Seán Kyne (Fine Gael) | Oireachtas source

I welcome the Minister. This is my tenth budget as a Member of the Oireachtas. Like many of us, we have seen everything from the IMF and budget cuts to a regaining of sovereignty, an increase in expenditure and the pressure and uncertainty of Brexit when balancing the books a year ago. This year has shown the rationale for a rainy day fund to those who doubted it. The reason it was needed is clear. It has been utilised. This time last year, the threat of Covid was not known.

The global pandemic and forced shutdown have led to uncertainties over our finances and health services. Businesses have been shut down. We have seen the advent of the pandemic unemployment payment and the temporary wage subsidy scheme, followed by the other schemes put in place by the Government to support businesses and people.

The ability of the State to fund this budget and the increased spending this year are based on borrowing. Ireland's reputation and good name have meant that we have been able to borrow. Had we defaulted and burned the bondholders, as some had wished, where would we have got the money necessary to support the borrowing to fund our response to Covid? In this regard, I am referring to the response in our business community, the response to the need to protect jobs and the response in our healthcare system.

This budget is framed with several objectives. First, it aims to protect lives from the threat of Covid-19. The measures the Minister has put in place for health are certainly welcome. Second, the budget aims to safeguard jobs and businesses. Third, it aims to increase investment in our infrastructure and increase capacity in our public services.

Protecting people from Covid-19 involves healthcare, education, social protection, housing and other measures. The commitments and funding the Minister has provided will certainly aid in all these areas with a view to getting through the Covid pandemic in 2021.

With budget 2021, we have the largest ever health budget, of €22 billion, including funding for direct Covid-19 measures, such as testing, contact tracing, personal protective equipment and extra hospital capacity. The budget also provides for extra hospital beds, extra critical care beds and community beds. It includes €38 million for mental health services, an area that has been sorely tested during the pandemic. The budget also includes €100 million for disability services, including supports for school-leavers and respite care, among other areas. It also includes provision for 5 million home care hours, bringing to 24 million the number of home help hours available. This measure, along with the fund that includes funding for home adaptation grants, will help older people to live independently and securely in their homes for longer.

With such demands on healthcare, I am heartened by the targeted increases secured by the Minister responsible for social protection, Deputy Humphreys, including increases to the living alone allowance, fuel allowance, carer’s support grant and island allowance, and by the payment of the Christmas bonus, affecting all those on longer term support payments. This will directly help and support vulnerable people in our communities. The Tánaiste, Deputy Leo Varadkar, secured a package of supports for businesses and workers. It is crucial at this time. Confirmation that the employment wage subsidy scheme will continue through 2021, along with a new Covid restrictions support scheme, will be the difference between survival and bankruptcy for many businesses.

Many Members will recall the last recession and the scourge of unemployment. The devastation of unemployment for individuals, families and communities cannot be overstated. Many people have faced unemployment this year who never believed they would. This time last year, they did not believe they would be in circumstances in which they would be out of work. The State always has to step in to be the safety net for those who lose their jobs. We must be mindful of the damage that unemployment causes. This is why the measures in the budget, including enhanced support payments, reskilling and upskilling opportunities and changes to the student grant scheme, are so crucial.

The capital plan is important, as the Minister knows. A range of projects, including urban renewal and development projects under the Department of Housing, Planning and Local Government, are important. They are important in terms of measures in the Galway transport strategy, for example. They pertain to new bridges over the old viaducts on the Corrib and the Galway city ring road, which got Cabinet approval in October 2018. With regard to the latter, the An Bord Pleanála oral hearing has resumed. While there is a variety of views on the project in this Chamber, it is important to the economy of County Galway and Galway city, the regional capital of the west. I hope that, subject to planning permission, the commitment will be seen through. The Moycullen bypass has gone to tender. It is a local project from my perspective, and it will improve journey times and the safety and attractiveness of Moycullen as a place to live.

There are many other positive aspects to the budget in terms of expenditure. There are far too many to mention in the time allowed. I have no doubt that borrowing, the running of a deficit and spending reserves such as the rainy day fund are the right steps to take at this moment. These steps will lead us to a better place where Covid-19 can be eradicated, jobs are plentiful, budgets can be balanced and surpluses can be achieved but, until such time as this happens, this budget is the right budget at the right time. I commend the Minister on his work on all aspects of it.