Tá an cháinaisnéis a d'fhógraíomar inné ina cuid de chlár cúig bliana Rialtais agus críoch le próiseas ar leith oibre a lean ar feadh sé mhí. Is éard atá i gceist leis an gcáinaisnéis ná athbhreithniú agus costáil ar obair uilig an Rialtais agus féachaint chun cinn ar chostas an chláir oibre Rialtais a bheidh le déanamh ar feadh roinnt blianta eile amach romhainn. Ba mhaith liom buíochas a ghabháil agus aitheantas a thabhairt do na baill Rialtais go léir agus na mílte oibrí sa tseirbhís phoiblí a rinne obair dhian éifeachtach ar an gcáinaisnéis seo, chomh maith leis na hionchuir ó eagraíochtaí agus saineolaithe taobh amuigh den rialtas.
Go bunúsach is éard atá i gceist le rialú ná deiseanna a chur ar fáil don daonra agus roghanna a dhéanamh. Cé go gceapann páirtithe an Fhreasúra gur féidir le gach duine an méid atá uathu a fháil, chun a bheith macánta fírinneach tá teorainneacha ann. Caithfidh an cháinaisnéis seo a bheith inbhuanaithe. Cé go bhfuil faoiseamh mór dírithe ar theaghlaigh agus ar ghnóthaí, ceapaimid go bhfuil cáinaisnéis atá cothrom, agus a chabhraíonn le gach duine, curtha i bhfeidhm againn. Tugtar cabhair agus tacaíocht réadúil do chách, forbraítear seirbhísí poiblí agus déantar deimhin de go bhfuil Éire réidh chun dul i ngleic le dúshláin mhóra na linne seo.
This is a budget that provides substantial support for people at a challenging time. It expands vital public programmes and it invests in Ireland's future with both urgency and ambition. It is a balanced budget. It is a budget that is both responsive to very real needs today and responsible in taking action so that Ireland can navigate a period of deep economic uncertainty in Europe and the wider world.
In recent years, we have seen an ongoing series of economic shocks and disruptions. The fact is that they point to a world that is becoming much more uncertain and unpredictable. Many traditional assumptions that we have held about international trade, energy supply, technology, climate and geopolitics are in question. Recent developments have reinforced this reality. These range from rising trade tensions and conflicts that have exposed vulnerabilities in energy markets to rapid technological change and threats to international values and institutions that are central to Ireland's interests. It is clear that these are not just temporary disruptions. They are having lasting impacts and will continue to affect our society and our economy in different ways in the years ahead and the decades ahead. That being said, our economy is showing ongoing resilience. The most accurate measures of the domestic economy show that we outperformed predictions this year and should secure decent growth next year as well.
In spite of the number of questions available to them, the number of Private Members' motions and the amount of Opposition speaking time, it is remarkable how rarely the Opposition ever mentions economic growth. It never does. It simply takes it for granted that the economy will look after itself while it looks to clean out the cupboard. Yet it is growth delivered by a dynamic export-led economy that is the core of all new measures that can be delivered next year.
Before anything else, before any budget measure, the single biggest concern of workers is to have work. Ensuring high levels of employment is a bedrock of this Government's policies. As the independently reviewed background to this budget shows, our actions to increase and protect employment have ensured that Ireland has the highest level of employment in its history.
However, we cannot be complacent. We cannot take our economic success for granted. The core foundation for jobs, employment and funding public services is the wider economy. Acting to ensure that it is strong and resilient in the face of new challenges requires constant attention. We are addressing this through a range of measures, which I will outline.
The world is seeing major price increases, largely driven by conflicts, and we have to do what we can to sustainably help people. The budget provides all who rely on the State for their income with increases in line with or above inflation, while also delivering significant tax changes to benefit those who work. These combine with action to help businesses which are under pressure. In spite of the centrality of the economy and employment to everything, the debate so far has completely ignored these points.
The Opposition appears to believe the economy and employment are irrelevant. It has no policies beyond demanding dramatically more spending. This is to be paid for through higher taxes as well as cutting provision for the investments we need to sustain high employment, more housing, better public services and sustainable energy. The contributions so far have accused us of being Scrooges, miserly and insulting. Above-inflation income measures have been described as less than nothing. Perhaps the most remarkable attack has been the claim that seeking to ensure that public money is well spent is an Elon Musk-like attack on public servants. These absurd and pre-scripted attacks ignore the substance of the many issues our country faces. They are not about trying to solve pressures being faced by people but simply about trying to exploit them.
