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

I welcome the opportunity to speak on the budget but I think, as my colleague, Deputy Pringle, said, is just a bit of a performance, with us all standing up speaking on a budget that has been out in the media for the last week.

I want to mention some statistics not referred to by the Ministers for Finance and Public Expenditure and Reform. The figures are courtesy of the Society of St. Vincent de Paul’s pre-budget submission. It is the reality for huge numbers of individuals and families. It is not a new development due to a sudden rise in energy costs or the recent rise in inflation. It is an ongoing, constant daily struggle for survival. Unfortunately, this budget as with this Government’s previous budgets will have very little impact in changing this situation. To give one example, I will refer to a situation raised with me by constituent just last week.

For some years she has been a carer for her mother on full carer's allowance of €240. Her mother obviously gets the State pension of about €250, giving them an average of more than €450 coming into the household. Her mother got very ill and went into hospital last year and now it is most likely she will need to go into nursing home. Obviously, that State pension will go with her mother under the so-called fair deal scheme and she has to apply for disability payment because she cannot work. She has got a disability payment of €180. She will have to live on €180. She was absolutely distraught in the office last Friday and said, "How can I live on that? How can I pay my bills on that? It's just impossible." She went out on the Cost of Living Coalition march on Saturday and got a great boost because of the solidarity of the people around her. The 20,000 people on that march and gave her great boost, but she is still facing trying to survive on €180 euro a week.

This is not in any way to downgrade the effects of the massive rise in energy costs or the general rise in inflation and how they affect individuals, families or small businesses. In this budget, the Government had two key tasks, namely, to cap and reduce energy prices and to target supports to those most in need. It has succeeded fundamentally in neither. There have been some welcome once-off payments but from the fundamentals have not been addressed. The most straightforward and effective way to deal with soaring energy costs would have been to cap energy bills at 2021 prices and either nationalise those companies or bring in a cost-of-living emergency tax like the financial emergency measures in the public interest, which were brought in at the time of austerity.

The Government should have followed the example of France where the Macron Government, hardly a bunch of socialists, introduced a price cap this year of 4% on gas for heating and electricity. This enabled France to have the lowest inflation rate in the EU and an average of approximately 5.7%. For 2023, it has increased the cap to 15% meaning a monthly increase of €25 for gas as opposed to €200 a month. That €25 a month amounts to €600 year and €200 a month equates to €2,400 a year. Electricity price increases have also been capped at €25 a month.

Individuals and owners of small businesses, such as the corner shop at the end of my street, all say the most effective and straightforward way to keep prices down, to give people and businesses certainty as to the increased costs they will face, is to cap energy costs. Such a measure, of course, costs money. It involves subsidising energy companies using fossil fuels such as gas. The most fundamental way is to nationalise them. The cost to France this year is an estimated at €7 billion. It would not cost our State anything like that - possibly €1.5 billion. In the long run, measures taken by the Government, such as the €600 credit for electricity bills, are also a subsidy to energy suppliers.

The most obvious failures with targeted supports relate to the State pension and core welfare payments. The roadmap for social inclusion committed to introducing benchmarking of the State pension by budget 2019. It never happened last year. It was increased by a measly €5. In the two previous budgets, there was no increase. With the 10% rise in inflation that amounted to a cut in real income for those on the State pension. More than 100,000 elderly people are at risk of or live in constant poverty today as a consequence. If the commitment to benchmarking had been met, the State pension would be €40 euro week higher today. That is why many NGOs, including Alone, called for a €20 increase in this year's budget followed by a €20 increase in 2024. An increase of €12 comes nowhere near even just standing still. Why is it not being introduced in November? It will be introduced in January 2023. There has been a call to increase basic social welfare by a minimum of €20 a week. A €12 increase does not meet the increases in the cost of living and in reality means cut in income for those who can least afford it.

I welcome the increase in the eligibility limits for fuel allowance. I note that these will not be implemented until January 2023. The once-off lump sum of €400 paid to those already in receipt of fuel allowance will be introduced in November 2022. The €33 a week for fuel allowance is well below the €48 called for by NGOs like the Society of St. Vincent de Paul. Calls for the allowance to be extended to those on family income support were ignored. The payment of €400 to all fuel allowance recipients for the 28 weeks will be implemented in November. However, the increase in the threshold will not take place until January 2023. Will those recipients who get fuel allowance get that €400 in January 2023?

We have widespread inequality, unacceptable levels of poverty, a lack of affordable housing and a crisis in our public health services. Low levels of public services will continue unabated. I am sure the €500 tax rebate will be welcome for those squeezed to the limit in the private rental sector, but it is meaningless in dealing with the crisis of unaffordable and insecure housing.

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