Dáil debates

Tuesday, 12 October 2021

Financial Resolutions 2021 - Budget Statement 2022

 

6:25 pm

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent) | Oireachtas source

This budget has been eagerly awaited to help us chart our way out of Covid, position the economy for the future, ensure we transition to a zero-carbon economy over coming decades and we bring the whole population with us. To that point, the €17.5 billion provided in Covid supports has been most welcome. Employment is expected to grow by 275,000 jobs in 2022, with an unemployment rate of 6%. That is welcome news, but it is all dependent on the return of many businesses to full trading and profitability. Many SMEs and sole traders have taken advantage of the debt forbearance offer from Revenue. We must remember debt forbearance is not debt forgiveness. To that point, I wrote to the Minister for Finance, asking him liaise with Revenue to reconsider making private tax demands of company directors where companies had engaged in the debt forbearance scheme provided by Revenue. It is hoped that will be looked at.

The Minister has signalled the phasing out of employment subsidies, the PUP and EWSS, in April 2022. I presume that remains dependent on us actually exiting the Covid pandemic and what NPHET decides on 22 October. Insurance and admin lite were suspiciously not mentioned anywhere in the budget. There has been no mention of further initiatives in these areas, despite the fact that many companies are still facing challenges. I ask the Minister of State to bring that point back to the Department of Finance.

In our Regional Group's budget submission, we asked the Minister to consider a tax incentive to encourage remote working for employees and employers. Unfortunately, the Minister did not make such a provision in the budget, but he has allowed for some subvention on various expenses. Not enough was done on that. We also asked Departments to outline in their annual reports actions to achieve the 20% target that has been set. Perhaps the Government can provide reports of the monitoring of that to the House in the coming months and years.

On the delivery of 33,000 new homes per annum to 2030 as part of the Housing for All strategy, we are a very long way from that delivery point at present. In the Regional Group's submission, we asked for an extension under the help to buy and Rebuilding Ireland home loan schemes to include second-hand properties in the refurbishment programme. The Minister declined to look at that, which I think is a serious mistake. It is part of revitalising and regenerating our towns and villages. It could have been delivered easily and would have been something very welcome. Unfortunately, the Government could not extend itself to do so.

I welcome the announcement of the extension of the relief on pre-letting expenses to landlords in the hope of returning properties to the rental market more quickly. Perhaps the Government could also target holiday homes within that, which might encourage holiday home owners to switch their properties into the private rental sector.

I also note the reform of the current vacant site levy and the switching of zoned land tax to the Revenue Commissioners. That is probably the right thing to do, but reforms are needed in terms of the collections of our local authorities for rent accruals. There is €22 million outstanding at present for Dublin City Council while we are trying to find millions in the budget.

The increase in the adaption grant numbers for local housing is welcome, but it is not working. I can say that, certainly in my own local authority area, people are waiting many months and it is very difficult to get adaption grants done. Announcing money does not solve the problem; we need the capacity to deliver.

I welcome the changes proposed to the employment investment incentive scheme, EIIS, which we in the Regional Group lobbied for. I also welcome the extension of corporation tax start-up relief to new entrepreneurs. However, I wish to make a point about the introduction of an innovation equity fund in association with Enterprise Ireland. These funds have to be workable and must be properly thought out. The recent Regional Enterprise Transition Scheme 2021, which was provided for capital infrastructure development, had a three-month window from the time it opened to the time it closed. In other words, if you made an application to do significant advancement work in your factory, you had to have the whole job done and dusted, paid for and expended in three months. That is not a workable scheme.

Under agriculture, I welcome the extension of the general stock relief programme and the young farmer stamp duty relief. However, as I have told the Ministers for Finance and Public Expenditure and Reform, I would like to see a portion of the carbon levy being directed towards research in the area of renewable energy and energy production on farms. There is a lot going on in the country that this could be allied to. A portion of the fund should also be directed towards research projects of our third level institutions into farming and other areas of business. In addition, part of this fund should be used to develop applied research to estimate properly the amount of carbon sequestration presently taking place on farms, which farmers are getting no credit for currently.

Regarding independent brewing and the extension of excise relief that may possibly come under the new Finance Act, I thank the Minister for introducing it. I would like to see it expedited now.

Under education, I welcome the announcement of 350 new primary school teachers, along with the 1,165 additional special needs assistants, SNAs. However, I should point out, as the Minister of State is well aware, that access to psychology services to identify autism or for special educational needs remains a significant problem for parents. I would hope the Government will have some new concrete initiatives to announce around that shortly.

The Minister for Public Expenditure and Reform also mentioned capital budgets for new school builds. These are taking far too long and costing too much. Projects must be fast-tracked, with on-the-table designs available for new schools. It should be done and costed so that all that is required is planning permission and the price is agreed.

I welcome the increases announced in higher education and training courses, but they need to be targeted at the needs of the economy.

In respect of the targeted funding of healthcare, I have already pointed out how our category 4 hospitals are completely underfunded, particularly University Hospital Waterford. More front-line positions must be created. We do not need time and motion people or managers but front-line health service people. Integrated technologies must be introduced.

All in all, in terms of this budget, I think I will use Fianna Fáil catchphrase: a lot done; more to do.

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