Peadar Tóibín (Meath West, Aontú) | Oireachtas source

This budget contains many significant financial measures and many initiatives that at first sight seem welcome. However, in reality, they lack the necessary substance to help people. The key measure of the budget has to be how it is going to impact materially on people's lives. For the following reasons, I believe that this budget is going to come up short. Take, for example, the electricity credits. Some 80% of the €1.2 billion from the electricity credits comes out of the pockets of people in the shape of extra VAT from 2019 to now and carbon taxes. Right now, this year, the Government is taking in €325 million more in VAT than it did before the energy crisis started. That is an incredible figure. The Government has also taken in €623 million in carbon taxes. It is taking with one hand from people and - literally - giving back the same money to people through the electricity credits. Raising carbon tax at this moment, at a time of an energy crisis, is absolute madness. It is wrong. First, it does not encourage one citizen in this State to switch to an alternative, more sustainable fuel. Anybody who can switch to a more sustainable fuel has done so already, given the crisis in the cost. Reducing the NORA levy at this time is simply a three-card trick, because the carbon tax is going to increase year in, year out. Also, VAT is actually charged on carbon tax in this State, which is also going to see an increase in the cost to people.

Another issue concerns Government competency. There is a real problem here that has to be dealt with, namely, the issue of the Government expanding the GP visit card system this year. It sounds wonderful, but in reality, when it hits the ground it is going to run into major difficulties. For example, GPs are nearly as rare as hen's teeth at the moment. The number of GPs is actually decreasing. There are 72 GPs for 220,000 living in County Meath currently. The Government is going to increase demand for GP services with this measure, while the supply is decreasing. That means longer waiting times for people seeking GP appointments. The Government needs to fix the deficit in the supply of GPs if it really wants to make a difference here.

The same is true for childcare. The 25% reduction in the cost of childcare for most people will be welcome, but anybody listening to childcare providers for the last six months will know that the new core funding system, which puts a cap on the level of income that a childcare provider can receive, is actually pushing hundreds of childcare providers out of business. Again, by introducing a 25% reduction in the cost, we will see an increase in the demand for childcare. Yet, by not funding the childcare services, there will be a reduction in the supply of childcare facilities in this country, which is going to put more pressure on the system. I note the Minister's language on this. I had to laugh when I saw it. He said there will be a reduction of "up to 25%" in the cost of childcare through funding. It reminds me of the sales that we sometimes see at Christmas, where a reduction of up to 50% will be advertised. Of course, most people will not actually get that. For those in Dublin paying €1,200 a month for childcare, the Government subvention of €240 a month is not going to come close to amounting to a 25% reduction.

If we want to boil all of this down to an example, take the free school bus places. It is an example of the Government making a statement in technicolour in relation to the help it is going to give people, but doing no work in actually developing the capacity that is needed to help people. Therefore, there are loads of children stuck on the side of the road as a result of the school bus fiasco.

The housing crisis is another example. The Government has published glossy brochure after glossy brochure and impressive budgets, but is refusing to deal with the dysfunction that is in that system. Now we see that the Government has admitted that the Housing for All plan is going to fall well short of its targets.

The HSE is a monument to Government incompetency. Irrespective of the amount of money that we pour into the HSE, we see hospital waiting lists increase and emergency department waiting times increase. Health capital projects in this State are an absolute disaster. One of the major weaknesses that exists is that there is a technical incompetency within the Government to fix these particular sectors and to ensure that they function properly.

Another issue that I want to touch on in relation to this budget reminds of the Homer Simpson campaign logo when he ran for mayor. He asked why somebody else could not do it. We see this over and over again in the Government's budget today. When we asked the Government to decouple the cost of electricity from the price of gas, it said that it is an EU competency. Such a measure would actually reduce the cost of electricity for people, but the Government refuses to do it. Yet, Spain and Portugal have done it. They have decoupled it and prices are lower in Spain. When we asked the Government to provide a windfall tax, the Government said that it is up to the EU to do it. However, Italy has done that for its citizens and it has helped with the amount of money available to help citizens there. When we asked the Government to reduce VAT on fuel, the Government said it is an EU competency. Yet, Spain, along with other countries, has reduced VAT and prices for citizens. It is really frustrating that this Government is outsourcing so many opportunities to actually fix things for people to the EU. I do not know if the EU is being used as a fall guy, as an excuse not to do things, or if the Government is suffering from inertia now and is leaving the EU to do more and more for Ireland as a result.

The phrase "once-off" appears incredibly often in this particular budget. We see cuts to third level fees and everybody gets excited and thinks it is a positive thing. However, it will only last for a year and it will go back to normal the year after. Prices and costs for students will not go back to normal the year after next. The provision of supports for schools to help deal with all the costs they experience are welcome. However, what schools want is an increase in the capitation grant so that they can actually deal with these costs year in and year out.

I also want to talk about the social welfare and pension measures. Many of them are once-off measures. The actual income of recipients has increased in this budget by a figure substantially lower than the rate of inflation. If we strip out the once-off measures, and they will be stripped out, unfortunately, in the coming year, the truth of the matter is that pensioners and working age social welfare recipients have experienced an income reduction in this budget. That is particularly shocking, because this budget was supposed to be about helping those most exposed. Citizens who earn less than €36,800 a year will actually see very little improvement from the tax package that was included in the budget. On the flip side, there is no talk of a wealth tax for assets worth over €1.5 million whatsoever.

The promised vacant home tax is very vague and nebulous. I was looking at its regulations. The house has to be occupied for fewer than 30 days a year. What do people do? Do they take selfies in the home for 31 days? Do they sign into the local Garda station? Are we going to be dealing with another property tax that is going to fall by the wayside? The residential zoned land tax, again, is mostly referred to in the future tense, even though it was announced last year. The defective concrete products levy is actually going to increase the cost of building homes. How can a Government introduce a levy on building homes in a housing crisis? It does not make sense.

Finally, in relation to the regional development of our country, there is very little in the budget that actually ends the lopsided spatial development that we have in Ireland.

We have an overheated capital and a sprawling commuter belt. Regions are being emptied of their young people. That is not being tackled by this budget.

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