John McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on the summer economic statement. While it is great that we have been given time to discuss the finer points of the fiscal space, it is important to remember that many people do not listen to what we are saying because they do not understand what the Government is doing. The Minister spoke about putting €500 million into a rainy day fund each year. It is as if he is raiding a pot of money, but there is no pot of money there. The Government's plans sound wonderful but there is nothing in them that will enhance rural Ireland and its development, assist small businesses or bring people who are out of work back into the workforce and back into business.

The Minister of State, Deputy O'Donovan, is responsible for procurement. The current approach leaves much to be desired. The actions we are taking are forcing small businesses that currently provide services to the State out of business. I would like the Minister of State, who, in his role in the Department of Finance, has succeeded the new Minister for Housing, Planning, Community and Local Government, Deputy Eoghan Murphy, to change the rules to ensure that regardless of what might said in Europe, the small and medium-sized enterprise sector will be catered for and supported as it engages with the procurement process. The process within the Department needs to be simplified. Small and medium-sized enterprises should continue to be included in that process, rather than being excluded on the basis of their levels of turnover. I have seen many companies that are not from this State win contracts for the procurement of various goods and services. Small and medium-sized operators are now providing the same services at a far lower cost, and almost at a cost to their own business.

I see nothing in the summer economic statement that will save people who are caught in bad mortgages with the banks by getting them out of the difficulties in which they find themselves. The Minister of State, Deputy D'Arcy, recently addressed the Seanad on the National Housing Co-operative Bill 2017. I have to say his contribution left no room for manoeuvre. The Government's response was completely negative. It did not give any hope to people who find themselves out in the pouring rain. They are looking for a little help from the State. We allowed €74 billion to be taken over by NAMA. I accept that it returned €32 billion. There is €16.5 billion in bad debt. I firmly believe that with a little legislative initiative and ingenuity, the State could take over those loans, or assist in the taking over of those loans, in a way that does not interfere with the national balance sheet. It should be possible for those loans to be worked out over a period without people losing their homes.

The Government promised that 700 social housing units would be developed in the first quarter of this year, but just 200 such units have been delivered. NAMA offered 7,000 units and the local authorities picked up 2,600 of them. The balance of the housing units held by NAMA - 72 units - are in the process of being leased or sold. All the rest of the units have been sold or leased, but the local authorities are refusing to take them. The Minister of State at the Department of Housing, Planning, Community and Local Government, Deputy Phelan, has a job on his hands to ensure the reform of local government takes into consideration the need to ensure that the delivery of social housing units is overseen by the local authorities.

Those of us in this House have to think beyond the bubble. We have to take the risks that are necessary to ensure our citizens are best served. We should not stick with the status quowhen we are talking about education, health, housing or anything else. We should look beyond this House for assistance and initiative. We need to be brave enough to put in place the necessary plans and legislation to ensure citizens are taken into consideration over the next five years. Those who are in difficulty need to be helped. Housing authorities have told us that the homelessness issue, the problem of bad mortgages and the level of repossessions will get worse over the next five to ten years. We are not prepared for it. Every party in this House is ignoring the fact that serious numbers of homes will be repossessed over the next five to ten years. That is what we need to focus our thoughts on.

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