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 2024, which the Minister for Public Expenditure, National Development Plan Delivery and Reform presented to the Dáil earlier today. Budget 2024 is a budget that invests in the country’s future, in its people, in its infrastructure and in its public services. At the same time, the Government recognises the need to address peoples’ concerns about the pressures and additional costs they are facing every day.

We are acutely aware of the challenges that people are facing with increases in the cost of living, particularly as we face into the winter months. The Government provided €12 billion in cost-of-living supports over the past two years to address these challenges and budget 2024 seeks to build on the work that has already been done. Today, the Minister, Deputy Donohoe, announced a package of immediate and substantial one-off measures worth €2.3 billion to provide households with support to meet these challenges throughout the rest of the year and into 2024. All households will receive a further set of credits to assist with energy bills over the winter period. Three credits of €150 each will be provided between the end of this year and April of 2024. A €300 lump-sum payment will be made to recipients of the fuel allowance in the final quarter of 2024. An additional €200 will be paid this year to recipients of the living alone allowance.

In addition, the Christmas bonus will be paid in early December for those in receipt of regular social protection payments, a once-off double-week cost-of-living support payment will be paid in January to all qualifying social protection recipients and a special once-off payment of €400 will be made before Christmas to those who receive the carer’s support grant, disability allowance, blind pension, invalidity pension or domiciliary care allowance. A double payment of child payment worth an additional €140 for each child will be made to all qualifying households before Christmas. A double payment of the foster care allowance will also be made this year and a €400 lump-sum payment will be made to recipients of the working family payment later this year. For the first time, the budget provides a lump-sum payment to each child in receipt of the qualified child increase.

The budget also provides for a reduction of the student contribution fee of up to €1,000 for free-fees students, a once-off reduction of approximately 33% in the contribution fee for apprentices in higher education and an increase in the postgraduate tuition fee contribution of €1,000 for student grant recipients. To support businesses impacted by rising costs, budget 2024 includes a scheme of business supports worth €250 million. This package of supports is substantial but takes into account the fact that inflation is falling and wages and core rates are increasing to meet that gap.

In that vein, I will touch on the approach taken to our public spending in budget 2024, an approach rooted in a commitment to safe public finances. The expenditure management policies taken by the Government allowed us to enter 2023 in a strong position, remaining resilient in the aftermath of the pandemic and energy price shocks. This balanced and planned approach has allowed us to invest in public services while smoothing the impact of inflation. An overall budgetary package of €91.2 billion for 2024 was announced this summer. An additional €900 million in capital is being made available under the national development plan to support the delivery of the most ambitious and green infrastructure plan in the history of the State. Some €250 million from windfall corporation tax receipts will further support this ambition.

In addition to the temporary cost-of-living measures already outlined, budget 2024 includes further non-core funding of €4.5 billion. This will support the country’s response to exceptional circumstances including the ongoing impact of Covid-19 and the increased demand for international protection in this country, particularly as a result of the war in Ukraine. Supporting those who come to this country seeking refuge does not mean that we are limiting our investment in those who are already living here. There is opportunity for all of us to flourish and thrive together.

The measures outlined in budget 2024 will support the people living in this country both today and into the future. They will support them in addressing their current needs and will act as a springboard for further improvements in how public services are delivered into the future.

This budget is focused on building a better future for the people who live in this country and that starts with our children. To meet the Government’s goal of making this country the best place on earth to be a child, we have to tackle the issue of child poverty head-on and ensure that every child in Ireland has the opportunity to lead a happy and healthy childhood. Budget 2024 includes a number of permanent changes to social protection payments that specifically target the well-being of children. First, the rate of the qualified child increase is rising by €4 to €46 per week for the under-12s and to €54 per week for the over-12s. Second, the hot school meals programme will be expanded to a further 900 primary schools in April 2024. Third, parent's benefit will be extended to nine weeks from August 2024. Fourth, the monthly rate of domiciliary care allowance will be increased by €10. Fifth, the child benefit payment will be extended to 18-year-olds in full-time education. Sixth and last, the income threshold for the working family payment will be raised by €54 per week.

To further support families, the national childcare scheme will see an additional 25% reduction in childcare costs and, by the end of 2024, the statutory foster care rate will be increased to €400 per week for children under 12 and to €425 per week for children over 12. Further investment in disability services will provide increased support to families. This includes 1,400 day places for school leavers and increased personal assistance hours.

