Dáil debates

Thursday, 19 October 2017

Financial Resolutions 2018 - Financial Resolution No. 4: General (Resumed)

 

10:00 am

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail) | Oireachtas source

While I do not have the backing of a special communications unit with a spend of €5 million, I will give an overview of my take on budget 2018. As my party leader indicated, budget 2018 is modest. There are no spectacular frills or thrills, as is evident from some of the short deliberations of some senior Cabinet Ministers. From my party's perspective, we are in the precarious position of being tied to the confidence and supply arrangement to ensure the continuation of the Government. Of course, I would rather be on the other benches in government, be it in complete opposition to or for everything being done, but what we in the Fianna Fáil Party have done is to secure the core principle in the functioning of the Government, namely, having a spending ratio of 2:1 in terms of public expenditure and tax adjustments.

The Minister for Finance, Deputy Paschal Donohoe, set out in the Budget Statement many initiatives which have to be welcomed, but in some areas there are very few finite deadlines. Various strategies have been put in motion, but when can we expect to see their implementation? For example, a home building finance Ireland agency has been proposed, which is good news. Builders need access to cheap loans, but do we need another agency and, if we do, when can we expect it to be in place?

I acknowledge the housing crisis stemming from the level of homelessness and the need for more social housing, but there is also a shortage of private housing for individuals on low incomes. Alas, there was no mention of affordable housing initiatives in the Budget Statement for people whose income bracket is above the social housing qualification limit but below the requirement for mortgage approval from financial institutions. This is a sector that seems to have been forgotten about. This, in turn, is putting additional strain on the rental property sector.

The increase in stamp duty on commercial property of 200% was almost put through without any acrimony only for the Minister for Agriculture, Food and the Marine and the Minister for Finance getting their wires crossed. When I wrote these notes a few days ago, I was going ask that they sit down and talk, but I am delighted to hear and I am hopeful that, with the publication of the Finance Bill, there will be some adjustments to the rate of stamp duty payable on the transfer of land between farmers' relatives. It is welcome that that is happening and it must be welcomed to ensure the agriculture sector can grow at a competitive level.

Another budgetary measure that must be welcomed is the increase in the funding allocation for the National Treatment Purchase Fund. That was one of my party's principles in the confidence and supply arrangement in facilitating the formation of the Government.

The reduction in the pupil-teacher ratio in primary schools is also very much to be welcomed.

I welcome the introduction of a sugar tax which will have an impact in the context of the proposed alcohol Bill, given the increased consumption of spirits and soft drinks among young people. We now see teenagers drinking whiskey which was unheard of a decade ago. They are adding Coca Cola, Red Bull and other sweetened drinks to spirits. This has led to the consumption of spirits going through the roof. The sugar tax might, therefore, have an impact in the context of the proposed alcohol Bill in reducing the consumption of spirits.

Being my party's spokesperson, I welcome the modest increase in funding for sport, about which there is very little in the Budget Statement. The Minister of State, Deputy Brendan Griffin, announced that there should be a total provision of €60 million to fund sports capital grants. It has been more than two years since the last allocation was made and the Minister of State, Deputy Patrick O'Donovan, promised that we would have it this year, but we are still awaiting announcements in that respect. I note that the funding seems to have been brought forward whereby we will be using next year's money to cover the allocation that I hope will be announced this year. The increase in funding is welcome.

More money is to be allocated for the development of greenways, which has to be welcomed. However, it is almost impossible to find a reference to it in the Minister, Deputy Paschal Donohoe's budget briefing material.

On transport, only for the Taoiseach stepping in we would not know where we stand with the Department of Transport, Tourism and Sport. The Minister for Finance announced in his Budget Statement last week various projects proposed within Dublin city. Of the major road infrastructure projects mentioned that will be of any significance to people in the west or the south, I mention the Naas bypass upgrade and the Oberstown junction projects, as well as the improvements that will result from the Sallins bypass project.

In other ways, the budget gave nothing of significance to the people in the west and south of the country. It is very disappointing that we had to wait until the Taoiseach came to Cork last Friday, where he was welcomed, to get a commitment on the M20. We still have to get a commitment that the project will run from Cork to Dublin via Mallow, Buttevant and Charleville. I am concerned that the rumour that the road being considered may go from Cork to Limerick via Cahir, which is the M8 and the N24, has not properly been dispelled. It is a bit worrying. I am from the north-eastern side of the constituency but I would ask that the constituency is put first when the call is being made. I ask the Minister for Transport, Tourism and Sport, Deputy Ross, to instruct Transport Infrastructure Ireland, TII, to take the more direct route from Cork to Limerick and to make the proper amount of money available to enable the project to start immediately with ground works, surveys and costings so the road is built. Some of us thought there was very little for the Department of Transport, Tourism and Sport. There were plenty of announcements but nothing good in respect of start-up works. The Minister was delighted to see the Gort extension of the M17 was completed and brought in on schedule but for how long was that site opened?

I quote my party leader when I say it was a modest budget but there are good elements to it. Fianna Fáil's Deputy Michael McGrath secured the phasing out of mortgage interest relief over three years as opposed to the initial proposal for a total reduction, which is to be welcomed.

Being involved in the sports industry, I believe we should look seriously at the issue of bringing in stamp duties and at other ways of funding. We have a valuable sports industry that needs funding to allow for upgrades, be it in the horseracing or the greyhound industries. I hope there will be progress with regard to housing, which is a big issue, and infrastructure. If we do not have the proper infrastructure we cannot drive commerce in this country.

Comments

No comments

Log in or join to post a public comment.