Micheál Martin (Cork South-Central, Fianna Fail)

Ar dtús báire, ní aontaím leis an Teachta in aon chor, mar níl aon amhras ach go bhfuil an-chuid déanta ag an Rialtas chun an brú atá curtha ar chosmhuintir na tíre de dheasca an t-ardú ar an gcostas maireachtála a ísliú. Tá an-chuid déanta againn chun é sin a dhéanamh.

In passing, I also congratulate Katie Taylor on her outstanding win. She is one of our outstanding sportspersons and has done extraordinary work in terms of elevating the role of women in sport. She has brought great pride and distinction to the nation and to the sport of boxing.

I do not agree with the Deputy's analysis in terms of the Government not helping, doing nothing or telling people that it does not recognise the fact that prices are at a relatively elevated level following the peaking of inflation. It must be remembered that inflation peaked at about 10% in the immediate aftermath of Covid-19. Following the Russian invasion of Ukraine, it also peaked at close to 10%. What is interesting of course is that the Government did an awful lot. We did more than any other European government in terms of cushioning and trying to reduce the impact of cost-of-living increases on people. We continue to do that. In April, we decided to extend the VAT reduction of 9% on gas and electricity. This measure will save households €70 for gas and €55 for electricity. The Minister, Deputy O'Brien, took a further decision in June regarding a 40% reduction in the renewable electricity public service obligation levy. From September onwards, there will be a significant increase in the number of people who qualify for the fuel allowance.

Since 1 June, women can receive hormone replacement therapy free of charge. At the beginning of June, the carer's support grant increased to €2,000, which is the highest level ever. That benefits some 138,000 carers. Last week, the income level disregard increased for the carer's allowance, meaning more people will qualify for the allowance and more than 5,000 carers will receive an increase in their payments. The back-to-school clothing and footwear allowance will be paid out over the summer months. That has been extended for the first time to foster carers. From September, the free schoolbooks scheme continues to be extended to all students in post-primary schools and from September all primary schools are eligible for the free hot school meals programme. A school meals holiday pilot project has started this summer. Free public transport for children aged five to eight will be introduced later this year.

Far from the Deputy's assertions that the Government is doing nothing, we have taken all of these measures on top of the measures we took in budget 2025 and as part of the public service pay agreement. It is also worth noting that inflation in Ireland will come down to about 1.6% this year. The Deputy referenced our position within the European Union. We will have the third-lowest rate of inflation among the 27 EU member countries. Given the strength of the domestic economy that is quite a remarkable outcome vis-à-vis other European countries. Nominal wage growth is set to reach 5.5% this year. That will result in real incomes rising by between 3% and 3.5% per annum. That is important, because we are turning the tide in terms of this issue. That follows increases in real incomes in 2024.

Further increases are forecast for 2026. The focus in the budget must be on dramatically transforming our infrastructure, which we committed to during the general election campaign. This must be an era when we transform our roads, public transport and our energy and water utilities. That is to help the Irish people in terms of growth and jobs into the future. There will have to be a predominant allocation of capital in respect of these key agenda items.

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