Dáil debates

Wednesday, 9 October 2019

Ceisteanna ó Cheannairí - Leaders' Questions

 

11:50 am

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour) | Oireachtas source

It should be no surprise to the Taoiseach - I am sure it is not - that the Labour Party and Fine Gael have very different approaches to the economy. It turns out that Labour is better at managing the public finances and protecting the most vulnerable. Several commentators who are no friends of Labour described yesterday's budget as worse austerity than anything done during the period of economic collapse. This, however, is a time of immeasurably better public finances when the Government had real choices. Even if there is a no-deal Brexit, the public finances are close to being in balance. Next year, even without a hard Brexit, inflation is expected to be of the order of 1.5%. Inflation is a factor again in our economy. It was not during the past five or six years. The cost-of-living increase yesterday means the freeze on welfare payments is an effective cut to the income of the poorest people of the land. If the Government had not needed to pay an extra €200 million for the children's hospital or rural broadband due to the mismanagement of those projects, it would have had the money to address the increase required in welfare payments. If the Government had required the banks to pay their fair share after being bailed out by the public purse in exchange for the debt they owe the people, we would have had the money to protect the most vulnerable. Fine Gael, however, has not managed the public finances prudently and it has refused to demand from the banks the full payback required for the bailout. Fine Gael now has to stand over a real reduction in the income of the most vulnerable next year.

The ESRI has warned that many common supermarket items imported from Britain will increase in price if there is a no-deal Brexit, costing the average family between €892 and €1,362 per year. That will add €17 to €26 per week to the cost of the weekly shopping of a family. It is quite clear that many in society are going to have to do without if a no-deal Brexit comes about because there will be an effective reduction in their income and a rise in prices.

The Minister for Finance did not give us details of the spending measures he intends to take, if there is a no-deal Brexit to protect the most vulnerable. I have one simple and direct question for the Taoiseach: will the Government now undertake to raise social welfare rates in a supplementary budget if a no-deal Brexit comes to pass?

Comments

No comments

Log in or join to post a public comment.