The Minister of State, Deputy Feighan, is very welcome to the House this evening. The Minister of State will have ten minutes, followed by group spokespersons, who will have eight minutes. All other Senators who contribute will have five minutes.
Budget 2027 (Public Expenditure, Infrastructure, Public Service Reform and Digitalisation): Statements
It is a great honour to be back here in the Seanad again. There have been some very interesting debates here in the Seanad over the years.
I am pleased to have the opportunity to contribute to the debate on budget 2027 presented to the Dáil by the Tánaiste and by the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation earlier today. Each year at this time we are tasked with finite resources and infinite opportunities. Each year there is a balance to be struck in terms of delivering immediate supports and taking a longer term view towards the future we want to build for our future generations to come.
The budget today is presented against the backdrop of full employment, strong public finances and a growing economy. This position means we have an opportunity to make a meaningful and lasting difference to families, workers and communities across Ireland. As a nation we have successfully navigated considerable challenges and uncertainty in recent years. While the geopolitical environment remains complex and unpredictable, the decisions announced in this budget will help safeguard our economy, strengthen public services and support continued progress in the face of those challenges.
Making progress and reforming how to deliver and measure this progress are key themes in today's budget. Reform is not simply about doing more. It is about doing things better and ensuring the public services are more responsive, efficient and equipped to meet the needs of our people over the longer term. The public service and spending efficiency task force announced today will support this. The task force is challenged with examining public spending, recommending actions that will deliver value for money for the taxpayer and ultimately supporting better public services. We are determined to ensure the significant investment made in public services in recent years delivers meaningful improvements and better outcomes for people across the country, both today and into the future.
The work the Government has done to tackle barriers to critical infrastructure delivery has made a real difference over the past year, accelerating decision-making and removing barriers. Budget 2027 will build on this progress and continue to drive water, energy and transport infrastructure, which will ultimately support housing delivery.
These objectives are being supported by an allocation of €20.3 billion for capital investment. A total of €5.5 billion has been allocated to the Department of Transport in 2027, which will support public transport services, regional connectivity, accessibility initiatives and essential transport infrastructure. Significant funding has been allocated to deliver MetroLink which will reduce congestion, improve connectivity and support the delivery of up to 120,000 new houses.
As well as improving public transport, significant investment in energy and water infrastructure will facilitate the delivery of housing, supporting economic growth and advancing Ireland's climate ambitions. An allocation of €9.4 billion is being made to the Department of Housing, Local Government and Heritage in 2027. This investment will deliver new social homes and support the regeneration of towns and urban areas. This allocation will provide a range of affordability supports and facilitate the retrofitting of social homes and the adaptation of homes for older people and those with disabilities. The funding allocated to the Department of housing will also deliver targeted supports for people in our society who are facing homelessness.
Targeted supports also feature in our social protection package. An allocation of almost €31 billion has been made to the Department of Social Protection in budget 2027. This allows for an increase in social welfare rates, targeted family support and a new cost-of-disability payment, as well as increases to the fuel allowance and the living alone allowance. The social protection measures announced deliver support for people and families around Ireland, supporting the Government's priorities, including reducing child poverty.
This budget also sees significant support to families with the cost of childcare, cutting the maximum fees from €735 to €550 per month. This will make childcare more affordable and accessible. A €7.6 billion allocation to the Department of Children, Disability and Equality will increase capacity, support children with additional needs, increase care placements and strengthen services for children and young people. For people with disabilities and those supporting them, increased capacity in respite as well as residential and home-based care will be very welcome.
The Government has shown a commitment to increasing access and inclusion for people with disabilities. This commitment to inclusion is evident in the allocation made to the Department of Education and Youth. As well as increases in capitation funding which will support schools around the country, funding for the DEIS plus programme along with increases to the allocation for special educational needs will help support children in our society who require additional support.
Technological change, particularly the growth of artificial intelligence, presents significant opportunities for Ireland. Through a €5.3 billion allocation to further and higher education, the Government is investing in skills, research and innovation, including a €360 million skills package over the next three years, which will include a package to prepare public sector workers for an AI-driven economy. Digital transformation will also improve how we deliver our public services and drive simpler, more connected and more accessible services for people and businesses. At the same time, measures to reduce the cost of higher education, expand apprenticeships and increase student supports will be welcomed by students and families across Ireland.
The health allocations made to the Department of Health will support staff to deliver services for patients, enhance GP services and improve mental health outcomes. Services will also be enhanced through the delivery of health infrastructure projects, including the national maternity hospital.
Today's budget speech has reflected how important it is for people to feel safe in their homes and communities. The Garda plays a critical role here. I welcome allocations that will support the recruitment and training of up to 1,000 trained gardaí in 2027. Next year will also see an intake of 850 new Permanent Defence Force members, strengthening our capacity to protect our country. Funding will also support initiatives tackling gender-based violence as well as supporting cybersecurity, the Irish Prison Service and the Courts Service.
Also through record investment in foreign affairs, international development and shared island initiatives, we will strengthen Ireland's global engagement, support peace and reconciliation and deliver transformative projects that deepen connections and create opportunities across the island of Ireland.
Business owners will welcome targeted financial supports that will ensure enterprises here can continue to grow and support employment. I am sure they will also welcome a rebalancing of regulation designed to create the conditions for firms to do business here. As well as small local businesses, farmers are important to rural communities and our country as a whole. I welcome the extension of the fuel income support scheme this year which will support them in their important work. I also welcome the allocations to the Department of Rural and Community Development and the Gaeltacht. Supporting rural and Gaeltacht communities helps to preserve and promote our unique cultural heritage. This will also be supported by allocations to the Department of Culture, Communications and Sport, including funding for League of Ireland academies, income support for artists and record funding for the Arts Council.
Our budget today will deliver enduring progress, improvements to public services and enhancements in our national infrastructure. It will make a meaningful difference to the lives of the people now and to the future generations who call Ireland home. I commend the budget to the house and look forward to engaging with Senators in the debate.
I welcome the Minister of State to the House on budget day. On behalf of the Fine Gael group, we will support the budget. When I think of a budget, I think of three things: protecting the economy, supporting those most in need of help and making sure the resources are in place to provide the infrastructure we will need into the future. I think about where the economy is at. The Minister of State mentioned it. There is 3% growth into next year, 2.8 million people are currently at work, and an estimated 53,000 new jobs will be provided next year. All of this is in the greater context of a very uncertain world. It is important we consider that we are running a budget surplus at the moment but that surplus could be gone. The decisions in this budget must ensure we resource the people and the public sector as best we can while providing stability and making sure an unaffordable increase today is not a cut in the future. That is important.
I was struck by what the Minister for public expenditure said in the Dáil earlier that, in 2019, the entire State budget was €67 billion while this year into 2027 the State will spend €125 billion. With the amount of money the taxpayer is spending now throughout the economy, it is important there is value for money and an emphasis on ensuring efficiency and accountability. I welcome something that will fall under the Minister of State's Department, the public spending efficiency task force maximising value for money. It is to start its work before the end of the year. It is important the public has an opportunity to feed into that. People regularly come to all of us and say they think there is waste in this area, there could be efficiencies in this area or there could be a saving in that area.
When we look at where the money is being spent, I am struck that quite a significant amount will go into housing. It is the right decision. We are looking next year at resourcing and supporting 15,000 new starter homes. For the people who tell me they are working and are able to get a mortgage but they need a bit of help getting their foot on the property ladder, there are Government schemes like help to buy and the first home scheme. For the first time in Wexford in over 20 years we will have a starter home scheme, in Enniscorthy and in Wexford town. The funding provided in this budget will allow that scheme to be rolled out to far more places, which is a good thing and should be supported.