The facts show that the budget delivers significant increases in spending on services and supports as well as investment, yet it also ensures that we continue to provide for ongoing investment needs and resources to respond to more difficult economic conditions. It provides aid to workers and families ahead of rising prices while investing in protecting the jobs and growth we need to give people decent incomes and fund the public service. In contrast to Opposition contributions, the comments of the Irish Fiscal Advisory Council are substantive and serious. They deserve a response. The council is absolutely correct to say that we have to show restraint and avoid allocating all available revenues. We have to be conscious that some of these revenues may be temporary, and acknowledge there is a limit to the capacity of the economy and public services to absorb increased spending and tax measures. As we respect this opinion, expressed by others as well as the council, we have rejected many of the escalating demands we have heard during this debate for extra permanent spending.
It should also be acknowledged that total gross expenditure has remained very static at about 33% of modified domestic demand, which is the most accurate measure of the economy’s strength. Allowing for the growth in the economy, total spending has remained and will remain consistent over the period 2022 to 2030, using forecasts from the Department of Finance, which have been independently reviewed. We have also brought in a surplus and have increased the funding put aside for future needs, especially for economic investments to underpin employment. Paying a further €1 billion into the Future Ireland Fund in 2027, which brings the total allocation to €7.5 billion, is a significant measure and a signal of our commitment to protecting against economic risks.
However, we must reach a judgment on the balance between this restraint and being responsive to the very real impact which international events have had. This especially concerns significant increases in the cost of living. The ability of families and businesses to cope with rising costs is limited. The significant extra help we have provided is succeeding in protecting high levels of employment as well as household incomes. The inflationary impact of the spending has been and will be limited, with inflation in line with the eurozone average, in spite of our reliance on imported energy. In addition, various measures are directly linked to addressing dramatic spikes in energy costs, which can be reversed. We are also pushing forward investments designed directly to increase indigenous businesses and protect sustainable, long-term revenues for the State. Major investments in energy, housing, transport and other areas are essential for expanding the productive capacity of the economy and underpinning fiscal stability.
We are conscious of risks and the need for sustainability. The Minister, Deputy Chambers, is pushing forward actions to improve the speed and efficiency of investments and maximise the impact of public spending and these are already having an impact. The balance we have reached in this budget shows significant restraint, particularly when set in the context of wider demands. The combination of growth, high employment, an overall surplus and rising reserves signals to the wider world and to investors that Ireland has a resilient economy and a responsible fiscal position. Our bond yields today are significantly better than traditionally stronger economies, keeping down costs and making spending more sustainable. Should we need to be more restrictive, we will be. We will certainly not be adopting the Opposition’s demand that we rip up all restraint and spend everything now.
As I have said, this budget provides significant improvements for workers and family incomes, expands critical public services and advances critical investments. The incomes of the poorest in our society and older people are protected through a range of increases in key payments. Increases in social protection are ahead of price increases and additional payments will help one-parent families, low-income working families and families with children and will significantly increase fuel-related payments. The first-ever dedicated cost-of-disability payment will support almost 250,000 people. It is an important start to a new approach I promised last year. Together with actions in the areas of education, health and transport in this budget, it marks an important moment for developing supports to help people with disabilities. These range from the new €500 payment, through to the development of new services and the expansion of practical assistance such as vehicle adaptation and a significant expansion in special education. The simulating welfare, income tax, childcare and health policies, SWITCH, analysis of social protection changes confirms that they will reduce the numbers at risk of poverty and contribute to our wider target of reducing child poverty, particularly when taken with actions in other areas.
The programme for Government that our parties agreed has marked a decisive move towards aiding people on low pay and low incomes, especially people on fixed incomes and those who rely on State support. European Union and OECD reports have shown that our budgets have involved highly progressive measures which have directly helped those most in need in our society. While direct State support to ensure decent incomes for people is a consistent part of our budgets, people in work and those who pay the taxes which help to fund these supports must also be our concern. We have had limited tax measures for them in recent years, but the impact of rising costs made it important that we deliver a substantive measure of tax changes to benefit people in work. We simply do not accept the argument of much of the Opposition that we should ignore the bulk of workers or claw back everything which benefits above-average workers. These tax reductions are fair and proportionate and a recognition that all workers deserve a break at this time of high and rising costs. Significantly, we have addressed a consistent issue with our tax system whereby people were going into the higher rate of tax at far too low an income level.
