Robert Troy (Longford-Westmeath, Fianna Fail)

I thank all the Senators for their input into today's debate on budget 2026. I have taken note of their contributions and hope to address the key themes they have raised.

Before I respond to individual comments, I refer to some analysis in the Beyond GDP Quality of Life Assessment publication, which was published by the Department of Finance today. I will touch briefly on four components; the positive performance of Ireland and well-being metrics by international standards; progress on equality budgeting, with significant improvements in the gender equality index in Ireland relative to the EU; the progressivity of the tax and social security systems; and the progressive impact of the budget package, with lower income households experiencing the highest gains.

Ireland's well-being framework was launched in July 2021 and seeks to take a more holistic view that goes beyond traditional economic performance metrics to incorporate social and environmental considerations. The framework is based around 11 dimensions, which constitute different aspects of well-being. Across these 11 dimensions are 35 well-being indicators that give a high-level overview of how the country is performing. The report highlights that progress across the 35 indicators and 11 dimensions are generally positive, both over time and in comparison with other countries. In particular, Ireland continues to make progress in the income and wealth connections of community and participation dimensions. However, we know that the persistence of inequality in society undermines our collective well-being. This Government is committed to improving outcomes across Ireland as well as ensuring that equality and well-being concerns are integrated into the design and implementation of Government policies.

From a gender perspective, analysis and beyond, the GDP report shows that Ireland performs strongly relative to the EU on the gender equality index from the European Institute for Gender Equality. The index scores the EU and each country from one to 100, with a score of 100 indicating full equality between women and men. Focusing on the latest data, Ireland’s score reached 73.4, rising by eight points between 2010 and 2022. Over the period, Ireland’s scores are consistently higher than the EU average. While progress has been made in this index, the Government remains committed to further improving the gender disparities that remain in earnings and employment levels. In addition, the analysis highlights that some groups experience equality across a high proportion of indicators. This Government is committed to providing support to the most vulnerable in society.

The analysis from the Beyond GDP publication also shows that Ireland has one of the most progressive tax and social security systems of any EU or OECD country, with these payments playing a key role in the redistribution of income and the reduction of poverty and income inequality. While social transfers overall make a larger contribution to reducing income inequality, the income tax system has also become more progressive over time, ranking as one of the most progressive in the OECD.

The report illustrates the progressiveness of budget 2026. Households will experience an average gain in weekly disposable equivalised income of 1.1% from the measures that we have announced. The measures are also set to benefit the lowest income households in Ireland the most, ensuring that our policies continue to move us towards a more equal society.

I will address some of the points that were raised in this evening's discussion. The first point I will make is this is the first budget of five. A number of Senators who today said we are failing in our commitments in the programme for Government are asking us to implement a programme for Government in the first year of a five-year Government cycle. This budget is fair, prudent, progressive and has a number of targeted measures to help address the budget surplus we are investing.

On housing, something addressed by many speakers, and rightly so, there has been a 20% increase in this budget's allocation to housing. That is €7 billion - €5 billion in capital and €2 billion in current expenditure. That will deliver 10,200 new social homes and 15,000 new, affordable cost-rental homes. People talk about homelessness, and the best way to help people out of homelessness is to provide additional social homes. We are providing the capital in this budget to provide additional social homes. We are also providing an additional €211 million in current expenditure to help people transition out of homelessness.

In relation to tackling child poverty, we are increasing unemployment payments relating to children under 12 by €8 per week and children over 12 by €16 per week. That is going to benefit the parents or guardians of 330,000 children.We are extending the back-to-school allowance to two- and three-year-olds. With regard to disabilities, we are providing 1,717 additional SNAs and 860 additional special education teachers. We are providing additional respite beds for both day and night respite. There are to be additional places for adults with disabilities who are over 18 and have nowhere to go when they finish their education.

On childcare, there is an additional €64 million under the national childcare scheme and an additional €52 million under the core funding scheme. I realise we have not delivered on the full commitment on what we can do in childcare, but it was never practical or possible, nor would it ever be, regardless of who is in government, to deliver in one year what we set out to achieve in five years under a programme for Government. It is not practical and suggesting so is not fair, and people should acknowledge that here today.

Senator Craughwell raised defence spending. The real current expenditure increase when inflation, which is projected to be 2% next year, is taken out is going to be 3%. The increase in capital expenditure on defence, which the Senator failed to reference, will be 40%.

A lot has been achieved in this budget. We are taking account of the fact that we are in uncertain times internationally. As a small, open economy, we are dependent on our ability to trade internationally. A really positive intervention in this regard, referred to by one of the Senators, is the expansion of the research and development credit to ensure multinationals continue to invest in this country and that we continue to support the jobs they create here and attract new jobs into this country. The most important thing is to protect jobs. If we do not have the ability to protect our jobs now, we will not have the ability to continue, over the remaining four years of our five-year term, to make the investments in our core services that we have begun to make in the first year.

I thank the Senators for making their contributions and for the opportunity to respond.