Dáil debates

Wednesday, 10 October 2018

Financial Resolutions 2019 - Financial Resolution No. 4: General (Resumed)

 

12:50 pm

Photo of Denise MitchellDenise Mitchell (Dublin Bay North, Sinn Fein) | Oireachtas source

I am taking this slot as Deputy McDonald is attending the funeral of Ms Emma Mhic Mhathúna. I extend my sympathies and those of my Sinn Féin colleagues to the family and friends of Emma at this very sad time.

Too often the annual budget is reduced to a mere accounting exercise, tweaking tax rates a bit here and tweaking spending a bit there. It can, and should, be something quite different. The budget can set out not just the numbers or the projections but an economic strategy and, more important, an economic vision to help meet the challenges of today and tomorrow.

The budget should be about promoting an economy that works for all and not just for some. It should be an opportunity to lay the building blocks of a more equal and fairer society. Unfortunately, the Government and its partners in Fianna Fáil just do not get this. They offer only more of the same, tinkering around the edges and presenting a budget that lacks courage or new ideas. This is because they are wedded to a set of values that has failed. They are more interested in the markets than they are about serving our citizens.

It is ten years since the crash and I would have thought some lessons had been learned. Budget 2019 lacks any fresh thinking or vision. It is a product of Fianna Fáil and Fine Gael horse-trading.

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It is a lost opportunity. Instead of tackling the massive problems that face this State and our citizens, this budget is simply about plastering over the cracks.

There is no question that the economy is in a better place than it was on the eve of the bank guarantee in September 2008 and in the years that followed. The economy is growing, which is good. Unemployment is down, which is also good. Nevertheless, we cannot ignore the fact that in many homes throughout the State, families live month to month and lack security and stability in their daily lives. When wages arrive at the end of the month, and after household costs and services are paid for, many are left with nothing to save and nothing to plan for the future. The cost of childcare here is among the highest in the developed world. Renting a home here costs more now than it ever has. Energy costs are the fourth highest in Europe and rising. For too many, work does not pay what it should and families in this State pay 25% more to live day to day than the average family in the eurozone. These are indicators of political failure and they are indicators of an unequal society.

This budget represents more of the same. It is about the wrong priorities and the wrong choices. The Government has spun the line that everybody benefits a little from this budget but in the long run, nobody benefits from it. The price of a cup of coffee per week is no use to someone when that person needs a roof over his or her head or a hospital bed if he or she falls ill. The few bob someone will get in their pay packet as a result of tweaks to the universal social charge is no use when the next rent increase kicks in. The extra few quid in the old age pension will be wiped out with the next increase in a utility bill.

What we needed this week was a budget that did two things. We needed proper investment in services and we needed to tackle the ever increasing cost of living. We needed a budget that delivered fairness and equality and had sustainability at its core. That is not what we got. Look at the level of investment in public services and infrastructure. How are we supposed to attract new businesses and create better and higher-paying jobs if we do not invest in infrastructure? The Government can talk about Project Ireland 2040 all it wants but we will still wait years to reach a European average of investment. The World Economic Forum recently indicated that the single biggest obstacle to business in this State is poor infrastructure, and it is not just businesses that suffer. It is part of the reason we have a crisis in housing and health.

What have we got to address that? It is more of the same, including a lack of vision, commitment and investment. It is not going to deliver the level of investment needed to tackle the problems we have now or those coming down the road. The problems we face are very real in the here and now, and they must be addressed. Sinn Féin demonstrated how it could be done. Our proposals in respect of capital spending would have ensured an increase in public investment by €2.65 billion in 2019, with €1 billion of this allocated to the provision of housing because that is one of the biggest issues facing us today. Our total allocation would have ensured the construction of 15,000 social and affordable homes next year. It would have been right to invest for the long term as that is what is needed.