Regarding public sector workers, we have now signalled very clearly our willingness to reach a new pay agreement. We have always rejected the ideologies of those who seek conflict or who belittle the role of public servants. That is why we have been willing to expand the number of public service positions and implement substantial pay agreements. What no one can expect us to do is to accept unilateral preconditions before discussions or to give up our right to table proposals. Any dispute on this basis serves no positive purpose and simply delays negotiations which we have shown, time and again, that we always approach in good faith. A dispute would be totally unwarranted, given our willingness to talk and the provisions we have made, including the tax cuts we have decided on. I hope we can see some progress soon. I also say to Deputies that some of the comments on this matter which we have heard in this Chamber have exposed a near-systematic refusal to respect that we must be responsible stewards of public money. To call for the Government to effectively be quiet and just meet any demand is not a serious contribution. I hope we will hear less of this in the days and weeks ahead.
During our time in government, we have steadily implemented a dramatic increase in State support for an area that is one of the biggest costs faced by working families in particular. This year, more than 277,000 children are benefiting from the national childcare scheme because of our sustained commitment to developing the sector and reducing costs for families. Next year, we will again cut the cost of childcare. It will be reduced by a quarter in September. This is a benefit of more than €2,000 in a full year. Crucially, we are going further than this to support more places, to train more people to work in the sector, to expand provision specifically for children with special needs, and to expand free childcare places for low-income families. We are taking another major step forward towards our goal of ensuring that affordable, accessible and quality childcare is available in all communities.
We also believe there is a need for a wider range of actions to give children the best start in life, help to break cycles of disadvantage and help those who need extra help.
Over the years, I have seen how much our country has benefited from a wide range of actions to increase inclusion and opportunity in education. We have succeeded in achieving one of the highest school completion rates in Europe and reducing educational disadvantage through a sustained commitment and we will build on this. In our most disadvantaged communities, we will implement further measures to help children to stay in school and benefit from it. DEIS plus will be further developed and an additional 100 home school liaison posts will be created. All research shows that since DEIS was originally introduced well over a decade ago, it has played a significant role in enhancing school completion rates in the Republic. When the shared island unit commissioned research from the ESRI on differences in completion rates North and South, it showed clearly that completion rates in the Republic are far higher than rates in the Northern education system. As a result, the shared island unit allocated funding to the Northern Ireland Executive to work on a joint programme, RAISE, to try to enhance school completion rates in Northern Ireland through shared experiences and learnings. That is an important metric for us as a society. In addition, direct capitation payments will rise by 24% in primary schools. That is on top of a very significant increase last year. They will also rise by 9% in secondary schools.
As Minister for education, I successfully argued for the development of a new approach to special education, creating the first dedicated classes in mainstream schools for those with higher needs, particularly those on the autistic spectrum, and a new type of role with the hiring of special needs assistants in mainstream schools. We have to keep improving special needs provision, ensuring appropriate supports and a focus on the needs of the child. That is why, next year, over 2,300 new SNA posts will be created, over 1,300 new special needs teachers will be hired and work will move forward to ensure that key blockages in the system are overcome. That will bring the total number of SNAs to 28,000. That is quite a significant expansion. Even in the last five years, the growth in the number of special needs assistants has been exponential. This gives the lie to the assertion that there have somehow been cuts to SNAs and all of that. There have not been. We have also brought in the therapy in schools service. We are now recruiting therapists for special schools. That is well under way and it is having an impact. We have more to do there but we are very committed to it. This year's education budget is significant in terms of the huge expansion in the number of places for children with additional needs.
During and since the pandemic, we have implemented a national programme for expanding access, quality and new services in our health system. The benefit of this is being seen in lower waiting times, improved patient outcomes and the addressing of long-neglected areas. Health will once again benefit from increased funding for critical services. New public health measures, like the shingles vaccine programme, will benefit thousands. The further systematic extension of mental health services will proceed. Because we believe in helping people to be at home as long as possible, the expansion of home help support has been sustained through recent years and this will continue. Home helps empower families to make their own decisions and maximise the amount of time people can spend in the comfort of their own homes.
