Dáil debates
Wednesday, 8 October 2025
Financial Resolutions 2025 - Financial Resolution No. 5: General (Resumed)
5:20 am
Seán Canney (Galway East, Independent)
I thank my colleagues in government for giving us the opportunity to participate in the formulation of budget 2026. I remember back in January, when my fellow TDs from the regional group took the courage to support the establishment of a Government, we did so on the basis of an agreed programme for Government, a blueprint for change, to be delivered over the course of five years. While in opposition, we as Independents highlighted many issues, including those affecting carers, those with disabilities, and fuel poverty. We knew that in order to achieve what was required we needed to work in government and on that basis we agreed the programme for Government with our coalition partners. Budget 2026 is the first step on the road to addressing these issues in a meaningful way for those who need it most. We understand all too well that our people have to be at the heart of what we do, be it carers, those with a disability, those on a social welfare payment, those in need of homes and those living and working in our regional towns and villages up and down the country. We want to make a tangible difference to their lives. There are measures and reliefs for carers, those with disabilities, students, those seeking homes, pensioners and hard-pressed families. This budget is about delivering targeted, long-term changes to protect the people into the future. Budget 2026, coupled with the revised national development plan announced in July, has the power to transform our country. The revised national development plan will deliver transformational investment to safeguard our future, with €275.4 billion of public capital investment to 2035 to secure Ireland's future and unlocking housing, upgrading our water and energy infrastructure, delivering more roads and providing more public transport. This investment will deliver real impacts for rural and regional Ireland right down to the heart of our communities. We are what I would describe as a government of implementation not a government of strategy. We want to deliver real change that people can feel in their daily lives. This budget represents the first of five budgets over the course of which we will deliver permanent, real fixes for our people; not just firefighting measures. As an Independent TD and a Minister in Cabinet, I look forward to continuing to work with our partners in government while the measures outlined in the programme for Government are being implemented.
We talk about delivering change in our society. Some of the people who make such a difference every day in our lives are carers. While in opposition, the regional Independent TDs tabled two Private Members' motions about the abolition of means tests for carers over a specific period. The Independent TDs insisted that this means test would be abolished over the lifetime of this Government as a key objective of our programme for Government and I am delighted to see the increase in the earnings disregard for carer's allowance by €375 to €1,000 for a single person, and by €750 to €2,000 for a couple. This is the first step on the road to abolishing the means test for carers over the lifetime of this Government. We have engaged with Family Carers Ireland for many years on this issue and it is clear that abolishing the means test is the only way to ensure carers are treated with the respect they deserve.
In addition, we are increasing the associated carer's benefit income limit by €200 to €825.
People living with disabilities need to be supported properly in every way to allow them to enter education, enter the workforce and carry on their everyday lives. In the previous Dáil, I was a member of the Joint Committee on Disability Matters. I engaged with a huge number of people who have the lived experience of disability. I warmly welcome the expansion of the wage subsidy scheme and the extension of the back-to-work family dividends to recipients of the blind pension and the disability allowance. This measure will allow people on disability allowance and the blind pension to retain their fuel allowance even if they enter the workforce, and they can hold onto it for five years.
In the Department of Transport, we are designing a new vehicle support scheme that will be coming forward shortly.
The €10 increase in social welfare rates is also very welcome, as is the increase in the fuel allowance of €5 per week from January. The increase in the child support payment, the extension of the fuel allowance to all those in receipt of the working family payment, the increase in the thresholds relating to the allowance and the expansion of the back-to-school clothing and footwear payments to two- and three-year-olds, are targeted measures that will cost over €300 million. These are steps in the right direction, but this Government needs to and will do more over next four years.
I warmly welcome the investment of €10 million in the rural social scheme, the community employment scheme and the TÚS scheme, all of which are vital to rural Ireland.
Mortgage interest relief, which has already benefited more than 60,000 householders, has been extended for two years. This scheme has been a lifeline for many homeowners.
The reduction in VAT from 13.5% to 9% for the hospitality sector and hairdressers is also welcome for businesses across the length and breadth of Ireland, many of which are small family businesses.
