Dáil debates

Tuesday, 28 June 2022

Emergency Budget: Motion (Resumed) [Private Members]

 

9:10 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, Independents 4 Change) | Oireachtas source

I am sharing time with Deputy McNamara. I thank Sinn Féin for the opportunity to debate this issue again. The issue is one of the most serious facing the people of this country and it is of its time. I find the position of the Government on the cost-of-living crisis quite incredible. People are struggling now. They are struggling to put food on the table, pay their rent or mortgage, run a car or pay an energy bill. They were struggling last week, they are struggling this week and they will struggle next week. In August, they will be worrying about the cost of sending their children back to school in September. They cannot wait for the October budget, which is almost four months away.

It is quite incredible, not to say outrageous, that the Government has dug its heels in and is refusing even to consider immediate measures to help alleviate the crisis at this time. Even some of the Government backbenchers are calling for them. I heard Deputy O'Dea on the radio at the weekend. Senator Doherty and others in the Fine Gael Party are also reflecting the pressure people are under.

I have to ask what the problem is with an emergency budget. We are not in a crisis with the State's finances, as noted in the motion. The Government is set to take in an extra €5.6 billion this year over what was expected in the budget last October. The Government can afford to act and act now.

As also noted in the motion, there are factors in this crisis beyond the control of the Government and not everyone can be protected, but there are measures which can be targeted at those most in need, and these need to be taken now. For example, the €5 increase in basic welfare payments and State pensions in the previous budget, following two previous budgets without an increase, was completely inadequate. Those dependent on these payments are now experiencing a 10% increase in their cost of living. A 10% increase in an emergency budget is now needed. Yes, it is €25 to €30 per week, but that is what is needed, and it is needed now rather than in October or later.

There are now just under 1 million people living below the poverty line.

There are 29% of people in fuel poverty. A major factor in this has been rent, which increased by 12% last year. Rent caps are not working and we need an immediate rent freeze. The best way to do this is through an emergency budget.

The cost of putting petrol or diesel into a car is now a major problem for many people, particularly those in rural areas with limited or zero public transport options and those who must drive as part of their work, including home carers. In June 2021, a litre of petrol was €1.49 but it is now more than €2. Diesel was €1.39 per litre and it is now more than €2. The Government has said it cannot cut the VAT rate of 23% but it can cut excise duty and carbon taxes, which in my understanding comprise up to 50% of the cost of fuel at the pump. Last year, in excess of €2 billion was collected by the State in excise and tax on fuels and the cuts introduced in March have been completely overtaken by fuel price rises. The cuts are also due to expire in September, so more action is needed, again through an emergency budget.

Another matter that requires immediate action is the question of an emergency cost of living hardship fund. A sum of €45.7 million provided by the Government for exceptional and urgent needs schemes in 2022. This seems to be an inadequate sum. I have tabled parliamentary questions to the Minister for Social Protection asking the number of people who have made applications from last May to April this year. I received some figures for Intreo offices on Cork Street and Bishop's Square in Dublin and the Minister also indicates that the Department is compiling more extensive statistics. This is an urgent task, along with getting information from non-governmental organisations on the number of people using food banks, in order to assess the level of need out there. We must respond with an emergency fund to properly meet that need. It must be a specific cost-of-living emergency fund.

Radio advertisements have been run by the Department in the past few weeks dealing with a point I raised a number of months ago and letting people know what services are available and how to access them, which I welcome. I also believe community welfare officers should be relocated back to the community to make the service more accessible to those who need it.

I will speak to the question of a living wage. There are high levels of low pay and the problem affects one in every four or five workers. It is a key component of the huge and unacceptable levels of poverty in our society. The living wage legislation being drawn up by the Minister for Enterprise, Trade and Employment seems to estimate a living wage at 60% of the median wage. I have worked that out to be approximately €11 per hour, and it is to be introduced over four to five years. A wage of €11 per hour is not a living wage and it is hardly an improvement on the minimum wage, which itself is a poverty wage that has become the norm in certain sectors of the economy. A living wage in a city like Dublin is €15 per hour. The cost of living coalition of which I am a part will continue to organise protests and demonstrations to achieve that, along with other key demands, including an emergency budget now, when people need it.

I will make a final point about the crisis affecting people who face eviction and termination notices. We had a young family in the office the other day. We contacted the family unit of the Dublin Region Homeless Executive and we were advised it is at capacity, with no vacancies in hubs. People are now facing terror when they receive an eviction notice from landlords.

Comments

No comments

Log in or join to post a public comment.