Pat Casey (Fianna Fail) | Oireachtas source

I welcome the Minister. Today is an important milestone in the history of the Irish financial system and its management by successive Ministers for Finance over the 100 years of our independent national story. In the early years of independence, some foreign and domestic commentators scoffed at the ability of the Irish State to build and manage a successful economy. There are many global challenges that saw newly independent governments across Europe and the rest of the world fail in that responsibility. The Republic of Ireland did not and can now boast of being one of the most successful, modern independent nations of the last hundred years.

On the last occasion that a Fianna Fáil Minister rose to his feet to deliver a budget speech, it was probably the most difficult budget speech in the history of our nation. Our party paid a massive political price for the drastic cuts necessary to save our economy and society, but the late Brian Lenihan rose to the challenge, putting the needs of the Irish people above the needs of his political party in an act of patriotism that has stood the test of time. Today, my colleague Deputy Michael McGrath, the Minister for Finance, follows the example that our friend Brian Lenihan set over a decade ago, but in a vastly changed economic environment. It is a proud political day for the Minister, his family and his political party as we once more ensure that all the Irish people in need benefit from our economic success and that all our people will be protected in the tough years ahead.

In today’s budget, overseen by the Minister for Finance, Deputy Michael McGrath, Fianna Fáil has put the needs of all Irish people above its own interests. That is what is demanded in the management of a modern Irish economy. The Opposition cannot see past its own rhetoric and narrow electoral concerns. Over many decades, the management and transformation of an Irish economic system into a modern, outward-looking, flexible, highly educated and growing society that is one of the most successful in the OECD have been led by Fianna Fáil finance Ministers. Today, the current Minister for Finance has ensured the continuation of the record of patriotic and prudent management of our finances while providing considerable additional support for all our people, young and old, who need help in the global cost-of-living crisis.

There are issues I would like to raise today, however. Based on the tradition that Fianna Fáil, unlike other parties, has adopted, I am able to criticise some measures that have not been adopted today. That is what the true republican party expects. The Minister, Deputy Michael McGrath, knows I am genuine on this matter and have been working closely with him to get a certain measure across the line. I hope that it can be achieved through the Finance Bill.

Homeownership for working families is one of the most challenging social and economic issues we face. The combined support of the help-to-buy and first home schemes is making this a reality again. While these are making progress, there is more to be done. I strongly believe that the targeted measure I will outline would benefit those homebuyers who need the most help to own their own homes, which is the central aim of all Irish workers. The issue referred to relates to the requirement that the loan-to-value ratio be 70% under the help-to-buy scheme. I am willing to put on the record three examples of families I am currently dealing with in Wicklow who have been affected by this loan-to-value ratio. The first is that of a young mother trying to buy a two-bedroom duplex in Wicklow town for €285,000. She has an income of €52,500 and can secure a mortgage of €194,000, which gives a loan-to-value ratio of only 68%. In addition to the help-to-buy scheme funding and her savings, she needs €57,000 under the first home scheme, or 20%, to secure the home. She is not being afforded the opportunity to buy her home because of the 70% loan-to-value ratio. The second example is of a family with a salary of €58,500 who want to purchase a property for €350,000. They can secure a mortgage of only €234,000, representing a loan-to-value proportion of 67%. Under the first home scheme, this family needs €71,000, which is 20%. The third example is of a family who can secure a mortgage of only 65% of the value of the property. The families most in need, the families who have secured the maximum mortgage they can secure and who have sweated every asset they can sweat, cannot buy their own homes because of the loan-to-value ratio, yet the total debts in each case, when you account for the first home scheme, are over 88%, 87% and 85%.

The help-to-buy scheme has helped 40,000 families so far. We hear reports about dead weight. If you ask any of the 40,000 families, you will find it does not consider itself to be dead weight. The circumstances of the three families I have cited as examples are the very reason the schemes were set up. I am willing to continue working with the Minister for Finance, Deputy Michael McGrath, and whoever else I need to work with to determine whether we can address the loan-to-value issue through the Finance Bill.

Successful budgets with surplus tax returns do not happen by accident. We cannot spend extra money on vital services and needs such as those associated with housing, social welfare, disabilities, mental health, tourism and agriculture unless our economy is being managed with professional prudence and patriotic ambition. The budget has a Fianna Fáil stamp on it. It has been agreed with our partners in government, whose objectives are also being met. This is grown-up politics; this is how we secure the future of the next generation. The budget sits proudly in an ongoing story of a republic’s independence. The Minister for Finance, Deputy Michael McGrath, can feel proud today. I look forward to working with our colleagues in government, in Fine Gael and the Green Party, to improve further the measures to deliver for the Irish people and build homes for all who need them.