Jerry Buttimer (Fine Gael)
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I welcome Minister of State, Deputy Richmond, to the House. No. 2 is statements on budget 2025, Department of Finance. The Minister of State and group spokespersons have ten minutes and all other speakers have five minutes.

Neale Richmond (Dublin Rathdown, Fine Gael)
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I am delighted to appear before the Seanad to discuss budget 2025 following its presentation earlier today to Dáil Éireann. As has been evident in recent years, we are living in a more shock-prone world - Brexit, a global pandemic, the war in Ukraine and a cost-of-living crisis led to rates of inflation not seen in decades.

However, despite these challenges, we have an economy that is operating at effective full employment. There are 2.7 million people at work in this country, more than Ireland’s entire population in the 1950s. This reflects the fundamental strength of our economy. We see many countries pulling back and cutting costs. Meanwhile, we are in a position to invest €2 billion in cost-of-living measures before Christmas; and to invest €3 billion in our infrastructure for our future, while planning for the future. This is down to prudential management of our economy by this Government.

Budget 2025, the fifth and final budget of this Government, puts in place measures to continue our economy's positive trajectory, while also investing in our public services, our infrastructure and, crucially, our people. Budget 2025 has been framed against an economy that is, quite simply, in good shape. Since its peak in mid-2022, the rate of inflation has eased significantly. Inflation is set to remain below 2% this year and, indeed, next year.

However, prices are still high and we fully recognise that many people who work incredibly hard, pay their way, play by the rules and support their families are still struggling. This is why budget 2025 includes a cost-of-living package to support people and families by helping them now and in the lead up to Christmas. Alongside the strong performance in the labour market and the moderation in inflation, economic activity is continuing to expand. Modified domestic demand, the preferred measure of domestic activity, is projected to grow by close to 2.5% this year and by close to 3% next year. While the economy is performing well, a clear budgetary objective is to support increased investment, narrowing the infrastructure gap and improving the productive capacity of the economy. Recognising the need for further capital expenditure, €3 billion from the AIB share sale receipts will be invested in housing, water and energy infrastructure. This investment is crucial in attracting investment to Ireland, maintaining our competitiveness, helping to eliminate key bottlenecks and improving living standards.

Turning to the fiscal outlook, a general Government surplus of €23.7 billion is projected for this year and €9.7 billion next year. Windfall corporate tax receipts are estimated at €15.9 billion, almost half of the total surplus projected for this year. It is a key priority of Government to not use potentially transitory receipts to fund permanent expenditure measures.

As set out in the summer economic statement, budget 2025 consists of a total package of €8.3 billion, comprising €1.4 billion in taxation measures and expenditure worth €6.9 billion. There is also a cost-of-living package totalling about €2.2 billion. While inflation has eased considerably, people still need our help. At a time when we have a strong economy, it is only right that we invest in our people, those who need it most, in the here and now.

Building on the progress already made by this Government, the income tax package of €1.6 billion is designed to further reduce the tax burden on individuals. Specific measures include an increase in the personal, employee and earned income credits by €125 each; an increase of €2,000 in the standard rate cut off point, increasing entry to the higher rate of income tax to €44,000; a reduction in the applicable rate of USC from 4% to 3%. The entry threshold will also be raised in line with the increase in the national minimum wage; and an increase in the home carers and the single person child carers tax credits by €150, the incapacitated child and blind tax credit by €300 and the dependant relative credit by €60 to support those with caring responsibilities and to help address child poverty. These measures will provide a tangible benefit to workers and those who need our support. To put these changes in perspective, a single person earning €20,000 or less in 2025 will now be outside of the income tax net.

I am particularly proud to announce that budget 2025 will also introduce an exemption from income, capital gains and capital acquisitions tax on payments to women impacted by the failures in the CervicalCheck national screening programme. In addition, future and historic income or gains arising to these women will also be exempt from the relevant taxes.

More broadly, additional measures to help to address cost-of-living pressures include an extension of the 9% reduced VAT rate for gas and electricity for another six months. To assist mortgage holders who experienced increased interest rates, the mortgage interest tax relief is being extended for another year. In addition, the Government has decided to increase all capital acquisition thresholds that apply to gifts or inheritances in recognition of the increases in property values since the thresholds were last raised in 2019. No one should fear leaving the family home to a son or daughter because of a tax bill. Today we are making inheritance taxes fairer, allowing a son or daughter to inherit up to €400,000 before paying inheritance tax.

Alongside protecting households from cost-of-living pressures, housing is, quite simply, the number one priority for this Government. For renters, the Government is increasing the value of the rent tax credit by €250 to €1,000 for 2025, and in 2024, the credit is also increasing to €1,000. The help-to-buy scheme has been one of the great successes of this Government. Since its introduction by Fine Gael, it has supported almost 50,000 individuals or couples to buy their own home by giving them back up to €30,000 in their own taxes. I am glad to see that the scheme is being extended until the end of 2029.

We are building tens of thousands of homes in this country. There were 33,000 built last year. We will build almost 40,000 this year. However, we want to make sure that these homes are bought by first-time buyers, by individuals and families. The bulk purchasing of homes by investment funds impacts the number of homes available to purchase. To address this, the budget increases the rate of stamp duty on the bulk acquisition of houses from 10% to 15%. This is a crucial measure to support first-time buyers and to support home and house ownership. The vacant homes tax will also increase from five times, to seven times the property’s existing base local property tax rate, to maximise the use of existing housing stock.

