Gerald Nash (Louth, Labour) | Oireachtas source

One particular point that the Minister of State made, and that he and his colleagues will consistently remind us of, is the once-off measures that were introduced to help families and businesses deal with the cost of living crisis, but the active point there is “once-off”. We know that our social welfare system is not indexed either to wage rises or increases in the cost of living. We know that, for example, social welfare payments this year fell well short of the prevailing rate of inflation and we have seen families across this country have real cuts to their living standards. In fact, the OECD has confirmed what we already know, which is that for the first time since 2013, families across this country are experiencing very severe cuts and reductions in living standards in a country that is arguably and objectively extremely rich.

The final point I would make is in regard to how the Government needs to approach the next budget and its perspective on the relaxation or otherwise of the 5% self-imposed expenditure rule. We know that interest rates are high at the moment. That will impact on private investment and when private investment in the economy experiences some kind of downturn, it is then up to the public sector and the Government to invest. That is another reason the 5% expenditure rule needs to be relaxed again this year.

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