Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I compliment the Government on one aspect of the budget, the way it has managed to spin it very well. It has managed to create a triumph of spin over substance. A supreme example is the one referred to by Deputy Alan Kelly. Old age pensioners were told that they would benefit more from the provisions of this budget when, in fact, they did better in the previous one. However, the spin has prevailed.

The spin has also prevailed regarding the fact that this was sold as a child-centred budget when it is anything but. There are a number of central holes in it which show this, one of which is the amount of money allocated for what is a welcome initiative focusing on early years education, but the allocation of €32 million will go nowhere near meeting what is required. In our alternative budget we stated €177 million in new money was required. Last year, for example - fair dues to the then Minister, Senator James Reilly - €82 million was provided for the early childhood care and education scheme, but this was not described as a revolution. There will only be an extra €32 million next year. There is no focus whatsoever on the sustainability of the sector, the cost of providing the service and the low wages in itm, an issue raised by Deputy Alan Kelly. People are living on the minimum wage, with the miserly 10 cent increase announced. People with degrees and good qualifications and strongly dedicated to working with children simply cannot sustain themselves on the amount of money they are being paid. In our alternative budget we stated €62.6 million was needed to raise pay levels in the sector. I will give an example to show how people cannot afford to live on the money they are being paid. Last year, when I was Minister for Education and Skills, we advertised ten posts for inspectors in the early years sector. We received 591 applications from qualified individuals. This shows that people really want to work in the sector, but they cannot do so on the wages they are being paid.

Another issue I want to highlight is the fact that there is absolutely no improvement in child benefit. Last year, when money was tighter, the then Minister, Deputy Joan Burton, allocated €72 million to increase child benefit by €5 per child. She also allocated €18 million to raise income thresholds for family income supplement. There has been no improvement in family income supplement in the budget. These are major issues in dealing with child poverty, child disadvantage and the cost of looking after children, in respect of which nothing has been done in the budget, which is hugely disappointing.

The Minister of Education and Skills is in the Chamber. Last year I set aside €18 million to reduce class sizes at primary and post primary level. I assumed the process would be continued this year. I attended the INTO briefing and it had also assumed that it would be continued this year, but it has not been. This is hugely disappointing in providing opportunities for young children and in view of the importance of their receiving individual attention in the early years in school, in particular. These are three big areas in which there has been spin but no substance, which is hugely disappointing.

I would like to touch on housing which is important in the context of the terrible difficulties faced by people who are homeless and the need for increased supply which is the basis for the problems relating to costs, etc. Deputies Fiona O'Loughlin, Alan Kelly and others have correctly pointed to the fact that the response has not been to increase supply. Eminent commentators and experts such as Dr. Lorcan Sirr and Mr. David McWilliams have pointed out that this measure will not do anything to increase supply, rather it will put money in the pockets of the people Mr. Tom Parlon represents.

The average cost of supplying a house is €330,000, but only €150,000 of this figure relates to the cost of construction. More than half of the cost is made up of taxes and, in particular, the cost of land. We made a proposal to implement the Kenny report, whereby if landowners were to be compensated for the compulsory purchase of building land, they should be paid the agricultural price, plus 25%. That would immediately the reduce the cost of land. Second, my party stated the vacant sites levy should be brought forward. It was introduced by Deputy Alan Kelly and its implementation should be brought forward as a stick is needed. The construction sector cannot only be given carrots with which it can generate more profits while pitting first-time buyers against each other, thereby increasing the cost of housing. Measures were needed to increase supply, but they have not been introduced. We also wanted rent increases to be linked with the consumer price index but nothing has been done for renters who are in difficult circumstances.

I refer to another issue related to housing supply. In 2014, 2015 and 2016 funding was allocated for the refurbishment of voids or empty local authority houses. A total of 2,300 units were restored in 2014 and 2,700 in 2015. In reply to a parliamentary question I tabled recently I was informed that 1,500 units had been provided for this year, but only 800 have been provided for next year. That means that we are going backwards rather than forward. According to recent CSO figures, there are almost 200,000 empty houses in the country. While they are not all social houses, some are. If people were to drive around Dublin tonight, they would see empty houses and apartments that could be refurbished. This is evidence of another reduction rather than an increase.

I could refer to many other measures, but I will conclude with the cuts in sports and arts funding. We represent a party that believes in bread and roses. People need to have bread. They need to have enough on which to live, but they also need the arts and sport and the cuts are unforgivable.

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