Dáil debates

Tuesday, 17 September 2019

Ceisteanna - Questions

Cabinet Committee Meetings

4:15 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

In recent weeks, there has been a series of leaks and anonymous briefings concerning the Government's approach to a range of economic issues, most of which are related to Brexit. People are calling the budget a no-deal Brexit budget. In reality, it is not. Brexit is providing good cover for a situation that is problematic in the sense that IFAC and the independent Parliamentary Budget Office and others have all signalled they are worried about the sustainability of our finances because of the corporation tax issue.

Some recent articles, including a number published last weekend, were quite revealing in the context of the uncertainty surrounding these tax receipts. We could do with more detailed briefing on the source of the increase over the past two or three years, on its sustainability or fragility and on whether it is subject to all of the transfers that go on within multinationals regarding where intellectual property is booked, etc. This is a complex issue but, nonetheless, the Oireachtas requires some sense of what will happen over the next five years in respect of that revenue stream because - regardless of how one looks at the matter - it has been embedded into the base of expenditure in recent years. Lower interest rates than were thought likely three or four years ago have offset half of the potential interest that was, in 2015, forecast to accrue in 2018. On the other hand, there has been a substantial increase in corporation tax receipts over and above what was forecast.

Will the Taoiseach confirm that his promise of a tax cut, which he announced at his party's Ard-Fheis and then promoted with a social media campaign, has been abandoned for this year? On the previous occasion on which this issue was raised with the Taoiseach, he confirmed his commitment to cuts next year and, in light of reasonable forecasts at the time in respect of 2020, attacked us for suggesting that such cuts were not affordable. Did the Minister for Finance talk to the Taoiseach before briefing to the effect that his tax cuts were unaffordable?

I was also struck by comments made by the Minister for Health during a rare media appearance. The Minister was asked about the core management of and budget relating to the health service on Sean O'Rourke's radio programme. He stated that he is aware of the likely final spending figure for health this year - he actually said that - but he then essentially indicated that he is not willing to tell the public. Again, we are being denied basic information about the public finances and the amount of money available for critical public services. It appears that the actual figure for health expenditure in 2019 will not be available when the budget is introduced. We need more transparency on that because, as Mr. Tony O'Brien has stated, health expenditure has become a dark art. This is somewhat farcical in light of the disconnect between the demands or instructions given to the health service by Government and the funding being provided, particularly regarding to demographic issues in respect of the elderly and all of the extra demands that come with a population that is ageing and living longer.

On agriculture, we welcome the deal. There should be an opportunity to debate the agreement, which has come about belatedly. The Government was asleep at the wheel for far too long in the context of the beef sector and beef farmers. On the beef industry, many of the basic issues - such as the 30-month age restriction, four-movement rule, weight restrictions on cattle and the 70-day residency provision - could have been tackled much earlier, as could the establishment of a task force and dealing with other matters that are now encompassed within the agreement. In the overall interest of farmers, workers and all involved generally, space should be given to enable the deal to be taken on board.

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