Dáil debates

Thursday, 17 September 2020

Expenditure Response to Covid-19 Crisis: Statements (Resumed)

 

2:20 pm

Photo of Martin BrowneMartin Browne (Tipperary, Sinn Fein) | Oireachtas source

The response to this pandemic has put unexpected and unprecedented demands on the Irish economy and gross spending is considerably up. Increased spending of this nature was inevitable and justified by the need to invest in the public good. The phrases I have used, "the need to invest" and "the public good", are two matters I will return to later. Social protection and health were given particular attention and that is to be recognised and welcomed. When faced with a pandemic such as this, it is obviously not possible to get everything right immediately. I acknowledge that some of the shortcomings we in the Opposition have pointed out have been addressed to an extent, although not necessarily to the extent or level that we called for.

The pandemic unemployment payment, PUP, is one of the huge investments that the Government committed itself to. It acted as a financial lifeline to many families who suddenly found their income virtually wiped out. However, it had its issues. People over the age of 66 were ineligible, leaving many workers and business owners to fall through the cracks. There were issues with the lack of appeals and there was confusion about means testing for families when a family member is in receipt of a Covid payment. There were also questions about the decision to reduce the rate of the PUP and transition from the temporary wage subsidy scheme to the employee wage subsidy scheme, which saw already reduced incomes falling further.

3 o’clock

While I am on this topic, I will mention a problem faced by some workers in Aer Lingus. They are having difficulty getting social welfare payments for the days they are not working because the company has been refusing to sign the social welfare dockets of many workers. This became even more concerning when I learned that the Department of Employment Affairs and Social Protection was negotiating with the company on this matter. I cannot understand why the Department is negotiating regarding a matter in which it is supposed to have primacy. I hope this situation will be investigated, because I have met a brick wall in trying to get answers from the Department. While this matter is ongoing, these workers continue to suffer and go without.

Coming back to the matter at hand, the cuts in Covid-19 supports have caused people to be concerned at what lies ahead. Some are fearful that the Government is going to claw back the additional spending through austerity measures. My appeal to and my advice for the Government is to not go in this direction, but to invest in our people and their ideas instead. The programme for Government commits to setting out a medium-term roadmap detailing how Ireland will reduce the deficit and return to a broadly-balanced budget. Given the state of the country, the public needs to know how feasible an option this is and if it goes hand-in-hand with austerity. I also remind the Government that the Irish Fiscal Advisory Council, IFAC, stated that the deficit will fall over the next five years without the need for austerity.

The economic and business landscape has changed since the onset of the pandemic. Business models are now being adapted to the requirements and challenges being faced, and this will continue. The business landscape with which we were familiar at the end of last year has changed for good. Government policy must change with it, and this change needs investment to get it grounded. At present, it is the business owners and their employees who are adapting to the current working climate. They are the ones who will ultimately shape the future of our landscape of production and, therefore, it is crucial that they are front and centre in any sectoral task force created, such as those mentioned in the programme for Government.

Investment must not be seen as a cost. It does need resources and finances, but good investment is something that can work for us, increase the productive capacity of this country, improve people's lives and boost further growth. With interest rates at a historic low, is there not an opportunity to borrow and invest in large capital infrastructure projects? Could large infrastructural upgrades be undertaken, such as an upgraded transport corridor from the east to the west of the country, running through my county of Tipperary? Projects such as these would enhance the infrastructural network outside of our main cities and increase connectivity between, for example, ports in the east and airports in the west.

Proper investment could also revolutionise our farming sector and improve its resilience to the impact of the Covid-19 crisis, Brexit and other unforeseen obstacles. If interest rates should rise in the future, will the Government consider borrowing in excess of what is needed and warehousing the additional funds to address such an eventuality? The Government also needs to learn from the chaotic response to supporting the hospitality sector, our taxi services and the arts and entertainment industry. There needs to be sustained investment in the businesses that have suffered the most, and when I say "sustained", I mean investment that is tailored to specific situations, timelines and demands and not a single, one size-fits-all measure.

One more matter needs attention. The impact of the Covid-19 crisis on people is going to lead to a mental health crisis and a major demand in this area is coming down the line. The Department of Health, therefore, will need to stop biding its time or there will be nothing left to invest in our mental health services. The Department will need to step up and spend on mental health services and it should also think of investing in the many voluntary organisations, such as Connection and Recovery in Mental Health and Addiction, CARMHA, in Nenagh, which are addressing the current gaps in services.

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