Micheál Martin (Cork South-Central, Fianna Fail)

Ní aontaím leis an Teachta in aon chor. Níl an ceart aici. Tá níos mó déanta ag an Rialtas seo i dtaobh costas maireachtála agus an brú a ísliú agus a laghdú do chosmhuintir na hÉireann ná aon rialtas eile ar fud na hEorpa. Tá sé sin soiléir ón méid tacaíochta a thugamar sa cháinaisnéis a bhí againn an Deireadh Fómhair seo caite. Is léir sin. I disagree fundamentally with the Deputy's presentation. No Government across the 27 member states of the EU has provided as much as this Government and the previous one did in terms of cost-of-living supports. Quite exceptional once-off contributions were made, quite apart from the other significant provision we made within the mainstream elements of the budget. Over €7.3 billion was made available in temporary expenditure and €9.9 billion was made available in recurring expenditure in supporting household incomes.

We have been very conscious of the fact that at its peak, inflation reached a multi-decade high of close to 10% in Ireland. That was the position. This inflationary shock did have a significant impact on households, people and SMEs, so significant fiscal support was provided by the Government in specific cost-of-living measures that were temporary but also in taxation reductions in the past budget that will take effect this year, as well as other measures like the free school books scheme, public transport supports and hot school meals, all of which have been of significant assistance.

Budget 2025 provided for a further €2.2 billion cost-of-living package and included an increased payment in respect of the rent tax credit for 2024 from €1,000 to €2,000, the extension of the 9% reduced VAT rate for gas and electricity, the extension of mortgage interest relief until the end of 2025, a double month child benefit payment, two €125 electricity credits for households, two double week payments for all long-term social welfare recipients and €167 million for the increased cost of business schemes. The taxation measures in the budget will reduce income tax paid and the universal social charge.

Consumer price inflation has eased significantly from where it was over the past two years. Annual average inflation of 1.3% was recorded in 2024. This compares with 5.2% in 2023 and 8.1% in 2022. The latest data shows inflation was 2% in April. This the target rate of inflation used by the European Central Bank.

Notwithstanding the easing of the rate of inflation, the price level remains elevated and we are very conscious of that. Our agenda and objective in the budget when it comes in the autumn will be to provide within the social protection payment programme and do what we can on taxation to alleviate the pressures on people. We had an exceptional period in 2022 and 2023 and during Covid. The response has been exceptional by any yardstick. Sustainability matters in terms of public finances but it also matters in terms of longer term sustainable programmes in social protection, the tax code and the provision of public expenditure.

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