When I speak to people in Wexford, at my clinics or out and about, they tell me they are experiencing enormous challenges with the cost of energy and that the increases brought about by the war in the Middle East are causing them enormous concern. I welcome the measures outlined today, including the increase in the fuel allowance - €1,200 is now available - the cut in carbon tax on home heating oil and natural gas, which will be guaranteed into the future, and no increase in tax on home heating oil as long as this Government lasts. It is important to remember that if we are to invest to get away from fossil fuels into the future, that has to be done in a way that is accessible, easy, affordable and supported for individual members of the public. I welcome the €655 million allocated for retrofitting and energy efficiency improvements together with the increase of 14% in the living alone allowance. If somebody relies on the State for their income, for example, a pensioner on a fixed income, who is part of a couple and one of them passes away, the costs they have are still pretty much the same, so that is an important increase.
Many will say people who have a disability have additional costs not covered by the supports already in place, so I welcome the support that will be provided in January of €500 in the form of a cost-of-disability payment. Something that has not been much discussed which should be is the increase in the carer's income disregard to €1,150 for a single person and €2,300 for a couple. I think people's eyes glaze over when they hear terms like the "carer's income disregard", but it is on all of us in this Chamber to get the message out to people caring who either did not apply before for the carer's allowance or applied previously and fell foul of the means test that there has been a significant increase in how much money an individual can bring in before they meet the limit in the means test. A couple can now earn up to €119,600 per year and still receive the full carer's allowance. That should be welcomed as we move along the journey towards ultimately abolishing the means test for the carer's allowance.
I also want to speak about the record health budget of €29 billion, which will include record funding for mental health supports, which people in Wexford come to me to speak about. There will be a record amount of money provided in budget 2027 for early intervention, crisis supports and people engaging with CAMHS. It is a very welcome investment. I want to make sure the money actually goes right to the front line where it is needed most. There are people enduring very difficult situations who need support and will depend on the supports that money will resource.
In education, I welcome that this budget will support 2,339 new SNAs and 1,353 new teachers in special education, which will allow next year for there to be 28,000 SNAs working in our schools and 24,000 special teachers in special education. Parents have spoken to us quite clearly over the past 12 months about the need for special needs assistants to be provided in our schools. I welcome that funding is now in place to hire those special needs assistants which will be the largest number of special needs assistants ever to work in our schools.
This budget will support those who need help the most while ensuring those working hard can make sure their work generates a payment back to them. We in Fine Gael support this budget.
The Minister of State is very welcome to the House this evening. Of course, I welcome the €500 cost-of-disability payment, but the Government's own research shows that the additional cost of having a disability in Ireland is between €15,000 and €25,000 a year. That is before you pay for a bowl of pasta, pay rent or try to pay for heat and light. It can cost €25,000, so a once-off payment of €500, while welcome, in no way reflects the engagement and the consultation that took place with our community. Our community engaged in that consultation in good faith. We were hoping for a monthly or even a weekly payment. A once-off €500 payment that only goes to people who are in receipt of disability allowance is very problematic and represents an action taken by people who were not listening to the engagement and consultation.
Already this evening I have seen on my network grave upset at the fact that the cost-of-disability allowance or payment is confined to those in receipt of disability allowance. Tens of thousands of families who need this cost-of-disability payment are not in receipt of the disability allowance. Thousands of disabled people who are in the workforce, paying tax, will not qualify for this payment. While it falls very far short of what is needed to address this issue, as my mother would have said, it is better than a kick in the shin. However, as we know from the Before We Die campaign, 55,000 adults are forced to live at home with parents over the age of 60. Indeed, I have entered into that category myself. Thousands are forced to live at home with parents over the age of 70 and parents in their 90s are caring for their disabled adult children. One Senator mentioned rewarding hard work. We are the hardest working people in this State. How many times since I was elected have I missed debates or committee meetings because I have to care for my son or look after his intimate care needs?
To completely abolish means testing for carers who are in receipt of the carer's allowance would have cost €600 million. The Government gave €750 million to appease the fuel protesters. The Taoiseach said you cannot just rock up to O'Connell Street with a tractor and get a meeting with him. Oh yes, you can. The Government responded with alacrity to that, to alleviate their distress and suffering, but as a carer, I have been outside the gates of Leinster House for 22 years. I have been on protest after protest. This year alone we were on O'Connell Street twice, with little children and adults in wheelchairs, with oxygen bottles, with PEG tubes. How humiliating is that? The fuel protesters were instantly given €750 million, but the Government could end means testing for those in receipt of the carer's allowance with an investment of €600 million.
According to census figures, if we record the numbers of people who indicated that they were in a caring role, the estimate is that it could expand to something north of €1 billion. I know from having filled out census forms, however, that in my family my daughter is a carer to her older brother and my son is a carer to his younger brother. My 18-year-old sometimes looks after his 24-year-old brother's intimate care needs. The number recorded in the census figures will not translate into the higher figure as set out in some of the estimates. By my research, to give a non-means tested carer's allowance as a universal payment would cost approximately €1 billion, which is just a couple of hundred million more than what the Government was prepared to give the fuel protesters.
I am speaking here in the context of the Before We Die campaign as well as on behalf of the parents of children on the scoliosis and spinal surgery waiting list in CHI and the children and young adults on the urology waiting list in CHI. The latter are allowed to become incontinent and are permitted to become infertile. Their reproductive organs are not developing for want of what is called the urology pathway, that is, minor surgical interventions on a predetermined, predictable pathway that has been standard practice throughout the European Union for the last 30 years but does not happen here. It is the de facto sterilisation of young disabled men and women in Ireland. That is the context in which I am talking about this €500 cost-of-disability payment.
Children on the spinal waiting list, like my son, are receiving surgery years after they should have got it, after the therapeutic window has closed. Their ribcages are pushing on their lungs and their hearts are compressed and pushed into other parts of the chest cavity. That does not happen anywhere else in the European Union. It does not happen anywhere else in the developed world. It happens here. I have spoken to medical professionals in CHI who tell me that if a child, God forbid, comes in after a road traffic collision or is diagnosed with cancer, they will engage in heroic efforts to save that child, but if it is a disabled child or a disabled young man or woman, he or she will languish on a waiting list and may die on that waiting list. Little Harvey Morrison Sherratt was taken off a waiting list and put onto a palliative care list without the knowledge or consent of his parents. The remark made on his chart was that he could not even sneeze, and he died on a waiting list.
That is our community. There are hundreds of thousands of us and mark my words, I will be travelling the country trying to get a coalition of parents together from the Before We Die campaign, the Every Child Matters campaign and the other advocacy groups because this is unacceptable. What is set out in the budget is not enough.
I listened to John Bowman on the radio about two weeks ago presenting a programme about T.K. Whitaker and Seán Lemass. There were interviews with Whitaker in which he said the country was broke. They did not have a penny. It was the time of the pitchfork, the candlestick and mass emigration. In fact, they were thinking of handing the keys back to the UK and rejoining the union. They had no money - nothing - but they had a vision and an ambition for this country. We have money now but no ambition or vision. Our capacity to deliver infrastructure is pathetic. We are still waiting on the children's hospital, despite all of the billions that have been spent. We built railway lines and docks with shovels and picks and here we are, in the 21st century, unable to deliver. There is something gravely wrong at the heart of this State in terms of a lack of ambition. I have a 26-year-old, a 24-year-old, a 22-year-old and an 18-year-old at home. They have no prospect of self-actualising in this State, of making the decisions that the Minister of State and I had the privilege and luxury of making. These budgets do not contain within them a prescription for the future. The Government parties need to look at their leadership. We do not need caretakers. We do not need conservative, petulant leaders. We need people with vision, drive and ambition.
I am delighted to welcome the Minister of State to the House. A lot of budgetary as well as personal issues have been raised here today. The Seanad is a good forum for that.
I understand the savings scheme is capped at €12,000 per year or €1,000 per month. Can the Minister of State put any more flesh on the bones of that? Does that limit apply to a household or an individual? It could be worthwhile for people who want to put away money for the advancement of their children in college further down the line.
Maybe if they could see it growing, they could put some money away. If they put away €300 or €400 a month, possibly in a particular kid's name, when it is seen to fruition there would be a certain amount of money there to help put their kids through college, or do a course or apprenticeship or whatever else down the line because they might have to go and stay in Sligo or Dublin or wherever. I am curious whether the Minister of State is aware of this or if it is only directed towards two parents. If it is not, that is something to look at. It might open up avenues for helping families to save for their kids' education, which is worthwhile.
