Dáil debates

Tuesday, 12 October 2021

Financial Resolutions 2021 - Budget Statement 2022

 

6:15 pm

Photo of Cathal BerryCathal Berry (Kildare South, Independent) | Oireachtas source

This budget is an exercise in treading water. Most of the measures it contains involve frantically trying to keep up with the increase in the cost of living. Inflation is running at 3.7% and is likely to head towards 4% in the new year. One can talk about gross income or net income but the only income that really matters is discretionary income at the end of the week or month. That is the only metric that matters. If the cost of living is increasing faster than your take-home pay, you end up worse off. When we consider this budget in 12 months' time, it may be the case that there was actually a regression in those 12 months, at least in the context of pay.

I do not wish to be overly negative because there are some good things in the budget, including socially progressive measures that I will address. First, carers are finally getting at least some of the recognition they deserve. As Members know, carers are the invisible health service. They admit patients to their own bedrooms and they look after them 24-7 without a day off. They are not getting half of what they need but the measures in the budget are a step in the right direction and offer them a degree of recognition.

Second, parents are getting some assistance in the context of childcare. The increase in paternity leave from five weeks to seven weeks is a good thing. There are parents in this Chamber who got no paternity leave at all. Seven years ago, it was three days, but now it is seven weeks. It is not going as fast as we would like but direction is more important than speed. We would like to see further progress in that regard in the lifetime of the Government.

I welcome the increased resources for the disability sector. Obviously, it is not even half of what is needed, as the Minister knows as well as anyone else. We are almost halfway there but we need to finish the process next year and get these really deserving people the resources they need.

I also welcome the increased funding for mental health supports. However, I share the concerns of Deputy Lowry regarding whether there will be an outcome at the end of it or it will just be throwing more money into a black hole.

Aside from the points I have mentioned, this will be remembered as the energy crisis budget. We members of the Regional Group here are all rational, reasonable and constructive people and we recognise there are things that are beyond the control of the Government. The world economy is picking up after the pandemic and we know there are bottlenecks in the supply chain system and geopolitical tensions all over the world that are stoking up the price of energy. Those matters are beyond the control of the Government but there are measures that are within its control and I am not convinced that the measures it has brought in today will be adequate. They will help, but I am unsure whether they will be adequate to address the crisis. I welcome the increase in the fuel allowance. It is a good thing but its effectiveness will have disappeared when we get to the far side of Christmas because it will have been offset by the rise in energy costs.

I welcome the tax credit for remote workers that has been suggested. We need to see the granular detail of that proposal. The Regional Group actively advocated for and championed that cause and I am glad that our constructive views have been taken on board in partnership. It shows how constructive politicians can influence and shape Government policy and I welcome that. Tax relief of 30% is a drop in the ocean. In 12 months' time there will be an opportunity to increase that incrementally.

The youth travel card is probably the best innovation in transport public policy since the free travel scheme was introduced for old age pensioners many decades ago. The youth travel card proposal is not ideal but it is a significant start and demonstrates the acceptance of the principle that public transport costs are too high and the Government should, at least, look after those under the age of 23 in that regard. Now that the principle has been accepted, in 12 months' time that number can be pushed up from 23 to 25 and beyond, up towards 30, until every citizen in the country has access to reasonably priced public transport. This issue is very important in Kildare South, my constituency, because Kildare is a commuter county. We should not wait for 12 months to address this issue. Iarnród Éireann has the opportunity to put downward pressure on its prices. The short hop zone from Heuston Station in Dublin finishes at Sallins but there is no reason it cannot continue through Newbridge, Kildare town, Monasterevin, Portarlington, Portlaoise and beyond if necessary. We can do it. If we want to incentivise people to get out of their cars and use public transport, price is a very good motivator.

I welcome the increase in the SUSI grant for students. We know that people in the extremes of age - the elderly and the young - were disproportionately affected during the pandemic. The increase in the grant is the least the student population deserves, particularly when students cannot afford accommodation in Dublin city.

If they are going to be commuting, at least their commuting costs are down and their grant is up. Is it ideal? Absolutely not, but it is better than nothing. It is a small step and at least half a step in the right direction.

The issue of deep retrofitting is a most important one and I welcome the increase in funding for it. However, I have concerns about the implementation. I wish to make a suggestion. The farming community will be outside this House tomorrow protesting for the same reasons they have been protesting over recent years. They are looking for a true just transition. I think the SEAI grants should be higher for the farming community. We are asking them to carry a disproportionate burden in relation to the just transition and climate action. Why can the SEAI not give a higher grant to farm houses for retrofitting? I suggest a similar approach in respect of microgeneration. A number of farmers have told me that they microgenerate. They have told me they have massive roof spaces that are south-facing with solar panels lined up and they are giving energy to Electric Ireland and the grid for free, but they are getting nothing in return. People should not be afraid of their electricity bill coming through the letter box. They should be looking forward to it because it should be a cheque, not a bill. If the Government wants disproportionately to help the farming community, it should introduce those two measures, namely, superior SEAI grants for retrofitting and microgeneration.

The final point I wish to touch upon briefly relates to defence. There is not enough money in the defence Vote that was passed today. Even in a normal year, it is not enough, but it is not enough this year in particular because the Commission on the Defence Forces is publishing its report in a few weeks' time. I mean it sincerely when I say there will be a requirement for a Supplementary Estimate in January if there is any hope of implementing the recommendations of the Commission on the Defence Forces. It is an absolute must. The overseas development aid budget is almost as big as the defence budget currently. It is ironic we actually give more to international charities than we do to our own Defence Forces. What is really ironic about that is we rely on the charity of other nation states to fly our troops around and look after and sustain them in theatre, which is certainly not a good look and is very demoralising from a morale perspective.

The budget provides for an extra 800 garda and additional civilian staff in the Department of Justice, which is a good thing, but there is no mention of the guards of the sea, the members of our Naval Service. I visited the Naval Service last Friday. There are absolutely no improvements planned in that area. The service is looking after our home waters and the high seas, but there is no package available to improve its lot. It is in desperate need of assistance. The Minister has said he is looking forward to receiving the report of the Commission on the Defence Forces so that he can engage with the process. We have had enough process at this stage. We have had five years of process. We need product, delivery and outcome.

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