Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I am pleased to have the opportunity to appear before the Seanad to contribute to the debate on budget 2023, which the Minister for Public Expenditure and Reform presented to the Dáil just a few hours ago. Budget 2023 is first and foremost a cost-of-living budget. The Government is delivering a budget against an extraordinary backdrop of uncertainty and challenge. We know that many of our people are finding it very difficult to make ends meet, are facing difficult choices in their daily lives and are seeing their household bills rise seemingly by the day. We know that many are genuinely worried about what lies ahead in the months to come.

Budget 2023 sets out a substantial package of measures for the remainder of 2022 and into 2023. That builds on the €3 billion package already delivered over the past 12 months. Today the Minister, Deputy McGrath, has announced further winter cost-of-living, business and public service support measures totalling €4.4 billion, comprising €1.7 billion to be administered through the tax system and €2.7 billion in spending measures, with €0.3 billion of that amount funded from the contingency reserve. This is in addition to a core budget 2023 package of €6.9 billion: €5.8 billion in expenditure and €1.1 billion in tax measures.

There will be immediate assistance, including electricity credits totalling €600 for all households, to be paid in three instalments of €200. The total cost of this measure is €1.2 billion. In addition to the normal weekly fuel allowance payment, a further payment of €400 will be made before Christmas to recipients of that support. We have also provided for a once-off double-week "cost-of-living support" to all qualifying social protection recipients; an additional lump sum payment of €500 to those in receipt of the working family payment; a double child benefit payment to all qualifying households in November worth €140 per child in addition to the normal monthly payment; a payment of €500 in November to those who qualify for the carer's support grant; and a one-off payment of €500 in November to those who qualify for disability allowance, invalidity pension or the blind pension. The Government has also announced the extension of the 20% reduction in public transport fares and the young adult card discount of 50% on all operators' services to the end of 2023. The total value of the new cost-of-living measures for households is €2.2 billion. This will provide much-needed help to individuals and families.

Taking account of the pressure that rising prices are putting on the delivery of public services, this budget allocates funds across a number of different areas in order to ensure continuity of service delivery. This includes a further €100 million to be made available to schools this year to assist with energy and other costs and with school transport, with an additional €10 million provided for further and higher education institutions. Some €60 million is allocated to local authorities and €110 million to bodies funded by the Department of Health, including nursing homes and section 39 organisations. An allocation of €60 million is provided to ease the pressure on not-for-profit and voluntary organisations in the arts sector, sports clubs, the Gaeltacht and the community and voluntary sector.

In addition to the winter cost-of-living initiative measures that the Minister, Deputy Michael McGrath, announced for the remainder of 2022, the Government is providing a social protection package for 2023 worth €1 billion to support households and families across the country. This will include an increase of €12 per week in social protection payments; an increase in the working family payment threshold by €40 per week; an increase in the fuel allowance means limit from €120 to €200 above the relevant rate of the contributory State pension and, for over-70s specifically, an increase in the weekly fuel allowance means limit to €500 for single people and to €1,000 for couples; and a rise in the qualified child increase for under-12s to €42 per week and for over-12s to €50 per week.

In core expenditure terms, the medium-term budgetary strategy has been modified on a once-off basis for 2023 to allow core public expenditure to grow by 6.3%. Overall, in 2023, the Government is providing €90.4 billion in public expenditure. Some €85.9 billion of that is core expenditure, an increase of €5.8 billion over the figure for 2022. This includes an additional €800 million which will be made available under the national development plan for core capital spending to help in delivering the largest, greenest and most ambitious infrastructure plan in the history of the State.

The Government is also holding €4.5 billion in contingency in 2023 to continue to respond to the aftermath of the pandemic, the repercussions of Brexit and the ramifications of the war in Ukraine.

In order to make childcare more affordable and to improve availability for parents, the Government has announced a reduction of up to 25% in the weekly fee for those availing of the national childcare scheme, costing €121 million, which will put up to €175 a month, or €2,106 a year, back in the pockets of parents next year. Further allocation of €59 million is made to the newly set up core funding model, which will provide for extra hours and enhanced capacity.

The Department of Education is allocated €9.6 billion in 2023, including a capital budget of €860 million for school building projects and funding to prioritise special education, allowing for an additional 686 teachers and 1,194 special needs assistants, SNAs.

