Albert Dolan (Galway East, Fianna Fail)

It is a privilege to speak on my first budget in my term as a TD. It is very clear what the budget is about. It is about investing in the future of this country and securing the jobs that fund it and ultimately make it a success. When we talk about investing for the future, we have to be realistic about the investments that needs to be made in infrastructure, energy, grid capacity and the security of the country. Also, we have to ensure we are not unduly exposed to international risks, which pose serious threats in this day and age.

I want to address the issue of VAT on homes, because there has been much criticism of the reduction of the rate from 13.5% to 9%. The purpose of reducing VAT is to create viability. When there is viability, we will end up building more homes. Not only will we build more homes, but the Government will actually receive more VAT as a consequence. Nobody has made the point that by building more homes, the Government will bring in more VAT, in addition to all the VAT charged on the goods used to the production of those homes. This is an important point. We should be cognisant of the fact that generating more VAT returns on the back of a VAT reduction is of high probability under the policy.

Let me address the matter of supporting our most vulnerable. The increases in the fuel allowance and in weekly payments for pensioners and people with disabilities will ensure we look after those in society who need support most. People understand that this was the idea behind the budget.

In education, the increase in the capitation grant has been widely welcomed by schools. A principal I spoke to earlier in the week told me the extra €50 per pupil will equate to €9,000 per year in additional discretionary funding for use within the school confines. The increase in the capitation grant was lobbied for seriously by the INTO. It has really been welcomed across schools because of the impact it will have on their ability to operate day in, day out.

The first permanent reduction in college fees in many years, from €3,000 to €2,500, will make college more affordable for students. The regular expansion of the SUSI grant will continue to bring more students into eligibility. However, an issue raised with me by a family concerns the fact that for a postgraduate degree, the income threshold drops from €115,000 to €64,000. We need to examine this. Families should not be penalised if a member of the household is proceeding to postgraduate level. A postgraduate degree is now part of the education process. It is now almost mandatory to obtain a postgraduate qualification and become a specialist in an area. We need to examine the income thresholds in this regard.

Looking at Galway, its economy and the number of incredible medtech and biomedical device manufacturers there, none of the activity in the area would be possible without research and development. Research and development is what allows so many high-paying, high-quality, highly skilled jobs to be available in the west, including Galway. Increasing the research and development tax credit to 35% was a huge step in the right direction. It creates job viability when there is considerable competition for jobs internationally, including across the Middle East, Asia and America.

My next point is on being fiscally responsible and the fear of overheating the economy. We are living in a time when Ireland has one of the highest GDPs per capita in the world. While I understand that is not a good measure for our country, it is important because we now have an opportunity to invest for our future to keep going on the trajectory we are on, where we have bigger budgets and expansionary packages and are able to implement tax measures and support people.

One small thing in the budget that I thought was really interesting was the funding allocated for the establishment of the national AI office. This is a very timely measure, with €1.4 million being allocated to establish the office. This office and the work it will do will be vital for the future of this country. We are, essentially, in the middle of a race to determine who can adopt AI the quickest and ensure it provides the greatest efficiency and productivity enhancements to their economy. Given our support and the number of technology companies that operate here, we have to show leadership and lead from the front on AI. Opening a national AI office is a step in the right direction.

The last point I will make before my time runs out is that we have a €27 billion health budget. I am looking forward to having representatives of the HSE in front of me in the meeting of the Committee of Public Accounts tomorrow. One thing we are really failing on is investing in preventative health. Prevention is the best cure and I believe we need to seriously increase our investment in preventative health.

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