I am happy to confirm that following its reduction in budget 2024, the motor insurance solvency compensation fund levy will be further reduced to 0%. The reduction will benefit all motor insurance policyholders on renewal from January. This follows on from last year’s reduction from 2% to 1%. The reduction in the annual percentage rate will reduce the level of motor insurance contributions by almost €20 million next year and, in turn, have a direct and positive impact on the cost of insurance for motorists.

The Government is committed to supporting businesses in Ireland. A comprehensive package of supports for business is contained in budget 2025. A €4,000 power-up grant will help hospitality and retail businesses to address rising costs. In recent years, significant complexity has been added to the corporation tax code. Budget 2025 takes an important step towards reducing this burden through the introduction of a participation exemption for foreign dividends.This measure, which will come into effect from 1 January next, will provide an alternative, simpler mechanism for double tax relief for multinational businesses. Budget 2024 saw the research and development tax credit increase from 25% to 30%. This year, the first-year payment threshold in the research and development tax credit will increase from €50,000 to €75,000. We are also keen to support and promote start-up and scaling businesses. This includes helping them to attract funding through schemes such as the employment investment incentive, the start-up relief for entrepreneurs and the start-up capital incentive. All three schemes are being extended to the end of 2026, including significant enhancements to the employment investment incentive and the start-up relief for entrepreneurs. In a modern economy, it is important to have a thriving ecosystem of angel investment. In this regard, capital gains tax relief is being amended to target investors in innovative start-ups to provide for an increased lifetime limit on gains to which the relief applies, from €3 million to €10 million.

As regards agriculture, a number of important reliefs are being extended to the end of 2027, including the general stock relief, stock relief for young trained farmers and stock relief registered farm partnerships.

To incentivise the use of electric vehicles, the Government is making an amendment to vehicle registration tax, VRT, to allow battery electric commercial vehicles to quality for the €200 VRT rate. To further incentivise the use of cleaner cars, the carbon tax on petrol and diesel will rise by €7.50 to €63.50 per tonne of carbon dioxide emitted from 9 October. These revenues will be used to address fuel poverty, invest in socially progressive national retrofitting programmes and support farmers in the green transition.

In further revenue-raising measures, the bank levy is being extended for a further year to raise €200 million. In addition, to support public health policy, excise duty on a pack of 20 cigarettes is increasing by €1, with a pro rataincrease on other tobacco products. A domestic tax on e-cigarettes, of 50 cent per millilitre of e-liquid, will also be put in place.

On 30 July, the Minister, Deputy Chambers, signed the commencement order to officially establish the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. These funds are key to the Government's strategy to plan for the future. Some €4.3 billion was transferred into the Future Ireland Fund and €2 billion into the Infrastructure, Climate and Nature Fund from the National Reserve Fund. A further €4.1 billion will be transferred to the Future Ireland Fund this year. As set out in the legislation, the Irish Fiscal Advisory Council must provide an assessment of the economic and fiscal position of the State so as to assess whether contributions to the funds should be made next year. The fiscal council assessed that it is appropriate for transfers to take place to both funds.

Budget 2025 is a good budget. It helps people who need help the most, puts money back in people's pockets when they need it most, builds more homes, opens more hospital beds and builds more schools, all while securing our future. I commend the budget to the House and look forward to engaging with Senators in the debate.

Maria Byrne (Fine Gael)
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I thank the Minister of State for coming here to discuss this very important budget. Overall, this is considered to be a very positive budget. The Minister of State, Deputy Higgins, visited Limerick recently to meet the owners of small businesses. In the past, the Minister of State, Deputy Richmond, has visited. I have had two calls from businesses that were really pleased with the supports being put in place today and how they feel the Government is thinking about SMEs. They would love to have seen other things happen but they are very grateful to receive the €4,000 payment, the reduced rate of 9% for gas and so on.

As regards the Minister of State's area, we dealt with the motor insurance insolvency Bill last week. It is great news that the fund levy has gone down to 0%. That is to be welcomed. I know the Minister of State and his officials put an awful lot of work into that area, so I compliment them in that regard.

One area that is very important to constituents in my area is the section 481 relief and the regional uplift. When the Finance Bill is introduced, I look forward to having an input on that. I have Troy Studios on my doorstep. The relief has been used a great deal. Limerick is one of the biggest areas for filmmaking in the country. I look forward to having an input on that matter.

The rent tax credit and the help-to-buy scheme are both very important. The fact that the rent-to-buy scheme is being extended to 2029 is most welcome because more than 50,000 people have availed of it up to now. I was helped and supported some people who have availed of it. They found that the individuals in the local authority who are working with people as they apply for the scheme are very good at sharing the information and supporting and guiding them through the process. This is really important because many young people like to try to purchase their own homes.

As regards income tax relief and the cutoff being extended to €44,000, that is a huge jump and it is very welcome because many people were below that level and were considered the squeezed middle, in that they were working yet paying a great deal of tax.

One thing I have been calling for day after day is support for carers because a great many carers help keep people safe in their own homes. People who are self-employed now come into that category. Many people who are self-employed yet who care for a loved one at home help to keep those loved ones safe in their own homes. This is a welcome addition because, up to now, self-employed people could not avail of it. It is a very good addition to the budget. The increase by €150 for the means test helps a great many carers who previously were not able to avail of that relief. Mortgage interest relief is another welcome addition.