Shamefully, the Government chose to let the crisis continue. By every measure, the Government’s approach to tackling the housing crisis has failed. Rents and house prices are out of control and continue to rise. Tens of thousands of people are sitting on council housing waiting lists and not a single affordable home has been delivered over the past three years. An entire generation of young people has given up believing they will ever be able to own their own home. We have 10,000 people homeless and 4,000 children sleeping in emergency accommodation. Fianna Fáil, lest we forget, promised this year’s budget would be a "housing budget" but this is another empty promise from Fianna Fáil. Surprise, surprise. I had to laugh listening to the party's Deputies saying they had delivered on housing. Only last week they voted for a cross-party motion calling for investment in social and affordable housing to be increased to €2.3 billion. What did we get yesterday? We got just €120 million in capital investment, and a mere €14 million in new money for affordable housing. If that is a Fianna Fáil victory on delivering for housing, I would hate to see what a failure might look like.

The reality is that building social and affordable housing is an economic no-brainer. It reduces homelessness and the number of families and citizens in receipt of rent supplement and the housing assistance payment. More properties would become available for rent, rent inflation would slow and people would have more ability to save for their own homes. It leads to more houses being built. It really is quite simple, unless the real objective is to protect the profits of landlord friends. So, remind me again which option Fianna Fáil and Fine Gael went for. Yes, it was tax breaks for landlords and two fingers to renters.

The Government could have introduced a package of measures, as we suggested, to give renters a break, such as a three-year rent freeze for all existing and new tenancies with immediate effect. The Government said, "No, forget about that". The result is that rents will continue to rise. We proposed an emergency, temporary tax relief for tenants so they could claim back one month's rent annually. That would have put money back into peoples' pockets. What has the Government said? It has said, "Not a chance". We will now have more uncertainty, instability and hardship for tenants. These were the wrong choices arising from the wrong priorities.

The other big crisis we face is in our health service. The lack of investment of recent years has resulted in hospital waiting lists standing now at over 700,000 people. The crisis resulted in 100,000 people waiting on trolleys in accident and emergency departments. One might think this would be a priority for the Government but let us think again. Last year, we warned the Government that it was not giving the health service the money it needed, and our assessment was proven correct. The health service needs a realistic budget that provides for demographic pressures, pay agreements, carry-over effects and other committed expenditure.

Otherwise every year, we will have an additional HSE budget down the line. This year, the Government got lucky; corporation tax helped plug the hole in health but that will not happen every year. We do not just need the health service to stand still; we need it to improve. Sinn Féin's budget proposals on health recognised this. We proposed investment of more than €1 billion in the sector, first, to undo the legacy of chronic under-budgeting and, second, to improve services. That would have ensured an allocation of €600 million for recurring costs, including pay pressures; €124 million for demographic pressures; and additional provision for the public service stability agreement on pay. We would have provided €450 million for improvements, including 500 additional hospital beds, the recruitment of more front-line staff and the reduction of prescription charges. This Government has made the wrong choices and has the wrong priorities, which is a recipe for continued crisis in the health service.

Historically, women have come up short when it comes to political decisions and this budget is no different. Our sisters and mothers largely populate the lowest paid jobs in the public and private sectors. Nowhere is this more obvious than in the early years sector. On average, childcare workers' wages are way below the living wage. Yet again, they were completely ignored in this budget. The Government did not even bother to mention childcare workers. In terms of health, women's needs and care are rarely prioritised. We have yet to see any definitive action in respect of the Tuam mother and babies home or the few remaining survivors of the Bethany Home where women were treated brutally on the State's watch. There is no sense of urgency on the part of the Government to tackle sexual violence against women and girls. Over the past 12 months, there has been significant public debate surrounding the issue of consent. The report on sexual consent among third-level students illustrates just how prevalent sexual harassment remains. These are not new issues. The heightened awareness of them is new, yet the Government has not matched the public debate with preventative actions. Women and their children are still turned away from refuges due to a lack of places. Sinn Féin would have increased funding for domestic violence emergency and step-down accommodation as well as supports by €11 million and tripled the annual funding provided to the Rape Crisis Network.

