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Dáil
‹ Leaders' Questions

Austerity and household costs

Summary

Richard Boyd Barrett condemns austerity measures, household taxes and the Government’s handling of bank debt, arguing struggling families cannot pay more and calling for bondholders to bear the burden. The Taoiseach defends the Government’s economic strategy, cites job creation and ongoing efforts to restructure bank debt, and says the budget will support recovery and employment.

The whole country knows the Government is sharpening the knives to inflict even more suffering on struggling families, pensioners, students and those who depend on the health services. People also know from yesterday's events that Ireland's European Union partners are completely unimpressed with the Government's slavish obedience and willingness to impose such suffering on its own citizens. They intend to give us no debt relief whatsoever. The people of this country are looking into a dark and endless night of austerity and suffering if the Taoiseach continues down this failed path. When workers, unemployed people, pensioners and community groups assemble to protest outside the Dáil tomorrow afternoon against what the Government plans to do to them-----

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The Deputy already has it arranged.

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-----will the Taoiseach go out and tell them how they are supposed to pay their bills? Will he tell them which meals they should skip or that their children should skip to pay the Government's home taxes, its car tax increases, its new taxes on pensions, its cuts in child benefit and its increased registration fees? The Taoiseach has proven to be highly adept at using other people's money to pay off the loan sharks of the international financial markets. Will he go out tomorrow and tell these citizens how they can use his skills to pay off the street loan sharks from whom they are obliged to borrow money to pay for groceries and bills? Perhaps the Taoiseach might offer to swap places with one of those families who are dependent on family income supplement or social welfare----

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Would the Deputy do that?

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Seán Barrett An Ceann Comhairle Fine Gael

Thank you.

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-----and live on what they live on for a week. If the Taoiseach is not willing to do this, will he stop and tell the troika that we cannot take any more?

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Seán Barrett An Ceann Comhairle Fine Gael

Thank you.

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Will he tell it that the poor, the pensioners, the unemployed and the working poor of this country cannot take any more? Will Taoiseach finally stand up for the citizens of this country instead of protecting the interests of bondholders and financiers?

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What is the Deputy on about on the Dublin riviera?

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Enda Kenny The Taoiseach Fine Gael

Unlike the Deputy, I did not have the benefit of a private school education but if one studies what is happening, this country is in a very different position and on a different path than are the citizens of Greece. As for the decision of the Minister for Finance in respect of the arrangements made for Greece, they are very different than the position in which this country finds itself. Deputy Boyd Barrett will appreciate the Greek Government now has a target of reaching a debt-to-GDP ratio of 124% by 2024, whereas the Irish Government expects to exit its programme in 2013, to retrieve its economic independence and to be able to grow the economy. In that sense, the Government is already working with the troika on the arrangements that will be most appropriate for Ireland in exiting its programme.

The Deputy speaks of all the different sectors and mentions the unemployed, workers and those who are in receipt of social protection. Does he not think the Government appreciates the challenges these people face? Does he not understand such individuals approach all public representatives with their genuine concerns and anxieties? This is the reason the Government, in the circumstances it faces, will do its best to ensure that the budget is as fair and as equitable as possible. Not everything can be done tomorrow and it is a case of putting this budget clearly on a platform of progress for the entire country and the economy in order that investment and jobs can be created. It is never going to fix itself and with his private school education, Deputy Boyd Barrett is aware of this. While the Deputy might be highly gratified to have another protest outside the gates, I assure the Deputy that where I come from, we know all about that.

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The Government pays all the private schools to the tune of €100 million.

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Enda Kenny The Taoiseach Fine Gael

We know all about challenge and adversity and all about the difficulties the people have faced for many years. Deputy Boyd Barrett should not come into this Chamber and lecture us about all of that.

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It is reality, not a lecture.

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Enda Kenny The Taoiseach Fine Gael

I am sure he will be present for the budget tomorrow when the details will be spelled out by the Ministers for Finance and Public Expenditure and Reform.

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The Taoiseach is in very bad form.

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The Government is bailing out the private schools.

