Dáil debates

Wednesday, 8 October 2025

Financial Resolutions 2025 - Financial Resolution No. 5: General (Resumed)

 

9:00 am

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Independent)

Yesterday evening I spoke about the macro situation and how the Fiscal Advisory Council had urged a cooling down, because the corporation tax receipts were not going to last forever and that this budget, in one sense because it came after a giveaway election budget, had shades of 2007. Now I want to move on to some of the specific measures in the budget. During the votes last night I got to talk about the apartment VAT recommendation, which I fundamentally disagree with. That €250 million could be spent in other areas that require it. However, I did welcome the extension of the 9% on VAT for gas and electricity. We cannot discuss this without tying in with the issue of carbon tax. Many Members of this House took a very populist angle, saying we cannot impose this carbon tax on hard-pressed people. The reality is that if we do not impose the carbon tax, then the hard-pressed people are going to face higher penalties down the line. We have to do it whether we like it or not. and I believe that a carbon tax done properly that encourages usage of renewables and encourages the move away from fossil fuels is a good thing if it is done fairly. I still have not seen many details on the amount of retrofitting and the social welfare gains that are going to come from this carbon tax.

I do not think its ring-fenced enough. I do not think the retrofitting investment overall is enough because it needs to be sped up, particularly for local authority housing.

The VAT relief on electric vehicles is extended to 2030, which is very welcome but there is nothing on the charging infrastructure and making it easier to charge at home. Many constituents in my area have major issues because they cannot put a proper line through a footpath to a charging point on the street so they can avail of the domestic tariffs. The local authority in south Dublin appears to be trying to penalise people by forcing them to use commercial rate chargers. That is not the way to encourage people to use EVs. As someone who has driven an EV since 2017 on a domestic rate, I know it is much cheaper and obviously environmentally better than using petrol or diesel.

I welcome the microgeneration electricity income tax relief up to 31 December 2028. I think it could have continued for longer.

I make a small comment on the tobacco excise duty up by 50 cent. I was alarmed to see some Members in this House oppose this measure. While these are older figures, a study done in 2020 by the Irish Medical Journal, using 2016 smoking data from the Healthy Ireland survey and international figures for hospitalisation and cost data, estimated the overall cost of smoking to the country over the lifetime of the current smoking population at €20 billion. While admittedly this is from 2016, the estimated cost to the HSE from smoking was €172 million that year. It is likely to be over €200 million in current figures. Anyone who opposes the 50 cent increase does not know what he or she is talking about and is playing very petty politics if he or she is trying to obtain votes on the back of something that is going to kill people.

I welcome that the vape liquid for reusable vapes will now have a surcharge. That was announced before the budget. There is also an issue with disposable vapes. We had previously called for the abolition of disposable vapes and I would like to see that pushed quicker.

The living city initiative scheme and the use of over-the-shop premises for residential purposes are also welcome. However, we need something more for the smaller towns and villages that are dying. Post offices are closing everywhere. I welcome the €15 million for post offices, but we need to get people living over the shops in smaller towns and villages.

I welcome the derelict property tax but we could do with more. Why are the preliminary registers not being published until 2027? Why not next year? The retrofit reduction for landlords is welcome and will lead to having warmer and more affordable homes for tenants.

I obviously welcome the minimum wage increase to €14.15 an hour. I welcome the bank levy extension for a year but this levy should be continued well into the future. I also welcome the additional funding for development aid, although we are not going anywhere near our long-stated target.

I welcome the potential recruitment of 1,000 Garda trainees but I note that approximately 250 will retire each year, so we need to move a bit faster. I had a major contribution on a Private Members' motion on antisocial behaviour. As I pointed out then, Garda numbers per head of population have fallen since 2008, so we need to be doing a lot more. We need to look at having a dedicated transport police to deal with traffic issues rather than taking up Garda time on that.

I welcome the increase in funding for domestic and gender-based violence initiatives but as others have said, it is nowhere near enough. If the Government had got rid of that apartments incentive, we would have much more funding available.

The fuel allowance increase of €5 is a small amount and could be more but it is still welcome. The €7.3 million for youth justice intervention is a welcome improvement as well.

At one level, it is great to see the child support payment up and a reasonable level of funding in the early years up to €125 million. However, as others have said, there is nothing about State-funded childcare. There is nothing about reducing the costs of childcare, which is a missed opportunity.

In education, I welcome the additional SNAs and teacher funding. I also welcome the additional funding for the new DEIS plus scheme. I also welcome the capitation increases. I am a firm believer in investment in education. I do not think it goes far enough but, again, I cannot criticise something that is an increase, however small. That said, I have an issue with the student fees being spun as being permanently reduced. The election giveaway should not have brought in the €1,000 reduction if the Government expected people to be happy that it would be put back up by €500. The Government should not give with one hand and take away with the other, especially at a time when costs continue to increase and it puts a lot of pressure on families. It is an extra fee cost for families.

On healthcare, I welcome the additional places and acute hospital capacity that has been announced. However, the chair of Doctors for Universal Healthcare, Dr. McGlacken-Byrne, mentioned that the promises of universal healthcare envisaged in the Sláintecare report had not been realised and we were still a long way away from that. I would like to talk more about that but I do not have too much time in the debate.

The money allocated for sport is welcome, but I again highlight the Horse and Greyhound Racing Fund of €99 million. Some of the activities involving horses and greyhounds could not be described as sport, but could be described as abject cruelty. Greyhound racing should be abolished straight away and health and safety checks in the horse racing industry should be looked at. We need more money for sports that people actually play themselves for their health, mental health and well-being.

I welcome the income disregard for the carer's allowance, but again we had opportunities to increase it and we did not take those opportunities.

Increases for disability are welcome. However, the Disability Federation of Ireland called this budget a devastating setback for disabled people unable to work because they may have less support and less security. The big numbers have been highlighted but the one-off payments have gone and people are in a very vulnerable position.

I welcome the defence spending. I see nothing on drone technology. Given the drone attacks, I would love to see that put in place for next year.

I welcome the basic income for artists being retained but we need a long-term strategy for this and there were no details on the review.

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