Dáil debates

Thursday, 11 October 2018

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

 

1:30 pm

Photo of Katherine ZapponeKatherine Zappone (Dublin South West, Independent) | Oireachtas source

As an independent progressive, I welcome the budget. It is one which favours public services, which through childcare, welfare and income tax reforms favour low-income households. Childcare was once again a key part of the budget. The €89 million additional funding means Government investment will have increased by 117% since 2015. The benefit for those on lower incomes is significant. A lone parent with a net income of €26,000 and two young children will receive an annual increase of €1,404, a family with a net income of €30,000 with two young children, using 25 hours of childcare will receive an annual increase of €1,716 and at the higher income level, a family with three children and a net income of €53,000 will receive an almost fivefold increase of €3,796 annually. These measures not only ease the financial pressure on families but open opportunities for parents, particularly women, to enter education, training or work. These labour activation measures were sought by employers and trade unions alike. The CSO labour force survey for 2017 shows the participation rate for all working age women increased by 1%, and 2% for those aged between 25 and 44. This is evidence that our investment in childcare is impacting women's participation in the labour force. As we continue the transformation of childcare, it will help and support others to follow the same path.

Childcare is key to the budget but it is only one of several progressive measures. Each helps level the playing field by investing public funds to ensure all children have an equal opportunity and experience equality of outcomes. We must reduce child poverty to do this. The latest CSO figures show that one in every five children lives in homes with an income below the poverty line while one in ten lives in consistent poverty. The increase in social welfare rates, increasing the qualified child payments, the extension of the fuel allowance, the increase in lone parent's disregard and the increase in the back to school allowances all benefit these households.

For the first time the budget also distinguishes between the different costs all families face as children age. It introduces different qualified child payments for children of different ages. Expenditure on public services have also been substantially prioritised over tax reductions. As a result, those on lower incomes benefit most. Welfare dependent individuals will receive an additional €5.50 in disposable income per week.

True progressives also have a global view and I also welcome the decision to increase our overseas development aid to the highest level in a decade. As a nation, we should be proud of the work undertaken in our name in some of the most impoverished and dangerous places on earth.

One of my Department's main missions is to protect and support the most vulnerable children. We are building on the record-breaking €750 million secured for Tusla this year. In 2019, that budget will reach €786 million, an increase of €33 million. The additional funds will be used to progress key priorities including the implementation of recommendations made by HIQA following its investigation into the management of child sexual abuse allegations.

Budget negotiations are tough. That should come as no surprise. I went into mine firmly focused on delivering for our children and young people, in particular, those who are in vulnerable situations and those who are in low income households. This budget has delivered improvements for them. Of course, more is needed, not least of which is a greater focus on those with lower pay. The OECD recently noted that Ireland has the second highest proportion of full-time employees in low pay in the EU. It shows 22.5% are low paid. Our childcare changes will benefit many in that situation, as will other budget measures. I look forward to continue working with my colleagues, and, indeed, those on the other side of the House, as well as campaigners and advocates, to come up with further proposals to address this and other challenges.

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