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Bernard Durkan Deputy Bernard J. Durkan Fine Gael

Deputy McGrath should take it easy.

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Deputy Durkan should remember the €100 million.

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It does not matter what school one attended because any schoolchild could work out that if one has nothing, one cannot pay any more and 1.3 million people have €50 or less at the end of the month after paying for essentials. How will they pay €300 or €400 in home tax? How can they pay hundreds of euro extra in car tax? How will they deal with cuts in child benefit or other cuts and austerity taxes the Government plans to impose on them? Simple mathematics makes it clear this cannot be done. This is a recipe for driving hundreds of thousands of families into poverty.

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Seán Barrett An Ceann Comhairle Fine Gael

Thank you. A question please.

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The Taoiseach states he has no choice but there is a choice. The Government should impose the taxes on those who can afford them and tell the bondholders and financiers that the ordinary citizens of this country cannot take it any more. If he intends to persist with this madness, I again ask the Taoiseach whether he at least will go out tomorrow to explain to those pensioners, workers and ordinary struggling families how they are supposed to pay their bills or live as they must for a week or two to see how he manages.

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Enda Kenny The Taoiseach Fine Gael

Does the Deputy think I live in some kind of ivory tower?

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This House is the ivory tower. Will the Taoiseach go out tomorrow?

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Seán Barrett An Ceann Comhairle Fine Gael

Sorry, would you allow the reply please?

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Enda Kenny The Taoiseach Fine Gael

The Government has a particular ask in respect of our colleagues both in Europe and with the ECB and that is to restructure and re-engineer the level of the bank debt the country has faced. Patience is an important element of what we must do here. I agree that I would love to be able to come into the Chamber tomorrow and tell Members this has all been sorted out. However, the Deputy should believe me when I tell him it is neither as easy nor as facile as he attempts to put forward.

I can confirm that a great deal of work has been done and is ongoing in respect of the promissory notes with the European Central Bank, with a view to having the issue resolved before March next year.

Deputy Boyd Barrett is aware that the discussions were progressed yesterday in respect of the banking union requirement, a decision of the European Council, which can only take place once the legal framework allows that to happen. I hope it can be in place by January and that the discussions on that element of banking union and a supervisory element over the banks of Europe can take place. I hope the framework will come together during the course of 2013.

Tomorrow's budget will be presented on the basis of it being a challenging but positive step towards putting the country on a continued path for recovery, economic growth and opportunities for job creation. That will not happen unless we continue to understand that we must continue to make the country competitive and attractive to investment from abroad, where opportunities exist for credit to be available here and where people can avail of a facility to create jobs.

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We have heard this for four years.

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Enda Kenny The Taoiseach Fine Gael

The Deputy seems to have the impression that we should have a population that is entirely unemployed. I have never heard the Deputy speak about opportunities to create jobs in his constituency or anywhere else.

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The Taoiseach should read our pre-budget submission.

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Enda Kenny The Taoiseach Fine Gael

Instead of wallowing in disillusionment, which the Deputy does all the time, he should focus on some of the signs of confidence-----

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Frankie Feighan Deputy Frank Feighan Fine Gael

He is only happy when he is miserable.

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Enda Kenny The Taoiseach Fine Gael

-----around the country. People are striving and winning. Some 20,000 jobs have been created in the past 12 months in the private sector, which is an indication of confidence that those people have in putting their money where their mouth is to invest in job opportunities for the good of the country.

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There are fewer people working now than when this Government took office.

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There has been zero net jobs growth.

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Enda Kenny The Taoiseach Fine Gael

The Deputy does not want this or to recognise it.

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That is why we are second in the opinion polls.

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Enda Kenny The Taoiseach Fine Gael

The Deputy is entitled to his opinion. The budget tomorrow will have a continued focus on rectifying our public finances and continuing to be competitive.

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We are on 21%.

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Enda Kenny The Taoiseach Fine Gael

There will be opportunities to create jobs, which are essential and fundamental to the good of the country and the future of hundreds of thousands of young people-----

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Enda Kenny The Taoiseach Fine Gael

-----looking forward to the expectation of a job, if they wish to take it up.

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