Cathal Berry (Kildare South, Independent) | Oireachtas source

On balance, in the circumstances, this is an okay budget. It is okay for just one reason; namely, all the hard work by people and businesses across this country that has provided this significant surplus for the Exchequer. We have not has such a surplus for approximately 15 years. Now we are able to redistribute that as fairly as possible.

There are a few measures I would like to highlight that are good, and I will highlight the not so good ones also. First, I welcome the €600 energy credit for households and that will make a significant difference over the winter months. Second, I welcome the increase in the tax bands. We need to be rewarding, incentivising and encouraging work. We know about those in the squeezed middle, who pretty much pay for everything and receive almost nothing in return, so it is important that those bands are increased again in 12 months’ time. I welcome the fact that students are being supported. As someone who only paid off my student loan during the summer, I can identify with all the pressures they are under. The reduction in the student fee and the increase in the SUSI grant will make a big difference and the rollover of the reduced costs for public transport will help as well.

The financial supports for childcare are essential. Traditionally, this country has been very poor in providing childcare for young families. Perhaps if the gender balance had been better in this Chamber for the last number of decades we would not be in this predicament. I particularly welcome that measure and I give credit to the Minister for Children, Equality, Disability, Integration and Youth, Deputy O'Gorman, who brought it in. Not only do I welcome the 25% reduction this year but there seems to be a signal that there will be a further 25% reduction next year, which is to be welcomed, and I fully support those measures. I welcome the establishment of a €2 billion reserve for next year. The reason I want to welcome that is that it will be needed.

That leads me on neatly to my next point on businesses. While I welcome that a 40% subsidy will be paid to businesses to cover some of the cost of their energy increases, it is just nowhere near enough. The Government would be wise to remember it should not kill the goose that lays the golden egg. These businesses are the reason the Government has a surplus.

They are keeping the country alive and we, in turn, must keep them alive. I would encourage the Minister of State to pass on to her Cabinet colleagues that we need to engage with IBEC, ISME, and the Small Firms Association, even at this late hour, because 40% is not enough. It needs to be increased if we are to keep these businesses alive. If businesses fail over the winter, the corporation tax take for next year will be reduced, the income tax take will be reduced and social welfare payments will increase. We want to be in a similar situation in 12 months’ time to the one in which we are now, namely, with cash in the bank to redistribute as fairly as possible.

I will focus my last few comments on the Defence Forces. I presume that no other contributor will focus on the Defence Forces in any meaningful way. I welcome the increase of €67 million for defence this year. While it is a meagre increase, it is progress or a half a step forward. What does it mean? Not a lot. We were defenceless yesterday and we are still defenceless today. In effect, we are literally playing Russian roulette with Irish sovereignty and our territorial integrity. We have no means of policing our airspace or of properly patrolling our home waters. We are extremely vulnerable and exposed from that point of view.

Ireland used to spend approximately one third of the EU average on defence. We spend less than one third now because all of the other EU countries have recognised that there has been a massive shift in the defence and security landscape over the past seven months. We have failed to take heed of the latter. Ireland is a great country. We do some wonderful things, but we do certain things poorly. Of all the things we do poorly, defence is what we do most poorly of all. We certainly have to work on that.

I welcome the commitment in the budget regarding a military-grade primary radar system. That is a good thing. It is something for which I have campaigned for the past two years. I am glad to that at least a commitment in respect of such as system has been made. It is the first step in providing an air policing service, which is an air security issue and an air defence issue. Of all the technology that is mentioned, unless we can crew our ships, our aircraft and our armoured vehicles, we are at nothing.

There is a commitment in the budget to increase the number of Defence Forces' personnel by 400 next year. I welcome that, but I do not think it is going to happen. In fact, we are still haemorrhaging people. The military is making losing ten people net each week. The numbers are likely to dip below 8,000 for the first time in 50 years by the end of this year, which is a catastrophic loss of people. Why is that happening? The reason is just pay. It is ironic that people want to stay in the Defence Forces, but they just cannot afford to do so. Therefore, the pay has to be improved.

I make three quick points to the Minister of State. First, the €1,000 pandemic bonus payment, which was announced in January, still has not been paid to a single member of the Defence Forces. When you hear an announcement but there is no follow through after nine months, it is no wonder that people become disillusioned. I will make a suggestion. If the Department of Health is not in a position or is not organised enough to pay the €1,000, would the Department of Defence not consider an upfront payment to the military personnel? The Department of Health could reimburse the Department of Defence thereafter. An ex gratiapayment for the people involved in the Department of Defence would go a long way to improving morale.

My second point relates to the Government action plan, which contains a commitment for a €5,000 pay rise for personnel with fewer than three years of service. That is an excellent idea. We have been campaigning for it. However, where is the money? This was announced in July. The money needs to be in people’s bank accounts and in their pockets.

The third point is that our Naval Service has been completely holed below the waterline from a pay perspective. There is a commitment that the patrol duty allowance will be reviewed and increased. Again, however, we have yet to see the earliest signs that this is going to happen.

In summary, the budget is okay for the reasons I mentioned, namely, the hard work for the people and our businesses, which we need to keep alive. There are two deficiencies. The first is that there are not enough supports for our business sector. The second is that there is not enough investment in our Defence Forces. I will be taking up the second point with the Minister for Defence, Deputy Coveney, next Tuesday at the foreign affairs and defence committee, and on Thursday during Question Time here in the Chamber.

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