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Seanad
‹ Order of Business

Fiscal space and Brexit budget

Summary

Senator Rose Conway-Walsh argued Sinn Féin’s capital spending figures were consistent with EU fiscal rules and accused the Government of prioritising tax cuts. She also said the party’s alternative budget factored in Brexit and highlighted export-sector concerns.

I want to clarify remarks I made yesterday on the alternative budget and the fiscal space available. Yesterday the Leader said Sinn Féin's fiscal space was multiples of the figures available and he is correct. The EU fiscal rules allow for spending on capital investment to be averaged out over four years and, therefore, only use one quarter of the fiscal space in the first year. I cannot make this matter any simpler for the Leader. As I would have thought that Fine Gael was sufficiently chided and embarrassed by its last foray into the fiscal space at the beginning of the election campaign to attempt another, I admire the party's bravery.

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Back to class for Fine Gael.

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Fine Gael is more than entitled to argue against an increase in spending on capital investment and the employment and improvement that will come with that move. The party cannot disregard an EU directive to which the Minister for Finance signed up and yet claim that it is fantasy. The party should know that the EU directive was brought forward specifically to encourage increased spending on capital investment. This option is open to the parties in government also. It is becoming increasingly clear to me that nothing will stand between the Government and tax cuts for its golden circle buddies.

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I am more than happy to share the document with the Government and discuss any matter that is not clear enough for the parties. I will not accept sweeping statements without substance. Sinn Féin's alternative budget takes account of the impact Brexit is likely to have on the economy.

We have provided €20 million for North-South projects in order to offset the potential loss of €2.7 billion to GDP if Brexit goes ahead. The Government is lagging behind. I attended a briefing today by IBEC which warned that the indigenous export sector, which employs more than 140,000, was concerned that there would not be unfettered access to the British market. It has called for the upcoming budget to be Brexit-proofed. Indigenous firms have been responsible for up to 75% of new jobs in this recovery - if the Leader stopped talking, he might learn a thing or two - but these are all at risk if there is no coherent strategy or the political will to match it. The budget next week will be a good starting point for the Government to show the country and others in the European Union that we are beginning to prepare and it would instil confidence. Therefore, I ask the Minister to look at some of the alternatives. Some years ago, when people queried economic policies in this country, they were told by the leader at the time that they should go away and commit suicide. In the interest of new politics, we need to look at the alternatives in order to protect the country from the huge avalanche of threats coming down the line.

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