Micheál Martin (Cork South-Central, Fianna Fail)

Gabhaim buíochas leis na Baill as ucht an deis labhairt leo faoi cháinaisnéis 2026. Is cáinaisnéis thabháchtach í leis an infheistíocht is mó riamh in infreastruchtúr na tíre.

The last number of years have shown us that we are living in times of great change and disruption, from Brexit and the Covid-19 pandemic to inflationary pressures, the ongoing wars in Europe and the Middle East, deglobalisation and a move towards more protectionist and divisive policies, including trade tariffs, the accelerating impacts of climate change, and AI and the rapid pace of technological advancements. Each has intruded, disrupted and added uncertainty to our society and economy in different ways. However, throughout all of this, we have demonstrated resilience and resolve, which can be attributed in large part to the hard work and talents of our citizens, enterprises, and those that have chosen to work and live here and who have contributed greatly to our economy and society. This resilience is also demonstrated by the strength of our public finances, which have benefited from our prudent guidance over the years.

Employment levels are now at their highest level ever, with over 2.8 million people at work. That is 64,000 more year on year, yet people are saying that the Government is not doing anything for workers. We are, by continuing to provide jobs and people are continuing to participate in work. Real wages are on the rise while the headline inflation rate has stabilised. Economic growth and domestic demand continue to be positive, while the traded sector of the economy continues to flourish. Exchequer tax receipts remain robust, resulting in a strong fiscal position. This strong domestic position has allowed us to carefully manage our resources and put aside reserves for the future when times are more challenging. We will, for example, have built up to around €24 billion in these funds by the end of 2026.

Despite this, we cannot take our economic success for granted. Huge international trade and geopolitical uncertainty leave a small open economy like Ireland very exposed. We must be conscious of the delicate position of the public finances, largely underpinned by volatile corporation tax returns, in the face of emerging economic threats. At the same time, successive years of economic and employment growth have created capacity constraints and cost pressures in the Irish economy that simply have to be addressed. Continued and accelerated progress is needed in housing and infrastructure delivery, healthcare, energy, water, innovation, public services and addressing climate change.

There are increasingly difficult choices to be made. Now, during the first budget of this Government, it is essential we take steps in the right direction and make these decisions to address and mitigate economic and societal risks, as well as prepare for very serious challenges ahead. To meet the challenges of a growing population and economy, the Government is increasing expenditure in a sustainable manner. We do so to a degree that is accurately commensurate with these changing economic and demographic trends.

With budget 2026, we must make continued and accelerated progress in delivery across areas such as housing, infrastructure, healthcare, energy, water and so on. We must also aim to enhance living standards, support business and improve overall well-being for the entire country as well as invest in the productive capacity of the economy. We must do this without adding excessively to inflationary pressures, while protecting the public finances over the medium term. Through this budget, I believe we are doing so in an ambitious but sensible manner and are making real strides in furthering the ambitions and commitments laid out in the programme for Government.

Many European governments are currently struggling, a point people should reflect on. Very few governments in Europe are delivering budgets of this kind now. We, in Ireland, are in a relatively unique position. Successful and prudent management of the public finances has enabled us now to invest substantially in our country’s future.

Budget 2026, as unveiled yesterday, sets out an overall package of €9.4 billion, with €8.1 billion in additional public spending and taxation measures amounting to €1.3 billion. We are also continuing to build up the Future Ireland Fund and the Infrastructure, Climate and Nature Fund to help deal with future budgetary challenges. Notwithstanding our commitment to investment, we have also ensured that future fiscal policy is on a sustainable basis. While one-off welfare payments were essential in countering elevated cost-of-living pressures, we have undertaken to transition back to more permanent sustainable social protection measures.

We remain acutely aware of price level increases in recent years, and the impact inflation has had on businesses and households throughout the country. We have now targeted cost-of-living supports at those most in need of them, supports that are sustainable, while we move to address the underlying causes within our domestic control that are driving up prices. These supports include a €10 increase on weekly social welfare payments, a Christmas bonus for long-term social welfare scheme recipients, an increase to the national minimum wage of 65 cent per hour to €14.15 with consequential amendments to the USC, extension of the rent tax credit to the end of 2028, extension of mortgage interest tax relief for a further two years, extension of the 9% VAT rate on electricity and gas until end 2030 and a €500 permanent reduction in the third level student contribution fee. The last two budgets contained one-off measures. Everybody knows that. This is a permanent reduction.

As a small global economy, Ireland has greatly benefited from the returns of international trade, something those in opposition never appreciate. They oppose trade deals which is bizarre but they do.

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