Seanad debates
Tuesday, 8 February 2005
Appropriation Act 2004: Statements.
3:00 pm
John Paul Phelan (Fine Gael)
I welcome the Minister of State, Deputy Parlon, to the House and I am glad we have an opportunity to discuss the Appropriation Act. It was passed in both Houses before Christmas but there was not much debate because of the lack of time. I am delighted the Leader has found time to hold the debate today.
I have looked back on some past discussions on appropriations and the Appropriation Acts of previous years. They were always used as an opportunity at the end of each year for Government and Opposition Members to debate how the public finances are being managed and minded. The Opposition is used to hearing lectures from the Government about how everything seems to have started in 1997, without reference to what happened before that point. Some things have happened in the management of this Government since 1997 which deserve examination. I am glad to have the opportunity today to discuss a few of the increases in spending that have occurred over that eight-year period.
Calculated overall, the tax take in this country from each individual has doubled over the period in question. The annual tax take by the Department of Finance is now €44.5 billion compared to €21.7 billion in 1997. There are a number of reasons for that. Clearly more people are working and earning more money, but that does not explain the doubling of the tax take. Employment numbers over the period have not doubled. The Government regularly promotes the notion that Ireland is a low-tax country but that is not the case. The method of tax collection has changed. Income tax levels have decreased but new charges have come in across the board in different areas. That is something the Government also conveniently failed to recognise or admit, but it is a fact. A doubling of the tax take in the eight-year period during which the coalition has been in Government is certainly indicative of our not living in the low-tax economy that we are sometimes led to believe. An additional €8,800 per year per household has been taken in tax since the governing parties first took power in 1997. That is certainly not indicative of a low-tax regime.
The Minister of State himself has gone through several areas where spending has increased, and we recognise the massive increases in health spending in recent years. We have seen a trebling over the period, yet, if anything, there has been a significant disimprovement in health services. I welcome the appointment of the new Minister for Health and Children, Deputy Harney. Perhaps she can do something to shake up that Department as something needs to be done to ensure we get value for money. I am glad the Minister of State, Deputy Parlon, mentioned that in his opening remarks.
Government actions over the past eight years have not done much to instil in me or anyone else the notion that it is conscious of the concept of value for money. If the Government was a public company, it would be in serious difficulties by now, given the reckless spending, particularly in the run-up to the last general election in 2002. Immediately thereafter, we saw a clawback. However, in recent months we have begun to see something of a splurge again. The Minister of State outlined several areas where extra money has been spent. I have noticed significant extra amounts going on a number of areas over the past seven or eight years without our seeing any improvement. Some €500 million more is being spent on the criminal justice system than in 1997, yet detection rates are down by 6%. Drugs seizures have fallen by approximately 43% over the past year. Assaults causing harm are up by574%, and public order offences by over 90% over the seven-year period; yet we are spending €500 million more on the criminal justice system.
We have not yet seen or heard from the 2,000 extra gardaí who were supposed to be appointed and who we were told before Christmas by the Minister of State, Deputy Parlon, would come on stream in the near future. I will believe that when I see it. We have seen no Garda efforts on the ground to provide facilities to train the additional gardaí. If there are to be 2,000 more, they will have to be trained somewhere. As matters stand, the Templemore facility cannot cope with the proposed provision.
Despite what the Minister of State and other Government spokespersons might say, Government expenditure on public services between 1997 and 2004 increased by 71% in total; yet across many areas, including education, health and criminal justice, the service has disimproved if anything. I make particular reference to what Deputy Parlon and previous speakers have said on such matters as the pupil-teacher ratio, which comes under the auspices of Department of Education and Science. No one seems to recognise, realise or admit when making such comments that there are fewer students in schools now than in 1997, and that is the primary reason that the ratio has fallen. It has very little to do with any action taken by the Government.
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