Seanad debates

Tuesday, 27 September 2022

Budget 2023 (Finance): Statements

 

12:00 pm

Photo of Ollie CroweOllie Crowe (Fianna Fail) | Oireachtas source

To clarify, it was the Leas-Chathaoirleach's mistake to call me. It was certainly not mine. The Senator certainly had plenty to say.

I welcome the Minister of State, Deputy Fleming, to the House. He is a regular visitor. We are living in extraordinary times with considerable challenges. The Government needed to deliver a budget to match these times and I am delighted to say it has done so.

The healthcare plan is especially welcome, with 430,000 more people becoming eligible for free GP care next year. For the first time, more than half of the population will be covered by either a GP visit card or a medical card, representing the biggest expansion in eligibility for decades. Hospital inpatient fees will be abolished for adults, representing a saving of up to €800 per year. These are significant strides forward and they will make an incredibly positive difference to the lives of hundreds of thousands of people. Similarly, the new, publicly-funded IVF scheme that will launch in 2023 is very welcome news. As I have highlighted previously, this issue affects tens of thousands of families supports are needed for those wishing to have children.

Parents will see childcare fees fall by an average of €1,200 per year per child, a reduction of 25%. This measure will mean subsidies paid to childcare providers under the current scheme will increase from 50 cent per hour to €1.40 per hour for a maximum of 45 hours per week. Childcare is a major issue in west Galway, Galway city and throughout the country. I welcome this announcement.

As Senators will be aware, healthcare and childcare were two of the major issues leading up to the last general election. Since that time, we have faced a global pandemic and we now face a global cost-of-living crisis. Despite these extraordinary events, the Government continues to make progress on these issues. Regardless of political allegiance, that should be acknowledged and applauded.

There are a number of very positive social welfare initiatives in the budget, including an increase in €12 per week in payments, double welfare payments in October and December this year, an increase in the fuel allowance and the lowering of the fuel allowance threshold, which will mean tens of thousands of people will become eligible for the payment. The once-off payment of €500 for carers of people with a disability is welcome, but more must be done for carers. Their role is not talked about often enough and they need more support.

I also welcome the energy credit for all households, the tax credit for renters, the reduction in college fees, increased SUSI payments and free school books for children in primary school. It is clear the Government has introduced a wide range of measures to assist people in getting through the cost-of-living crisis, which is exactly what is required.

With regard to what the budget provided for businesses, we know that SMEs are the heartbeat of the Irish economy. They have once again shown their resilience as they emerged from the pandemic and rebounded quickly. However, the energy costs they face are simply unsustainable. The temporary business energy support scheme will cover 40% of the increase in electricity or gas bills, up to a maximum of €10,000 per month per SME. As the Minister of State will be well aware, in Laois and throughout the country, many public houses and restaurants are heated by kerosene oil which does not fall within the conditions of the scheme. That issue may need to be looked at to support the hospitality sector. While this is a welcome measure, the Government must be aware that even more supports may be required. Energy bills have more than doubled in the past year for SMEs in the past year and the gap between the increase in cost and what the new scheme will cover is what made SMEs sustainable in many cases.

I listened to the contributions made by Senators Casey, Cassells and Murphy on the hospitality VAT rate, which is also very important. As Members will be aware, the current rate of 9% is scheduled to return to 13.5% on 1 March, as indicated it budget 2023. I strongly urge the Government to push the timeline back by an additional six months until September 2023. This would allow SMEs some breathing space as they attempt to come through the energy cost increase. It is essential that we provide SMEs with the greatest possible supports during this period. From talking to people in the restaurant, bar and hotel trade, I know the VAT hospitality rate is a very important issue for them.

I especially welcome the 50% reduction in the fee for special exemption orders, from €410 to €205. This is a significant boost to the late-night economy. Having spoken to operators as late as this evening and bodies representing the sector in recent weeks, I know the reduction will make a significant difference.

The Government has delivered and ambitious budget that will make a real and meaningful difference to the lives of people in this country. Any day that can be done is a good day. Small and medium enterprises will still need further support and I look forward to discussing that issue in the days and weeks ahead.

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