As regards the agriculture sector, the Minister of State outlined some of the additions as regards agriculture. The fact that parents who may be retiring from farming can now let their farms to their loved ones, to the next generation, although I know they have to stay farming for up to 12 years to avail of that relief, is really welcome. It also covers people who may be leaving their business to a family member. That is a really positive move.

As regards the small benefits exemption, employers, where they want to reward an employee, can now give the employee a gift. This will be tax-free up to a certain amount. That is most welcome because employers like to reward their employees.

As regards health, which I know does not really come under the finance Bill, I welcome the fact that HRT and IVF are being included in this scheme because so many people were paying an awful lot of money for both health measures. This is a good news story for women especially today as regards those two health measures.

The fact that we will have more gardaí going to training college is to be welcomed.

Many charities were having issues accessing tax credits, but there is a great incentive in this budget that the Government has recognised that some charities were falling between two stools and were not able to access tax relief. It is most welcome that the Government is looking at bringing all charities in to be covered by that area. There are a great many charities out there with many volunteers and they do very good work with the money raised, so the fact that they can get that tax credit is to be most welcomed. I heard from a charity earlier that was absolutely delighted with the announcement because it was having difficulties and it feels now that there is a door open to it.

I know social welfare comes under the Department of public expenditure, but all the payments that will be given to people, especially the most vulnerable in our society, are welcome.We are here to discuss the finance package, however. It is supporting people in their own homes, people who are renting and people who cannot afford to buy their own homes. It is supporting businesses. It is looking at people like carers who give care to their loved ones, many of whom did not receive anything for years.

I want to address investment in sport. I refer to the Healthy Ireland initiative, Sport Ireland and all the various groupings which avail of sport incentives. There is going to be a package for sports organisations. Previously, there was a discrepancy between male and female teams as to how much funding they received. I am delighted to say that this Government has addressed that issue and that there is going to be funding towards sporting organisations. I have always believed that being involved in sport keeps people on the right road. It helps them with teamwork and building relationships with their colleagues in the team. Certainly, it is a great support in making sure people are healthy and are involved in physical training right across the different sports. This support to the national sporting bodies is most welcome.

Overall, I thank the Minister of State, Deputy Richmond, and the Ministers, Deputies Donohoe and Chambers, for all the work they have done on this budget. I commend the budget to the House.

Gerard Craughwell (Independent)
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This is the first time I have addressed the Minister of State, Deputy Richmond, since he was elevated to the role of Minister of State. He must be delighted with this budget today. I am dreading his Instagram account. He will be standing in front of housing estates all over south County Dublin talking about the great job he has done. In fairness, the budget is a good one. It would be remiss of me to say it is a great budget, but it is a good one.

I am a bit disappointed, however, with the across-the-board €12 increase in social welfare. Elderly people in this country have contributed with their blood, sweat and tears down through the years to the great country we have today. I believe the Minister of State’s party, Fine Gael, wanted to reward the elderly for their work with more than €12 per week. Honestly, €12 per week is not going to do a lot for an elderly person or couple. While I appreciate there is some assistance coming in the area of fuel allowance and the like, €12 per week is just a tad miserable at this stage. This is an extremely wealthy country now and we can afford to do a lot more.

I am delighted to see stamp duty for the bulk-buying of houses increased. I acknowledge the Minister of State’s commitment, all laughing and joking aside, to housing. I have seen the work he does on the ground in the constituency I live in and the Minister of State represents. I acknowledge that. While the stamp duty has increased to 15%, I would like to see it higher. We really need to disincentivise these vulture funds in order to make property more available and more accessible for younger people.

It is wonderful, given the days of hoarding we have seen, to see the residential zoned land tax. The Minister of State will know that there are large builders in our own area who bought massive tracts of land. Admittedly, they are moving along as they develop, but we should be able to see development much faster in that area.

I wish to say one thing about personal taxation and particularly USC. I am holding a Fine Gael photograph in which it states, “abolish the USC”. Why was it not abolished?

Neale Richmond (Dublin Rathdown, Fine Gael)
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That was eight years ago.

Gerard Craughwell (Independent)
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Better yet, instead of doing 1%, why did we not just take a whole tranche of people - the lower paid - out of that altogether? Lower-paid people are struggling. We need the people who work in jobs in the catering industry or in various support roles in hospitals and places like that. Why did we not just take them out of the USC altogether instead of benefiting people who can well afford to pay an extra few bob for the time being while the USC is still around?

I am deeply concerned about the Apple tax. Let us put a couple of things into place. Does the Minister of State honestly believe we should let the people who have allowed the bicycle shed, security hut and hospital projects to go way out of kilter have access to that money? I would much rather that all the money be handed to the Minister of State and or some other politician to spend it rather than giving it to those who have absolutely behaved recklessly with the State’s funds. Some €2.2 billion has now been spent on a children’s hospital which was originally supposed to cost €400 million. I note that the Minister, Deputy Chambers, has announced the development of a framework for the investment of the €14 billion Apple money, prioritising housing, energy and water. This country depends massively on foreign direct investment, but we have zero lens on security and defence. We have cables coming through our seas that no one is able to monitor. We depend on the EU to monitor them. Our Defence Forces are falling apart. While it was great to see today that provision has been made for an increase of 400 members in the Defence Forces, who is going to instruct them? The Government has done a great job in increasing the pay for the lowest ranks in the Defence Forces, such as the enlisted ranks and the lowest ranks in the commissioned officers' ranks. It has not, however, maintained the differential. There is now very little, by way of money, in being promoted from private to corporal or from cadet to second lieutenant or full lieutenant. From that point of view, we should go back and look at that.

