Dáil debates

Tuesday, 25 October 2022

Finance Bill 2022: Second Stage (Resumed)

 

8:20 pm

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

While the budget sets out the fiscal parameters for next year, it is much more than that. It also provides the framework that finances the delivery of Government policy. This is what I want to focus on in my short contribution, namely, how this budget shaped the delivery of Government policy. Given that my time is limited, I will concentrate on the impact of this budget on people with disabilities and on families affected by disability.

Internationally, Ireland is seen as one of the better countries when it comes to the distributional impacts of our budgets. If we strip out all government support and look at just wages income, Ireland is quite high on the inequality spectrum. When we factor in our social welfare and Government supports, our levels of inequality diminish. A central question for me in any budget, and this budget in particular, is whether this budget continued with that trend. When one takes the once-off payments into consideration and looks at the budget in the microcosm of this one year, the answer is largely, "Yes". Every budget, however, must be assessed in context. The context is that this year's budget builds on last year's budget, and crucially, it provides the foundation for next year's budget. Once-off payments are not part of that foundation, however. While they are most welcome and badly needed, they are temporary. The tax changes that will benefit the better off more than those on lower incomes are locked in but the once-off measures that provide the safety net needed by many families and individuals will be long gone by next summer. That is not progressive.

With regard to disability, the ESRI has conducted an analysis of the impact on disability budgeting. The ESRI findings are clear. Compared to inflation-proofed 2022 policies, households affected by disability will be slightly worse off in 2023. That is the finding of the ESRI. This includes the once-off payments. When those payments end, the picture will be grimmer. Those are the findings from the ESRI. It is important also to state that the number of households affected by disability has grown by 50% since 2007. More families are negatively impacted. This does not take into consideration the cost of disability, which as the Minister will be aware, is hugely significant. The Minister's own report in 2021 found that the additional cost of disability ranged from €9,000 to €12,500 per annum. I note that estimate was made before the current spike in the cost of energy and the runaway inflation.

Staying with the issues for people who have a disability, in an important point raised by one or two colleagues, when people with a disability reach the pension age, they automatically go onto the old age pension and they will be excluded from the €500 payment. The disability remains, in fact a disability often worsens as people get older, but yet they cannot access this once-off payment. The Minister should try to see if he can find a way to change this. Given that it is a once-off payment, the cost would not be that significant.

In the same arena, I just want to say a few words about family carers. Some aspects of this budget were good and one really positive aspect was that most family carers, not just those on carer's allowance, could access the once-off payment. Yet, carer's allowance is still means tested and is still not a qualifying payment for fuel allowance. Those two changes would make a huge difference.

I have two small final points to make. For third level students, the €1,000 rebate is not available to graduate entry students, for example, if a student is studying medicine. The Minister will be aware these students are already paying the full fees. At the very least they should be able to avail of this rebate. We need to train as many doctors as possible. Is there any way that the Minister could look at this?

Finally, many people are now really interested in renovating old or derelict homes. Croí Conaithe is a good scheme, especially since its extension to rural areas, but it is crucial that local authorities are adequately resourced in terms of finance and personnel to support the scheme.

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