Budget impact on families
Deputy Gerry Adams warns that working and middle-income families cannot endure another austerity budget and asks for its burden to be lifted. The Taoiseach points instead to job creation, employment growth and rising exports as evidence of economic progress.
Ar dtús baire, cuirim fáilte ar ais roimh na Teachtaí go léir. Roimh tosú, b'fhéidir go nguífidh sibh lá breithe sona dár gcara, an Teachta Caoimhghín Ó Caoláin, atá ag ceiliúradh breith lá tábhachtach inniu. Ar aon nós, tá súil agam go bhfuil an Taoiseach agus na Teachtaí ar fad réidh don téarma atá romhainn. Tá an Taoiseach agus an Rialtas ag cur buiséid le chéilé, ach níl seans ar bith ann go mbeidh daoine in ann glacadh le droch buiséad eile.
The Taoiseach knows that working lower and middle-income families and communities out there just cannot bear another heavy budget. The Taoiseach has spoken about a tough budget. Does the Government intend, like an austerity junkie, to continue with this programme and the €3.1 billion target? It is not just about how much the Government will take out of the economy. It is also about who pays for it and what the Government does with the money which is accumulated.
It is clear that the Government's previous budgets have failed the fairness test. The Government refuses point blank to equality proof its policies to identify the human costs of these policies on citizens and it has cut child benefit and carer's allowance. The Government has even cut allowances for those with disabilities. It has miserably failed those families and households who are in mortgage distress.
This budget is an opportunity to lessen that burden. Will the Taoiseach take the opportunity now to confirm that the vulnerable will be protected? Would he give a commitment that the Government will not go for a €3.1 billion adjustment? Will he confirm, for example, that class sizes will not be increased and front-line health care services will not be slashed, or that those on social welfare will not be targeted? Tús maith, leath na hoibre. Anois, is féidir leis an Taoiseach a fhreagra a thabhairt.
Comment on this
Ba mhaith liom fáilte thar n-ais a chur roimh an Teachta Adams. Níl a fhios agam ar mhiste leis go mbeadh lá saoire náisiúnta ann le lá breithe an Teachta Ó Caoláin a cheiliúradh, ach ní dóigh liom gurb é sin atá i gceist. Tá súil agam go mbeidh lá breá ag an Teachta agus go n-éireoidh leis féin agus lena chlann an lá a cheiliúradh.
The question Deputy Adams raises about the budget is obviously one about which there will be a great deal of discussion. Everybody knows it has been difficult over the past period of years to make changes and take decisions that are very difficult in the interest of getting the country and its economy back on track and allow for a position where we can get our people back to work. As I have stated already, it is not possible and I do not intend to speculate on the final decision that the Government will take here simply because all of the information in respect of tax, income and growth projections, and the figures from the CSO in respect of the national accounts provided for the Minister for Finance, are on their way. In the next short period, we will see all of that detail made available to Government so that it can make its collective decision in respect of the budget for 2014.
While this has been very difficult for a great number of people, there are signs of confidence in particular sectors. I am happy to note that, having come from a background where we lost 250,000 in a three-year period, job creation is now running at 3,000 net new jobs per month, or just over 600 per week, in the private sector which is a start. It is heartening to note that the live register has now reduced for 14 consecutive months and is heading in the right direction. Government is about making decisions that can build on that momentum. It is difficult for a great number of people, but I want Deputy Adams to understand, as we all do, that the Government will do its utmost to be as fair as possible in the difficult choices that it must make.
I will not speculate on the extent of any adjustment to be made until the Minister for Finance is in possession of all the financial details - income tax receipts, etc. - and brings those to Government where there will be a collective decision taken about budget 2014.
It is also important to note that we see this budget as a serious stepping stone towards the country's exit from the programme in which it has been for the past number of years. If this could be achieved it would send out a strong signal that a country in the European Union has emerged from a programme. This in itself is a signal of continued strong progress, which will provide a continued attraction for investment by the markets and by those wishing to create jobs.
Comment on this
The Taoiseach says he is waiting until all the information is available. We know that half a million people are unemployed and that there are thousands and thousands of families in mortgage distress. We know that every single week 1,700 citizens, mostly young people, leave this State. We know that people have had their child benefit cut and people who are carers have had their benefits cut. We know there is a dreadful social consequence to the decisions that the Taoiseach is taking. Either the economy serves the people - and his Government and its Labour Party component have the opportunity to see this happens - or we simply have the people working as slaves to serve the elites who benefit most from the types of policy his Government is implementing. The information is there and I was simply affording the Taoiseach the opportunity to send a very clear signal that he will move away from this policy of austerity, which is not working, in the interests of ordinary citizens or lower- and middle-income families. There is no evidence to suggest otherwise; on the contrary, people are suffering more and more. Fianna Fáil created the mess - that is certain - but the Taoiseach's Government has perpetuated the mess.
Comment on this
The Deputy himself created a bit of a mess.
Comment on this
I ask the Taoiseach to give a very clear commitment that he will lift the burden of austerity from the citizens of this State.
Comment on this
One of the principal routes to getting our country back to a point of progress and growth is to create jobs and to allow for that to happen. The evidence is before our eyes that 3,000 jobs per month are being created in the private sector. That is progress, in my view. There has been an increase of 30,000 jobs since the Minister, Deputy Bruton, launched the action plan for jobs in February of last year-----
Comment on this
Those are like the Taoiseach's Seanad figures.
Comment on this
-----with 33,800 people in employment in the past year and 9,600 in the past quarter. These people are now in employment. There has been an increase of 20,000 in the number of people in full-time employment in the past 12 months. The IDA figures show a net increase of 12,500 in employment in its supported companies in 2011 and 2012. Enterprise Ireland had a record year in 2012, with a net increase of 3,000 employed in supported companies last year. It is important to note that exports have hit their highest level of €182 billion, which is 16% above the level in the crisis year. Jobs in the exporting sector have increased by 15,000 over the past two years. I note also the announcements by Kerry Group, Glanbia, Mylan and PayPal, for example. Recent figures show encouraging movement in the unemployment figures, particularly with regard to long-term unemployment. The level of unemployment has dropped from a peak of 15.1% to 13.5%. The long-term unemployment rate has fallen from 9.5% to 8.2%. It is heading in the right direction but it is still much too high and a great deal of work remains to be done in this regard. These are real people who have left long-term unemployment, who have come off the live register and are now back in gainful employment. That is where we want to be.
I made the point the other day that there is the difficulty of the welfare trap, whereby a person moving from unemployment into the world of work automatically or instantly loses benefits. This system needs to be changed to allow for a tapering effect in order to encourage and incentivise people to get back to work. I refer to the example of the new housing assistance programme, which will allow for a tapering-off period while people come off the live register and go into the world of work. There has been progress, but it is nothing like what we have to achieve. The budget for 2014, in so far as we can do it, will focus on providing opportunities for further expansion in employment and jobs. This is the key to future prosperity for our people.