Pat Casey (Fianna Fail) | Oireachtas source

This is the second budget of this historic Government coalition, which aims to give the people of Ireland value for the money they pay in taxes by investing wisely in public services such as health and education, and strategically investing in the needs of our people, particularly in the area of housing. We also need to begin the budgetary policies required to make a meaningful contribution to the global problem of climate change. As if achieving these tasks were not serious enough, we also have to take into account the shattering effects of the Covid-19 pandemic on our society and our economy. The value of our front-line workers in the health service, and those in essential economic services such as food production, has been brought home as never before. The people of Ireland have risen to this challenge with a remarkable solidarity. That solidarity must be reflected in Government policy and that is exactly what this budget does.

Fianna Fáil in government has to deal with the reality of the ability of the Irish economy to provide the taxation income that drives our investment policy while ensuring our economy remains attractive for economic growth and business opportunities. There are populists in our politics who promise spending left, right and centre - or should I say left, left and left again - while also cutting taxes on people. This fantasy economics, based on populist communication strategies that would make Donald Trump and the Brexiteers blush, is being heralded as the change that Irish people want. Change indeed, but it would lead to an economic disaster that would decimate Irish jobs, shatter our public investment portfolios in health and housing, and condemn a generation to rebuilding a shattered society. It is important that the fantasy budgetary policies of the main Opposition party are challenged by all who regard themselves as patriots.

Unlike many on the front line of Irish politics, I know what it takes to run a business in Ireland. I know the sacrifices that family-run businesses make to create sustainable jobs, pay our taxes and grow our businesses from year to year. I have lived through several recessions and, being involved in the tourism industry, I know better than most the shattering consequences of the economic shutdown caused by Covid-19 on the tourism and hospitality sector. Budget 2022 is an ambitious budget by the Government, which is internationally recognised as having steered the State correctly through the Covid crisis. This Government is ensuring, through this budget, that all the people of Ireland receive solutions based in reality, on the problems we face in rebuilding our economy, building homes and ensuring we have a health and education service to be proud of. As a rural businessman I also am very much aware of the challenges facing the rural economy and farm families as we make the transition to an Ireland where all people are treated equally regardless of where they live or the significant challenges we face. Childcare supports, increased fuel allowances, social protection payments and pensions are proof that Fianna Fáil and this Government are delivering for all people, not just promising fairy tale stories that have no basis in reality. An increase in the income tax bands will give a tangible and progressive reward to all Irish workers and help those who are the backbone of our economy to benefit from their work and their contribution to our tax base.

The guiding principle of Fianna Fáil has always been and remains the common good of all Irish people. We do not demonise any part of our great nation. We value the contribution of businesses, workers, farmers and our public servants. Housing, healthcare, climate change and the cost of living are all being heavily invested in by this budget. The common good of the people of Ireland demands a Government that has a vision based in the reality of the challenges and opportunities we face, not just empty slogans, populist rhetoric and political division.

I will move on to the specific measures that were announced in the budget today. I welcome the overall budgetary package of €4.7 billion, including expenditure measures of €4.2 billion, taxation measures of €500 million and revenue-raising measures of €230 million. I also welcome the contingency fund of €4 billion that has been created. We are not out of this crisis yet. Sometimes we think we are because of the way we are going but we are not quite there.

On personal taxation measures, I welcome the income tax deduction of 30% of the cost of vouched expenses for heat, electricity and broadband incurred while working from home. As the Minister of State pointed out, the budget includes €520 million in income tax packages, increasing the band rate by €1,500 and increasing the personal tax credit, employee tax credit and earned tax credit by €50.

It is an objective of this Government to tackle, once and for all, this housing crisis. Financial measures relating to housing include the extension of the help-to-buy scheme for another year and the introduction of the zoned land tax. The Minister of State will be aware of the vacant site levy and how it really has not worked as it was implemented differently across the different local authorities. While I welcome this measure, there is a huge amount of work to be done to work out exactly how this is going to work, how transparent it will be and how each local authority will apply it. If it is to be implemented it has to be done universally across the board. That has not worked with the vacant site levy. On the extension of pre-letting expenses for landlords, while people criticise supporting landlords, they are a critical part of the housing solution. We have seen landlords vacate the housing market and we need to keep them in it so I welcome that.

I refer to the specific business supports. The employment wage subsidy scheme has been the lifeblood of the survival of many businesses across this country.I thank the Government for those supports. While I also welcome today's news that the supports will be in place in some form until the end of April next year, I will make an observation to the Minister of State, which he might relay to the Minister. Applications for supports will close from January of next year. The Minister for Public Expenditure and Reform, Deputy Michael McGrath, mentioned today that 115,000 people have been displaced to a different sector. One sector that has been most affected by the hollowing out of staff has been the hospitality sector. To bring in this measure in January, when we will be at our lowest employment levels and when we are trying to build our employment up for the season, will have severe implications for the industry. I ask the Minister of State to see if can he do anything about that. Finally, while I welcome the extension of the VAT rate to the end of August 2022, equally, the Minister should look at that over the next nine months to see if there a way that we can extend that VAT rate further because I do not believe the hospitality sector will be anywhere close to the position it was in in 2019, before Covid-19 hit.