There are a couple of other topics I am curious about. The 1% is just a 1% flat on the gain on it. That was not jumping out at me when I was trying to read the detail on that 1% tax. It is over €50,000 but I do not know if that is an endless amount that can be then entered and would meet that criteria or not. I am not overly certain so I was just curious about that. It was getting harder to get through the few bits of detail on that.
One other thing that came out at me was the €15 million put aside for country public houses. I know that has to be thrashed out a bit from all the information we are hearing, but coming from the Department, does the Minister of State have any more information on that? If he does, he might share it with us. The most important thing there, particularly for country crossroads, little villages and these types of places, is that this be built around some sort of grant for providing hot spots or services to people who might use them as a focal point or whatever else. That is apart from the adult leisure that takes place later on in the evening time. I see in my own area that the local pub is used as a stop for the bus and kids come in before there is anything going on to shelter from the rain and whatever else. It is also a pick-up and drop-off point for parcels and whatever else. Many of these places are hubs in towns and villages. I am curious to flesh that out because €15 million is not going to be an onerous amount of money and it would be a good start to see where it goes. This needs to be dedicated to those smaller country areas and crossroad-type outings. It is going to be such a small amount of money if it is divided among these places.
Those are the two things the Minister of State might flesh out for me because I do not know if there are more details on them. There did not seem to be a lot more on some of the things we looked at earlier but there might be. I commend the budget. There was a lot there, which there was not last time, for people who are working and the working class. The change in the USC and PRSI is a help. The tax alleviation and change in categories are certainly welcome tools that will help people to try to stay ahead of current inflation. A lot of that is out of our control, so hopefully we will get to stem that off along the way.
I appreciate the Minister of State's time. If he could enlighten me on a couple of those bits and pieces, I would really appreciate it.
I call Senator Murphy, who is sharing time.
Yes, if that is agreeable.
Is that agreed? Agreed.
Cuirim fáilte roimh an Aire Stáit. Unfortunately, today represents another failure by the Government to make choices that would have made a positive impact on ordinary people. It has again prioritised backing the banks and vulture funds. It has spent months crafting a budget that fails to protect workers and their families and fails to make life easier for those who are struggling. It disregards what the people clearly told the Government when they gathered on the streets last April.
The Government has come into the Chamber today having made record tax returns. The State is getting richer and richer, yet for people watching the budget their belts are getting tighter and tighter. They are working harder than ever just to keep the treadmill going. They do not feel worse off; they are worse off.
The response is a tax package of less than €250 a week for anyone earning under €44,000. We have proposed an everyday essentials card for 1 million households pre-loaded with €500 to spend on groceries, and to scrap the USC for every worker on the first €40,000 they earn, putting up to €723 back in their pockets. Those measures would have made a real difference.
However, not everyone is poor under Fianna Fáil and Fine Gael's watch. The banks are permitted to rake in billions in profit and pay 1% tax. Many vulture funds pay no tax whatsoever, and institutional investors can charge €3,000 rent per month and pay no tax. Energy companies make obscene profits, while more than 300,000 citizens cannot pay their bills. Sinn Féin proposed a €400 energy credit and reductions on petrol, diesel and home heating oil. We asked Government to introduce measures to ensure data centres paid their fair share, and Government refused. It failed to increase the tax on obscene profits of energy companies.
In housing, a total lack of ambition from Government has been laid bare. The scale of the crisis demanded an urgent emergency response, yet no increased funding for building homes was announced today. Instead, tax breaks and subsidies towards investors and vulture funds continue. It is ground-hog day for housing and people who are stuck in their childhood bedrooms, who are raising their families in a hotel room or are emigrating because two good wages cannot buy a house. Our own alternative budget would have capped childcare and abolished student and apprenticeship fees, not reduced as announced by the Government today but scrapped completely. We would also look after people with disabilities, giving an extra €25 per week and, crucially, introducing a proper cost of disability payment ranging from €100 to €400 per month depending on individual needs, not a one-off €500 payment.
The last budget should have seen at long last the Government beginning to lay the foundations for Irish reunification. I am sure the Minister would and has pointed to the shared island initiative. Although I commend this work, it cannot be the only show in town. We have long called for a Department of reunification to be led by the Taoiseach. In addition, the Government should set up a citizen's assembly to give people the space to discuss the future, to fund the preparation of a green paper on reunification and instruct Government Departments and their sponsored state bodies to undertake preparatory work towards constitutional change.
Additionally, I draw the Minister of State's attention to the welcome numbers of students in the South choosing third-level education in the North - over 3,000 in 2025. I ask the Minister, Deputy Lawless, to work with the Department for the Economy in the North and offer financial assistance for the education of these young people. A nominal figure of €14 million has been suggested to bridge the funding gap.
The Minister of State will not be surprised to hear I reject the budget. It fails three key tests: it will not help people enough with the rising cost of living; it will not make our economy more resilient against international pressures; and it does not plan for the constitutional change coming.
In his budget speech today, the Tánaiste spoke about providing optimism. What a terrible description for a budget that barely touches on the real issues ordinary people are dealing with in their daily lives.
Every week in my area of Laois, I speak to people who are struggling to manage day-to-day with the cost of everything. People are struggling to keep a roof over their heads and to put the heating on. People are buying the bare minimum of food to get by. They are making impossible stressful decisions between which bills they have to pay, choosing between keeping the lights on and having enough food for dinners, kids' school or university costs, petrol or diesel or heat. As usual, this budget gives a tiny bit of this and that, but there is no real substance for now and no long-term solutions to address the causes of this cost of living crisis.
As the colder days and nights approach, people have to be able to heat their homes. This is a bare essential. The price of home heating oil has gone far beyond what most families can afford now. Let us be honest about the measures the Government is taking for home heating oil: it has reduced the cost of home heating oil by less than €50 a refill, and has ignored what was really needed. Carbon tax needs to be removed from home heating oil. What is €50 on a fill of home heating oil that has gone up by €700? Ireland is the second most expensive country in Europe, with Irish consumers paying 15% more for groceries and 17% more for energy than the EU average. A record number of people cannot pay their bills, with one in four not being able to afford to pay their gas.
Inflation will cancel out any wage increases, or small changes to workers' taxes, or any welfare payment increases or measures the Government has announced today.
When the Government talks about how great it is, I am sorry to break it to the Government Members present that is not how it is being received on the outside. What will the budget do to improve services in children's disability network teams, CDNTs, or address the long waiting lists for assessments of need? It will do nothing. In Laois, I have spoken to the parents of children who are waiting for assessments of need, occupational therapy, speech and language therapy and physiotherapy. They are waiting, waiting, waiting. Meanwhile, the child gets older and misses out on key milestones in their development or, worse, they regress. By the time they get their services, their progress is very limited. This is not on. We are a wealthy country - the Government has stated that a lot today - but our children with disabilities deserve to see some of that wealth. They do not see it out of today's budget. Our children in need of child and adolescent mental health services, CAMHS, need to see some of this wealth. Is there anything in the budget that will guarantee no child will have to wait longer than the legal requirement of six months for an assessment of need? There is nothing. The first contact with CDNT services is an agonising wait for children who cannot afford to wait. It is shameful there is nothing here that will deal with that.
For a Government that claims to want to tackle child poverty, it has announced nothing today. Almost 6,000 children will spend tonight in emergency accommodation forgotten by the budget and Government. Does the Minister of Sate know that counties like Laois do not have enough emergency accommodation? Children are travelling to Tipperary or Carlow and have to attend school every day from there. The Government's record on homelessness is shameful and the budget is not doing anything to fix it.
The Minister, Deputy Chambers, said in his speech that when times are good governments have a responsibility to build resilience rather than assume that favourable conditions will continue indefinitely. Where is that resilience for the family choosing between heating or eating? Where is it for a child waiting on disability services? Where is it for a child sleeping in emergency accommodation tonight? If the Government cannot use the good times it has spoken about to fix what is happening now, what the hell is it doing?
