Seanad debates
Wednesday, 8 October 2025
Budget 2026 (Public Expenditure, Infrastructure, Public Service Reform and Digitalisation): Statements
2:00 am
Emer Higgins (Dublin Mid West, Fine Gael)
I thank the Leas-Chathaoirleach and welcome our guests. I am going to attempt to respond to all of the comments raised today. I say “attempt” because a huge variety of comments were made. I appreciate the time people have taken to dig deep into the detail of the budget and to raise both positive feedback and concerns.
Senator Cathal Byrne set the scene quite well when he spoke about the need to safeguard the economy, improve public services and deliver key infrastructure, including housing. Senator Kyne talked about the need to make sure we are backing all of that up with contingency funding to ensure our economy remains resilient.
Senator Boyhan commended The Budget in Brief, which I have and I am sure everybody has and is using a lot. If Senators will indulge me, I might just let people know, in case they are not aware of it, of a website run by our Department, , which outlines all of the decisions taken in yesterday's budget and puts them in infographics. It is a very good and interactive way for members of the public to see how tax that is collected in the State is invested, spent and allocated by the Government. This is run every year and exists for the whole year. This year, along with updating it with all of the new information from budget 2026, we are also running an online public consultation, asking people to engage with us and let us know what it is about the site they like or do not like, and what features there are. We would appreciate it if Members would help spread the word on that.
Senator Joe Conway spoke about listening to budgets on the wireless. I hope that we are in a very different economic landscape compared with then. We are now at full employment, with people living longer and healthier lives. I hope it is agreed that that is a good thing.
Many measures were welcomed, for example, the tillage scheme, the TB eradication scheme and the postmasters’ network. The Senator mentioned that this was particularly welcome in rural areas, and I know postmasters in Dublin are happy with it too. There were also many comments about the basic income for artists and how welcome it is. It was an initiative by the former Minister, Catherine Martin, and I am pleased that it is being extended this year. Several speakers welcomed the cancer care strategy and the funding allocated to that, which is good to see.
Some concerns were raised. Senator Boyhan raised concerns in regard to medium and long-term planning in particular. The medium-term fiscal structural plan is going to be announced in the coming weeks and will set out the framework for the next five years, so there will be certainty in terms of medium-term fiscal planning. However, as Senator Kyne made the point, it does not give us the visibility to see things that are not on the horizon. For example, we would not have seen the tariffs this time last year, and that is, unfortunately, the reality of the economic conditions we live in now.
In case Members are not aware of it, IGEES is the Irish Government Economic and Evaluation Service. It is a key initiative that supports evidence-informed policymaking across the Civil Service. It looks at things like performance indicators, equality and well-being. Members will find a lot of information on the budget there.
It was great to hear people talk about the investment in our economy in terms of the role of the IDA, Enterprise Ireland and Údarás na Gaeltachta, as well as the entrepreneurs, employers and workers who have got us to a point where we have such a good and strong economy. I take on board the point that we need to continue to invest in tourism, Fáilte Ireland and the spin-off trade. I hope Senator Martin Conway will agree that Fáilte Ireland and tourism were beneficiaries in this budget.
There were a number of comments in relation to housing, which is welcome because housing is one of the biggest challenges facing the Government. Record funding was invested in the housing budget this year. There was a question about the residential zoned land tax and asking for a note on it. I will certainly ask for that. My understanding is that active farmers now have the opportunity to apply to the local authority to dezone their land, and the local authorities have until June to make a decision on that. That is as it was last year, and it has been extended to this year. There was also a query regarding the local government task force and whether I could get further information on that. I will ask the Minister of State, Deputy Cummins, for that.
Concerns were raised by Senator Noonan on heritage and biodiversity. I am pleased that we have €196 million for conservation and heritage. The National Parks and Wildlife Service is a beneficiary of that. We also have the €1 million that is earmarked for the national biodiversity plan, the nature restoration plan and the action plans behind them.
