Marie Sherlock (Labour) | Oireachtas source

It will not have a life-changing impact on them. Extension of eligibility for the fuel allowance is great but it will not kick in until January. I would argue there is a lack of urgency with regard to some of the measures introduced today.

In thinking about the impact of the budget and the extraordinary situation we find ourselves in, we must look at the two permanent cost-of-living crises in this country. These are childcare, on which there were some positive developments today, and housing. Some Senators will have seen the Financial Timesreport last week that declared to the world this country is no place for young people. It spoke about the huge number of young people actively contemplating leaving these shores, even though they have jobs and decent incomes, because of housing. In a report the National Youth Council highlighted its research that seven out of ten young people aged between 18 and 24 are actively thinking about leaving these shores principally because they have no real prospect of accessing affordable housing for purchase or for rent anytime soon. We have a paradox of plenty in this country. Evictions have increased by 54% and rents have increased by more than 12%. People in secure good jobs are unable to do what their parents were able to do before them. Does the budget do anything real for them? I do not think so.I am the Labour Party spokesperson on workers' rights. When we launched our alternative budget last week, we set out five key tests. The first is that no job would go under this winter as a result of a company's crippling energy bill. We wanted to see an energy wage subsidy scheme but we saw something different from the Government today. While we are yet to see the detail in that regard, I am alarmed that there are no reassurances that the companies that could benefit, particularly those whose energy bills double between 2021 and receiving the payment and which could have 20% of their energy bills paid for by the State, will not be subject to any conditionality in terms of there not being any pay cuts, redundancies or dividends. My direct appeal to the Minister is to put that conditionality into that scheme when it takes effect because we cannot see companies benefit to a significant extent in terms of helping them with their energy bills and yet them enforcing pay cuts or redundancies or, indeed, paying out dividends this winter.

The second test was that we wanted to see a boost to the pay of the lowest paid in this country. The report of the Low Pay Commission has been sitting on the Tánaiste's desk since summer and it is appalling that the 80 cent increase in the national minimum wage, which is a cut in pay in real terms because it is less than the current rate of inflation, will only take effect from January. The increase being below the rate of inflation is a second key issue. As regards those who are marginally above the minimum wage, people earning between €23,000 and €36,000 per year will only get a measly extra €4 per week as a result of the tax changes announced today. Anybody earning below that will get four times that amount. How can that be fair? There is an irony here because although the indexation of the standard rate threshold matches inflation projections for quarter 3 of the year, the increase in the minimum wage does not, and nor does the €12 increase in social welfare rates.

The third key issue relates to boosting the pay of the lowest paid and the cost of disability. For years, disabled workers have been crying out for a cost-of-disability payment. The once-off €500 payment is to be welcomed but it will be spent between now and Christmas. What are disabled workers going to do when they start into 2023? There is a real issue for the Government in responding to that need. The Labour Party wanted the Government to respond to the call by trade unions and employers to facilitate once-off pay increases and, to be fair, the small benefit exemption does increase to €1,000, and we welcome that.

The final issue I wish to raise in the few seconds I have remaining has been touched on already. A lot of fuss has been made about the introduction of a vacant homes tax and that it was necessary to carry out research on how many vacant homes there are in the country and the appropriate rate and all of that, yet the detail we have been presented with today is a joke.