Pat Casey (Wicklow, Fianna Fail) | Oireachtas source

This is my first time to be involved in the budgetary process at national level and it is clear that the Government has a great deal of work still to do to ensure that budget formulation is an open and inclusive process for all Deputies.

This is essential for a Parliament that wants to work professionally on behalf of the people. Last minute changes to spending thresholds and budgetary measures only tend to reinforce the view of parish pump deals and cynical gestures. Coming from a business perspective, I find the budget process far too secretive, piecemeal and lacking the unity of purpose that the Dáil needs to have as we try to steer the nation through the turbulent waters following Brexit.

There are some positives, however. Fianna Fáil has contributed to the change of direction in budgetary policy. Taxpayers wanted a fairer Ireland. They did not demand self-interested tax cuts; rather, they wanted better public services and demanded investment in all our futures. In this regard, the commitment to increase public spending on child care and social welfare payments is to be commended, but the delay in payments serves to take some of the good out of the welfare restoration.

One of the measures I am particularly pleased about is the restoration of 400 guidance counsellors in the education sector. This was a particularly counter-productive cut by the previous Government. I commend the decision and hope mistakes like this will never be made again.

My national focus is on the housing crisis. I have serious concerns about the packages and measures announced in the budget. The solution is frustratingly simple, that is, supply. The range of measures announced, and in some cases re-announced, yesterday lacked the national urgency that this crisis demands. I understand that the first-time buyer's grant is being introduced by the Minister, Deputy Coveney, to entice the construction sector to build, but it is extremely high-risk.

Where are the measures to ensure that house prices will not become further out of the reach of buyers? For example, my constituency of Wicklow has the highest house prices and rents outside of Dublin. The State should not rely on the private sector profit-driven market to increase housing supply. As I stated before, and again stress, if this measure simply increases prices without increasing supply in a measurable way, then it needs to be reversed quickly. Encouraging people to commit themselves to overpriced mortgages is a lesson I thought we had all learned.

In the hospitality sector, the 9% VAT rate was a targeted measure to defend a vital industry that was in troubled times. It is worth carrying out a serious analysis as to the value of a similar VAT reduction for the construction industry as it pertains to housing only. A VAT change could be targeted, measured and easily adapted.

The renewal lease scheme, as announced, is a move in the right direction, but on too small a scale to make a meaningful impact. In 2017, €6 million will only deliver 150 units, while the national funding scheme used off-balance sheet could potentially deliver thousands of units. That is the ambition and radical approach I and my colleagues in Fianna Fáil will bring forward. I will continue to work constructively with colleagues in the House to get on top of the crisis, but this budget leaves a lot to be desired at a time when people are looking for leadership and direction.

With regard to the film industry, I welcome the increase to the Irish Film Board. Not nearly enough has been envisaged to ensure that Ireland can become a global location for quality film and television production. This can happen with changes to the section 481 cap and the extension of the horizon clause until 2030. Wicklow is a centre for Irish film production and the employment and knock-on effects of the industry is countywide and convinces me of the potential of the industry to make a national impact in our recovery.

This brings me to rural development, which is once again the poor relation of the budget. There is a complete lack of ambition and joined-up thinking regarding the potential of rural Ireland to contribute to the island's economy and relieve the pressures on urban areas. A previous Fianna Fáil-led Government promised us that there would be rural proofing of budgets. This has not happened. The piecemeal and timid measures in the budget serve only to highlight the gap that exists between official Ireland and the reality in rural Ireland.

Just today, I received more disgraceful news about the roll-out of fibre broadband in Wicklow and east Carlow. A town such as Hacketstown in County Carlow needs a lift to encourage business development, but will not be fit for fibre broadband until 2018 at the earliest. That is not acceptable. Fibre broadband is the key to opening the potential of rural Ireland. Even in areas that are supposed to be connected and live, such as Laragh, are in fact only partially connected and full coverage cannot be guaranteed until 2018.

The sheep scheme and the increase in the farm assistance scheme are to be welcomed. The restoration of the ANC payments has not yet been achieved, with towns and farmers being left behind. The agrifood sector is still very anxious about the lack of Brexit-proofing.

This is the first budget of this Dáil. There are too many in the Chamber who, even after eight months and following the Brexit vote, refuse to take responsibility seriously. There are flaws in this budget, which I am obliged to point out. However, at this time, we have a duty to provide stability in turbulent times. This is simply the right thing to do and I am happy that Fianna Fáil is honouring its commitment.

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