Bríd Smith (Dublin South Central, People Before Profit Alliance) | Oireachtas source

I also think it is a good idea to prepare for an unexpected future. On the surface, these two proposed savings funds provide some sense of security for the future. They take the form of refurbished rainy day funds, but what the Government is unable to and incapable of recognising is that it is already raining heavily for many people. We need access to the windfall tax revenues to which the legislation refers right now in order to tackle the multiple crises in our public services and in the areas of health, housing, the cost of living, special needs, disability, etc. The list goes on. Most people are struggling because of failed Government policies that continue to prioritise the interests of the wealthiest in our society while neglecting the needs of many ordinary individuals.

We have had consecutive budget surpluses. These appear to give some sense of pride in a job well done as the Government decides to take a substantial amount of people's money from them and lock it away instead of giving it back to them when they need it most. One significant reason for the budget surplus is the lack of spending on public infrastructure, amenities, and services across the country. Now that the Government has this money, it is time to spend it for the public good. The Government would say that corporate tax revenues contributed to the most recent budget surplus and that we cannot rely on a few multinational corporations for future tax revenues. If it cannot rely on future windfall corporate tax revenues, then why propose significant investments in these savings funds? It wants to save for the future when it appears that it will take in more money than it will spend, but using these savings funds for its countercyclical fiscal measures cannot apply in this instance. People are already struggling with the cost of living and the lack of public services. Their needs must be prioritised.

We need to ensure that we end homelessness and provide housing for all, put an end to the trolley crisis and see to it that everyone can afford to survive in the cost-of-living crisis. The Minister should spend his excess on infrastructure for the people now and if there are any remaining surpluses, he should invest them in the funds. We need to fix various crises now before we can talk about saving.

The future Ireland fund will be used to support public expenditure in a consistent and sustainable manner from 2041 onwards, but it is unclear what this public expenditure will be. It could be paying for hospitals and schools, but it could also be used to bail out bondholders as happened during the financial and economic crisis.

A significant concern is that this fund will require 0.8% of GDP to be invested in it each year. This is the equivalent of spending the total transport budget and almost as much as was allocated to the housing budget in 2023. It is important to emphasise that moneys for the future Ireland fund will come from the Central Fund or tax revenues.

Given such a large arbitrary investment amount, it would be inappropriate to link investment in this fund based on GDP only, which is already a very unreliable measure, for one, due to the foreign investment and multinational corporations here that may withdraw moneys from Ireland yet the moneys are accounted by the GDP. With that, the location of investments or where the funds can be held is not only in Ireland. The fund can be invested anywhere so taxpayers' money could leave Ireland for fund ventures elsewhere. Our money should stay here and it should be invested back into the Irish economy to help its people. We need to prioritise the domestic economy and improve economic activity here before lending to others abroad.

In terms of the return on this investment, after investing in Irish business and Irish assets, there should be no risk-taking with this money. Since the Fund is a security and safety mechanism for the future, we should not be playing the stock market or other markets for the purposes of making money. If we create this fund, it should cover pressures in the future and provide risk-free return only.

There are also no provisions for drawing down moneys before 2041. I understand that this is a future fund, but in an economic or societal emergency, there should be a possibility to use those savings to deal with unexpected events. I would like the Minister to address that.

On the infrastructure, climate and nature fund, every year from 2025 to 2030 €2 billion will be transferred from the Central Fund to the infrastructure, climate and nature fund. This is a significant amount of money, which is equivalent to the total annual expenditure on An Garda Síochána.

The Bill indicates that from 2025, no more than 25% of the total fund can be transferred to the Exchequer in an instance of deterioration in the economic or fiscal positions of the State. In a potential case of a massive deficit and a shortage of funds to cover public expenditure in the future, why would the drawdown be limited to 25% of the fund? Transfers to the Government should be made in accordance with the needs of the people instead of capping expenditure at a predetermined figure.

It is striking to read that only a Minister can propose in writing a project that would help the environment and combat climate change and that would require the transfer of funds. It appears that no other stakeholder needs to be consulted - we talk constantly about just transition and community engagement - when a decision is made to use this fund for climate issues. In addition, no committee will be consulted on potential environmental projects. Ministers seem to have the sole responsibility for this fund and for decisions relating to where and how much to invest.

It is also clear that from 2026 to 2030, at most, 22.5% of the net asset value - the total funds less liabilities - of the fund not exceeding €3.13 billion per year can be invested in environmental projects. This is a very specific proportion of the fund that can be invested to help the environment and climate change, but far greater investment may be needed in the near future if we are to take up on all the warnings, that are being beamed at us globally and that we see around us, and, indeed, that the Minister, Deputy Eamon Ryan, outlined here yesterday when welcoming the election of the new Taoiseach.

I reiterate that although we need to look to the future and save for unexpected expenditure, it is crucial that we fix the current state of our system. We need all available resources right now to fix the housing crisis and issues relating to healthcare, education and access to early childhood care before we start saving for future unexpected events.

We are in an emergency right now. The Government needs to listen to the people. It needs to invest in the people right now and provide appropriate services and amenities across the country. The Government can spend right now on the environment and fighting climate change and budget for additional expenditures in the future. These funds require participation in capital markets, which means that taxpayers' moneys will be gambled to provide an optimal return on the investment. We do not want an optimal return. We want Irish taxpayers' money invested in Ireland and in safe and secure projects.

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