The 2013 pension reform, which was brought in by officials from the Department of public expenditure and reform, must be looked at. It was a one-fix-fits-all approach. It does not fit all. It is absolutely repugnant to those who are in the accelerated pension schemes. My colleague, Senator Maria Byrne, made reference to 1,000 new members of An Garda Síochána, and fair play to her for acknowledging that. The problem is that we have lost 1,000 members in the past year because of the 2013 pension reform. The Minister of State is a really active guy in his role. One of the things he can bring to the Cabinet, to the Taoiseach and to the Minister for public expenditure and reform, who is one of the better Ministers this country has had down through the years, is to get them to sit down to look at the damage that was done with the 2013 pension reform. It is absolutely detrimental to front-line services. We have got to do something about it.

The single pension scheme was brought in by people who walked out of here with great big pensions from the public service. They brought in a single pension scheme which has made public service something nobody really wants to engage in. Neither the Minister of State, Fine Gael nor Fianna Fáil wants to see that. We have to get an acknowledgement of this. I can only ask that it comes in election manifestos. As I understand it, this Government will be gone by 22 November. That is what I have heard today. That is a bit of news for everyone. I just thought I should fill everyone in on that

Jerry Buttimer (Fine Gael)
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I thank Senator Craughwell.

Gerard Craughwell (Independent)
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I cannot help it if Fianna Fáil members were briefed on that last night. That is another day’s work, however. The bottom line is that the 2013 pension reform has to find its way into the manifestos of parties going forward for election because it is detrimental to the public service and absolutely detrimental to front-line services. I ask for the Minister of State’s assistance in this regard.

As a former educator, I commend the Government on increasing the book scheme right up to leaving certificate. That is really positive stuff from this Government. I want to acknowledge that. I also wish to acknowledge the building schemes.

One of the things I mentioned earlier, during the Department of Public Expenditure, NPD Delivery and Reform debate, was the need to have €1 billion ring-fenced over ten years for cyberawareness and cybersecurity. We have to become the best in the world. We have the expertise in this country to be the best in the world. A man like the Minister of State with his fist on the purse of government can do a lot to influence that.I ask him to do so. I am probably moving into areas that are not directly the Minister of State's responsibility but I am moving into them because he is a Minister of State with a financial portfolio, and he is in a position to do something about that.

Housing is something the Minister of State has a huge interest in. There are military married quarters throughout the country that the Tánaiste and Minister for Defence said he would recommission and get back up and running. I do not know how many of them there are - there are not that many, a couple of hundred - but if we got those married quarters it would take a couple of hundred people off the housing list, put them into married quarters and, perhaps, allow other couples to gain access to it. I would appreciate any assistance the Minister of State could give in that area.

Overall, I would love to bash the budget to pieces but there is not much to bash in it. It is a good budget. Most people will get some benefit from it. I wish the elderly got more out of it and I wish the USC was abolished for people earning less than €40,000 per year, say, and then maybe in a year's time get rid of the rest of it. I am always afraid when we move 1% at a time that what we are doing is keeping the USC alive in case we hit a crisis again and need to increase it. From that point of view, I always think there is a reluctance to get rid of it.

I congratulate the Minister of State. It is a good day for him, a good day to bring a budget to the House, and I congratulate him in his ministry.

Pat Casey (Fianna Fail)
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I welcome the Minister of State to the House this evening. Today is further evidence that this historic coalition Government of three distinct political traditions has managed the Irish economy to serve the needs of all the people of Ireland in a manner that is prudent and sustainable and rewards work and ambition. Today, our Fianna Fáil Minister, Deputy Jack Chambers, has delivered a budget that is unprecedented in its targeting of significant finances towards the key investment priorities in housing, health, water and energy, while ensuring working people have more in their pockets to meet the cost-of-living crisis caused by ongoing global uncertainty.

Senator Craughwell has just left the Chamber but this is second consecutive year in which we have cut the USC, along with an increase in the income tax standard rate cut-off point and an increase in the personal tax credit, which will be of benefit to all who work and are key to continuing the success of the Irish economy. Our investment of nearly €2 billion in water and energy infrastructure is a clear indicator to both employers and those involved in the delivery of housing that the essential upgrades will be made to allow for the modernisation of this high-tech, highly educated and outward-looking economic model.

In housing, there is the largest investment package to further increase the rapid increase in the construction of high-quality, A-rated housing. The help-to-buy scheme has been extended until 2029, and I might revert to that scheme later. The rent tax credit has been increased, mortgage interest relief extended for a further year, the tax relief for pre-letting expenses extended until December 2027, the rate of stamp duty on bulk acquisitions for housing increased, and the vacant home tax increased to seven times the property's local property tax charge.

Strategic targeting and approval of capital spending, as any business will acknowledge, is essential for the sustainable growth of our enterprise. Today's wise investment of €1.25 billion in the Land Development Agency, €1 billion in Irish Water and €700 million in energy grid infrastructure enables key building blocks to be in place for the continued growth in housing delivery and economic expansion.