Senator Harmon is sharing time. Is that agreed? Agreed.
I want to draw attention to a number of points in the budget today, as the Labour Party spokesperson for disabilities and further and higher education.
I stand with disabled people and organisations that represent them. I have spoken today to many people who have said they are extremely disappointed by the Government's proposal for a €500 payment next year. What were all the consultations on the cost of disability for over the past number of months ? It feels like the Government did not listen to what disabled people were calling for - a €55 per week minimum cost of disability payment. The Labour Party has said we need to build towards that for 2028. Meanwhile, the Government has said it will look at introducing a permanent payment for 2028. Disabled people cannot wait for that. A payment of €500 is €9.62 per week, which is a pittance when the cost of disability is taken into account which we know can exceed €11,000 per year. That is simply for people to exist in society. It does not even address independent living, which we are supposed to aspire to. The budget has failed people with disabilities and has not gone far enough.
While it is welcome to see a decrease in the student contribution by €150, the Government is giving with one hand and taking away with the other. The rent-a-room relief scheme has been increased from €14,000 to €16,000. That might be good for the person renting out the room, but I do not believe it will solve the crisis because it might ensure somebody's rent is increased by €2,000. It will increase costs for students. The current rate is a good incentive for people to rent out a room.
We are not building enough affordable houses or purpose-built student accommodation in this country. That is the gaping hole in the Government's overall policy. House prices are now six and a half times the average salary. We know the cost of a house has increased by 106% since 2012 and the cost of renting has gone up by 121%, whereas incomes have risen, on average, by only 46%. Half a million people are in arrears with their energy bills, yet the budget is not providing them with the relief they so desperately need. I fear we are in for a winter of discontent for the many people in this country, not the few represented by large cohorts of the Government.
One in six children in Ireland are at risk of poverty and one in 13, or 7.8%, live in consistent poverty. The Government aspires to reduce the poverty rate to 3% by 2030, but not to eradicate it. I do not see the measures that are being taken to do that in the budget. There is no big vision to reduce poverty in Ireland, which is extremely worrying.
Ultimately, the budget lacks vision. We see this with the cost of childcare. Capping the cost at €550 per month is a welcome start. The Labour Party would have capped it at €200. A fee of €550 per month is still €6,600 per year for a family, on top of the mortgages they are paying, the rising cost of living and the rising cost of groceries, rents and energy bills. Families are at absolute breaking point and I do not believe the budget has done enough to reduce pressure on them.
We all know about the escalating energy crisis facing households. I do not think we have seen much evidence of a coherent strategy to address those spiralling costs, which are the highest in Europe. There is nothing material in the budget to support the most vulnerable households dealing with energy poverty. We were promised help from the Government, but that was not delivered in the budget.
We have called for a targeted €400 energy credit which would have provided a little bit of breathing room. No one is saying it would be a panacea for everything, but it would have provided some breathing room for the most vulnerable households in Ireland. Instead, they will face a very cold winter with nothing to keep them afloat. The Government recently voted down the Social Democrats Bill on windfall taxes for energy companies, which would have funded energy credits. We had a way to generate the tax to fund the energy credits, but instead energy companies will still rake in billions in profits while ordinary households struggle.
A budget is a reflection of a Government's priorities, and this one is not supporting those most in need. We have shocking levels of child poverty. Some 260,000 children are living below the poverty line, a shameful figure for a country as wealthy as Ireland. I am sure we can all agree that no one wants that situation to continue, yet the budget is only increasing child support by €6. What difference will that make? The cost of groceries is soaring. An increase of €6 will not cover a pint of milk, a dozen eggs or a pound of butter. We hear a constant commitment from the Government to tackle child poverty. The Social Democrats have called for a second tier of child benefit to lift tens of thousands of children out of poverty. It is common sense and would support the most vulnerable, but the Government has failed to act.
The decision to cut childcare costs is welcome, but I cannot fathom why the Government has chosen to delay it for almost a year, looking at thousands of families who had hoped to avail of it to alleviate their soaring costs. Instead, they will continue to pay the cost of a mortgage payment for childcare each month. Nearly all budgetary measures will come into force in January. I do not know why childcare is any different.
The most bizarre part of the budget is the Government dressing up decreases as increases, and I wonder if it thought people would not notice. A lot of people know what is coming in and going out. A reduction of €140 or €150 in the student contribution is great, but fees were increased by €500 last year. The budget has a €500 payment for people with disabilities. The same group last year experienced a cut of €400. The cost of disability payment is, in practice, only increasing by €100. Again, what do we think this is actually going to cover? It will cover very little.
Fare increases were highly controversial when introduced over the summer by the NTA, which inevitably means by the Government. It would have cost the Government €70 million, a meagre sum in the grand scheme of things, to stop those fare increases, but it chose not to.
Instead, we have people who rely on the bus and train to get to work or to their appointments, and they will have to fork out of their own pockets for that increase. We know that is going to have a direct correlation. The NTA has said this. It expects people to use less public transport as a consequence of the increased costs. What an utterly chaotic decision to make that has no bearing on our climate action policies.
When it comes to housing, there is very little vision or ambition. It is more of the same. Yes, we have the rent credit increase, but we know that is simply going to go back into rent increases. Renters will get a bit more money, but it will still go directly into the pockets of landlords.
I was happy to see a derelict sites levy of 7%. I wish it had been 10%. Again, why is it not being introduced until 2028, two years from now, almost at the end of the lifespan of this Government? Where is the urgency to deal with dereliction in that?
We are going to see an increase of €5,000 in the help-to-buy scheme. It looks great on the surface of it, but it is inflationary. That is just going to see every house under that scheme become €5,000 more expensive. The money will be going to developers.
The Government is piling money into housing, but we are doing the same old thing. There is no radical change or no radical vision, but that change and vision are what we need.
When I was listening to the speech of the Minister, Deputy Chambers, he seemed to flip-flop between talking a lot about responsibility and talking about the new risky approach, the new approach to taking more risks that he is trying to champion. He has been telling the public service to take more risks and not to do the risk analysis in the same way so that it can move faster and deliver more, yet at the same time, he is talking about responsibility when it comes to what public servants should be paid, but in a very strange way. Right now, and I think we have to speak about this as the elephant in the room, we are in a situation where, ludicrously, those who contribute to making our State run in many different ways across so many areas of our public service have been forced into a situation of work to rule by a Minister who has irresponsibly failed to replace a pay agreement that expired in June. There was the discussion about our need to be responsible. Despite the huge cost-of-living increases, which are driving some of the giveaways in this budget that are targeting very particular sectors, there has not been recognition of what the cost of living is doing to all of those who keep our State running. Not only that, but we are in a situation where we have a Minister who is not willing to discuss the pay issue and the question of the link between how much money people earn and what it costs to live, and the idea that that should be on the table.
I notice, and I do not know if it is another kind of attempt at the kind of strongman approach we see, that what used to be described as the capital allocation and the resource and staffing allocation is being described here as the "pay ceiling" and the "staffing ceiling". Again, I ask, in a time of crisis, when we need massive transition in terms of climate and the accelerating climate disaster, and when we need shifts in transport and shifts in education, why are we still putting in ceilings on the number of staff and the number of people who can work in critical areas? It is just a blunt measure. A ceiling on pay has been put in place before the discussions on pay even happen.
That is an important context for when we consider some of the areas where money is flowing. The money is flowing, for example, to those who are selling stocks or shares, or selling additional properties they own rather than their primary homes – those who are making a capital gain. We are going to give away €186 million by changing the capital gains tax levels.
I am referring to people who are profiting from selling an asset. This is not about business start-ups; it is about selling an asset. We are giving them €186 million in a cut in capital gains tax. I wonder where that money is coming from when we hear about the relatively paltry money that would have allowed an increase in public transport provision, when we hear about the fact that the proposals made by SIPTU and others could have really meaningfully reduced childcare costs in the State for everybody, or when we hear about the cost of disability and the failure to address it. There is €186 million that is just going to people who are wealthy enough to be selling houses and making large profits already. I am not referring to the family home or the personal home but to other property and shares.
