Dáil debates

Wednesday, 28 September 2022

Financial Resolutions 2022 - Financial Resolution No. 6 – General (Resumed)

 

3:00 pm

Photo of Michael LowryMichael Lowry (Tipperary, Independent) | Oireachtas source

I wish to make an observation on how budget day has been diminished. I have been in this House for more than 40 budgets. Gradually, I have seen the procedure around budgets and the delivery of budget statements altered dramatically. In the past, policy intentions were well-guarded and budget day was much-anticipated. There was an air of anxiety, anticipation and excitement. We were waiting for a bit of the mystery to be revealed. Unlike yesterday, the Gallery was full and there was a real buzz around the House. What has changed is that all budget measures are effectively public knowledge before the day's proceedings even begin. Budgets are leaked in a drip-drip fashion. As a result, budget day has lost its lustre and impact.

The Government, it appears, considers that it is far more important to brief the media in advance, rather than briefing the elected representatives of the people.

It is being said that a budget should reflect the values and priorities of a nation and its people. Budget 2023 was always going to be a carefully scrutinised balancing act for the Government. When the budget is hyped as being a landmark package expectations are bound to run high. Yesterday's budget saw the much-anticipated inclusion of a €4.1 billion cost-of-living package. This was a welcome move that will help ease immediate financial worries for many. However, the true impact of this budget will not be evident until March of next year, when the once-off supports expire.

Assistance announced yesterday will help to address immediate problems, but there is a long road ahead. It is likely that further Government intervention will be required early next year. There was welcome news for thousands of families, particularly those on lower incomes who are struggling and who are worried about the months ahead. Energy supports, a once-off double child allowance payment and a reduction in childcare and college fees are all family-friendly moves.

It is appropriate that renters were singled out for assistance. The €500 credit they will receive, while not a huge amount in the light of the cost of renting, will provide some relief when added to the cash-back credit of €600 on energy bills that will be paid to all households in the next six months.

Many businesses that scrabbled to survive the pandemic find themselves facing a staggering 400% increase in utility costs. There was a broad welcome from these businesses for the assistance announced yesterday. That assistance will help safeguard jobs across the country. Conversely, there was a total oversight in the context of a failure to help small businesses that do not consume much energy. These businesses face massively increased fuel costs. Those who operate in the services sector, those who run distribution and delivery companies and, importantly, those in the transport sector were overlooked. This budget was not a package of supports for businesses; it was a selective action that excluded a huge cohort of businesses.

Similarly, sole traders were forgotten. Tradesmen in particular are mainly home-based. They do not have business premises to maintain, yet their daily running costs have risen alarmingly. Electricians, plumbers, carpenters, decorators and other one-man businesses are largely dependent on households to provide their work. A reduced household income means less work for tradesmen who operate alone. Rising fuel and insurance costs are eating into the small profits they make. The last time this happened, the tradesmen fled the country. We continue to have a skills shortage as a result of emigration. This should never be allowed to happen again.

A welcome takeaway from yesterday was the success of the zero-VAT campaign for local newspapers and their assistive digital products. I supported this campaign wholeheartedly. Local newspapers provide a window to our communities and are an intrinsic part of life across this country. They are deserving and worthy of the support they received.

Those of us who attended the National Ploughing Championships last week heard first-hand the concerns occupying the minds of those in the farming sector. The Regional Group’s pre-budget submission highlighted the crucial need for investment as farmers endeavour to tackle the financial challenges posed by the need to meet climate targets between now and 2030. The extension of vital tax relief is welcome, despite it being contingent on future negotiations with Brussels. Also welcome is the news of accelerated capital allowances for the building of modern slurry storage facilities, although concerns have been expressed in regard to the knock-on effect of the 10% levy on concrete and concrete products. Clarity is required on this issue. Dairy, pig and poultry farmers are relieved to be included in support to help with energy costs. Overall, there seems to be a cautious welcome from farmers for Budget 2023.

Last year, €22 billion was allocated to health. Recent reports indicate that Department of Health recorded an overspend on this amount. An extra €225 million is being targeted in the coming year to address waiting lists. Year after year, we provide extra millions to reduce waiting lists. Despite this massive investment, waiting lists get longer. We appear to have no measurement or accountability in regard to the outcome from ongoing this investment. Unless a concerted effort is made to address the staffing issues in the health service, waiting lists will continue to grow. The most vital component of the health service is the people who work there, yet we continue to hear of them walking away as they cannot take the pressures placed upon them. If there were proper staffing levels in our hospitals and health service there would be an immediate reduction in waiting lists. Instead, the waiting lists grow. This is particularly so for children and, disgracefully, even more so for children with sensory, intellectual and physical disabilities. It is a poor reflection on Ireland as a country if the most vulnerable among us cannot access the health services they desperately need.

I have a few questions in regard to Department of Health. Is the Department of Health ready for the winter surge in demand? Is there a plan in place to cope? Will the funding required detract from addressing the existing difficulties in the system, including waiting lists?

This budget, and particularly the cost-of-living package, has extended help to address immediate needs. This is likely to be the first necessary step in addressing the current energy and cost of living crisis. The actions on the part of the Government in the coming months to explore and revisit need to increase our energy self-sufficiency never been more important. We are now acutely of how instability in other parts of the world can impact Ireland.

Comments

No comments

Log in or join to post a public comment.