Ireland is a society where we all must be valued and cherished, and today's investment in health, mental health, social protection and pensions ensures that those who are in need have access to the additional financial supports and services funded by the successful Irish tax base. The return to school and the onset of autumn and winter puts much pressure on those families and older people with additional costs to bear, and it is a welcome and right thing to do to provide an additional bonus week along with the traditional Christmas bonus, and the new energy supports will be of help for people in need.

I said I would return to the help-to-buy scheme. I raised this issue last year and I will raise it again this year because it is important. The help-to-buy scheme has proved essential for home ownership and is a key component in allowing people to own their own homes. I have an issue with the loan-to-value ratio of 70%. I have explained this a couple of times and I will give the Minister of State a few examples of it. Take a young people who cannot get a 70% mortgage and are down at 67% but can get the first home scheme and, with the little deposit they have, are in a position to buy that house. As they are at 67%, however, they are excluded from the help-to-buy scheme and lose that potential of a deposit. The other cohort of people I have experienced on my travels are people who thought the aspiration of owning their own home was gone. These are people in, maybe, their late 30s or early 40s who cannot get a full mortgage. Their mortgage is maybe down at 60% to 65% but with the first home scheme, they can actually buy their home. Again, however, the catch is that the help-to-buy scheme is not there for them because the loan-to-value ratio is below 70%. This is the cohort of people who need the help-to-buy scheme more than anyone, more than people who probably do not actually need it. There is no dead weight associated with this cohort of people. I can give the Minister of State an example of a single mother in Wicklow whose mother worked in the council. When she finished in the council she got a lump sum. She was able to give that to her daughter but the daughter was only able to get a mortgage of 68% and she lost the help-to-buy scheme. These are the genuine people we could look at a bit closer with regard to loan-to-value. I have mentioned it in all my speeches so far in respect of the budget.

With regard to business, it would be wrong of me to be critical in this aspect because I know what the Government has done to sustain business during Covid and make sure we were in a position to survive when we came out of Covid. I welcome the supports that have been provided and, equally I welcome the €4,000 support today but it is a rather blunt instrument. It does not take into account the full complexities, especially for the small family businesses that are really struggling and do not fit under that €30,000 in commercial rates to the council and therefore do not qualify for the grant. While I am in hospitality, and the Minister of State knows the issue we have, it is reflected in all small family businesses. When you look at the input costs, staff costs have gone up significantly with the roll-out of the minimum wage, with increases three years in succession, holiday pay and pension auto-enrolment - although we have deferred that further - these are all huge additional costs. There are insurance costs, and even though we have tried, as a Government, to do as much as we can to reduce them, they are still a high input cost. There are energy costs and, for hospitality, there is the food input cost. There are four very big ongoing input costs. I know the complexity of trying to devise a scheme that targets the people or businesses most in need, whereas some people are getting the €4,000 and probably do not need it all. I do welcome it, however, and I appreciate it, but we could look into it a bit more and see what other schemes we could bring in because I am afraid for family businesses in this country. They are struggling. The bureaucracy is just killing them. The energy is going out of a lot of family businesses. It is just being sucked out of them and the only option they see is an exit door, rather than changing. They have been the heart of our communities and economy and I would like to see if we could do something more for them, while appreciating everything that has been done for businesses to date.

Some people will, of course, accuse this Government and the budget of being an attempt at electioneering but that is an old and trite statement. This Government has lasted nearly its full term and it has done so because the Irish people and our economic framework demand stability and coherence in an uncertain world. We only have to look at the framing of the budget that the new UK Government is preparing to see the results that populist, blow-in-the-wind political and financial instability bring. The political and economic chaos caused by populist governments is all too clear in the long road that our nearest neighbour must take to rebuild its society and economy. In the next few weeks or months the Irish people will get their democratic right to choose who will govern and in what manner. The choice is now clear. The partnership Government in which Fianna Fáil has had a distinct role has governed in a responsible, professional and targeted manner.Opposition Members promise vast spending packages while never explaining where the extra taxes will come from. They throw out figures on housing delivery that have no credibility to anyone with knowledge of the reality of the construction process and costs.

The Government is proving itself on the field; it is not on the sidelines. The increased provision in housing is just one of the facts the Government will be putting forward to the Irish people, along with full employment, rising wages, strategic investment in infrastructure and improved supports for all those in need.

Emer Currie (Fine Gael)
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The Minister of State is welcome. I congratulate him on today's budget and the hard work that has obviously been done in recent months. When I look at the budget in terms of priorities, I feel more money in people's pockets is very important at the end of the month. As the Minister of State said, there are many families out there who feel they are doing everything right but do not have enough to show for it at the end of the month or are struggling. We want public services that work and we need support for families and households when they need it. We want an equal society where everyone can prosper and a plan for tackling the undersupply of infrastructure we have lived with for years. The best description of the budget came from An Taoiseach when he said we have a strong economy that is prospering so people can do the same. That is where we are at this moment and it is a reflection of the financial and economic policies of the past 13 years.

What will I be saying to people when they ask me what is in the budget for them? I will be saying that for families there is another 24% increase in early learning and childcare, bringing our investment in childcare up to €1.37 billion. That has caught up with our target much faster than we set out to do under the programme for Government, but we need to do it. I hope there is a budget for providers in that, as well as parents. We have delivered on free school books for primary and secondary level. We are delivering on our commitment that all primary schools would have access to hot school meals and on the commitment to look at holiday hunger, which is very important. School transport fees are to be reduced, which has to go hand in hand with the review of the system, which is overwhelmed and not working for enough families. We are showing we will do that and put the money behind it.