Health will be the most funded public service area by far next year. The needs of the population deserve this. International pressures on health costs are felt here as well. It is important to say that the Government will continue to support the Minister as she works to ensure that the public benefits fully from the extra funding and posts created. Looking back over the last 20 years, there has been a very significant enhancement of lifespan in Ireland. It has been quite dramatic when compared to any other European country. This is because of our investments in cancer and cardiovascular healthcare over a 25- to 30-year period. It is yielding very significant results in terms of outcomes for people. We are living longer and, as we do so, our quality of life is much better. We need to maintain that. Technology and the application of AI will be very important in that. Of course, we will continue in terms of the scale of public funding, which is now very significant. The number of modern facilities that have been developed is significant. We need to do more but that means dealing with continuing major overruns, which are unacceptable. We cannot have habitual overruns in the public health system. That would undermine the progress we have made on health outcomes.
With regard to public safety, we have to enforce the law, especially in respect of those crimes that can damage the quality of life in communities. Measures taken in the last year are ensuring that the number of gardaí working in the community is maximised. Next year, a further 1,000 gardaí will be recruited and will form part of a sustained effort to target crime where it has the most impact. In addition, through a range of community supports, including sports facilities, we will further invest in community-level initiatives, helping to sustain the social capital that is such a unique and positive part of Irish life.
Part of this investment in Ireland’s future will continue to be the shared island initiative, which is, by some considerable measure, the largest-ever investment in building understanding and connections between all parts of our island. It is funded entirely by the Government here. The sad reality that we have seen in recent days is that the challenge of building understanding and a common sense of a shared future is far from complete. It can often seem that people are more interested in speaking to their own side than finding ways of leaving division behind. Indeed, there are many who appear to believe that there is no place for calmly engaging with others. Many commentators can often seem mainly interested in stereotyping people and demanding loyalty to the party line. People who are genuinely serious about changing things or achieving long-desired outcomes do not see discussions as simply a minor break between press conferences and speeches. As people talk about not returning to the past, we should remember that we could never have achieved anything without good faith negotiations and looking for opportunities to seek discussions rather than reckonings. Today, more than ever, I believe that sustained, substantive and respectful engagement is the only way forward. Next year we will spend a further €200 million through the shared island fund. We will push forward key infrastructural projects and go much further in funding projects that address critical issues. We will build on the annual report on the economies North and South that we began this year. This is the first-ever systematic approach to understanding this critical area. I will also prepare a number of specific initiatives designed to mark a significant step forward in understanding key social, economic, legal and other issues.
Housing will continue to be a defining challenge of this generation. A rising population, rising employment and many social developments have led to a long-term crisis in supply and affordability. This is felt not only in Ireland, but through much of the developed world. The only way of delivering the homes that people need is action across a complex range of issues including legal reform, training, infrastructure, tax and direct support. Brick by brick, we are putting in place a step change in home construction. It is still far too difficult to find a home to rent or buy, but facts show the impact of our sustained determination to get homes built. European Union figures state that Ireland is one of the few countries in Europe that is succeeding in increasing the rate of home building. We now have the fastest rate of home building across Europe. Within this, the number of new homes going to first-time buyers is up because of a range of new supports. The budget will allow State investment of almost €12 billion in housing. This will allow for far more social houses to be built. The rent tax credit will be increased to €1,150 per year for a single person and €2,300 for a couple. Rent-a-room relief will increase. Tax relief through the help-to-buy scheme for first-time buyers is also being increased by €5,000 from €30,000 to €35,000. These are only a few of the measures that will keep the momentum in housing supply and support people to find a home to buy or rent.
As I said earlier, we believe action is required to ensure that Ireland’s economy remains strong and prospers in the face of many deep challenges. We cannot take success for granted. One of the most important issues we must address is the need to find ways to scale indigenous companies so they form a wider base for our internally-trading companies. Our budget is providing for a €1 billion investment programme led by the Ireland Strategic Investment Fund to help Irish firms with scaling up. Multinational firms have played a major role for over 60 years, since the Governments of Seán Lemass and Jack Lynch introduced a pro-enterprise and outward-looking tax policy and committed us to seeking to become a trading nation. Multinational firms will continue to be an important and valued part of our economy, but we must do more to increase the number and scale of significant and innovative Irish firms.
There are many elements to this. One part is addressing the active disincentives to keeping businesses here and reinvesting capital gains from significant sales. That is why the reduction in capital gains tax is important and I am pleased to see that this has been widely welcomed by groups which are focused on building Irish businesses and enterprise.
