Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

We are here because my colleagues have rooted our approach within the framework of our agreed Government programme. We, of course, cannot implement all the measures in our supply and confidence agreement or the programme for Government in a single year or a single budget, but today represents a substantial beginning.

Key spending areas for 2017

We are aware of the continued difficulty facing many individuals and families at the present time. Despite economic growth, too many are still without work. Despite economic growth, many public services still need improvement. However, because of economic growth, we have the resources to make a difference. While many aspects of our economy are recovering, our country is not yet recovered. Fractures within our society remain to be healed.

The measures I am announcing today respond directly to this important need, by continuing the process of rebuilding and restoring our public services. In so doing, we are consistent with the broader economic, fiscal and expenditure strategy outlined by the Minister for Finance, Deputy Michael Noonan. This strategy, embedded in both the programme for Government and the confidence and supply agreement, is aligned with the EU Stability and Growth Pact. This gives confidence to international investors and indigenous Irish businesspeople alike – from the corner shop owner to the tech start-up entrepreneur – that the Government is serious about protecting and building the economy in which they operate. It also yields the resources we need for the increased investment in public services, which I will now set out for the House.

Housing

Housing is a core priority of the programme for a partnership Government. I am today committing some €1.2 billion in funding for housing to the Department of Housing, Planning, Community and Local Government for 2017. This is to allow for the continued implementation of the housing action plan. Forty-seven thousand new social housing units will be delivered by 2021. The capital allocation also includes an allocation of €50 million for the €200 million local infrastructure housing activation fund, which will accelerate the provision of local public infrastructure to support the development of key sites. It has the potential to facilitate the delivery of up to 20,000 private houses by 2019 through co-operation with local authorities.

From July this year, the Government increased rent thresholds for the housing assistance payment and rent supplement. This was to make it easier for people to access housing and to protect those in danger of becoming homeless. Today I am providing an additional €105 million for the housing assistance payment scheme. This brings the budget for this purpose to nearly €153 million, an increase of 220% compared to 2016. This will enable an additional 15,000 households to avail of this payment, and together with the capital allocation provided for housing and other measures, will mean that over 21,000 applicants for social housing will have their housing needs met next year.

I am also increasing the allocation for emergency accommodation for homeless people by an additional €28 million approximately, to almost €100 million.

Health

Health is also a core priority of our programme and I am announcing increased spending of €497 million on health in the Estimates for 2017. This will bring total spending for this Department to €14.6 billion. Taking account of the supplementary funding provided mid-year, this amounts to a commitment by the Government of an additional €1 billion, or a 7.4% increase in health spending from budget 2016. This huge level of increased investment not only continues the process of putting the health service on a sustainable footing, it also represents the highest ever level of health funding in the history of the country. However, with this increase comes great responsibility. The job of those charged with managing health services is to ensure taxpayers' money is used in such a way that outcomes are delivered, budgets are adhered to and services protected. The Government will continue to work in the months and years ahead to ensure this twin-track agenda of better care and better accountability is delivered. We do so because we are committed to protecting the most vulnerable. Because of this, I am increasing medical card coverage to all children in receipt of the domiciliary care allowance. I am also reducing the €25 cap on prescription charges for over 70 year olds to €20 with effect from 1 March and allocating an additional €15 million to the National Treatment Purchase Fund to reduce waiting lists. Further details in this regard will be announced by my colleague, the Minister for Health.

Education

I turn to education, the bedrock of our society. The desire for educational success resonates deeply with all of us. Since the introduction of free secondary education in 1966, the ongoing positive impact of that historic decision has been manifest in the proportion of young people completing higher education. There is no sector of the economy, no aspect of our society and no element of national life that has not been transformed by the increased educational attainment of the people. We must, however, continue and reinforce this transformation through investment in education. The education spending I am announcing this afternoon of €9.5 billion is approximately 16% of total spending. The increase in spending of €458 million will fund an extensive programme of recruitment in 2017, including approximately an additional 2,500 teaching posts, of which 900 will be resource teachers. During our discussions on the budget and having listened to debate in the Dáil my colleagues and I were very conscious of the importance of the third level sector. For this reason, budget 2017 sees an increase of €36.5 million in funding for the higher and further education sector. This represents the first significant investment of resources in higher education since the economic collapse.

Earlier this year the Cassells report highlighted the economic and societal value of higher education and the scale of the challenge involved. It pointed to the availability of funding from three sources: the Exchequer, students and some form of employer contribution. Ensuring education remains the linchpin of our economic success requires an intensified focus on a sustainable long-term model for higher and further education. I am committed to this goal and building on the significant investment in education announced now. The Minister for Education and Skills and I are, therefore, initiating a consultation process on the design and operation of an Exchequer-employer investment mechanism to operate from 2018 onwards. This is also intended to drive continued reform, quality and performance across the sector, in line with the action plan for education. I expect this proposal to be brought to the Government by the middle of next year, following the conclusion of consultation.

Child care

The Government is clear on the benefits of higher quality and more affordable child care. It is good for children, good for families and good for our economy. In light of the value attached to further supporting the development of affordable child care in Ireland, early years funding will rise from €345 million in 2016 to €465 million in 2017, an increase of 35%. This increase in funding allows for an additional €35 million to support the provision of both universal and targeted services for the care, development and well-being of children and young people.

It will allow for the introduction of a new single affordable child care scheme from September 2017 to provide both means-tested subsidies based on parental income for children between six months and 15 years and universal subsidies for all children aged six months to three years. These subsidies will be paid for children and young people attending a Tusla-registered child care provider, including centre-based providers and child minders. Taken together, these initiatives represent a major step forward in the provision of child care.

In addition to this package, €86 million has been provided in respect of the full-year costs of the extended early childhood care and education scheme, the free preschool scheme and the roll-out of the access and inclusion model to enable children with disabilities to participate in preschool education.

Social protection

Our system of social welfare supports is a vital protection against the uncertainty of employment, the hardship caused by illness or disability and the challenges one encounters when caring for a loved one. I am pleased to be able to inform the House that the State pension will rise by €5 per week from March. However, in framing a fair budget, we cannot stop at that. The previous Government worked to protect, as far as was possible, the basic rates of weekly social welfare payments. Nonetheless, it has been seven years since many of these payments were increased. The collapse of the economy meant that we could not increase such payments. The return of growth and the economic recovery of the last couple of years are the reason we can now afford to begin to change this.

Carers, the unemployed and those living with disabilities may not always have the loudest voices but their needs are no less real.

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