Alongside that, of course, will be the €177 million arising from the deferral of carbon tax. What I would say on this, in terms of the cost of carbon, is that we know the international position. We know the real driver of the fuel crisis. It is a dangerous, dirty, speculatively volatile and financially and physically volatile thing to build our economy on. It is also the area where we desperately need a huge step change in expenditure.
I really would like answers. I would like answers on exactly why the capital gains tax measure was more important than some of the other things we have heard about today. I would like to hear what is going to be done around that €177 million. Exactly how is the hole going to be filled? It is not just about people not paying. The question is where the additional moneys are going to come from. Is there going to be a step change? The SEAI is only getting a 2% increase. If the Government really cared about families struggling in the fuel crisis, what we would see here in this budget would be a 10%, 20%, 30% or 40% increase in respect of retrofitting. We would say there is a fuel crisis and we are ramping up to a massive degree what we are going to do on retrofitting. We would see more hiring rather than a cap on transport staffing and we would see massive increases in public transport provision, not an increase in fares, which we have been told by the NTA will lead to fewer people using public transport. These are the actual factors that, if we are being responsible, we will acknowledge really contribute to us getting through this very difficult crisis that is ahead of us.
The Minister, Deputy Chambers, talked about the response and said we do not know what crisis will come. If crises come, and we know they may, we need to ensure that the working population as a whole, not just those who will benefit from the tax changes here, has confidence. Fifty per cent of workers will not gain from those income tax changes. The very wealthiest workers will gain as much as, or more than, lower income workers from the tax changes the Government has made. We need to look at proper pay agreements that reflect the cost of living and give people the confidence that, if there are difficult shocks, the State will have their back and will not just support the loudest industries, the shoutiest industries, and those which have not transitioned despite warnings for a long period of time, but will actually help everybody in this State. That also means workers. It means those who use public transport and those who are caring. The means-testing of carers and the means-testing of disability payments are continuing. Changes in this regard would make the difference.
I would like answers from the Minister on what is happening on climate. I would like to know why there is not a step change. I have talked about the other measures. I have a number of remarks to make on specific taxes, but I guess we will have a chance to come back to some of these, one by one, in the future.
We have heard all the moral outrage from the Opposition. It will not surprise me, then, if, when positive announcements are made as a result of this budget, I hear members of the Opposition and, indeed, Opposition councillors claiming credit for all of these things.
Inaccurate things have been said. I will leave it to the Minister of State to deal with those. I want to inject a little bit of hope and reality into the debate. There is no doubt that, in the budget we have listened to being delivered, hard choices had to be made. We are living in a very challenging time. Geopolitics and what is happening outside of this country are having a huge impact on public expenditure and on our efforts to ensure we have money to deal with any sudden shocks. While we are doing well - Mark Henry tells us that ours is the seventh best performing economy in the world - that brings with it a responsibility to bring about improvements in people's lives and to develop resilience in our economy. I genuinely believe the measures that were announced today, some of which we will have to get more detail on in the coming days, represent a huge investment in public infrastructure and services. They will absolutely have an impact on people's lives. Underlying every single decision made in this budget was the need to support families that are under pressure, to help workers with the cost of living and to invest in the services and infrastructure on which we all depend.
We have to ensure value for money. Through the accelerating infrastructure task force, we have seen really great strides in infrastructure reform. I was really pleased to hear the Minister, Deputy Chambers, speak about establishing a new public spending efficiency task force whose mandate will be to extensively scrutinise day-to-day public spending. That is the sort of thing we want to see with regard to how Government is managing public money in the areas it has been signalled for.
A record level of investment in public transport network has been announced. This includes the roll-out of new and expanded services and improvements to rural transport. A crucially important measure is the launch of the vehicle adaptation scheme, which will help people with mobility needs to access adapted vehicles. There have been many calls for such a scheme from right across the Chamber.
There is a very significant allocation to Uisce Éireann - €2.3 billion. Money and investment are important but we need to see a better and more efficient response from Uisce Éireann.
On capital funding for housing, €3 billion has been provided to fund social housing delivery and €225 million has been provided for the housing infrastructure investment fund. Under the starter homes programme, over €1 billion is allocated to deliver thousands of starter homes. Along with the increase in the help to buy initiative, these measures are hugely significant and important.
When we talk about investing in public services, we are talking about investing in our people. The €10 increase in weekly social welfare rates is definitely important. I agree that the new €500 cost-of-disability payment is not a hugely significant sum but, at the end of the day, all of the conversations and consultations that were had were extremely important because this signals the start of a process. From what has been said both today in the budget and by the Minister, Deputy Calleary, I have no doubt that this is going to increase significantly and will become a substantial payment that recognises specific needs starting from next year's budget. The increase in the carer's allowance income disregard is also significant. It comes to €1,150 for a single person and €2,300 for a couple.
In the area of education and youth, I have been calling for increased capitation grants for a long time, as have many others across the House.
The increase of €68 at primary level, a 25% uplift, is very significant. We should all recognise that. The increase of €40, to €446, at post-primary level represents a 10% increase. There are many positive things I could talk about. I am very happy to welcome the shingles vaccine. This is something I have lobbied for, having gone through it myself during the summer. I will have another opportunity to talk about those other things.
I welcome my good friend the Minister of State, Deputy Frank Feighan, to the House. He is one our Seanad alumni, of whom we are very proud. I also welcome to the House a friend of mine from over the road in Washington state, across the waves, Emily Marie Bell.
This budget allows people to get ahead and not just get by. Therein lies its essence and its significance. The budget introduced for this upcoming year is progressive and expansive. It aims to modernise our economy and further develop our society, which is ultimately what it is all about. This budget ensures further growth for people while protecting future finances. Most importantly, as anticipated, families should be able to see the results of this budget in their pockets, at the kitchen table and in their real lives. As I said, they will be able to get ahead and not just get by. Ireland has remained stable even at a time of real global uncertainty. We have been very successful in protecting our people.
Because of the time factor, I will move onto some of the terms of the budget. Under this budget, the maximum that people will pay for childcare is €550 per month. As the Minister of State said in his introductory remarks, that is a reduction of €250. I also welcome the €10 increase in weekly core social protection payments, including the State pension and allowances for those living alone, carers and persons with disabilities. In addition, the income disregard for the carer's allowance has been increased to €1,150 for a single person and €2,300 for a couple. That is a very significant increase. We are moving towards not having an income check for the carer's allowance, as should be the case. Very importantly, the budget will increase the minimum wage to just shy of €15, €14.94. It is very close. That is a very significant thing. While we are doing that, we are cushioning employers with an increase in the threshold for PRSI from €650 to €750. It is important that we protect our small employers in the face of the necessary, socially just and equitable wage increase.
There are many positive aspects for communities. Along with myriad other support measures, the cost of heating oil will be reduced by €86 per 1,000 litres by virtue of a reduction in carbon tax. There is also a significant reduction for people who use gas, which will come to €65 per household. That is coupled with all of the other measures. We will fill the tank more cheaply and that is very important.
There are improvements arising from other dimensions of the budget that I will discuss tomorrow but I will now address the financial dimensions.
The rise of €2,500 in the threshold at which you enter the higher rate of tax is very significant for a large cohort of workers and for the famous middle Ireland or squeezed middle. They need that change.
There are many changes for the betterment of agriculture, like the support for fertiliser increases, the €93 million for the targeted agriculture modernisation scheme, TAMS, and right across. There is also an increased tax allowance for succession, which is critical for farmers, from €5,000 to €10,000.
The money for infrastructure will, I hope, make our dream up in Cavan come true. I have a couple of Cavan colleagues here. Cavan has the majority in the Seanad anyway. At any given time, there are more Cavan people here than people from any other county. My Cavan colleagues will know that getting the Virginia bypass built and completed soon is a great priority, and we hope this budget will enhance that.