The Department of Education has been allocated €10.5 billion in 2024. This includes a capital budget of €940 million for school building projects and funding to prioritise special education, including funding for 740 additional teachers and 1,200 additional special needs assistants. To further support the reduction in the cost of education, the free school books scheme has been extended. This will benefit more than 200,000 junior cycle pupils across Ireland.

In addition to the cost-of-living measures announced by the Minister, Deputy Donohoe, a further social protection package for 2024 worth almost €1.1 billion will support those who need it most. Individuals in receipt of a weekly social protection payment will receive an increase of €12 per week. The carer's allowance means test disregard will be increased to €450 for a single person and €900 for a couple. Additional funds will be allocated to provide free travel for people medically certified unfit to drive. The minimum weekly hours threshold for eligibility for the wage subsidy scheme is going to be reduced from 21 hours to 15.

The provision of housing remains a key priority for the Government and just under €7 billion of funding has been allocated to the Department of Housing, Local Government and Heritage. There will be a range of measures supported by this funding in 2024, including the delivery of 9,300 new-build social homes, the delivery of 6,400 affordable homes, the retrofitting of social housing and the expansion of housing first supports.

We engage with the health services in this country when we are at our most vulnerable and when we need them most. The Government has prioritised significant investment in the health sector, which continues to feel the aftershocks of the Covid-19 pandemic. Some €22.5 billion has been allocated to our public health system, which includes an €808 million increase in core current funding to address demographic and service pressures. This record level of investment must be reflected in a focus on productivity, better financial governance and consolidation of funded capacity.

The national development plan outlines the vision for a more sustainable and forward-facing Ireland. Budget 2024 provides an additional €900 million in 2024 for essential investment to provide more schools, hospitals and infrastructure and better public and road transport, as well as an additional €250 million from windfall corporation tax receipts.

As a society, we have never been more aware of the need to take action to address the climate crisis.To help households with the green transition, this budget provides €380 million to residential and community energy schemes, which will reduce both greenhouse gas emissions and energy bills. As we work to meet our climate goals, applying an appropriate price to the harmful climate effects of carbon through the carbon tax remains an important measure. An additional €165 million of carbon tax revenues will be available to support the green transition and to address fuel poverty. This brings the total carbon tax revenue available for investment to €788 million, almost half of which will be invested in improving the energy efficiency of our homes. An additional €32 million in carbon tax funding will be provided to the Department of Agriculture, Food and the Marine next year to support up to 50,000 farmers to improve biodiversity, climate, air and water quality outcomes.

A total of €3.5 billion has been provided to the Department of Transport and €892 million of this will be current funding, which will provide for the continuation of the temporary 20% fare reductions until the end of 2024, the roll-out of further services such as BusConnects, Connecting Ireland, new town service plans, and the transition to a world-class fuel efficient maritime and inland aviation rescue service. Capital funding of €2.7 billion will provide for the construction of MetroLink, the Cork area commuter rail project and investment in electric and hybrid-electric buses, along with the essential infrastructure needed for new bus and rail fleets.

As we move towards an increasingly digitised society, universal broadband will ensure that nobody is left behind. In 2024, a further €348 million will be invested to give an additional 100,000 homes the opportunity to connect to fibre broadband.

The agrifood sector plays a vital role in supporting our economy, producing world-class food and protecting our landscape. Budget 2024 allocates €1.9 billion for the Department of Agriculture, Food, and the Marine in 2024. In addition to this allocation, the Department will administer more than €1.2 billion of EU funding in direct payments to farmers.

It is a priority for the Government that people not only are safe in their communities but also that they feel safe. Budget 2024 commits €172 million in 2024 to enable continued investment in existing services, along with funding for recruitment in 2024 of 1,000 gardaí. A €25 million increase in the annual overtime budget will mean that gardaí can be deployed as needed to tackle crime and antisocial behaviour.

In the vein of our safety and security, €1.23 billion has been allocated for the defence sector in 2024. This allocation will provide for the recruitment, training and support of an additional 400 military personnel in 2024, along with significant investment in equipment and infrastructure.

Finally, this budget provides €776.5 million in funding to Irish Aid in the Department of Foreign Affairs, which represents an increase of 8.4% on the level of funding provided in 2023. This increased funding will allow overseas development assistance through the Department of Foreign Affairs to reach record high levels.

Budget 2024 is a budget that continues the planned and balanced approach taken by the Government to approach its public finances. It is intended to address the cost-of-living concerns, to support better public services and to give children in this country the opportunity to grow up happy and healthy. I commend the budget to the House and I look forward to engaging with colleagues on these important matters.