Dáil debates

Wednesday, 11 October 2023

Financial Resolutions 2023 - Financial Resolution No. 4: General (Resumed)

 

3:30 pm

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

Yesterday's budget, like all other budgets, had winners and losers. It had good aspects but it had severe deficiencies. We heard the two Ministers yesterday and Government leaders today give their perspective and, of course, it is our role as members of the Opposition to point out the anomalies, the gaps and the downright unacceptable outcomes from yesterday's budget.

I want to start with the disability sector. Like all other sectors partly or largely reliant on social welfare, the across-the-board increase of €12, while of course welcome, does not even cover the cost of inflation.

This is true for pensioners, for example, who are bitterly disappointed that their pension promise campaign, seeking an increase of €30 per week, simply fell on deaf ears.

Staying with the disability sector, there was palpable shock yesterday that the €500 per annum cost-of-disability payment for last year was reduced to €400 even though the Government’s own report from Indecon clearly showed that depending on the severity of a disability, the extra costs above and beyond normal costs associated with having a disability range from €8,000 to €13,000 per annum. The nominal amount of €500 given last year just covered 5% of that extra cost and this year it is back to 4%. I say to the Minister of State that this is a totally backward step.

There is real confusion around disability funding. The Budget Statement delivered by the Minister, Deputy Donohoe, spoke about €64 million, whereas the Minister of State, Deputy Rabbitte, later announced €195 million in her statement. Last year the disability budget was not clear until the HSE service plan was published in March, six months after the budget. This meant that people with disabilities, unlike other groups, had no real clarity about what was in the budget. We are speaking about a very significant cohort of people, but nothing is clear for them. What is clear at this point is that the funding is below what the Government outlined as being needed in the disability capacity review to 2032 to respond to demographic and unmet needs.

Crucially, the disability action plan 2024-26, which seeks to implement the capacity review, was not published in advance of the budget. Given the publication of the national housing strategy for disabled people 2022-27 implementation plan, we would have hoped to see a much stronger commitment around disability in the budget with a stronger funding commitment there also. Yes, there is €8 million for housing adaption grants but that deals with older persons as well as people with disabilities and, again, there is no clarity.

Staying with disabilities, this morning I spoke with a number of section 39, section 56 and section 10 workers, as I have done for many years. They were here this morning preparing for their indefinite strike which is about to commence next Tuesday. I do not have time to go through all of the details. I am sure the Minister of State is well aware of them. After the crash, these workers, who provide support in the health and disability sectors, the children’s sector and the homeless sector, saw a pay differential of at least 10% arise between themselves and HSE workers. All of them do exactly the same valuable work. In the simplest possible terms, these workers who are employed by the voluntary and community sector are on significantly poorer terms and conditions than their HSE counterparts. I suggest to the Minister of State that they were the low-lying fruit picked to save our State from going under after the crash and pay parity has never been restored.

The Government, quite rightly, gave an increase of 10% of fee rates to criminal defence barristers and solicitors yesterday because they lost out after the crash, but for section 39, section 56 and section 10 workers, pay restoration was not dealt with. The Government has offered them 5% from the Workplace Relations Commission. These workers told the Government at the beginning of the negotiations that 5% would not be acceptable. There is no link to any further pay increases. I say to the Minister of State that the Government has to get back to the table. Not only do we need to keep these workers on side and working, but we must also remember that those who rely on their services - those with disabilities, children, etc. - will be left to suffer from next Tuesday if they go on strike.

Small businesses, small retail shops, coffee shops, hairdressers and other sectors have been left deflated by this budget. Yes, there is a €250 million inflation fund but other than some information about possible rate rebates, there is very little in the budget to deal with escalating insurance costs, high energy costs and very significant extra labour costs. I see some relief for angel investors and that is good, but right now I am worried about the day-to-day survival of many local businesses. We have small retailers watching their working capital dwindle. Many are not far from the point where their very future is in doubt and, unfortunately, some have passed that point. If this Government does not give proper, targeted and accessible supports to small businesses, one by one, street by street and town by town, they will close down. We will see big headlines about some large supermarket or multinational retail company coming to create 50 jobs or 120 new jobs but the truth is that they are simply replacing all of those local jobs which are already being lost in indigenous locally supporting small businesses.

I have no time to go into detail on the childcare support except to say that while the 25% fee reduction is welcome, it does not come in until next September. What are families supposed to do? The other side of that equation, on which we have radio silence from the Minister, is the fact that childcare providers are closing their rooms or part of their services. These providers need at least €100 million in support of early childhood care and education, ECCE, services. I ask the Government to talk to the childcare providers, to listen to them and to sit down and sort out these problems. Otherwise, there will be fewer and fewer such providers. Childcare services are already hard enough to get.

I am almost out of time but I will also say that the excise duty increase which is being deferred is welcome but it is not enough. I ask the Government to stop putting its hands in the pockets of motorists and local people who can no longer afford to pay these increased fuel costs.

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