There is more investment in children with additional needs and more SNAs, special education teachers and special classes. There is a commitment to providing dedicated support for children with additional needs moving from primary school to secondary school. There is a €20 increase in the domiciliary care allowance, a triple childcare benefit payment for families with newborn children and two double payments in child benefit before Christmas. There are also cuts to third level fees.

We regularly highlight carers in this Chamber. There is a significant investment for carers, which is right and just. The carer's support grant increased to €2,000 and there is a major increase in the carer's allowance means test limits to €625. I hope we will quickly move away from the means test altogether. There is a significant commitment to and investment in carers that shows we recognise the value of their work and contribution to society. There is a €12 increase in the weekly payment to carers, and carer's benefit is being extended to the self-employed. There is a €400 lump sum payment for those getting disability allowance and the blind pension. There is an extension to IVF funding and free HRT medication, which can cost €30 to €70 per month. We delivered on a commitment around inheritance tax as well.

I have not even gone near the tax cuts. When I am on the doorsteps, I know this will be good news after good news. However, we cannot forget our commitments around infrastructure and the need to address the infrastructure deficit. It is welcome to see €1 billion being ring-fenced for water infrastructure. That affects not just development of new communities and regional balance but also impacts communities with water leakages. We see that on too regular a basis.

People want help here and now but they also want reliability in the public services and supports their families and households need. This budget has delivered on that. I thank the three parties involved.

Martin Conway (Fine Gael)
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The Minister of State is welcome to the House on his first budget in his important position in the Department of Finance. I commend him because he clearly influenced the budget significantly. There is an awful lot to take from this budget that is positive.

I remember standing up in this House in 2011, 2012, 2013 and 2014 when we were increasing taxes and cutting social welfare payments. There was no room to do anything in those budgets yet they were incredibly important because during that difficult period we worked diligently to get our economic sovereignty back. Then we started building a fabulous economy until the Brexit uncertainty evolved. That was resolved, to be followed by a worldwide pandemic. We were insulated from the worst elements of that pandemic. If you talk to people in Spain, Portugal and other countries, there were no payments for businesses that were closed. They were closed unilaterally, like they were in this country, but we had supports, so many businesses were able to resume afterwards because of that prudence. That is the reason we have the budget we have today.

It is fantastic to be able to give meaningful supports to people. The various childcare initiatives and initiatives in terms of pensions are important. They will not set the world alight but will make a big difference when it comes to the cost of living, particularly in the run-up to the expensive Christmas period. It is great that we are able to do what we are doing with child benefit and electricity credits.

I very much welcome the €300 increase in the blind tax credit. That has not increased in years. For people with eyesight difficulties who are out working the same as everybody else, it assists them in dealing with the extra costs they inevitably have in transport and so on.

I am disappointed, however. I have been on record here over many years saying the 9% VAT rate should be constant and permanent. It has not happened. I welcome the €4,000 across-the-board payment to people paying rates of €30,000 or less but, going forward, we need to re-examine the 9% VAT rate for hospitality restaurants and coffee shops, though not necessarily for accommodation providers because we all see what is happening there and it is buoyant enough. A restaurant that is doing €300,000 per year in turnover should be on 9% and there should be a step up if the restaurant is doing between, let us say, €300,000 and €800,000. Beyond €800,000, they could perhaps pay 13.5%. It would give certainty to people and free up capital for investment.When we introduced the 9% rate, it meant a 4.5% saving that allowed people to invest in upgrading their facilities and services and so on.

Going forward, we need to have a very detailed discussion on tax measures when it comes to retail. Retail has changed, changed utterly. We see the prevalence of online shopping. I was saying to somebody downstairs earlier that in my home town, we used to have two shoe shops. We have no shoe shop anymore and we have not had one in a long time. In the town of Ennis there were a number of shoe shops. We are now down to one or possibly two shoe shops, simply because people are buying shoes online. That is just the reality. We are not going to change that, no matter what we do. We have to look at reorientating and supporting retail.

In his previous role at the Department of Enterprise, Trade and Employment, the Minister of State did phenomenal work with local enterprise offices, Retail Excellence Ireland and the various other stakeholder groups to develop a retail policy and strategy. Retail is changing very quickly. People have apps on their phone and they are able to click and collect. There are all sorts of things happening and we have to embrace that. There is no point in not embracing it but we need to have tax measures that reflect the new reality and the commitments that we rightly have to make when it comes to minimum wage, sick pay for workers and automatic enrolment for a pension. These are things that have to happen. In a First World country, we need to do these things. We need to think of the people who are paying the piper as well, however. That is one aspect of the budget I find disappointing. Overall, however, it is an incredible budget and everybody involved in it deserves huge credit.

Aisling Dolan (Fine Gael)
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I welcome this budget. When we look at the figures, this is the biggest social welfare budget, with investment of €26.5 billion. There is investment of €25.8 billion in health, €11.8 billion in education, €4.5 billion in further education, €8.9 billion in children and €7 billion in housing. How can we do this? How are we in a position to be able to support people at every stage of their lives in this country? It is thanks to the highest employment numbers we have ever had. There are 2.7 million people at work. The level of employment was mentioned today. It is set to increase by almost 110,000 people in the next two years and the unemployment rate will stay low, at approximately 4.5%.