Is breá dúinn an tAire Stáit, an Teachta Feighan, a fheiceáil anseo arís. Gabhaim buíochas leis as a bheith anseo. In some ways I feel particularly fraudulent in standing up here today. This is something most politicians will have come across in their lifetime as public representatives. If you are in the company of somebody you know well, maybe in a pub at night when having a couple of pints, and at the end of the evening the person asks confidentially in your ear whether you would write a letter on their behalf, or words to that effect. You are left feeling that this is not a good place to be. You feel very inadequate to respond. It is similar to when you are asked to stand up a couple of hours after the delivery of the budget and are expected to wax lyrical on its pros and cons and assume a sort of knowledgeable stance. That is why I feel a bit fraudulent, because I do not really know the details of quite a complex document, but I know some of them.
On the other hand, I feel very well equipped to speak about budgets because today was about the 60th budget I have faced in a working life. I started teaching in 1973, so that is 53 annual budgets, and we have had a good number of supplementary budgets along the way. After 60 budgets, you would think I know a thing or two about them, but still I am on uncertain ground. However, what probably gives me the greatest authority to speak on budgets is the fact that I was one of the heads of a household for a long number of years, and I raised three children over 30 years. As a lowly country school principal in County Waterford with one salary coming in, I know how trying, exacting and challenging budgets are. It is always a case of the available versus the desirable, and the desirable always hugely outweighs the available.
I feel for the people who get a public mandate to form a Government, to deliver five budgets and to try to keep the show on the road and progress our State. It is an amazing and immense challenge. The one thing I can say after looking at those 60 budgets is that it does not happen overnight, but in the history of my working life things have mostly got better diaidh ar ndiaidh, incrementally, year after year.
It is in that context that I am saying this budget is a sane budget. There is an awful lot in it that is sensible and well balanced, and I applaud that. However, I heard the contribution of my colleague Senator Clonan, who talked about disabilities. That is one area where we have huge work to do. He was very eloquent and made an extremely compelling case. That case has to be answered more forthrightly in the years to come.
Before my time runs out, I want to say that from the perspective of education and culture, which is the panel I was elected from, educationally there is an awful lot to be resoundingly happy about.
I warmly welcome the capitation grants at a time of rising costs. I was talking to John Boyle of the INTO this morning. He told me the island allowance is coming back, which is great for those communities on the western seaboard. As well as that, there are huge injections to childcare and preschool education. However, we used to have a thing called ardteastas na Gaeilge, and that has been allowed to die. I think the Minister of State should work with his colleagues to resurrect that because, as someone who was in and out of schools a lot over the past 20 years, the caighdeán Gaeilge among teachers is dismal. If we do not do something about it, we will have no language to reintroduce or resurrect in the decade to come. It is as urgent as that.
One little of sleight of hand was when the Minister of State mentioned record levels of funding for the Arts Council, which is true, I think, but it conceals an uncomfortable truth. The communications, culture and sports budget last year was €1.514 billion and this year it is €1.3 billion, which is an effective cut in that Department of €214 million. I wonder where the cuts are going to come.
I understand Senator Lynch is sharing time with Senator Kennelly. Is that agreed? Agreed.
Gabhaim buíochas leis an Aire Stáit as ucht a bheith anseo linn inniu. I very much welcome, support, and commend this budget to the House. I think it is a very fair budget. It shows a lot of progress, and I believe there is something in it for everyone. I listened both here in the Chamber and in my office to the commentary and submissions from some of my Opposition colleagues, and I very much felt that the lack of realism was quite incredible. To listen to some of the previous speakers on the opposite side of the House this evening, one would swear there was nothing at all positive about this budget. In fact, there are quite a lot of positive things about this budget.
Those who are slating this budget, as we have seen here and in the Lower House this evening, need only look to the alternative budgets that were proposed. In particular, I am familiar with those from the Labour Party, the Social Democrats, and Sinn Féin. Something that came across from all three of those alternative budgets is the large amount of increased tax measures they were proposing. Again, I think it is interesting that the three lead speakers from those three parties are no longer in the House with us to hear whatever reply the Minister of State has for them this evening.
The other thing notable about those three alternative budget submissions is that they very much attack foreign direct investment. The Social Democrats budget, in particular, attacks the foreign direct investment we have in this country and seeks to put a larger input on indigenous industry, which I absolutely support but not to the detriment of foreign direct investment when we see the amount of money it is bringing into this country, allowing us to create a budget such as the one published by the Government today. I wanted to note that first.
There are several things in the budget I wish to commend. A lot has been said about carers this afternoon. There are a lot of positives. There is the increase in the carer's allowance. There is an increase in the disregard for those eligible for carer's allowance. There is the one-off disability payment. Absolutely, we do need to go further and I agree with a lot of what Senator Clonan said earlier. I do believe that this Government has committed, within the programme for Government, to go further over the course of the next three budgets and I believe the Government will do that, and that we will see the means test for the carer's allowance got rid of in the course of this Government.
I also mention the Before We Die campaign, because I am aware we have seen an increase in residential care places within this budget. That is an increase from 70 to 100 of planned disability residential places. I do feel there are a lot of positive elements within this budget, and I very much commend it to the House, before Senator Kennelly actually physically takes me out.
I welcome the Minister of State back to the Seanad. He is always welcome. I, too, will put my spin on this positive budget, which is positive for everyone. It is positive for security, stability and everyone's future. I want to sell that narrative rather than listen to the bad narrative we have been hearing since the budget was announced.
Today's budget contains a number of positive measures I strongly welcome, particularly for carers, people with disabilities, rural families, farmers, tourism businesses and workers across Kerry. For many years, I have consistently highlighted the pressures facing carers who provide extraordinary care and support for loved ones, often making great personal sacrifices. More than 5,000 people in Kerry claim carer's allowance and benefit.
I also welcome the increase of €10 in social welfare rates bringing them up to €309.30 per week, the improvements in the carer's allowance income disregard and the increase to the fuel allowance, which brings it up to €43 per week. These measures will make a real difference to households across Kerry. It will not make them poorer. In Kerry alone, more than 17,200 homes will benefit from this increase and that has to get back to Kerry, that the Government is looking after these people in this budget.
I also welcome the introduction of the €500 cost-of-disability payment and the significant increases in funding for disability services, including respite care, day services and personal assistance hours. Families have waited too long for many of these supports and, while this funding is welcome, we must now ensure it delivers real outcomes. Too many families are still fighting for assessments, therapies and essential services. The budget is a step forward, but delivery is the final destination.
I am pleased to see further investment in energy infrastructure, home retrofit grants and renewable energy schemes. However, as we continue the transition to cleaner energy, as I stated last week, we must ensure rural communities share in those benefits. Kerry and other areas, especially rural counties, are playing their part, but local communities must see the return through jobs, investment and lower energy costs, ideally through proper planning guidelines.
Can I get back the minute I lost to Senator Lynch?
I will give you 20 seconds.
For tourism, which is the lifeblood of many towns and villages in Kerry, the commitment to grow regional tourism and extend the tourism season is hugely important. Tourism sustains thousands of jobs across Kerry and the country and we must continue to support the businesses that depend on it.
Go raibh maith agat.
The investment in rural transport, agriculture, water infrastructure and housing are important and will help to strengthen rural Ireland. Families in particular will welcome-----
Go raibh maith agat.
-----I am nearly there - the continuation of fuel supports and the additional investment in agriculture and fisheries.
The true test of this budget will not be what was announced today, but what will be delivered in the coming days, months and years. I commend budget 2027. I thank the Minister of State for his role in it and wish him continued success.
I presume we will all get an extra minute or two if we want it.