Flood alleviation was mentioned. That funding is very welcome in the constituency of Senator Rabbitte and many constituencies up and down the country. Many speakers referred to the expansion of the living city initiative, which is to be welcomed. Senator Maria Byrne made the point that we need to look at it from a red tape perspective, and that is feedback I will certainly pass on. The defective blocks issue was raised. There is €293 million for housing remediation in this budget, which includes apartment defects, pyrite and defective concrete blocks.
With regard to education, there was a broad welcome for the capitation grant increase. In my own constituency, when I was speaking to principals last night, it was very welcomed. I think this money is very well invested in the people who take care of the children in our schools. The measure regarding therapists in schools was welcomed. One of the questions that Senator Tully asked was where those therapists will come from. I assure her that we have also funded additional college places. As part of this budget, there are 1,100 additional college places between medicine, healthcare and therapies, which is welcome.
There were many questions on DEIS+. There is €16.5 million allocated for it, and the Department of education is putting together the detailed information as to what that will look like. I know a committee was established and has been working on this over recent months. Regarding school transport, my understanding is that 170,000 children will avail of the school transport next year, and that is what is budgeted for.
From a national childcare scheme perspective, we now have an additional 35,000 children covered under that scheme. The issue of community centres was raised as a concern from a childcare perspective. In my own constituency, many community centres also offer ECCE and national childcare schemes, and that works well. It is also worth noting there was an increase of 8,400 in the AIMS childcare programme.
I agree that access to childcare is a huge issue. Earlier this week, I was pleased to open a new crèche in my constituency, the First Steps Academy at St. Edmunds, Lucan. We need to make sure more crèches are opening up, and that is the reality. As Senator Kyne said, it is brilliant that the Government has invested in order to reduce the cost of childcare in recent years, but it is access to childcare that is the biggest issue. We need to resolve that next before we go back to childcare costs.
From a disability perspective, there was a huge increase in the disability budget of, I think, 19%. Senator Rabbitte asked when that money will be felt in communities, which is a valid point. I will bring that back to the Minister. It is worth noting that part of that funding will include an extra 1,000 staff, which will bring the figure up to 23,500 in the workforce in that area. That is very welcome. I know the Senator did a lot of work in this area in her previous role.
From a health perspective, Senator Tully mentioned the 220 beds in hospitals. However, there are between 500 and 550 beds when we take hospitals and community services together, so it is worth looking at them holistically. There will also be an additional staff of 3,300, which is very welcome, as well as more nursing home beds. From a defence perspective, retention is an issue. Moving to level of ambition 2 is part of dealing with that. From a sport perspective, the point on referees is good feedback. I will take that on board.
On the national minimum wage, the Government has accepted the unanimous report of the Low Pay Commission. The commission, which comprises our social partners, unanimously recommended this increase to the minimum wage and we accepted that. As was mentioned, many of those on the minimum wage or low wages work in our hospitality sector. That is what that 9% is about. It is about protecting those jobs and supporting those people.
Senator Ruane mentioned a number of statistics that show that poverty rates are projected to increase this year in comparison to last year but they are then expected to reduce next year in comparison to this year. That is based on the income measures brought in through this budget. Page 15 of the expenditure report sets out the impact of the budget on household incomes. A key priority of this budget is to provide assistance and support to the most vulnerable. The chart on page 15 clearly shows that the measures announced in the budget will have the greatest impact on the households in income deciles 1 to 4. The analysis in the expenditure report also shows the impact of the measures on different household types. Lone-parent households and single people of retirement age will experience permanent income gains of between 1.9% and 4%. That analysis is available on page 16 of the expenditure report.
Many Members welcomed the change in the means test disregard for carer's allowance. That is very welcome. Senator Ruane raised a very interesting point regarding the 18.5 hour limit and asked whether it should be looked at in view of the changing thresholds. That is certainly something I will bring back to the Minister, Deputy Dara Calleary.
I hope that covers most of the responses. Every year, the Government is presented with complex choices as to how best manage our budget to deliver progress towards a more inclusive, resilient and prosperous Ireland. With that in mind, I was very happy to engage today. I will take this opportunity to thank the officials in the Department of Finance and my own Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, who worked tirelessly to put this budget together. Many of them worked all weekend and late into the night Monday or into early Tuesday morning.
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