During the Covid pandemic, we were putting all those measures in place. That was not long ago - only three or four years. We had no idea the economy and businesses were going to bounce back. We put measures in place that led to businesses being able to maintain real success. We can never take this for granted, however. Many of the multinationals constantly undertake global cost-cutting measures. We know the next technological advances are around the corner and we have to stay up to speed. I acknowledge the work of development advisers, whether at IDA Ireland or Enterprise Ireland, as well as the funding that we deliver into innovation and research and our universities. We try to stay ahead of the curve. We are going to be dealing with digitalisation and AI and all these measures that will probably immeasurably improve our lives, but also lead to additional challenges for a small country in a global economy. There is success here. My queries, however, are on how we are future-proofing ourselves. What are we doing? How are we going to be on the innovation index? How do we compare with Singapore?

The funding that is going into universities under the direction of the Minister, Deputy O'Donovan, is an interesting aspect of this. We need to see how we are funding our third level sector. Yes, we have probably the highest number of third level graduates per capita globally, but we need to ensure we see that funding and innovation. We sometimes hear that Europe is very different from America when it comes to venture capital, VC, investment in innovation and cutting-edge technologies. People go to the United States. When we consider medtech companies in Galway, for example, their VC funding is an exit strategy to companies in the States. Europe needs to change how it looks at this. Europe needs to become more agile and change how it looks at regulation in this area. Those are elements that we, in government, can feed into.

The Minister of State went through a number of items, such as tax credits and so on. One of the elements brought into this budget that is incredible and a real win is that people on carer's allowance now qualify for the fuel allowance payment. If people qualify for the fuel allowance, that means they also qualify for the warmer home scheme. This is one of the mega elements of the budget. It will further provide for families and carers, in tandem with the increase in the income disregard. Many of us want to see a lot of changes in respect of carer's allowance. Carers are the people who ensure people can live longer in their own homes. Of course, I also welcome the measure relating to home help hours. This budget is incredible as it will ensure there are more supports for carers.

We often speak about infrastructure in this House. I note that one of the Ministers announced today in his budget speech that more than €99 million has been allocated to the Port of Cork. That allocation to develop a larger port will ensure we are able to do more offshore renewable energy. The provision in respect of infrastructure costs relating to broadband is another major aspect of the budget, as well as the provision for water infrastructure. When it came to building a development in my town of Ballinasloe, there was no water infrastructure. Uisce Éireann must be able to put the services in place as not having that sort of access when developing housing and developments in local areas is a real constraint. If the IDA is seeking to locate a company in the Minister of State’s home town, Roscommon or Ballinasloe, the first thing it will ask about is the housing in the area. It will ask where the people will be able to live and stay. If we do not have the water treatment plants to facilitate building capacity in our towns, it is a huge issue.

One of the measures I would like to have seen in the budget - perhaps it is in it - relates to local authorities and affordable housing. How are we going to incentivise local authorities to provide affordable housing? We are allocating a budget for it and I have not read the finer details yet, but I am curious about how we are going to incentivise. Local authorities are not getting involved in affordable housing because there is an administrative challenge to that. There is more administration involved. If they are providing something like local authority housing, there is less need to engage on an individual level than there is for affordable housing. How do we ensure that our local authorities are going to do this?

I also welcome the investment in the Future Ireland Fund, the agriculture reliefs and the change to inheritance tax. The latter is a major point for farmers in the context of succession and passing land from one generation to the next. It is very welcome. I commend the budget.

Garret Ahearn (Fine Gael)
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As there are no other Senators to speak, I invite the Minister of State to conclude.

Neale Richmond (Dublin Rathdown, Fine Gael)
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I thank the Senators present for their timely and very detailed contributions. I thank the Acting Chair for his contributions in the lead-up to the budget. I acknowledge his personal commitment as Government spokesperson on enterprise, trade, and employment and the positive contribution he made.

There are one or two issues I wish to address before responding to Senators. A lot of people have talked about this budget having something for everyone but nothing for anyone. That is utterly false. This budget is first and foremost a progressive budget. It recognises that although we have a growing economy and full employment, there are still people who are struggling. Distribution analysis published today shows that the measures announced in budget 2025 are progressive. In net terms, all households benefit from budgetary measures, with an average gain of 2.3% in weekly disposable income from the core measures and 1.3% from the one-off cost-of-living package. Households in the lowest income deciles, however, will benefit the most from the measures, continuing a positive overall trend in recent budgets. That is so important at this constrained time.

Many people have said we are investing too much into the economy or we are spending too much. It would be very difficult for me or indeed any of us present to turn to those families that, despite having two good incomes, are struggling with energy bills and childcare costs and feel like they have never worked so hard in their lives, and tell them that we are investing too much. They need a little bit of a break, and that is what we will see today. We will see today a suite of cost-of-living measures referenced by the Senators present that will really make a difference to so many families and workers up and down the country.

We are also investing in the future. I refer to the Future Ireland Fund, to which Senator Dolan made reference. In recent years, it has been clear the resilience of Ireland's economy has been critical in its ability to absorb quite massive global shocks. This has been highly dependent on the strong position of our public finances.To promote the long-term sustainability of our public finances the Future Ireland Fund and the Infrastructure, Climate and Nature Fund have been established to offset future spending pressures, to provide for countercyclical expenditure in economic downturns and to address climate and nature goals. I was delighted to bring the legislation creating those funds through this House. This year €4.3 billion was transferred into the Future Ireland Fund and €2 billion into the Infrastructure, Climate and Nature Fund from the National Reserve Fund. A further €4.1 billion will be transferred into the Future Ireland Fund this year following an assessment by the Department of Finance and the Irish Fiscal Advisory Council on the economic and fiscal position of the Irish economy. Transfers to both funds will take place next year.

