Dáil debates

Tuesday, 27 September 2022

Financial Resolutions 2022 - Budget Statement 2023

 

6:40 pm

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent) | Oireachtas source

In the interest of ethics and in the context of the world we are living in today, a person who is involved in different things should declare an interest in the budget. I did not hear anybody else doing it but for fear that a person would be condemned afterwards, I will declare it.

It was ironic to see Members in government clapping for the budget today when one thinks how people are suffering at home. Despite the good news that is contained in certain sections of budget 2023, I do not think they would be happy to see Members jumping around the place, smiling and clapping each other on the shoulders. I do not think the people watching today will be too happy.

On the cost of living, the three €200 payments for the ESB is okay but we all know that the proper way to have dealt with this issue was to have capped the cost of the bills.

Many businesses have contacted me since the announcement of the €10,000 subsidy for businesses saying that they will not qualify. If their usage went up when compared with the unit prices, they may not qualify for what the Government has announced today.

The carbon tax increase is going ahead but is then offset by the removal of the NORA tax. For the Government to say that it is making an increase in the first instance and then slashing it right away, is it not in effect admitting that the carbon tax, which the Government wanted to impose on people, was wrong? The Government is admitting that.

The €12 increase in social welfare payments is welcome, of course, but the question is whether it will come into effect at midnight. No, it will not. Will it be March or how far out will it be before the Government actually gives it to people?

Why are we waiting until 1 January to implement the new income thresholds? Why is it not effective from midnight? The Rural Independent Group sought a €20 increase across all social welfare payments. We also sought the full reintroduction of the bereavement grant which was taken away by the Labour Party and Fine Gael Government of 2011, and I will never let them forget it. They totally disregarded poor people who were suffering a bereavement and having a tough time. The Labour Party and Fine Gael thought nothing of taking the grant away from people.

As for the 50 cent increase in tax on a packet of cigarettes, which will of course be imposed from 12 midnight, I do not welcome that because I would be happier if nobody ever smoked again. At the same time, people may have difficulties in life and perhaps one of the only things they have that gives them a bit of comfort is a cigarette. If they want to smoke, I will certainly not put my shoulder to the wheel of making it more expensive for them to do so.

I welcome the VAT rate being reduced for newspapers. This is indeed very welcome. I had lobbied very strongly on this matter and made my views known to the Minister. Papers such asThe Kerrymanand Kerry's Eyein County Kerry will benefit from this, which I welcome.

The €4 increase per week for the squeezed-middle, people earning between €24,000 and €36,000, is absolutely shocking in terms of the cost of living, and we had Members in government clapping that this evening.

I refer to the hospitality VAT rate of 9% until February. I ask on behalf of the hospitality sector in County Kerry whether the Government will scrap it after February. Would the Government not tell the businesses the truth at this time? As the Minister of State is aware, County Kerry is the tourism capital of the western world and we do tourism better than anybody else, but we would like to know what the Government's intentions are after February.

Earlier this evening, I spoke to Michael Cronin of the MC Group based in Coolcaslagh, County Kerry, who produces concrete blocks and also builds homes. In the middle of a housing crisis, he has highlighted the fact that instead of helping to make it easier to build houses, the Government has put a 10% levy on concrete products, the very thing we need most to build our homes. What sort of insanity is this? Did anyone in government think that it would also affect the people who export precast concrete products across the Border? They will be at a massive disadvantage as a result of this 10% levy, because it is not just on concrete blocks; it is on concrete products. There was no consultation with the building sector. Concrete has gone up in cost by 30% in the past 12 months. This will simply be passed on by companies because they have no choice. They cannot carry that increased cost. Last year it cost €8,000 for 100 m of concrete. That is what is required for the average foundation of a house, in case the Minister does not know. That will now cost €12,000.

I will mention another thing in case the Minister of State does not know. It takes approximately 8,000 blocks to build an average home. The cost of those blocks will now jump by €1,500. That is an awful hit for young people who are trying to get planning permission, dig out a foundation, put down a raft and build their block walls. Today, the Government is attacking such people for doing this. Where is the sense in that?

I welcome the €87 million for retrofitting but the Rural Independent Group sought a reduction of the VAT rate to 0% on all retrofitting insulation and renewable energy products. This did not happen. Why did it not? It would have been a fine and sensible thing to do. We would not have looked for it unless it was sensible but, of course, the Government will not take on board anything that shows common sense.

There is another thing that does not make a whole pile of sense and to which the Government needs to wake up. It relates to the help-to-buy scheme. The scheme is for first-time buyers and I welcome that but what about people who are buying a second-hand property to make their home? Surely to God there are an awful lot of people in that category. In County Kerry, new private housing schemes are unfortunately very slim on the ground but there are plenty of second-hand homes changing hands. Surely to God a young couple starting out in life should have the same advantages and facilities available to them as those buying a new home and receiving help-to-buy support. That is very important.

Local authorities need to be provided with more funding for their own houses to ensure they can be retrofitted at a much faster rate. More money needs to be given to local authorities to ensure a proper repair and maintenance programme for their own stock. This may involve putting in proper heating systems or improving windows to give people a proper standard of housing.

On education, the reduction of €1,000 in the contribution towards third level fees is fine but it is a once-off measure for this year. This is not right. If the Government is bringing this in, it should tell the people that it is going to leave it in and eventually scrap the fees altogether to allow people proper access to third level education. There has been no change to the Student Universal Support Ireland grant threshold as was sought by the Rural Independent Group.

There is €23.4 billion for health. In this case, firing money at a problem will not work. Year after year, the budget goes up but nothing ever changes. There is to be €23.4 billion but I will still be organising buses of people to go from County Kerry to Belfast to have procedures carried out on their cataracts, hips, knees, tonsils and whatever else because, despite a budget worth billions, we cannot take care of those people here in the South.

Farmers and fishermen were certainly let down today and that is wrong.

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