Pádraig Mac Lochlainn (Sinn Fein) | Oireachtas source

In terms of economics, it seems like an eternity ago during the first week of the general election campaign that every person in the country was speaking about the fiscal space and exactly what it was and meant. Given that the Department of Finance now advises that the figure of adjustment over the next five budgets will be €11.3 billion, we in Sinn Féin consider that this space should be prioritised towards rebuilding our public services and key investment in our infrastructure. That Fine Gael is still even contemplating abolishing the USC for all is remarkable. We certainly agree with reducing USC for low and middle income earners, those that suffered most from the years of austerity. However, to abolish it for those who can afford to pay it most at a time when we have an unprecedented housing crisis, a continuing and never-ending crisis in our hospitals and starvation of investment on any scale over the last eight years and more is quite foolish.

We anticipate if the 2:1 spending to tax cuts use of the fiscal space available, as outlined in the summer economic statement, is followed through it will mean €333 million directed towards reducing USC for higher earners. That money could build a lot of badly needed new homes across the State. This rainy day fund which we believe will amount to €3 billion of the €11.8 billion available is very questionable. To apportion such a large amount of money into what may turn out to be nothing more than an electoral slush fund is simply not acceptable. We in Sinn Féin recognise the need for economic prudence and agree with a €1.5 billion fund with strict spending criteria as set out by us previously. We deem this figure to be more than sufficient.

From a tax point of view, there are certain positives. We welcome the proposal to increase the self-employed tax credit as we suggested. Reducing capital gains tax for start-ups has the potential to revitalise communities and local economies and introducing a PRSI scheme for the self-employed is also to be welcomed. However we will await the detail.

Looking at capital investment or perhaps more appropriately lack of capital investment in terms of health, housing, transport, broadband, etc., over a nine year period, every region and part of Ireland is crying out or funds to develop their areas and escape past neglect. Government plans do nothing to address this massive under-investment in recent years and this Government seems to be agreeable to continue our terrible status as one of the worst investors in capital investment in the EU. Investment needs to be seen for the multiplier effect it has on local economies.

The Minister of State will have seen the preliminary report from the CSO. It is no accident that in areas where population is growing, like the Fingal area of Dublin, my home county of Donegal, Mayo and other western counties, one can see people voting with their feet and leaving because they do not see an economic future. That needs to be reversed and it will mean infrastructural investment in our public services and capital infrastructure, particularly along the west of Ireland.