The Government is allocating €3.9 billion for the higher education, further education and training, research and innovation sectors in 2023. That funding will support our delivery on the Housing for All and climate action plans by investing in skills through apprenticeships and further education and training, including over 2,000 Skillnet places in sustainable finance, green tech and climate change.An additional €36 million is allocated to the Department of Enterprise, Trade and Employment supporting investment in areas such as digitalisation and the green economy.

Budget 2023 allocates €23.4 billion for health, including €1.15 billion increase in core current funding. Funding is provided for the recruitment of up to 6,000 additional staff. To tackle waiting lists next year, a further €225 million has been allocated to give an overall package of €443 million.

A record €6.3 billion in Exchequer funding is allocated to the Department of Housing, Local Government and Heritage, of which the majority, €3.5 billion, will be for capital investment in housing. We have announced a €99 million increase in funding to the social housing current expenditure programme to support nearly 6,500 new social housing units, through approved housing bodies, AHB, new build delivery and leases, a further €1.7 billion to deliver the social housing new build target of 9,100 homes, and an unprecedented €87 million allocated to the retrofitting of social housing in 2023, demonstrating the State's commitment to help people reduce their energy bills and to ensure that Ireland meets our climate targets.

Budget 2023 also provides record Exchequer capital investment of more than €930 million in our water services in 2023, and significant funding for our heritage programme, particularly including a focus on resourcing our National Parks and Wildlife Service.

The implementation of the national broadband plan has passed 75,000 households, with funding of €217.5 million allocated in 2023, to reach a target of up to 185,000 households by the end of next year. Some €390 million is provided for rural and community development and €11 million for the continued response to the Ukrainian refugee crisis at community level.

As recent developments in global affairs have shown, we need to reduce our dependence on energy imports, particularly from Russia, by becoming more efficient in how we use energy and especially by accelerating the shift to renewable energy in line with our existing climate goals. That is why the Government is providing €850 million in capital investment to the Department of the Environment, Climate and Communications in 2023. Some €337 million of this funding will go towards grants for energy efficiency, supporting in excess of 37,000 home energy upgrades. This is the highest funding commitment ever to energy efficiency.

Some €4.3 million is provided to the Department of Housing, Local Government and Heritage to support the formal establishment of the Maritime Area Regulatory Authority, which will be a key enabler in respect of Ireland's ambitions in the offshore renewable energy sector.

As set out in the programme for Government, every additional euro raised in carbon tax will be returned to the people through energy-efficiency upgrades, social protection schemes to protect the most vulnerable and measures to incentivise farming in a more environmentally friendly way. An additional €211 million will be made available in 2023, bringing the total carbon tax revenue available in 2023 for investment to €623 million. Almost half the funds raised by the carbon tax will be invested in improving the energy efficiency of our homes. Carbon tax funding of €81 million will be provided to the Department of Agriculture, Food and the Marine in 2023 to fund the new agri-climate rural environment scheme in 2023 as detailed in Ireland's Common Agricultural Policy strategic plan. This will support up to 50,000 farmers who undertake actions that will support improved outcomes on biodiversity, climate, air and water quality. In addition, €2.14 billion is allocated to the Department for 2023, an increase of €283 million on the 2022 allocation. More than €500 million of the allocation will further strengthen the sustainability of Irish agriculture and drive the sectors climate ambition.

Government is allocating €3.5 billion to the Department of Transport. Of this, €2.6 billion is capital funding to transport, representing the highest level of capital investment since 2008. This will help us to progress key transport infrastructural projects, including BusConnects, MetroLink and the DART+ programme. This investment in our transport network, the reductions announced in passenger fares, and the continued roll-out of electric vehicle, EV, grants will greatly assist us in meeting our ambitious climate targets.

To support the tourism, culture, arts, Gaeltacht, sports and media sectors in progressing through the post Covid-19 pandemic recovery phase, budget 2023 provides an additional €45 million in core funding, and temporary funding of €90 million in 2023 to help consolidate their recovery. The Department's overall allocation of more than €1.1 billion includes €130 million to maintain the Arts Council's funding in 2023 and €15 million for Fáilte Ireland initiatives.

I commend the budget to the House and I look forward to engaging with colleagues on these important matters.