Dáil debates

Tuesday, 27 September 2022

Financial Resolutions 2022 - Budget Statement 2023

 

5:50 pm

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Independent) | Oireachtas source

The Government is faced with a very challenging situation. From an economic perspective, we face two enormous challenges, namely, an electricity crisis and a cost-of-living crisis. I am pleased that the budget is framed mainly around them.

There is no doubt that the last few budgets have been very difficult for everyone. We often hear of the squeezed middle who have shouldered most of the financial burden caused by the Government's inability to manage electricity supplies. The Economic and Social Research Institute, ESRI, estimates that more than 40% people will be in energy poverty this winter.

The extension of the fuel allowance, along with the increase in means assessment, is very welcome in the budget. However, the Tánaiste previously stated that a targeted and graded system would be provided to help everyone based on a different income bracket. I call for clarity on the rate of which a person earning €100,000 versus a person earning €30,000 will be in receipt. It seems to be a flat-rate approach. The wealth divide is growing. We are throwing money at everyone in the hope of plastering over the issues. We need to close the gap. We need to protect the low-income and middle-income families who are in dire straits and need to ensure they have fuel for the winter.

The temporary energy business support scheme will help many businesses in my constituency of Louth and east Meath. The €600 household electricity credit is also welcome. However, the electricity credits are ultimately a subsidy to energy companies. They set the price and the Government subsidises households and businesses to pay that price.

There was no mention of the windfall tax for the energy companies. There was no mention of price control. Instead, the energy companies can pocket these subsidies in the form of increased prices and profiteering. Big-profit companies will get 40% of their increase in energy costs covered by public funds, which is the exact same as small family-run businesses. People will get less than 20% off the increase in energy costs covered and all while, input costs rise significantly.

More than €3 billion is being spent on one-off cost-of-living measures along with €1 billion in contingency funds. Measures such as the €12 per week increase in all social welfare rates, along with special one-off measures and double payments, are helpful. Carers do a fantastic job, be it looking after elderly persons or persons with disabilities. They save the State a fortune. On top the increased rate of benefit payments, the €500 payment this year for carers and people with disabilities, those on invalidity and blind pensions and those on working family payments supports low-income families and those in need.

In addition, the Government aim of helping elderly helping people is evidenced by the increase in the living alone allowance, as well as the one-off €400 lump sum on top of their increased pension rate of €265. Much more could be done, however.

Many constituents who come to my office have raised serious issues about their children who may be autistic or have a disability and need assistance. In fairness, the Government has done a good enough job, especially in introducing investment in special education in schools. I welcome the vision for the employment of additional special education teachers and special needs assistants, with the number of SNAs to go above 20,000 for the time. This will definitely help families. However, I must reaffirm that the Minister for Education needs to liaise with the Teaching Council to reduce the restriction requirement to comply with the Droichead programme. Additionally, I hope it will not stop the building of new schools and upgrading of existing schools. Education is the way forward; it is very important that children are properly educated.

I am pleased to see that those in receipt of domiciliary care allowance will receive an increase of €20.50 per month. However, I must highlight the significant service delays in this area, especially with regard to therapeutic intervention. I am aware of 15 families with adolescent children with autism and moderate learning disabilities who urgently require a psychiatric review. However, they are being told by the HSE that this is unavailable as there are no psychiatrists on the HSE team. Families of children with autism and moderate learning disabilities are in crisis in counties Louth and Meath.

What will happen now with the expansion of the GP visit card and the medical card scheme? If more than half the population are eligible for GP cards, where will the GPs and specialists come from? This is likely to lead to significant waiting lists for services and my constituents are the ones who will suffer. Those in need are slipping through the gap. People with mental health issues are suffering. Therapeutic needs are not being met and nothing has been done to reduce waiting lists. There is so much potential in the budget to help mental health, especially after Covid-19. It has continued to be underfunded, and, as a result, those in need will have to wait longer for adequate treatment. This needs to be revisited.

An aspect of the budget that will help my constituents is also an issue I raised last week. I am delighted that the Minister for Education, Deputy Foley, has ensured the reduction of the student-teacher ratio with primary school class sizes to be reduced. Yet, even with recent cuts, Irish primary classes remain the largest in the EU.

The historic announcement of the free textbook initiative, which will take effect from next September, will save parents an average of €110 per child, which is welcome. I also welcome the commitment to recruit 686 special education teachers and 1,194 special needs assistants. As I said earlier, this will take the number of SNAs above 20,000 for the first time.

There was no mention of the school bus issue, however. Will there be funding for more buses? I encourage the Government to consider a fuel subsidy for school transport services. As this has been such a prudent issue in my constituency of Louth and east Meath in recent weeks, clarification is needed immediately.

I also welcome the commitment to 370 new primary school teaching posts, along with the 1,000 new gardaí and 430 Garda civilian staff to be recruited. As the economy struggles from these constant crises, it is vital that we invest in our public service and educate our young people. The €1,000 cut in college fees is, therefore, highly supported. However, are there any third-level grants for private college students who are not eligible for support from Student Universal Support Ireland, SUSI?

The Government has spent billions during the past five years dealing with the housing issue. What annoys me is that the middle class is being caught. A professional couple, both of whom are working, will have to earn approximately €95,000 per year to buy a standard three-bedroom house in Dublin. What chance do people have in dealing with this? There is no way they can afford to buy a house. They earn good money and pay between €1,200 and €1,500 per month in rent but cannot get a mortgage. They have been told the reason they cannot get a mortgage is because they cannot afford it. It makes no sense to me. If people can pay more money for rent and less money for a mortgage, they should be entitled to it.

The €500 renter's credit is pathetic when one considers that rents in Louth and east Meath are coming in between €1,500 and €2,000 per month. We need properly enforced national rent controls to address the housing crisis. We need to reduce or freeze rents to affordable levels and stop the profiteering of vulture landlords, who are likely to gobble up the €500 credit with rent increases. I raised this issue in the Dáil previously. We need to tax vacant properties to directly address the housing crisis and remove investment vulture fund breaks.

I spoke last week on the retrofitting scheme and how it is crucial to address both the energy crisis and health prevention, especially for older people this winter. We need to help people now by providing greater investment in retrofitting houses as a matter of urgency. As far as I am concerned, nothing has been done in the budget today.

To conclude, I acknowledge the measures introduced by the Government. People will definitely have more money in their pockets which, in theory, should stimulate the economy. I would urge caution in terms of austerity, however. With inflation at 10%, this budget could push even more people into poverty. Costs in this country are starting to spiral. I have spoken to many business people in Dundalk over the past couple of months and I have been alarmed by some of the cost increases they are facing. Not all businesses will be able to sustain these increases in costs and they will eventually have to pass them on to the end user. My fear is that while people will have more money in their pockets, they might in fact be worse off when inflation starts to affect their day-to-day living.

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