Dáil Éireann Debate, Tuesday - 29 September 2026
130. Deputy Grace Boland asked the Tánaiste and Minister for Finance the way in which he intends to balance measures to support working families with the need for continued investment in infrastructure and public services in budget 2027. [68584/26]
Amharc ar fhreagraI did not think I was going to get in there at all with Deputy Doherty overrunning.
Ireland's strong finances are the result of years of careful economic management and responsible decision-making by successive Fine Gael Governments. Due to that stewardship we are in a position to invest in the future while also supporting households with the pressures they face today. However, as the Tánaiste knows, many working families are feeling under pressure due to the rising cost of groceries, childcare and energy. He might give me some comfort that the budget will see measures that will support and help working families to not just get by but to get ahead.
I thank the Deputy. I will indeed. The first job of government is to not make anything worse so when there is a global energy crisis and real cost-of-living pressures we need to make sure we try to pull policy levers that are going to help and not chase inflation. The measures we have taken on energy already have had a positive impact on the economy. I am not saying petrol and diesel prices are not extraordinarily high, because they are. They are a lot lower than in other European countries, while still being very high. However, they are having a broader positive effect in somewhat suppressing inflation growth. Sometimes people in this House ask why we did this for the motorists.
We did it for the motorists but it has helped suppress food inflation and economists in my Department reckon it has helped suppress inflation growth by around 0.6%.
There are lots of different ways to help working families. Obviously, the social protection system is one. We have a good social protection system in this country helping those most in need. I am proud of the changes we made around the working family payment. We need to continue to support those most in need but the tax system can help too. It is my view that too many workers are paying the higher rate of tax but it is also an objective fact that people are paying the higher rate of tax at below the average income in Ireland. The programme for Government clearly says that, all other things being equal, we should be looking at bands and credits. We made a lot of progress in government over the previous time and we need to try and build on that so there will be an income tax package that will help people keep more of their own money but will also help make sure people do not pay more tax as their wages grow or careers progress or they get promotions or work overtime.
I know the Deputy feels very passionate about childcare because we have also discussed it. We have to continue to really invest in childcare. I know the Minister for children will bring forward measures there. There is a clear commitment in the programme for Government around where we want to get to over the lifetime of the Government. We have to look and take a step in that direction in this budget and we will do that as well. The Deputy is also right to say that we have to look at how we continue to invest in infrastructure because in her constituency, which is the youngest and fastest-growing in the country, we need social and economic infrastructure. A significant amount of money has been allocated to capital and we have to make sure that is delivered quickly and cut through bottlenecks and red tape - the work the Minister for public expenditure is leading on in terms of accelerating infrastructure.
I very much welcome the income tax package. It is really important that work pays and as the Tánaiste know, our working families are really the backbone of the economy. Childcare is not only essential for equality, it is also essential for our economy. Childcare is actually essential infrastructure and I very much welcome the investment in childcare not only in affordability but also accessibility. Fingal is one of the youngest areas in the country and Balbriggan is the youngest large town. It is essential that we are investing in childcare and investing in community childcare, which is something that my area really lacks. I very much hope that we see support for a huge expansion of community childcare in this budget. Without giving away the budget, the Tánaiste might also briefly indicate some of the measures we might see next week so that I can go back and tell my constituents.
What we will see next week in the first instance is an ability to make sure we keep our country safe. When I came into this House, unemployment was around 15% and the IMF was in town and not just as visitors. We have all worked really hard to get our country back to a place of full employment where we are having discussions on how best to reduce tax and to increase public expenditure. We should never take that for granted so keeping the country safe at a time of huge global volatility is our first job as a Government. We will do that. We will continue to run budget surpluses and invest in our funds not for rainy days but for demographic change, infrastructure delivery, climate and adaptation.
We will take measures in the here and now to help people with the energy crisis. We have to make calls around excise and the debate we have been having in terms of home heating oil and gas. There will obviously be a personal income tax package. The Government is clear about that. The Deputy is right. Childcare is a social issue and an equality issue but it is also an economic issue. I am meeting lots of people across the country - disproportionately women - who are making career decisions not on the basis of their choice but on the basis of the lack of affordability or accessibility of a childcare place. Next week in the budget, we are determined as a Government to take a big step in that direction and to build on that for the lifetime of this Government.
I very much welcome the Tánaiste's comments about childcare. It is not just affecting parents. We have nearly full employment but instead of being able to participate on a part-time or even full-time basis in our economy, many grandparents are actually providing childcare because there is absolutely no choice in areas like mine in Skerries and Balbriggan, where there really is no accessible childcare. I know that the Tánaiste is working closely with the Minister for children but it is really important that we see the second stage of the action plan launched this year so that we have a road map and know where we are going over the next three years to make sure that we see more accessible and more affordable childcare. We know that community childcare actually drives affordability and, unfortunately, because of the lack of it in my area, my area has among the highest childcare fees in the country so it is really important that we invest in our economy by investing in our people and supporting parents and grandparents to participate more fully in our economy if they so choose.
I fully agree with the Deputy. I know she sees it in Balbriggan and Skerries and across her constituency in Fingal. It is the Minister for children's intention to produce that road map. A lot of work is going into it because as the Deputy rightly says, there are lots of moving parts here. We have to address affordability, accessibility and how we support the workforce. We have made some good progress on that. We have also made decisions over the course of the past year to invest public money for the first time in capital projects in terms of the development of childcare facilities as well. This is a key issue. We also have to recognise that it is up to a parent as well so it is about providing parental choice and recognising that some parents will perhaps want a childminder in their home and the likes. There is stuff we can consider doing on the tax side in relation to supporting childminders too so we are looking at this in the round as a Government. We see it as a key core priority and a key part of Ireland's economic and social infrastructure. We also recognise that for many families, it is a second mortgage. It is a really big bill. We have made good progress on it over a number of years as a Government. I am proud of what we have done with ECCE as well but building on this will be one of the planks of the budget and not just the budget. It will be one of the planks of our work over the next four years.
