Thomas Byrne (Fianna Fail) | Oireachtas source

Gabhaim buíochas don Aire toisc go bhfuil sé i gcónaí sa Teach seo. Ní bhíonn sé ró-fhada as an áit seo agus tá sé tábhachtach go mbíonn sé istigh anseo sa Seanad. The latest Exchequer figures show that the deficit for the first ten months of the year was ¤14 billion, compared with ¤22 billion for the same period last year. While I acknowledge that the Government is reducing the deficit, the Minister claims to be reducing public expenditure, but in my view there is a difference. It is a fact that current public expenditure is increasing this year over last year. Capital programmes and the deficit have been cut. It is a matter of serious concern. We are increasing our spending for various reasons. The main reason for the decline in the deficit is that the Government did not put more cash into the banks this year and we can defer the payment of the promissory note. The tax returns for October are disappointing, with revenue at 11.4% below target, the third month out of four in which tax revenues have been below profile. The current expenditure is ¤424 million over budget, even in an environment in which that current expenditure is increasing. Health expenditure is ¤336 million over budget and social protection expenditure is ¤451 million over budget. These are the main drivers of the overspend. The Government has failed to implement measures promised in the budget to control health spending in particular, and it was rapped on the knuckles by the troika in this regard.

The November outturn will have a significant bearing on whether the Government meets its fiscal targets for this year. It will affect the coming budget and its impact on citizens. Capital spending is used to develop national infrastructure such as roads, hospitals and schools, as well as energy, communications and recreation infrastructure. At the end of October there was an underspend of ¤336 million in the capital budget. This is ¤336 million that the Minister has refused to spend or has not spent, which will cost jobs. This comes on top of the severe reductions in capital expenditure which the Minister put forward as part of last year's budget and which were greater than the capital expenditure reductions forecast by the troika and contained in the IMF agreement. The Minister says he is tied down by the troika or that he is obliged to follow the memorandum of understanding, yet he was able to renegotiate a reduction in capital expenditure because he did not want to take the decisions on the current side. Capital expenditure is decreasing while current expenditure is increasing above the target. This is having a detrimental and damaging effect on the economy. The Government is literally starving the domestic economy of much needed spending.

The Minister says the Croke Park agreement is much maligned and misunderstood. The Minister should reflect on the Labour Party's time in opposition, when it took a neutral approach to the Croke Park agreement when it was being negotiated by the then Government. The Minister might look to the gang of eight in the Fine Gael Party who malign and, as the Minister says, misrepresent the Croke Park agreement in the media on a regular basis. The Government needs to look at itself on this matter.

The success or otherwise of the agreement will be measured by a simple criterion: how much money will be saved in the Exchequer pay bill. Much of the savings achieved to date have been from measures introduced by the previous Government. The hallmark has been endless prevarication. The Minister referred to the issue of sick leave. That seemed to be an achievement. However, while some of the changes were to be introduced administratively - I do not know whether this happened - legislation was to be brought forward to deal with the other aspect of the sick leave issue. The Minister has not said when this legislation will be published.

The real situation with regard to the economy is that GDP was flat in the second quarter, while the general debt increased. It is now over 100% - I suppose that is a projection - and there are fewer people at work. The Government is not doing enough to reverse those sad economic trends; it is cutting capital expenditure and increasing current expenditure. I disagree with the pension levy because this measure destroys job creation. The Government should reverse the cuts to home insulation grants.

The Slane bypass in my constituency would cost only a fraction of the cut in the capital spend the Minister has put in place above and beyond what was agreed with the troika. There is much hand-wringing about not having enough money, with people saying that Fianna Fáil did this and that. The reality is that the Government cut the capital budget significantly above and beyond what is detailed in the troika agreement, with the result that major safety projects such as the Slane bypass cannot go ahead. I agree there were planning issues. The county council is currently looking at the planning issues, but the Government has not committed any funding because of the cuts in capital expenditure, while allowing current expenditure to increase all the time.

We welcome some of the progress on the reform agenda. The Government talks a good game about openness, transparency and accountability, but I must mention today's Supreme Court judgment. As a supporter of the "Yes" campaign I am pleased with that judgment because it is essential that the Government operates within the rules and spends its money within the rules of the Constitution. I hope the judgment acts as a marker on Government arrogance. The Government has taken things for granted.