Seanad debates

Wednesday, 8 October 2025

Budget 2026 (Public Expenditure, Infrastructure, Public Service Reform and Digitalisation): Statements

 

2:00 am

Cathal Byrne (Fine Gael)

I thank the Minister of State for joining us. On behalf of the Fine Gael Party, we support the proposed budget. I listened carefully yesterday to both Ministers, Deputies Donohoe and Chambers, when they outlined this budget and the proposals around it. When I consider the key priorities a budget should be measured against, I think of safeguarding the economy, supporting families, improving access to vital public services like education, health and disability services, prioritising those most in need and, most of all, delivering the key infrastructure necessary for the economy and the people of this country, including in the area of housing. This budget does exactly that. It is the first of five budgets under the new programme for Government and makes sure those key areas are prioritised.

I will speak about a number of the key measures included in this budget. There is a €2 billion package of social protection measures to deliver help with the cost of living including a €10 increase in pensions, carer's allowance, disability, illness and other social protection payments. This includes the carer's allowance means test disregard being increased from €375 for a single person or €750 for a couple up to €1,000 and €2,000, respectively. This is an important measure that perhaps has not got the publicity it deserves. The Government is committed to abolishing the means test for the carer's allowance. This is an important step toward that over the next four budgets out of five in total. There will be an increase of 65 cent in the minimum wage to €14.15 per hour, the highest minimum wage ever and the 12th such increase under Fine Gael in government. I also think of housing, with new total capital funding for housing of €5.2 billion, in addition to the Land Development Agency and approved housing bodies, to deliver 25,000 new homes, public housing and a new starter home programme. If we want to get to grips with the housing issues we have, we must put in place a starter home programme that allows couples and individuals to buy their first home and get their foot on the property ladder. That is why it is so important to have schemes like the help-to buy-scheme which supports first-time buyers to get the taxes they paid over the previous four years back to count as a deposit towards their first home.

In rural Ireland, an area which is so important in my area of Wexford, farm tax reliefs, including the stamp duty young trained farmer relief, capital gains tax, stamp duty farm consolidation relief and an extension to the accelerated capital allowance for slurry storage, ensure sufficient measures are taken to reflect that we have an ageing group of farmers. We must support the next generation in taking up vital roles for farming in rural Ireland.

In justice, there will be an increase of €200 million in 2026 for a total spend of €6.2 billion, including €77 million to recruit 1,000 new gardaí and 200 new civilian staff to free up gardaí from behind desks to get out on the beat and on the front line. With an increasing population, we have to recruit more gardaí. This budget provides the necessary funding to support the recruitment processes in place.

There is a permanent €500 cut in college fees, reducing them to €2,500. Many families have asked me what are we doing about the student contribution fee. The Government has committed to a permanent cut, the first across the next four budgets, resulting in a permanent reduction for families accessing third level education. It is important that we support students and people who want to go to college. This is a permanent cut, not taking away from the temporary measures introduced during the cost-of-living crisis at the onset of Russia's invasion of Ukraine.

Backing business and protecting jobs, the hospitality VAT rate will be reduced to 9% to protect 191,000 jobs in small businesses from 1 July, 2026.

There is an increase in the total spend on disability services of 20%, funding them for an additional 90,000 people. I meet families affected by some of the inability to access services for their loved ones who have a disability. It is so important this investment is put in for next year for greater access to disability services.

There is also additional funding in support of the post office network. There is €18 million to make the basic arts programme permanent. There is a new capital funding programme for the arts and culture and existing capital funding programmes under the sports capital grant scheme, including an additional €5 million for TG4.

As this is the first of five budgets, there are measures I would like to see implemented. I look forward to continuing to raise them in this Chamber.

In preparation for this debate, I had a look at the budget measures and proposals of the Opposition parties. I saw in the Sinn Féin proposal, running to 50 pages, no mention of supporting jobs. Instead, there are 23 new tax increases and an attack on the foreign direct investment sector by removing employer PRSI share-based remuneration. If Sinn Féin were serious about supporting so many jobs in the foreign direct investment sector, it would not propose these measures. It also wants a reduction in pension tax relief for workers, making it hard for them to save for the future, having already voted against the auto-enrolment scheme specifically designed to help workers without an occupational pension to get one.

I looked at the Labour Party's pre-budget submission document, its alternative budget. I saw 33 tax increases and an increase in inheritance tax of 3% which I simply could not believe. Hard-working families passing on what they have earned to the next generation are penalised by the Labour Party's proposal for a 3% increase in inheritance tax. The party also proposes to scrap the help-to-buy scheme, making it harder for first-time buyers to gather a deposit. The alternative budget of the Social Democrats proposes 24 new taxes, attacks foreign direct investment by removing tax credits and penalises access to jobs by increasing employer PRSI.

I am happy to support this budget. This is the first of five. I do not support the proposals of the Opposition. It is important the House is made aware of them. There is plenty more work to be done but I commend this budget to the House.

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