I will now respond briefly to issues raised by the Senators present. Again, I thank them for their contributions. I thank Senator Maria Byrne for her strong support of the measures taken to help SMEs and to help the economy and businesses more widely. Senator Casey has spoken from personal experience, as has Senator Byrne, lest we forget, combined with their vast political experience at local and national levels. These supports are quite clear. We need to have an economy that functions and grows in order that we can meet the societal and infrastructural challenges that face our country. We will see great support for entrepreneurs and innovators and those who wish to scale up in particular. We will continue our support for our multinationals but, equally, there is the VAT relief given to SMEs. In particular, there is the €4,000 grant. Something that goes to Senator Conway’s point is the particular emphasis on the raising of VAT thresholds already for businesses in terms of goods and services. That will provide an additional relief that needs to be baked in. Let us be frank. I have spoken about the VAT rate for hospitality and the 9% campaign in this Chamber, in the media and with Senator Conway and the Leas-Chathaoirleach. We all know that comes at a cost. It is €740 million. That is 50% of our tax package. Unfortunately, decisions have to be made. That blunt decision would benefit a large multinational like McDonalds just as much as it would benefit the local café in Ennistymon or Avoca and that has to be balanced out. That is what this is about. It is about balances and accepting that we can do the most for the most. More importantly, we will see workers and families around the country with more money in their pockets to go out and spend in their local communities which are being supported by our growing economy. That is something that we will always take into account.

I wish to refer to two or three other areas briefly. They are under different headings but Senators Ahearn and Currie both referred to the changes in funding for HRT and second IVF treatments. These are among the most commonsensical and compassionate moves that have been made by this Government. It goes to consistency. This is not a budget that is about raw numbers. Rather, it is about the people who are behind those numbers. Every one of us knows a family who struggled on their fertility journey, with some one in six families affected. Equally, all of us know a woman in our life who is facing into menopause and needs those supports. I pay credit to our colleague who works in these environs, Councillor Anna Grainger, for her very public, vocal and personal campaign on her experience on a menopause journey and the importance of HRT for her and so many women like her.

I will touch on some of the points Senator Craughwell made before he departed. His point on the USC is well made but he held up a photograph from 2016. That was an election campaign that did not lead to a mandate that allowed for that change. Eight years later, we are cutting USC for the second year in a row in a way that is progressive and benefits those on the lowest incomes in society. The €12 increase to all payments will help carers, those who are on disability payments and pensioners and that is so important but so are the additional measures, particularly those for carers to which Senator Byrne so eloquently referred.

I take Senator Casey’s points about the loan-to-value rating on board. I know he has raised the issue in this House and other forums. I will bring it back to the Minister, Deputy Ahearn - apologies, that is the Minister, Deputy O’Brien - and see if we can move forward. My apologies to Senator Ahearn.

Martin Conway (Fine Gael)
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Some day.

Neale Richmond (Dublin Rathdown, Fine Gael)
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Someday, indeed. I pay particular credit to Senator Conway. He did not mention his own advocacy on the blind tax credit, in co-operation with his Seanad nominating body, Vision Ireland, formerly NCBI. I know this is of personal importance to the Senator. His continual advocacy in this House for those who are visually impaired in society does not go unnoticed. It is really important.

Senator Dolan asked how it is possible to future-proof these budgets to make sure they are not temporary. We have gone from a situation where we faced the impact of a pandemic, the like of which the world had not seen in a century, and the impact of a war on this Continent that is unlike anything since the Second World War - the Acting Chairperson, Senator Ahearn, has travelled to Ukraine a number of times – and the pressures that the impact of that war have had on every household in this country to a situation where we now have a surplus just shy of €24 billion and we are able to invest. That is what this budget is about. Yes, it is providing relief, but it is also investing in the future. The sale of shares in AIB will allow for massive infrastructural investment in our water, energy and housing. There has been general reference to the tax windfall of in the context of the €14.1 billion or so. It will be decided on in the first half of next year. Again, we will be looking at infrastructure and building out to make sure our economy is future-proofed. Top of that list is investing in education. We will see that at all levels. This year there will be funding for 6,800 craft apprenticeships. That is vital not only for building that infrastructure but also for servicing our economy and communities. There will be massive investment in third-level institutions to make sure we continue to have that level of skill talent. We are open to attracting skill talent from across the EU and beyond but equally we need to be developing it. The best thing Ireland has going for it, our best export and our biggest draw, is not our membership of the European Union, taxation rates, our English language capabilities or the fact that we are a common law jurisdiction; it is our people. This budget makes that investment in base level skills and life-long upskilling and also recognises that through progressive taxation measures that recognises businesses and individuals who are prepared to future-proof our society and economy.

I thank all the Senators for their contributions to this debate. I look forward to the passage of the budget later this evening and the various pieces of legislation in due course.

Garret Ahearn (Fine Gael)
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That concludes statements on budget 2025. I thank the Minister of State for being here this evening. I thank his colleagues and the officials in the Department of Finance for delivering the budget today.

When it is proposed to sit again?

Maria Byrne (Fine Gael)
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Tomorrow morning at 10.30 a.m.