In the limited time I have, I will address a few issues. I am a former teacher and am on the Committee on Education and Youth, so I will talk about education first. The budget falls far short of what is needed. In fact, it falls short of what the programme for Government committed to. We have the biggest class sizes in Europe and we will still have the biggest class sizes for another year after this budget. The INTO was looking for 1,000 additional teachers. Sinn Féin's alternative budget provided 1,000 additional teachers and 850 additional special education teachers, SETs. In the budget, the Government indicated it will provide 1,353 SETs. I would like clarity on whether there are additional mainstream teachers. Most students are educated in mainstream classrooms, including students with additional needs, so smaller class sizes would benefit all of them. We cannot continue to have the biggest classes in all of Europe. Schools are underfunded. They still rely on voluntary contributions and fundraising, which both fall to parents. Sinn Féin would have increased the capitation grant, the ancillary grant and the IT grant and extended State insurance to all public schools, which would reduce costs for schools.
Many across the House raised the issue of school transport. We heard about the situation when we came back here a few weeks ago where students had been refused school bus places. How much money will be put aside to increase the capacity on the school bus system? Sinn Féin proposed 25,000 additional places. I want an answer to that, because it cannot continue the way it is. The Government committed to increase the capacity of the school bus system by 100,000 by 2030 and so far - in the past two years - I did not see any increase.
We call our education free, yet we charge examination fees. They were re-introduced this year. They should be abolished. It is not a free education system if we are charging young people to do their examinations.
A few months ago, I tabled a motion on youth services which had cross-party support and was not opposed by the Minister. Will the Minister of State, Deputy Feighan, provide clarification on what exactly is being invested in the youth sector? There is a lot of information, but we have not received the nitty gritty in the short time since it was announced. It is an important sector. My motion called for €27.3 million investment, made up of €13.75 capital investment, which is badly needed for youth services; and €13.5 million, which is a 15% increase in funding on the existing levels for services. We need that, including for mental health supports for young people. We need to invest in them. I was listening to something on the radio today about young people being recruited and exploited by drugs gangs. Youth services on the ground can do a lot to combat that, keep young people out of trouble and out of prison, which is much more costly than putting investment into youth services that will help young people and keep them safe in their communities.
Moving to higher education, the budget took €150 off the student contribution fee and I am not even clear whether that is immediate or will happen next year. I think it will happen next year, which is not good enough. There was a big protest by students last Thursday. They were calling for the abolition of the student contribution fee. Sinn Féin's alternative budget would have reduced it by half this year and abolished it completely this time next year. We also need to invest in purpose built student accommodation. Will the Minister of State provide the figures for how much is going towards purpose built student accommodation? What is being done to close the core sectoral funding gap in the higher education institutions.
Regarding apprenticeships, we need to build a lot more houses and invest in infrastructure. We need people with skills to do that. We need to incentivise people to take up craft apprenticeships. Abolishing apprenticeship fees would have gone some way towards helping them to cope with the high costs of doing an apprenticeship, because they are poorly paid, especially in the first few years.
The Government talked about the reduction in the cost of childcare. I welcome any reduction, but it is far off the €200 per month we were promised during the general election campaign two years ago. It is totally irrelevant if we do not retain early years educators, so what is being done about increasing their pay? How much money will be put aside to increase their pay and keep people in the early years sector? There is a 50% turnover at the moment - it is astronomical - and it is because of pay. We also need the physical spaces. It was announced last year that the Government would buy up certain spaces to create community-led childcare facilities, which would be great, but we have heard nothing since about how many of these, if any, have come to fruition. Again, that is important.
I will have to finish up. There is a lot more I could talk about, but unfortunately I do not have time. I will just comment on Senator Joe O’Reilly's optimistic view of the Virginia bypass. I do not know where he is getting that information. I am waiting for the Virginia bypass. I attended a meeting in 2000 about it and I cannot see it coming any time soon, unfortunately.
Cuirim fáilte roimh an Aire Stáit. Despite what members of the Government are saying, this is not a workers’ budget. In his address, the Minister, Deputy Chambers, said the Government is building a smarter, better State, rather than a bigger State and that it must ensure the resources are there today to pay for tomorrow. However, the Government in this budget has failed in its duty to protect the most vulnerable, the lowest paid. This is why I will keep repeating that this is not a workers’ budget. Not taxing the extremely wealthy and the exorbitant profits being made by energy companies has left many people struggling on lower incomes. Ní lá iontach é seo dóibh siúd a bhfuil an méid is lú acu.
IBEC welcomes the budget in its entirety, with the exception of the increase to the minimum wage and that alone tells its own story.
This is a budget which prioritises the demands of the wealthy over the needs of the less well-off and is not a worker's budget.
The 2020 programme for Government committed to delivering a living wage by this year, but where is it? This Government has consistently rolled back on its commitments to improve workers' rights, the living wage, the introduction of the rights to collectively organise, sick pay, flexible working and transparency on the gender pay gap.
While we are doing welcomes, we do welcome something; the 79 cent increase to the minimum wage that brings it up to €14.94 per hour. It stops well short of delivering the living wage of €16 an hour. There has been no move to remove the sub-minimal rates of pay for young workers and apprentices or to outlaw unpaid internships. This remains a scandal. Our future society will be built on young workers and apprentices, but we are not doing enough to encourage a sense of hard work being rewarded for pay.
The lowest paid workers have received the least in terms of tax cuts. For example, a married couple with two children and a single income of €30,000 to €40,000 per year, which would be typical enough in my and the Minister of State's area, are making a total saving of €17 per week, while a couple earning a single income of €100,000 to €150,000 are saving €50 a week on this budget.
The lower and middle class are the squeezed middle. They are earning too much to be eligible for social housing and cannot afford mortgages because they are not earning enough. The Department of Finance has adopted an inverted form of Marxism with its creed and is taking from the workers according to their needs rather than according to their means.
Work must pay and those who need the most support should receive it. Low income and PAYE workers have been left behind in this budget in terms of tax changes, and that is why I am going to repeatedly say that this is not a worker's budget.
Again, we see the increase in public transport fares. People who cannot afford a car are being forced to have a hike in public transport fares when they should have been abolished. There should be no fares on public transport and a Leap card for free travel for under 24-year-olds should have been introduced. We should also get rid of the over-bureaucracy of having a student-only Leap card.
The failure to deliver targeted energy credits of €400 to each household earning less than €80,000 is a missed opportunity to lift 1.2 million households out of energy poverty and, again, they are the people on lower incomes. What has been done in this budget to help the up to 500,000 households in energy arrears? By repeating last year's increase of €5 to the fuel allowance, the Government is not even helping people to stand still. A minimum increase of €7.50 was required with an additional four weeks' payment. We do not know what the winter ahead will be like. Energy companies that continue to make massive profits should have been hit with a windfall tax to pay for energy supports and to power up our transition to renewables.
Again, I say that this is not a worker's budget because the Government has been reckless in refusing to engage in meaningful negotiations on a new public sector pay agreement in advance of the expiry of the previous one. I have been in contact with so many trade unions, as I have no doubt that the Minister of State has, and the failure of the Government to recognise the importance of pay is the first item that needs to be discussed. It has led to the situation where we are probably going to see strike action. We need a new pay deal that takes into account the really high cost of living and the reality of inflation. It is the lower- and middle-income earners who again are being affected.
The failure to bring outsourced services into the public sector does not deliver a smart or efficient State and maintains the status quo of inequality. In our alternative budget, we would have delivered pay parity for those section 10, 39 and 56 voluntary and community workers delivering State services.
I know that this is an unpopular thing to say, but slapping a euro on a packet of cigarettes is hitting those with addictions and again those on lower incomes. There are loads of other measures that could have been introduced to help people get off cigarettes rather than taxing people out of it.
Mar fhocal scoir, mura bhfuil tú ar phá maith, ní hé seo an bhuiséad duitse.
Before I call on the next speaker, I welcome John Cleary, the Cork football manager, Helga Cleary, who is Senator McCarthy's sister, and Norene Kelleher. All are guests of Senator McCarthy. I hope they enjoy their visit to Leinster House. They are very welcome.
I welcome being able to speak on this budget delivered today.
I found it odd to see the Tánaiste stand up during his budget speech and talk about demographic change as if it is something that has just magically happened. This Government has implemented policies that benefit people coming into the State more than they benefit those who were born and raised here. Billions of euro have been allocated for social housing, which I welcome, and the help to buy scheme has been increased by €5,000, but who is actually benefitting from this?