An additional €840 million in current expenditure is being allocated to the education and youth Vote in 2026, bringing the total allocation for next year to €11.5 billion. We also need a permanent solution in respect of the issue of student fees. The €500 reduction in those fees is the beginning of a journey that will allow this solution to be developed over the next four budgets.
In agriculture, there is a current investment of €2.3 million to support the agrifood sector and assist families with targeted and industry specific supports, including €85 million towards the roll-out of a new bovine TB action plan, which is very welcome. This is coupled with a total of €335 million for investment in capital schemes, which includes providing targeted supports via TAMS to improve efficiency, sustainability and safety at farm level.
The additional €5 million in funding for the post office network is also welcome. The increased investment brings total support for the network to €15 million, strengthening the role of the post office at the heart of rural areas and in communities across Ireland.
When we talk about long-term planning, accountability has to be factored in. We need to do more with the resources we have. Care and accountability in service delivery are paramount to ensure that investment reaches the areas that need it most. Measures like the establishment of the local democracy task force earlier this year, which will reform and strengthen local government in Ireland, are very welcome. As a former councillor, I know how vital it is to have strong local government in every town, village and rural community. There is also a need for the root-and-branch examination of the delivery of local government functions, particularly in the areas of housing and planning. I also welcome the continuation of the 9% reduction in the VAT rate on energy for everybody.
Housing is a serious issue right now, and we in Government recognise that. Every elected Member of this Chamber has stories about their communities and people who are really struggling to get homes. We are working to improve matters in order that people across the country can access homes of their own. The revised national development plan has housing at its core. As a Government, we are investing in housing and addressing the viability gap, which will allow the private sector to kick-start the building of houses in order that they will be available to purchase at affordable prices.
The Government has committed to investing €2 billion in Uisce Éireann. This is required to ensure additional capacity for housing developments. Equity funding of €3.5 billion is being provided to the ESB and Eirgrid under the national development plan to fund enhanced energy capacity to support the Government's housing and competitiveness objectives.
The VAT rate on apartments will fall to 9% from 13.5%. This will bridge the viability gap and kick-start the private housing market. This is essential if we are to solve the housing crisis. The expansion of the living city initiative is potentially transformative. The extension of the scheme to five additional towns of Sligo, Athlone, Dundalk, Letterkenny and Drogheda is good news. It will have a twofold impact. People will be able to access houses and more people will be living in regional towns. This will boost our local economies.
In my area of transport, the Minister, Deputy Darragh O'Brien, will outline the main budgetary allocations for our Department. As regards the matters specifically under my remit, road safety is a key priority. I will be instructing the Road Safety Authority to ring-fence €18 million to support important educational campaigns and media campaigns on road safety. In a wider sense, the reduction of the driver test waiting times since I took office is a welcome development. It requires a lot of hard work on the part off everybody involved to make it happen. In April, the average waiting time was 27 weeks. That has been reduced to an average of ten weeks now. There is more to be done, however, such as dealing with the issue of multiple learner permits, the introduction of a 30 km/h speed limit in built up areas and the reduction of the default speed limit on national secondary roads from 100 km/h to 80 km/h. This week, the Minister and I will be instructing the local authorities to embark on the process with a view to having the 30 km/h speed limits in built up areas operational by March 2027. Ultimately, this is about making our roads safer, getting people home when they go on journeys to visit their loved ones and reducing the number of road deaths and serious injuries. Since taking up this role, I have met many advocates for road safety. A large number of them have lost loved ones. Each of their personal stories is profound. We will keep those people to the fore of our minds as we work to make our roads safer.
I am also pleased to see huge progress in another area under my remit, namely the Irish Coast Guard. The latter's aviation services are provided under contract. The contract provides for the operation of four 24-7 search and rescue helicopter bases, with an additional for the first time of two 24-7 fixed-wing services. This is a major investment that cannot be underestimated.
I began by saying that I and my Independent colleagues are part of this Government to ensure the implementation of the agreed programme for Government. Budget 2026 is the first clear signal of that. It contains targeted and tangible measures that will help those most in need right across this country. It is the first step and we, as Independents, will continue to work with our colleagues in government and with our partners to continue to implement the programme for Government. I commend budget 2026 to the House.
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