they all paid the full 12.5% tax and if there was even a 1% increase. I attended a Social Justice Ireland briefing today. It produced the figure that a minimum effective tax rate of 6% for corporations would bring in an additional €1 billion in tax revenue annually.

We must identify the disconnects. There is a disconnect between the contribution from multinationals and society. Another disconnect arising from the budget is that single unemployed people will gain €95 a year. Single people earning €75,000 a year will gain almost ten times that, approximately €900. An unemployed couple gain €157 a year, whereas a couple with two earners on €125,000 a year get almost €1,500. I am in favour of everybody getting an increase but it must be proportionate. The increase to the minimum wage is welcome. A full-time worker on the minimum wage will gain €1,000 but the minimum wage is still 25% below the living wage, which means that is another disconnect.

I visited a project in the north inner city today which works with women in treatment for addiction and their children. While it appears that the budget for this type of work is the same, it does not take into account the growing needs.

For example, those responsible for the aforementioned project and community employment scheme tell me that younger women are presenting with more complex issues such as poly-drug use and with children in need of child care. However, they need special child care that can be provided by those who understand addiction. I also am aware, as I am sure is the Minister of State from his constituency experience, that community employment schemes are not getting other people into them, namely, those for whom CE initially was set up. They are the people who need CE to move on from unemployment into education, into training and then back into employment. The additional €20 is not even matching the costs for them of getting to the CE scheme site. Many women who enter community employment opt for child care and are supported during that. Such women will emerge with a proper qualification in child care and as work is available in child care, what is happening in this regard is good.

However, because there is no additional incentive for them and it is costing some of them more to be in community employment, it is not reaching them. Community employment works and consequently, failing to fund it adequately to encourage such young women on to such schemes will cost more ultimately. There is another knock-on effect if these young women can be induced onto CE and into projects, namely, the effect on their children. Again, the staff of projects are assisting those women in addiction to get the children into school and the pattern is being set for children to continue into school. Even if the addiction continues, the children have the pattern and the habit of going to school and they will bring along younger brothers and sisters. As for the child care aspect, it is vital to get this right and to have quality child care right from the outset. The Minister of State and I spoke at the same event on this issue last week and it is welcome that there is funding for children with disabilities.

I note money also is available for after-school services. I have been to a number of such facilities and am familiar with what happens. Some of them emerged through the school completion programme and I have a question as to the Government's support for school completion, because there were earlier concerns in this regard. In addition, it does not make sense that school completion is not under the aegis of the Department of Education and Skills but is with a different Department. The improvement in the pupil-teacher ratio is a start and I heard what the Minister had to say earlier about guidance and principles. However, I have a question regarding the salary scale for new teachers and note it will take quite some time to row back from the cuts of previous years. As for extending GP care to children under 12, it does not make sense until a review has been carried out of the current scheme for children under six. While I am all for a functioning, professional free health care scheme for everyone, in its absence I do not see the rationale for providing free health care to healthy people when others in ill-health are waiting for medical treatment and it appears as though the lists for hip and knee replacements are getting longer. Similarly, Members are familiar with the struggles of and the cuts imposed on those in addiction. I note the word "prevention" is not often seen and I did not hear it often in the various contributions made by Ministers. One needs targeted measures and one such measure must be prevention, regardless of whether it is to do with addiction, health or whatever.

A topic in which I take a personal interest is animal welfare and I acknowledge the work of the Minister, Deputy Coveney, in this regard. However, there is another disconnect here in that although he funds animal welfare organisations that work with animals, which is great, we continue to allow cases and so-called pastimes in which cruelty to animals is involved and I am referring to coursing, the badger cull, the fur farms and the digging out of foxes. The Minister for Foreign Affairs and Trade was present in the Chamber earlier, I am sorry he has left, and I acknowledge Ireland's commitment to overseas development aid. However, we do not appear to be making much progress towards the 0.7% target as although there has been a slight increase, it is not enough. I note the OECD development assistance committee, DAC, report was very positive about Ireland. The Taoiseach spoke in New York about being honoured that Ireland was co-facilitating the conference in Addis Ababa and committed Ireland to moving towards the 0.7% target but there is a lack of detail about that. I also note that Ireland is giving €10 million to the UN World Food Programme, which is great. However, Ireland also is giving an additional €18 million to the EU development co-operation fund. From being a member of the Joint Committee on Foreign Affairs and Trade and from chairing the Irish section of the Association of European Parliamentarians with Africa, AWEPA, I know the difference Ireland's direct bilateral untied aid makes with people in the countries of the global south. Consequently, that aspect of the budget did not make sense to me.

Another small point pertains to the increase in the cost of coal and briquettes and the increasing cost of smokeless fuel, which went in there somewhere. As for the comments from the Fiscal Advisory Council to the effect that the budget would have to be considered carefully, I do not understand why we have a Fiscal Advisory Council that does not see the budget beforehand but afterwards. Another issue concerns how Members debate the budget. There were many speeches yesterday in reaction to the general speeches from the Ministers, as there were today. However, all the detail is emerging today, which is what Members really need to address, but many Members have not yet had the opportunity to contribute and the question is whether they will do so. I believe Members must consider how to debate budgets better.

I read the conclusion of the speeches of both Ministers and one comment was that good progress continues to be made. The point was made that our debt is falling, our deficit is narrowing and unemployment is coming down. While they are all fine and that is good progress, good progress for me will be when the inequality gap narrows and when those with low incomes and those with disabilities do better. The speech also stated the Government has brought the country back from the brink but some people are still on the brink. One is told the Government will keep the recovery going but to me, it must be a recovery for all and the reality is that 376,000 people live in consistent poverty, which is double the number in 2008. Moreover, there has been an increase in the number of those experiencing deprivation and being at risk of poverty. When these issues are addressed through equality-proofing of budgets, then I believe Members will see really good budgets.

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