We also have to continue to support the security and development of our world-class agrifood sector. A broad base of family farms is key to quality production as well as the lifeblood of many of our communities. That is why we are implementing a series of substantial measures to support farming. We will be implementing measures to aid intergenerational transfers, to keep farms in families and help a new generation to earn a good income. The urgent problems of this moment require targeted supports and these will help farmers with the triple challenges of the costs of fuel, fodder and fertiliser. We believe that farmers are increasingly the leaders in transitioning to lower-cost sustainable energy and protecting the environment. Time and again, farmers have shown a willingness to act if given the right supports. A combination of improvements to the targeted agriculture modernisation schemes, TAMS, and to the SEAI grants will provide generous support for installing lower-cost secure energy on farms, something which reflects a cross-Government approach.
Cleaning up key waterways while protecting our world-class and sustainable dairy sector is a priority for us and an additional €21 million will next year fund specific water quality and biodiversity schemes in partnership with farmers. We will continue to ambitiously fund Ireland’s transition to secure, affordable and environmentally sustainable energy. Ireland’s progress in decoupling growth and carbon emissions is very clear and providing funding to go much further is a core part of the reserves we are providing for. We are taking measures in relation to carbon taxes to recognise the reality of current pressures, while also protecting the core principles behind this. Anyone who thinks you can address existential climate issues without any consumption taxes is not being serious. That is why I am surprised that those parties in the Opposition which claim to be most concerned with this issue signed a joint letter on climate with the largest Opposition party; a party which is a loud and inflexible opponent of any carbon-linked taxation.
It is important to note that we have signalled our intention to support fishing communities and a long-term future for another sustainable and high-quality indigenous industry. The allocation of an additional €20 million to begin implementing our plans is a major step forward.
For every part of the Irish economy, the haulage sector represents an essential partner. Its costs matter to us all and the impact of fuel prices has been profound. This is why we are reducing the excise on fuel for hauliers under the road transporters support scheme.
At this critical moment in shaping our economic future, we are taking action to further invest in education and training. We are providing a further €50 million a year for the next three years, which is €150 million in total, through the National Training Fund for an AI skills and resilience package. We are also acting on a cross-Government basis in relation to developing skills to understand and, where appropriate, adopt artificial intelligence. The debate on the need to protect privacy and address safety issues with frontier AI models is a very serious one. However, it is a very different issue from the use of AI in relation to a wide range of practical applications. Enterprise-based applications which perform limited but important tasks are a reality. This is where we need to ensure we have the skills required to make use of AI to improve services and protect competitiveness. As part of our Presidency of the European Council, we will shortly host a major conference on AI which will explore this issue.
As we look at the economic challenges of today and the years ahead, we would do well to remember the words of Seán Lemass when he addressed a post-war meeting of what became the OECD. He said, "We cannot ... win for our people the high and rising standard of living we wish them to have merely by the temporary patching up of our own national economies." For him, international co-operation in strong, rules-bound organisations was essential; in fact, it was the only route to progress for countries like Ireland. That is as true today as it has ever been. That is why we will continue to be a Europositive Government, seeking opportunities to strengthen the European Union as it faces continued attacks from the right and the left. We strongly reject the corrosive Euroscepticism of half of the Opposition in this House.
Our allocation to the Department of Foreign Affairs and Trade will ensure that we continue to build on the exceptional work being undertaken at this moment by Ministers, diplomats and officials to move Europe's agenda forward. This Presidency will mark a significant step forward in the level and depth of Ireland’s work for a shared prosperity among the nations of Europe.
At a challenging moment in international affairs and with major needs for social and economic investment, this budget is both balanced and ambitious. It addresses key social and economic issues through sustained action both next year and beyond, while also providing significant direct assistance to families and businesses under pressure today. It rewards work by delivering increased take-home pay for all workers, while also using resources to help those who need support. Increased pensions and social protection payments, a range of measures for people with disabilities and a major cut in childcare costs will each make a difference, as will a programme of expanding important public services. Home building will grow further, including the largest-ever programme of social home building. Direct support for renters will increase. Critical investments will be made to secure our economic future and we will take steps to support dynamic and scaled indigenous businesses. We will do this in a way which protects our ability to respond to economic shocks and vital public supports. It is a balanced, fair and ambitious budget. It will help people with rising costs, but also provide a foundation for securing a strong economy, high employment and quality public services.