The cost of childcare in this State is among the highest in the developed world. It is a massive issue with a wider social and economic impact. The cost of providing childcare amounts to paying a second mortgage every month for many families and, in some cases, it makes no sense for a parent to return to work due to these costs, which is not right. If we are serious about guaranteeing economic equality, we must make work pay and part of that involves lowering the cost of childcare. Again, we showed how it was possible. We would have increased the universal subsidy available under the affordable childcare scheme from 50 cent to €2.50 per hour. That would have been a sound choice that, on average, would have halved the cost of childcare for all families. I welcome some of the measures announced yesterday in respect of lower-income families but overall, those paying what amounts to a second mortgage for childcare today will still be paying the equivalent of a second mortgage next year.

Brexit is the most immediate challenge facing Ireland, North and South. It represents a massive threat to the all-island economy, Irish businesses and Irish jobs. The British Government has yet to put forward a credible proposal as to how a hard border on this island can be avoided. Sinn Féin has been clear that the best way forward is for Northern Ireland to remain within the customs union and the Single Market. That is what is required to protect investment, jobs, trade and the peace process. That should be the position of every party on the island and that is what has guided our approach. We have supported the Government and the European negotiating team in their endeavours and their attempt to get the best deal possible because that is what we want. We have not sought to play politics with any of this and I am sure the Taoiseach will acknowledge that. However, it has been clear that, regardless of any deal, businesses and farmers need more help to prepare for Brexit. Small businesses are most at risk and most in need of support. That is why we proposed providing record funding of €300 million for Enterprise Ireland. The Government has fallen well short of the mark in that regard and, at a time of economic uncertainty, that is simply not good enough.

Everybody here has noticed that Irish unity is being discussed almost daily. The prospect is more real than ever before so we must begin to prepare for it. That is why we called for the commissioning of a united Ireland economy report in our pre-budget submission. I would ask the Government to ensure that is carried out. It is not enough to talk about unity; if we want our country to be reunited, we must work and plan for it.

The Government has sought to claim some success in respect of lowering income taxes and the USC but these measures are pointless when the cost of living continues to increase. Sections of our society are not paid fairly. They have once again been left behind in this budget. Almost one quarter of the workforce earns less than two thirds of the State's median wage. How are those households supposed to deal with some of the highest living costs in Europe? Sinn Féin believes in providing a living wage for every worker. We proposed an increase of 95 cent per hour to €10.50 as a move towards the living wage. We also need to deal with the two-tier pay system in our public service. Nurses and teachers hired post-2011 should have woken up to reports yesterday that equal pay for equal work would become a reality for them. Sinn Féin would have equalised pay in the public sector within two years. Instead, these workers will have to wait almost a decade thanks to this Government. We also showed how a living wage of €11.90 per hour for workers in the public sector and the Civil Service could be introduced. Again, the Government has set its face against that. Once again, this was the wrong choice.

Yesterday, Deputy Pearse Doherty offered up straightforward, realistic and workable solutions that Sinn Féin would introduce in government. These are solutions that would have begun to tackle the housing and health crises and that would have increased household incomes and lowered the cost of living but Fine Gael and Fianna Fáil said "No". Instead, they have opted for more of the same.

The budget fails to meaningfully invest in services and it fails to tackle the rising cost of living in this state. It continues to hand out tax breaks to banks to the tune of hundreds of millions and does virtually nothing for renters or those on low incomes. It does nothing to end the housing crisis and, therefore we will not support it.

Fine Gael and Fianna Fáil have illustrated once again that they are incapable of doing things differently. We needed a budget that delivered fairness and had equality at its core. We did not get that. But sure why are we surprised? That is the Fine Gael and Fianna Fáil way - nothing different, significant or radical. There was no big economic vision for next year or beyond and no steps have been taken towards a more equal society that works for all and not just for some.

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