Patricia Ryan (Kildare South, Sinn Fein) | Oireachtas source

The summer economic statement is a key component of the annual budget cycle providing an economic context and setting outside of the parameters of the budget. Unfortunately, this year's statement has not provided any certainty to households struggling with the immediate effect of the cost-of-living crisis and serious questions surround the credibility of some of the figures published. It offers little hope to households struggling with the soaring cost of living this summer, as workers and families face increasing energy bills and food prices and a drop in living standards. What was needed was an immediate emergency budget before summer recess. These families cannot face a wait of eight weeks for the Dáil to return from the summer recess or a ten-week wait for the budget announcements that may not be implemented until next year.

We learned this morning that prices rose by 9.1% in the year to June 2022, the largest increase in 38 years. In answer to a parliamentary question from my colleague, an Teachta Doherty, the Minister for Finance confirmed that the summer economic statement was framed with the assumption of an inflation rate of 7% to 8%. What provision has been made for contingency if this is the situation and if it worsens further? On the subject of contingency, this Government often blames unforeseen events for poor performance, yet we have a lack of clarity on plans to contribute to a rainy day fund. Government Members often talk about the pensions time bomb, but we have no clarity on plans to top up the National Pensions Reserve Fund.

This uncertainty only adds to the stress and anxiety of workers and families who are struggling with rising prices and poor public services in the here and now. This week, we saw that Spain, having cut the cost of public transport by half, has now made train journeys of less than 300 km free of charge. Why does the Government not consider radical proposals such as this, which would make sense from a climate action point of view as well as a cost-of-living perspective? We have seen what is called an anti-inflation shield in Poland. The VAT rate on food, gas and fertiliser has been cut to 0%, the rate on electricity and heating has been cut to 5% and the rate on fuel has been cut to 8%. Why has the Government not done something similar here?

The Government could take decisive action that would have an immediate effect on inflation and relieve the pressure on families, farmers and hauliers but it chooses to fiddle while Rome burns. Deputy Bruton spoke about companies. Many farmers and hauliers operate as small companies and are struggling to keep their employees paid and supplied with work. We need to address the cost of diesel, insurance and so on as well.

It seems that every week one of the energy companies announces a price hike despite the fact that we are told we are producing vast amounts of electricity from wind turbines and have gas coming from the Corrib fields and the UK interconnector. At this stage, it looks like price gouging. We all know that is what is going on. What action will the Government take to address this massive contributory factor to inflation? Will it consider a windfall tax on energy profits? I suspect it will not because the lobbyists would not like that. With the Uber leaks and the Planning and Development (Amendment) (No. 2) Bill 2022, we have seen that this Government exists to keep lobbyists happy.

There are also serious questions surrounding the summer economic statement. The Government has provided no allocation for increases in public sector pay. Mr. Sebastian Barnes of the Irish Fiscal Advisory Council told the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach yesterday that full costings on actions to meet climate targets and deliver Sláintecare had not been provided by the Government. The allocation to fund the existing level of services remains unchanged from last year. This is despite the budget watchdog recently warning that these costs will increase as a result of inflation. As a result, we do not know what funding is available for new measures to improve public services, to deliver additional affordable housing and to increase social welfare rates in response to inflation.

Workers and families needed certainty that the Government would act immediately to support them in the face of a cost-of-living crisis this summer. They did not get that certainty from the summer economic statement. Workers and families needed clarity and certainty about budget 2023 and whether it will deliver in the core areas of housing, health, childcare and education. They did not get that either.

Last week, representatives of the Economic and Social Research Institute, ESRI, attended a meeting of the Committee on Budgetary Oversight, of which I am a member. One of the things that stood out was the mention of the lack of statistical information and the need to invest in the Central Statistics Office, CSO. We are not measuring properly. We cannot plan properly to address these issues. This is a basic requirement and this issue needs to be addressed. In speaking on that, the ESRI told us that it was approximately a year behind with its statistics. That is not solely due to Covid. We need to address all of those issues.

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