Lisa Chambers (Fianna Fail) | Oireachtas source

Budget 2021 is colossal in both scope and spending levels, with an overall package of almost €18 billion. It will do exactly what the country needs it to do at a time of great uncertainty for Irish people and Irish businesses. I am unaware of any time in our State's history when our country and economy faced such severe challenges, with the double threat of a prolonged global pandemic and the possibility of a bad Brexit deal. The Ministers, Deputies Michael McGrath and Donohoe, did a good job yesterday of striking a balance between borrowing what is needed, spending to support the most vulnerable indigenous businesses and looking to the future with a contingency fund of €5.5 billion to allow for additional spending in social welfare, health and Brexit supports as they are needed. This flexibility shows a Government that is agile and dynamic, ready to move and deal with the uncertainty and changing needs of our country in the year ahead.

There was little scope yesterday to be negative about the budget, given how much was being spent to protect our people and economy, but some in opposition nonetheless scrambled to find any fault they could, simply for the sake of finding fault. The general public's reaction to the budget, however, has been very positive, with the hospitality and retail sectors broadly welcoming it.

In the area of business, and in particular hospitality and retail, the reduction of the VAT rate to 9% is very welcome. I am sure every business in hospitality and retail in the country breathed a sigh of relief yesterday as that measure was announced. It will help to ease pressure on those sectors most impacted by Covid-19. The supports for businesses that are closed due to the restrictions of level 3 and above, of up to €5,000 per week, are also very welcome. The two supports, as well as the extension of the wage subsidy scheme, are so welcome and there was a sigh of relief across the board. In my county of Mayo, particularly in the areas of tourism and hospitality, which are major employers, people in business were worried for the future. These supports, however, will keep the wolves from the door and help businesses to survive and to protect jobs by creating much-needed cashflow to address the overheads that remain even when their doors are closed.

My colleague, Senator O'Loughlin, is sitting beside me, and I commend her and the Minister of State, Deputy Butler, on a dementia package of almost €13 million. I thank them for the new memory assessment and support service hubs, one of which is to be located in County Mayo, with the other three in Sligo, Waterford and Wexford. This will mean people can get an assessment and, hopefully, early diagnosis and treatment in their communities and regions, without having to travel to St. James's Hospital. From speaking to people in County Mayo, I know this has been very welcome in that community, which should look forward to the opening of those services in the latter part of 2021.

This pandemic has shown how important education is for the well-being of our children. I was pleased to see the teacher-pupil ratio reduced in the budget. We have some of the largest classroom sizes in Europe and this is a positive step towards addressing that. The budget has delivered a one-point reduction in the pupil-teacher ratio for primary level to 25:1, an historic low. This will, in turn, create hundreds of additional staffing posts in the primary system, an important step that takes into account the Covid-19 pandemic and the pressure it has placed on every school in the country. More than 400 additional posts for children with special educational needs have been allocated, as well as 265 additional posts to meet demographic demands. Another important aspect of the budget, and one I raised directly with the Minister for Education and Skills, Deputy Foley, was the need to address the decline of small rural schools. That there has been a delivery of a three-point reduction in the number of enrolments required to maintain an existing teacher has been welcomed by many rural schools.

I turn to the area of carbon tax and climate change. Living in a rural community, I know that many are worried about the cost of fuel, whether diesel or petrol, and the impact that may have. Broadly speaking, however, people understand the need to tax pollution and carbon. People appreciate that doing this is not about collecting money but rather about changing behaviours. Gradually increasing the tax and addressing it in the years ahead, and giving people advance notice of the changes coming, will change behaviour. I fully accept that electric vehicles are expensive, but those who can afford to change their cars to cleaner, more efficient vehicles should do so. It is in the interest of protecting our environment, keeping our air clean and protecting the country and environment for children in the future.

One important aspect of the package was the social welfare measures to protect those most vulnerable to these changes. Accordingly, we have created a very progressive carbon tax system. This means we will spend the carbon tax we take in on retrofitting homes and funding environmentally friendly agri pilot schemes. This is most welcome and progressive and it is something younger generations want to see. We have to protect our climate and environment for generations to come and we must start that in this budget.

I spoke directly with the Minister, Deputy Michael McGrath, about the support for students and, in particular, the €50 million hardship fund. We in Fianna Fáil are really proud of our tradition in education. We see education as the great equaliser. Every child and student in the country should have access to the best possible education and money should not be a barrier.As somebody who had a part-time job all the way through college, I would not have been able to go to college were it not for access to part-time employment. Many students facing into the college year without access to a part-time job face the prospect of not being able to go to college this year. Having access to a hardship fund will alleviate that pressure and ensure access to education for every citizen.