Some 35% of help to buy scheme applicants were not born in Ireland. That is not a criticism of those who applied, but should a non-Irish citizen be entitled to this level of financial support from State? Many of those people had to repay money that was got from the State through this scheme because they had houses. They were not first-time buyers.
Regarding the social housing budget and the €3 billion that was announced today, it is great, but who are these houses actually for? If a person is given leave to remain in the State, they can no longer stay in an asylum centre. The next step is to declare themselves homeless, and this puts them as a higher priority than the homeless Irish person who has been couchsurfing with a friend or family member. Government policy is actively contributing to the increase in homelessness, and that is wrong. So, we welcome the money, but I ask for urgent policy change.
Once again, there is no support for families who want to care for their children at home. We proposed a care credit for families to address tax individualisation to make it easier financially speaking for parents if they wish to stay at home with their children. Almost 70% of women recently surveyed said that they would stay at home with their children if money was not as issue.
The Government does not have family-friendly policies, but it acts surprised when people are not having children. The Government does not really want women to stay at home with their babies. It is so worried about it that it ran an anti-trad wife campaign earlier this year. There is no need for the Government to worry. The women of this country cannot afford to be trad wives after this budget.
The Minster, Deputy Chambers, said that the Government's spending cannot be the measure of success, and he was right. We should judge it by the young Irish person who cannot buy a house, the number of people leaving for other lands, the family who cannot afford to have a child and the small business owner living hand to mouth who wonders if it will still be there next year.
I am pleased to have the opportunity to respond again to the debate on budget 2027, which was presented to the Dáil, and I also presented it in the Seanad. I thank all of the Senators from the various parties for their engagement, views, criticism and support.
Senator Byrne talked about disability supports, the carers allowance and the record health budget, as well as early intervention and special needs assistants in schools. I see where a lot of school bodies have welcomed the budget interventions, and it is very helpful to see that.
Senator Clonan outlined the €500 cost-of-disability payment but also that he has huge difficulties with the monthly and weekly payments. He feels that they should have been changed. He also spoke about the challenges his family faces caring for his son. It was very emotional, and I certainly listened to him. He also feels that the means test for carers needs to be abolished as quickly as possible. In general, he feels that not enough was done regarding people with disabilities.
Senator Davitt spoke about the savings scheme's limit of €12,000 per annum. I understand that a person has to have a personal public service number and that kids' names cannot be put in at the moment. Zero tax will be paid up to the €50,000 threshold, and it is being brought in on 1 July 2027. Again, I understand that people having two or three accounts could be looked at in a few years' time, but at the moment, people over 18 can have one account if they have a personal public service number.
Senator Murphy spoke of energy companies, tax breaks and housing. He called for a citizens' assembly on reunification, which was an interesting proposal. He felt that while the shared island unit is doing a lot, there were other areas to explore. He talked about the 3,000 students from the South studying in the North and suggested there could be a grant for them. I will bring that back to the Minister. It is an interesting concept. The Senator costed it at €14 million.
Senator McCormack spoke of the difficulties with energy costs and said the fuel allowance increase of €5 per week may not cover that. She mentioned carbon tax and home heating. Carbon tax has been brought down by €48.50 and will not be increased in the lifetime of this Government, which will involve three more budgets, so we are probably in a better place.
Senator Harmon spoke of the cost of disability and welcomed the decrease of €150 in the student contribution although she thinks it should have been more. The rental scheme relief is a positive move. The Senator feels that could be put onto the student or whoever is renting. I understand that but this was done for the right reasons. She also welcomed the reduction in the cost of childcare but said more can be done.
Senator Stephenson said more needs to be done on child poverty and while she welcomed the childcare measures, she pointed out that public transport costs are to go up. She said the derelict sites levy should be brought in sooner rather than later.
Senator Higgins was wary of the ceiling on staffing in critical areas and the ceiling on pay. She criticised the cut in capital gains tax, CGT. Various organisations and stakeholders wanted higher cuts to CGT. This is probably the best possible balance, but that is only my opinion. There were various figures out there, going from nearly a million down. I think we are now in a better place.
Senator O'Loughlin mentioned hard choices and stated we are in geopolitically difficult times. She quoted Mark Henry as having said the economy was robust. She said we have a responsibility to develop resilience and mentioned the accelerating the infrastructure task force. She said the investment in Uisce Éireann is very important and hopes it will deliver. She welcomed the €10 increase in social welfare rates but wants more to be done on disability.
Senator Joe O'Reilly noted Emily Marie Bell was in the Chamber and talked of results for families being felt in their pockets and at kitchen tables. He felt there were positive aspects for all communities. He mentioned tax thresholds, supports for agriculture and the Virginia bypass.
We are looking forward to it.
Along with many other bypasses.
Senator Conway said sometimes speaking after the budget is not a good place to be, but he certainly waxed lyrical. I thank him for his views. This is his 60th budget as a worker. He said it is about balancing the available versus the desirable and the challenges, but he feels things have got better incrementally year by year. He said the budget is sensible and well balanced but outlined that more could be done for the disability sector. He talked about the arts, teachers and caint na Gaeilge. I will bring that back to the Minister.
Senator Lynch commended the budget to the House on its fairness and realism. She had difficulties with the way other parties viewed the budget. I suppose that is politics and that is the Chamber we are in. Foreign direct investment can be an easy one to kick. I do not know what we would do without the income tax revenues and high-quality jobs. Foreign direct investment has changed our country compared with when I was growing up. When I had a bar and restaurant, the first thing was the addition of €1 on cigarettes and 10p on the pint. This is a much more nuanced and structured budget. The Senator also talked about the positives for carers.
Senator Kennelly talked about Kerry, the increased fuel allowance, disability services and the fact the budget is good for carers, farmers, businesses and rural areas.
Senator Tully talked about class sizes. We have 2,339 additional special needs assistants and 1,353 additional teachers. She summed it up when she said smaller class sizes benefit everybody. She mentioned additional funding for school transport. It is 180,000 children per day. She wants to know where they are going to. I will try to get more information. She welcomed the childcare reduction but wants more.
Senator Cosgrove mentioned difficulties for the most vulnerable and the 79 cent increase to the minimum wage, which she welcomed but said falls short. She mentioned the squeezed middle and said work must pay. She also talked about apprentices. We need to do a lot more on apprentices but a lot has been done. We attend many apprenticeship graduations. It is a joy to see that. We lost a bit of our vision when it came to apprenticeships. I normally say to them I hope they make a fortune because they are doing something useful. I was never good with my hands and was not academic; I think I was destined for politics. I have great time for apprenticeships.
Senator Sarah O'Reilly welcomed the billions for social housing but had difficulty regarding where the money was spent and felt the Government should have a policy change on housing, homelessness and who gets housing. That is probably a debate for another day. She welcomed the money but, again, she said there is not enough.
It has been an interesting debate. Most people were measured and were able to put their views across, whether they agreed or disagreed with the budget. That is the way it should be. I thank Senators for the measured way they articulated their views. There is a balance to be struck between delivering immediate supports and taking a longer term view towards the future we want to build for generations to come. We have an opportunity to make a meaningful and lasting difference to families, workers and communities across Ireland. This Government has successfully navigated considerable challenges in recent years. If we remain in government, as I hope we will, there will be another three budgets. The geopolitical issues we have faced in recent months have included the closure of the Strait of Hormuz, the Iran-US war, the Russian-Ukraine war and what is happening in Gaza and around the world. Hopefully, next year's budget will be in a better climate and against a better backdrop.
When is it proposed to sit again?
Tomorrow at 9.30 a.m.
Is that agreed? Agreed.
Cuireadh an Seanad ar athló ar 7.03 p.m. go dtí 9.30 a.m., Dé Céadaoin, an 7 Deireadh Fómhair 2025.
The Seanad adjourned at 7.03 p.m. until 9.30 a.m. on Wednesday, 7 October 2025.