Matt Carthy (Cavan-Monaghan, Sinn Fein)

I want to speak on Financial Resolution No. 4 very briefly and support the comments from Deputy Ó Broin that this just appears to be a rabbit out of a hat. It stands as one of those examples where Ministers and probably senior civil servants sitting around a room late last week realised they had done nothing in respect of housing and needed to provide some form of a fig leaf to suggest that they were actually going to do something to address the housing crisis that has got worse every year with this Government. Somebody decided to introduce another tax break for the people who had got plenty of tax breaks and who had yet to deliver affordable housing at the required scale. Every option and every policy proposal needs to be examined in detail in order to resolve the housing crisis and nothing should be ruled out just for the sake of it. That is why Sinn Féin previously looked extensively at the suggestion of cutting VAT for specific construction sectors, including apartments.

As Deputy Doherty outlined earlier, we were informed by officials that it would be costly, very difficult to administer, and would not actually move the dial on house prices. I do not think that would be a surprise to anyone. It would simply get pocketed by the developers. It would be very useful if the Government and the Department published the advice they have received and outline what they think the output of this new policy proposal will mean, other than a big dent in public finances that could be used to give people who are struggling at the coalface of the housing crisis some support.

On Financial Resolution No. 3 in respect of the VAT rate on gas and electricity and the maintenance of the 9% rate, of course this will be supported, I am sure, across the House. I would contend that it should be the very bare minimum. The Minister's introductory remarks set out in very stark terms to me precisely why so many people will be despondent tonight. She talked about inflation coming down and about the relatively high prices of gas and electricity. This shows again that the Government does not get it. I do not think the Government understands what it means for many people when the ESB bill or the gas bill comes through their letter boxes. Electricity prices are 70% higher than they were pre crisis. Gas prices are 100% higher. That is double where they were. This has real consequences for people's energy bills and heating their homes, never mind the fact that they are getting no tax supports whatsoever and no other supports. By not providing for a cost-saving package for energy costs and by increasing costs through the carbon tax for people who rely on solid fuel home heating and who have to drive their cars to places, it means that all those families all over this State are actually going to be worse off this year than they were last year. Considering the promises that were made during the election campaign, promises that quite clearly mean nothing, the starkest thing that has been pointed out today - I think many people will see a real truth in it - is that the Government is taking a gamble here that people are going to forget this budget. This is a coasting budget on the part of the Government where its true colours come out regarding its affinity with workers and families who are struggling to make ends meet. The Government has made their lives much more difficult and I think that this budget is going to be a defining moment in the lifespan of Fianna Fáil and Fine Gael in government.

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