Seanad debates

Tuesday, 6 December 2011

3:00 pm

Photo of Jillian van TurnhoutJillian van Turnhout (Independent)

When I was speaking earlier this morning, I should have wished a happy St. Nicholas day to my colleagues in the Netherlands, for whom today is gift-giving day. I do not think the same can be said for here. I can understand now what people mean when they say that something was a game of two halves. There are many aspects of the budget about which we can speak positively, and there are some good initiatives, but due to the time constraints I am going to highlight the areas in which I have concerns and which I feel need more considered attention. Also on the subject of the time constraints, we need to consider having a debate in which Senators have an opportunity to make statements, because in this debate, the Minister, whom I greatly admire, took up a quarter of the time Senators had to give their statements.

The Minister for Public Expenditure and Reform, Deputy Howlin, said yesterday in the Chamber that we need to ensure the burden of our economic recovery is shared fairly. Sometimes I wonder about this. We talk of Ireland having experienced four years of hardship, which conjures up a notion that before that, everything was all right. Unfortunately, it was not. For many of the groups we are discussing today things were not just fine. The painful process of adjustment that the Minister for Public Expenditure and Reform spoke about yesterday impacts overwhelmingly and disproportionately on those who are and were already vulnerable. At the same time, there remain significant numbers of Irish citizens who are insulated and largely unscathed by this afternoon's and yesterday's announcements.

I understand it is unrealistic to expect that everybody should have the same standard of living, but we should be striving for greater equality of opportunity. The foundation for that must be protection from poverty, hardship and despair. Can the Minister confirm that the VAT increase of 2%, which will absorb 1% of the disposable income of the bottom 10% of earners but only 0.35% of the disposable income of the top 10% of earners, is an example of every effort being made to ensure that the burden of economic recovery is being shared fairly?

The budget was announced in two segments but it is actually split into multiple pieces. We still have a situation where each Minister is producing statements and I am still trying to work through all the details. Reducing the back-to-school clothing and footwear allowance has a severe impact on families. The Minister for Education and Skills hinted that he might examine directly off-setting that towards school uniforms or books. I would have liked that announcement to have been made. I also urge caution to my colleagues and the Minister for Social Protection. Yesterday, she compared child benefit rates with those in other countries. If one wishes to compare, one must compare like with like. While child benefit rates in Ireland are high, other countries provide free child care, free school books, free uniforms and free health care, so we should compare like with like.

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