Dáil debates

Tuesday, 11 October 2016

Financial Resolutions 2017 - Budget Statement 2017

 

2:15 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

In the general election earlier this year, the people spoke and, in doing so, delivered a clear message. They wanted a fairer Ireland with decent public services at its core. They were determined to set Ireland in a new direction. They wanted to see a less divided Ireland, a more inclusive and a more caring country. It is evident today that the voice of the ordinary people of Ireland has brought about a marked change in budgetary policy.

As a party, we campaigned for, and pledged to work towards, a fairer Ireland. For us, that is not just a catchphrase. In practical terms, it means an Ireland that invests in people and services as a priority. The principle of having access to good quality public services, when people most need them, lies at its heart. We promised to work for an Ireland where the benefits of economic recovery can be enjoyed by all, not just a select few.

This budget comes at a time of great uncertainty for our country following the Brexit vote last June and we face into crucial negotiations on what exactly this means for Ireland. This is the inescapable backdrop to budget 2017 and it is one we must face up to.

Let us deal up-front with the context for this budget in our Parliament. The confidence and supply arrangement we entered into with Fine Gael requires us, as a party, to facilitate budgets "consistent with the agreed policy priorities in the agreement". We should not forget it is the first time in the history of our State that such an arrangement has been entered into. It was entered into because it was necessary to ensure, following an inconclusive general election, that a Government would be formed. That agreement gives priority to investment in public services over tax cuts and required at least a 2:1 split in budgets to recognise the new priorities. This was essential in our view to give effect to the message from voters in the general election in February. That has been achieved in this budget. In fact, it has been more than achieved. In today’s budget, the split between expenditure on services and investing in our people on the one hand, and taxation measures on the other is 3:1. By any measure, this is a significant achievement and is a major departure from the policies of the last Fine Gael-Labour Party Government.

We did not get everything we wanted in this budget, but we have secured some vital progress on a number of priorities set out in that agreement, including in health, social protection, education, housing and fair reductions in the burden of tax.

However, I want to be clear on one thing. While we did not write this budget, from the outside, we influenced it as best we could in the direction of a fairer and more decent Ireland, and we make no apologies for that. Today's budget is a better budget because of the influence we have brought to bear. On the face of it, it is certainly a fairer budget than the last five introduced by the previous Fine Gael-Labour Party Government.

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