Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank all the Deputies who made constructive comments and suggestions about public expenditure during this debate. It has obviously been a very difficult year. Deputy Naughten suggested that An Post should be able to deliver public services in the same way that it delivers its traditional services, which is a position that I think everybody supports. An Post and its workers shone during the pandemic. It showed itself to be a vital public service. It continues to deliver not just letters and parcels, but public services to the public. The postmen and postwomen knocked on the doors of people who were cocooning, which will be remembered.

Just as they responded to the pandemic, the Government has responded strongly to the pandemic, seeking to protect incomes, employees and businesses from the impact of this virus. In recent months, an extensive range of measures has been introduced, with a direct expenditure impact of approximately €16 billion, which equates to 9% of GNI*, the polar opposite of austerity. This represents a significant investment in our economy and our society to support our people in these unprecedented times.

When we consider all the measures that have been introduced, including tax measures, warehousing and deferral arrangements, as well as the credit guarantee scheme and the ISIF pandemic stabilisation and recovery fund, the total value of supports provided in response to Covid-19 is over €24 billion in 2020. As has been discussed here today, these supports are wide-ranging in nature and cover many sectors of society and the economy.

The Government's first priority is to protect the health and well-being of the people of Ireland. In light of this, additional resources of €2 billion have been provided to our health services so far in 2020. This additional funding has allowed for significant scaling up of capacity in our acute hospitals and community healthcare settings, as well as for purchasing of vital equipment such as ventilators and personal protective equipment. The Government will continue to support the HSE and our front-line workers as we adjust to living alongside Covid-19. To that end, an additional €600 million has been agreed this week to fund the 2020-21 winter initiative. This will ensure our health service has the capacity and the resources required to tackle the challenging period ahead.

In these uncertain times, income support schemes have provided security for thousands of people whose employment was impacted by the public health measures necessary to contain Covid-19. To date, the Department of Employment Affairs and Social Protection has made payments of approximately €6 billion in respect of the pandemic unemployment payment and the temporary wage subsidy scheme. These supports, introduced swiftly at the beginning of the crisis, have protected incomes for thousands of households across the country. The extension of the pandemic unemployment payment and the introduction of the employment wage subsidy scheme under the July stimulus will provide continued security for people in the coming months.

In support of businesses, the activities of which have been significantly curtailed this year, supports of over €900 million have been provided through the Department of Business, Enterprise and Innovation, as well as a commercial rates waiver at a cost of about €600 million. We have come a long way, and as we reopen our economy, the focus of expenditure measures is on stimulating activity across the economy and maintaining the connection between workers and employers.

In recent weeks, schools have reopened across the country. To facilitate schools opening in a safe manner, €375 million is being allocated to the Department of Education and Skills in respect of the 2020-21 school year. Covid-19 has a significant impact on schools, and the Government is aware of the challenges that it creates for schools, teachers and students. Keeping our schools open in this new school year is a priority for the Government and this is reflected in the level of resources provided in support of the roadmap for the full return to school. For those in further and higher education too, recent months have been particularly challenging. The July stimulus provides a significant investment to this sector, providing thousands of additional places in third level, upskilling and reskilling programmes. Supports have also been provided through the new Department with responsibility for further and higher education for ICT, health and safety, and increased student supports.

Looking to 2021, it is clear that there are challenging times ahead. The economic picture has changed drastically in the last six months, from a balanced budget to a substantial projected deficit, and from strong GDP growth to a contraction of 6% in the second quarter of 2020. Introducing this level of supports was unquestionably the right thing to do, but it also comes at a significant cost.

Budget 2021 is now just weeks away. Assessing the appropriate Covid-19 measures for next year will form a key part of the Estimates process. Ensuring that our existing services also continue to be delivered to citizens efficiently and effectively will be a key consideration, particularly as we continue with reopening our society and turn our attention towards economic recovery.

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