Maria Byrne (Fine Gael) | Oireachtas source

I welcome the Minister of State to the House on this historic day. The Government has a proven track record in managing the economy and helping Ireland to recover from the economic crash. We were beginning to recover back in 2011. Then, when the pandemic struck in 2020, because our finances were in such good stead, the Government was able to bring in exceptional measures such as the pandemic unemployment payment, PUP, and wage support schemes. Many lives were lost and many livelihoods were destroyed by the pandemic. The Government has provided supports amounting to over €48 billion for over three years. I welcome that there are now approximately 100,000 people in receipt of the PUP, which is a reduction from a figure of more than 500,000 people.I pay tribute to the Government for putting in place supports for businesses. People are going back to work and employment. Some €17.5 billion was paid through the pandemic unemployment scheme, the employment wage subsidy scheme, and supports to individual families and businesses. I thank the Minister of State and the Minister, Deputy Donohoe, for keeping in sight the three "Rs" for our public finances, namely, recovery, restoration and repair. This gives us a clear and concise plan for pathways to the future.

Quality of life issues and rising costs have been considered in the budget. It will invest in our future while meeting the needs of today. Our domestic economy seems to be recovering ahead of schedule and consumer spending is growing. There is a strong increase in spending but also rising costs, with price inflation expected to reach 3.7% in September, the highest rate since 2008. There are many challenges such as labour and material shortages, as well as rising energy prices, combined with Brexit. The unemployment rate is expected to fall to about 6.5% next year but this is still higher than prior to the pandemic in 2020, when it was about 5%. It is forecast that 400,000 more jobs will become available by the end of next year, which is most welcome. This will bring us back on track to reach our target.

The budget strikes a balance between the tapering of supports and investment in the domestic economy. Core current expenditure will grow by 4.6% in line with our economy. By 2022, it is expected we will only be borrowing for capital spending, which is to be welcomed. We have to remember that the pandemic is still with us. Senator Casey referred to what many hospitality businesses are going through. Having listened to many of them, I agree with the Senator that they will not be at a respectable level of activity by April or August of next year. I implore the Minister of State and the Ministers, Deputies Donohoe and McGrath, to revisit and review this matter. The incentives put in place by the Government have kept many businesses afloat and many employees in employment. I welcome the reduced VAT rate of 9% for the hospitality sector.

I know that Sinn Féin is proposing €1 billion of taxes on high-income earners, including employer PRSI for all workers. This would be a direct tax on jobs.

I welcome that €126 million has been available for the aviation sector. I am from the mid-west. Shannon Airport is core to the region and I welcome that it will now come under the regional airport support scheme. It was announced today that an aviation company has been taken over by another company, leaving 180 people in fear of what will happen to their jobs.

The budget provides for a tax allowance for 30% of the costs for remote working, a €1,500 increase in the standard rate tax band and a €50 increase in tax credits. These changes will benefit all who pay income tax. The cost of living is increasing. The minimum wage is being increased by 30 cent early next year. The universal social charge will change.

Housing is important to all of us. The Housing for All strategy, which was great, was launched a couple of weeks ago. Many Opposition Members have said the Government is not reaching its targets. Some 89,000 social houses have been built since 2016. That is not to be laughed at. Some 33,000 houses per year will be delivered under Housing for All. I welcome that the help-to-buy scheme will be extended because this has been a successful initiative to date.

We have to listen to and think of future generations when considering climate change, which is why a carbon tax is so important. Studies have shown that carbon taxes are likely to be the single most efficient and effective climate change policy which can be pursued by government. It is not the only one and it will not deliver the required emissions reductions on its own. For this reason, money raised will be used and invested in targeted social welfare initiatives to help to prevent fuel poverty and ensure a just transition.

Additional revenue from carbon tax will also be invested in a progressive national retrofitting programme. The Labour Party alternative budget refers to a retrofitting programme which would be limited to households with incomes of less than €50,000. Most couples living in a house would fall outside that threshold. In addition, houses would have to have a building energy rating of less than B2. This would exclude many couples from availing of retrofitting, as well as recipients of fuel allowance. I believe the plan put forward by the Government is to be welcomed.

There is an extension of the tax relief on battery-powered electric vehicles because many people are waiting for cars to arrive due to the current shortage of microchips. That is welcome.

There are reliefs for agriculture. It is important to make farms more sustainable and support young farmers. The stamp duty and general stock reliefs are welcome.

There is support for businesses, especially start-ups. I had a Commencement matter debate with the Minister of State, Deputy English, on the wonderful work that local enterprise offices do. They have been instrumental in many businesses starting. This support is, therefore, welcome.

There is a 50 cents increase in the price of most tobacco products. The number of cigarettes in a packet should not exceed 20. We are playing into the hands of some tobacco companies, which are lowering prices. We have to stamp out smoking.

Families are at the heart of budget 2022. The €23.3 billion social welfare package supports the most vulnerable in society, from our youngest to our ageing population. That is most welcome. I look forward to working with the Minister of State to deliver this budget.