Carol Nolan (Offaly, Independent)

Tá áthas orm an deis a fháil labhairt ar an mbuiséad seo anocht. I welcome the opportunity to speak on some of the measures outlined earlier today. However, it is also important to highlight what did not happen today. For me, this is the budget of a Government that lost its nerve, a budget of half-measures and lip service. Yes, the income disregard for the carer’s payment will increase to €1,000 for a single person and €2,000 for a couple and, yes, the domiciliary care allowance will also go up by €20 to €380 per month. That is certainly welcome but they are very small measures. Unfortunately, yet again, the Government has been found wanting in political courage with respect to the abolition of the means test for carers, who save this State billions of euro every year. We would be absolutely lost without them. The care they provide, and their dedication and commitment, need to be rewarded. The fairest way to do that is to abolish the means test and it is disappointing to see that, yet again, that has not happened in this budget. The carers desperately need our support and it has to happen. I hope that this time next year, we will be here and hear it has been abolished.

The same attitude is found in the decision to reduce the VAT rate to 9%. While this is welcome and is something I raised in this Chamber many times over the last number of years, the delay in its implementation will certainly drive some businesses to the wall. Leaving them so long to wait until July is incomprehensible. I note from my own constituency of Offaly that we have restaurants, cafés and hair salons that are just clinging on by a mere thread. That decision to leave it until July needs to be reversed. The reduction in the VAT rate to 9% needs to happen immediately in order to save businesses and jobs. Instead of immediate relief, the businesses got the continuation of imminent threats. Instead of a helping hand, they got an iron punch from the Minister, Deputy Paschal Donohoe, even if it did come in a velvet glove. This is not what these businesses needed. The Government has to rethink this and we have to have the measure kick in as soon as possible.

With regard to agriculture, which is the backbone of the national economy and that of County Offaly, employing 10% of the national workforce, I accept that some positive steps have been taken. Generational renewal, tax relief for farm consolidation, young farmer relief out to 2029, the widening of the scope of farm restructuring relief to include forestry and the acceleration of capital allowance for slurry storage are all certainly welcome. However, there has been a notable emphasis on extensions rather than on transformative investment into the agriculture sector. There is also a strong suggestion that these measures inadequately address succession planning and the active farmer test extension to donors deters non-farming heirs, potentially forcing sales of viable holdings to cover liabilities exceeding the €335,000 threshold.

With farm incomes down year on year, low-income family farms, comprising about 60% of Offaly's 4,000 holdings, yet again face squeezed margins without enhanced basic income support. I agree with the analysis offered by IFA farm business chair, Mr. Bill O’Keeffe, who said that while the renewal of the various tax reliefs was extremely important, some of the taxation changes and measures would be costly for farmers. He added that the reduction in the flat rate addition for VAT would cost farmers over €61 million this year.

The decision to kick the rezoned land tax issue down the road creates more uncertainty for farmers, who really do not need that uncertainty, especially when they are being impacted by this fundamentally unfair tax.

I want to mention the increase to the school capitation grant. This will include, on a per pupil basis, a €50 increase for primary and special schools from €224 to €274 and a €20 increase for post-primary schools from €386 to €406. I also welcome the decision about the Department of Education and Youth's €1.6 billion capital allocation for 2026 to progress delivery of more than 300 school building projects. However, I take real issue with the claim that the majority of these are expected to be completed in 2026 and 2027. In my constituency, we have St. Brendan's Community School in Birr. It had its works approved in 2018 and there is neither sight nor sound of a contractor. It needs to change. We need urgent action and I call on the Minister to ensure that she takes action for St. Brendan's Community School in Birr.

From 8 October, the rate of carbon tax for petrol and diesel will increase from €63.50 to €7 per tonne. This increase will apply to all other fuels from 1 May 2026. Regarding the carbon tax total allocation, in 2025, €951 million was allocated from carbon tax revenues, an increase of €163 million on 2024. That brings me on to my next point. It is disappointing to see that the haulage sector did not receive support in this year's budget. The haulage sector is a vital cog in the wheel of our economy. I know the Irish Road Haulage Association president, Mr. Ger Hyland, had called on numerous occasions for small, basic measures, such as the subsidisation of HVO, to be made a priority by the Government in this budget. HVO is 20% more costly per litre than diesel. If the Government is serious about the environment, why is HVO not subsidised for the haulage sector? That is my question tonight, especially when I look at the takings for carbon tax. It makes no sense that the Government would not support a sector that is already supporting our economy. I hope that will be looked at and that support will be given to the haulage sector, which is currently crippled by yet another increase in carbon tax and absolutely extortionate tolls, an issue which also needs to be tackled.

If the Government is not going to take robust measures to tackle and limit illegal immigration and the associated multibillion euro costs, then the budgetary process will amount to nothing but a bad joke. Illegal immigration has to be tackled. The multibillion euro costs that are put on the heads of taxpayers have to be tackled. This issue has been going on for too long and is putting significant pressure on our health and education systems. Our housing is in deep crisis and it is being made much worse because supply is exceeding demand. We have to take on the whole issue of illegal immigration and make sure that we adopt robust measures urgently.

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