Seanad debates

Tuesday, 6 December 2011

3:00 pm

Photo of Darragh O'BrienDarragh O'Brien (Fianna Fail)

I will leave it to the Leader to identify those because I am hard pressed to find them. As I stated on the Order of Business - this is a matter which the Government should address - one of the major difficulties with the budget is the proposed cut to the disability allowance, particularly in respect of younger people. The proposal in this regard cannot remain as it stands. The reduction in this regard for young people would be between €88 and €110. The Government cannot try to disguise what is being done by stating that it is trying to encourage people to become involved in training schemes, etc. A crucial mistake has been made here and that the Government has an opportunity to rectify this between now and the introduction of the social welfare Bill next week. I ask the Minister of State and my colleagues across the House to ensure that this cut - which is one of many - will not proceed.

Child benefit has been reduced in respect of third and subsequent children. Last year, the current Minister for Finance asked what the previous Government had against third children. I am obliged to ask the same question in respect of this Administration. I must also ask what it has against Protestant schools. The Minister of State referred to the pupil-teacher ratio, which is going to increase because guidance counsellors are being subsumed into the overall teaching cohort at second level. Many private secondary schools make educational provision for those of minority faiths. For Catholic post-primary schools the pupil-teacher ratio is 19:1, whereas for mainly Protestant schools it is 21:1. That is not acceptable. Any republic must ensure that the needs of minorities are catered for. The disgraceful move in this regard, which to some extent has remained under the radar, should be reconsidered.

The €750 million cut in the capital programme was easy to make. It is a once-off saving. The Government will introduce similar cuts next year and the year after. The budget also makes provision for increases in VAT and motor tax. The excise duty on cigarettes is being increased, as is the price of petrol. In respect of the latter, I do not know what will be the exact increase per litre. I accept that it will not be much. The difficulty I have is that the budget is predicated on growth rates for next year which I do not believe. I did not believe the growth rates that were supplied in respect of the previous couple of budgets either. We will not attain the growth rates that have been set down. I am concerned that the Government will be obliged to return to the well long before the introduction of the budget for 2013 at this time next year. The tax take this year will be approximately €700 million behind target, if one takes into account all of the taxes including VAT and income tax. That is a very serious differential between the stated projection and what was taken in. I do not believe the Minister for Finance's statement today that he expects there will be a 2.5% increase in nominal GDP next year. I do not think that will happen. I would ask the Minister of State on the basis of this that with a VAT increase that is supposed to take-----

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