Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

We are on a remarkable economic knife edge. I cannot remember a precedent where the path between overheating the economy or, unfortunately, what looks more likely, a very sharp downturn on the back of what the UK Government does or does not do has presented such a remarkable black and white scenario. If we are expecting the latter, we must prepare for it. If we must adjust in September, so be it. Regarding the two responses set out by the Minister, I heard a similar approach enunciated by John McCarthy, chief economist, at the ESRI Budget Perspectives conference involving the use of the automatic stabilisers or temporary targeted support. This is the critical thing for us to focus on. Regarding those automatic stabilisers, it is written in the economic statement today that they are increased social welfare payments because of more unemployed people and they stimulate the economy because we will be taking less tax in because of what I presume are lower wages from a downturn. It does not sound as if they are particularly effective stabilisers. They are like two stabilisers on a small bicycle when we are on a much bigger bicycle. I think we need to do far more than that.

I have not heard the details but my concern which I have heard in certain sectors where I have engaged in this debate is that the temporary targeted support might just be another cheque to the meat or dairy industry in a way that does not bring about some of the fundamental long-term changes we need. We should be preparing for a green new deal - a stimulus plan. We need to do it anyway but in the event of a crash-out no-deal Brexit, we could use that economic tool - Roosevelt used it and it worked - to do more than those economic automatic stabilisers would deliver. It is difficult because the timelines are so tight. What could we do in a very short timeframe that might help stimulate the economy? I will set out some very simple examples but we should use the coming months to think them through. I would love to see a massive payment going to Irish farmers to start protecting hedgerows. That would not require a significant capital investment. The resources and knowledge are already available. However, it would have a significant benefit in terms of our climate and biodiversity story and would be direct payment to farmers with regard to the kilometres of hedgerows that would be restored. It would have long-term benefits for the country.

I think we should target rural Ireland because it is likely to be most affected in a downturn and it is easier for us to get building workers working in rural Ireland than in Dublin. Even in a Brexit downturn, we are likely to have shortages of building workers in Dublin for the immediate future. We should be looking at that rural regeneration and development fund and expand it into retrofitting buildings, particularly those in the centre of towns and villages.

It would start to deliver on the national planning framework which states we have to bring life back into the core. However, it has to be in the context of a green new deal. Earlier the Taoiseach defended the existing national development plan by claiming no one else was willing to state where cuts would be made. We would make cuts. There are 51 national road and motorway projects in planning and under construction. There is not one single public transport project in either phase. We cannot keep doing this.

At the Velo-City 2019 international cycling conference in Dublin international delegates were in a state of shock when they saw how poor cycling infrastructure was here. They could not believe what Dublin was like. Can we not tell the local authorities that we will have a major expansion of pedestrian and cycling facilities? The Minister would be able to ramp it up in a way he might not be able to do with large public transport projects. We must start by making cities, towns and villages safe places in which to walk. That would not require significant planning permissions or the use of large machinery. All it would require is the input of direct labour and the local authorities starting to do it as part of a green new deal. It would be practical, quick and help to stimulate the economy in a way higher unemployment benefit payments would not.

I have just come from the communications committee where we heard from Eir. There are real questions about the national broadband plan project. Contrary to what the Taoiseach said today, Eir claimed it could complete the same project, on time and with only a slightly different level of service provided, for €2 billion less. That sum of €2 billion is as much as we have in the rainy day fund. It would be useful if we were heading into a downturn. Our basic approach should be not to cut capital expenditure but to use the money well. There is an increasing number of questions coming from the communications committee and the national broadband plan needs to change.

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