Budget fairness and pay increases
Deputy McDonald attacks the budget’s small gains for low and middle earners and its treatment of pensioners and carers, while criticising proposed public pay rises. Deputy Bruton says the budget helps many low-paid groups and defends the Government’s stance on pay restoration, with several interjections before the Chair restores order.
After all the pronouncements about the universal social charge in Tuesday's budget package agreed by the Government and Fianna Fáil, a worker on €20,000 a year will benefit to the tune of €1.92 per week, while those on €30,000 a year can look forward to an increase of €2.88 per week and a person earning €45,000 a year can expect a whopping increase of €4.43 per week. Pensioners, carers, citizens with disabilities and others in receipt of social welfare payments will get a little more - a whole fiver per week - but not young people who are worth only €2.70 per week, according to the Government and Fianna Fáil.
We have not been told exactly when people will receive these increases but the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, indicated it will be some time in March. As it happens, around the same time another group of citizens will receive an increase in their pay. I am referring of course to the Taoiseach, the Tánaiste, the Minister, his colleagues in Cabinet and the Deputies in the Chamber today. Politicians will not be fobbed off with an increase of a fiver per week though. The Taoiseach is in line to get an increase of almost €5,000 next year, and a further €5,000 per year in the following two years, bringing his salary to an even €200,000. The Minister will not do too badly either, as he will receive almost €4,000 per annum for the next three years, or almost €12,000 in total. There will be no waiting, uncertainty or measly €5 for them. What of Deputies? In April 2017 and again in the following year, they will receive more than €2,500, giving a total increase of €5,200 over two years. This is not exactly fair, is it?
This morning, we were told in some media outlets that Ministers will be asked to defer their salary increase. That is not good enough. A stop must be put to all these increases. When citizens are struggling that would be the fair, right and decent thing to do. It is once again a case of one rule for ordinary families and citizens and another rule for those who are in power. It is an example of looking after No. 1 while the rest can wait. The Government tells us this is new politics but it is the good old days again, which is perhaps not surprising given that Fianna Fáil's fingerprints are all over a budget once again. I have a simple question. Will the Minister assure the House that no salary increase will be paid at this time to the Taoiseach, Tánaiste, Ministers, Deputies or Senators?
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I thank Deputy McDonald for her question. I am surprised she is not praising the Government for providing an increase for 850,000 people who have not received an increase for eight years, including carers, people with disabilities, people on invalidity pension, blind persons and the unemployed.
I would have thought the Deputy would particularly welcome the fact that, for the first time, we have a very strong, progressive Government, the budget of which will have a very positive impact in helping those who are paid the lowest, as shown in the ESRI's SWITCH model which does not even take into account the additional €8,000 that will be made available to parents availing of child care services as part of the very good initiative introduced by the Minister for Children and Youth Affairs, Deputy Katherine Zappone. We have a budget which is balanced and very fair.
I absolutely agree with the Deputy that politicians need to take the lead in being more economical and that is what she will see from the Government. As she knows, we did not accept any of the increases during the term of office of the last Government. In the past few years the pay of Ministers was cut by 35%, as was right. We have also curbed expenses, done away with State cars and sought to make the Dáil a more effective workplace. That needs to continue and the Government will confirm next week that Ministers will not be availing of the proposed pay rise.
Clearly, we are in a situation where we are producing a budget that seeks to address the needs of the country in a balanced way. There are, of course, those who are pressing for pay increases. In the budget we are offering an extra €300 million for increased pay, an extra €300 million for increased social welfare payments and €300 million in tax reductions. The Deputy is right to say these amounts will not have a huge impact in each individual case, but they are fair and balanced. They are being given against a background where we are recruiting an extra 7,000 people for services in the areas of health, education and policing, across all front-line services where there are really pressing needs. The budget takes a balanced approach to delivering for people, not just a sustainable path to achieving full employment but also fairness in a way that will help everyone. This is particularly the case for young people on lower rates of social welfare, to whom the Deputy referred. The Minister for Social Protection, Deputy Leo Varadkar, has provided that they will receive the full rate of payment for participating in the Tús programme, back to education schemes and all of the other initiatives that can help to put them on a path towards finding permanent work. A lot of effort is put into building those pathways through traineeships and apprenticeships, in which we are again investing in the budget.
Comment on this
Nobody with an ounce of common sense could claim fairness for a scenario where pensioners, older citizens and carers who save the State a fortune are meant to be thankful for being given an extra fiver a week, while, at the same time, those who hold the highest office in the land are in line for a bonanza in a pay increase. I hear the Minister's response that Ministers are voluntarily forgoing the rise, but that is not what I asked him. I told him - I put it to him again - that the Government had to put a definitive stop to all of the proposed pay increases. That is fair and the decent thing to do and is, I think, what is expected of us, as political leaders. That includes the Taoiseach, the Tánaiste, Ministers, every Deputy and every Senator. I again ask the Minister to tell us if the Government will put a definitive stop to the increase, not provide for a voluntary pause. If it fails to do this, I want him to be aware that we will act to ensure the increases are stopped by way of an amendment, whether it be to the Finance Bill or enabling legislation.
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I am surprised at the Deputy. She is the very one who opposed the FEMPI legislation which applied progressive cuts and under which the cut in the Taoiseach's pay was 41%, while those on the very lowest rates of pay were not subject to any cut.
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They are undermining the Haddington Road agreement.
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The legislation to provide for a fair allocation of the burden was brought before the House and voted on, but Deputy Mary Lou McDonald was one of those who refused to support it.
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They can receive health care treatment in the United States.
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Deputy Mary Lou McDonald is shedding crocodile tears when she says some individuals should not receive pay increases.
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They should renounce the Queen's payment.
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It is the pay of the highest paid which should be cut.
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We are being very clear. The Government will lead on this issue.
Once again, Ministers will not be accepting the pay increases to be awarded under the restoration of pay arrangement that applies elsewhere. That is to be welcomed.