Budget speech - An Tánaiste Micheál Martin TD, Minister for Foreign Affairs and Minister for Defence

 

Ceann Comháirle,

 

This is a budget for a modern country, determined to protect its success, and use its resources to permanently tackle key issues.

 

It is a balanced, fair, and progressive budget, which significantly expands vital public services and supports.

 

It is a budget which protects and promotes the economic success which generates the resources which these public services and supports rely on.

 

And critically, it is a budget which shows urgency and ambition in further accelerating investment in home building, critical infrastructure, environmental sustainability, and regional development.

 

This budget is based on a belief in the core strengths of our country and a clear determination to deliver further progress.

 

Over the course of five Budgets, we have implemented a sustained and consistent approach to help families and businesses with vital supports as well as direct assistance through what has been , by any measure a tumultuous period.

 

I absolutely accept that we have provided more direct aid for families and expanded services more than the Fiscal Advisory Council recommended.

 

However, it is our assessment that urgent needs and our rising population require this additional funding. It does so within reasonable boundaries and especially given the overall size of the economy.

 

We have also acted to create reserve funds which will help maintain services during a major downturn and ensure the delivery of economically essential investment programmes.

 

Of course, even then, we have come nowhere near meeting the always-escalating demands of opposition parties. For them, the economic and fiscal background to the budget is irrelevant.

 

I am satisfied that we have struck a reasonable balance between addressing urgent needs, investing in the future, and protecting against a downturn. And in this, we have a record of substantial achievement to build on.

 

We have heard an extraordinary level of nonsense so far concerning the money which we are receiving as a result of the European Court of Justice’s ruling on past tax arrangements with Apple.

 

We were entirely correct in demonstrating that we would behave in a transparent and trustworthy way in defending our tax arrangements – and because we did so we have protected revenues which are worth many times this one case.

 

It has become increasingly clear that most of the opposition has absolutely no interest in the policies which deliver jobs for Irish workers and revenue for Irish public services. The self-proclaimed parties of the workers are nothing of the sort.

 

Our anti-worker, anti-climate action, anti-trade and anti-reserve fund opposition is the least progressive to be found anywhere in Europe.

 

And when delivering lectures here demanding that windfall revenue be spent more rapidly, the opposition should perhaps take a moment to remember that they angrily attacked every policy which generated that revenue in the first place.

 

We have chosen a responsible and farsighted approach to handling revenue which is either once-off or uncertain over the long-term. Our overwhelming approach is to invest in our country’s future – to increase the productive capacity and sustainability of our economy, so that we can deliver pensions and public services well into the future.

 

There is no doubt that a refusal to spend everything now carries with it political risks. Even with very significant increases in spending we have not pleased everyone.  However, it is the right thing to do.

 

It learns from past experience of Ireland and many other countries, and it shows our seriousness about maintaining a strong economy and high employment.

 

I know that one of the last things that the opposition likes to talk about when discussing the Budget is the economy, but the facts show, our record in helping to steer Ireland successfully through dramatic challenges.

 

During the past four and a half years we helped our country through a series of economic shocks of historic proportions.

 

 

And yet, in spite of these, we have ensured that today we have record levels of employment, record levels of investment in public services, record levels of direct aid for families and investment funds which will protect this progress.

 

On the day when this government was formed in 2020, and the day I was honoured to be elected as Taoiseach, we promised to restore our country, and we did.

 

Today there are 593,000 more people in work. There are 115,000 more homes. Wages are again growing faster than prices – and our financial situation is strong enough to fund dramatic investments in overcoming real problems in housing and other areas.

 

 

 

A coalition government is by definition made up of parties with different priorities. We cannot and should not be expected to agree on everything.

 

During the negotiation of the Programme for Government, we stressed our belief in investment in public services, support for pensioners and our eagerness to take responsibility for some of the toughest challenges.

 

Each party had a deep impact on the Programme and everyday since my party’s members ratified the Programme in the largest internal vote ever held by an Irish political party, we have worked in good faith to respect our colleagues and their distinct positions.

 

Personally, I have always operated on the principle of supporting good ideas wherever they came from and worked together with ministers from each party to help them promote our shared agenda.

 

I want to acknowledge the close and productive work carried out by Ministers Donohue and Chambers in recent months.

 

None of the undeniable economic progress achieved in recent years has been acknowledged by any member of the opposition because fundamentally they are incapable of acknowledging any positives in our country – they are so dedicated to a model of total opposition that they brush aside inconvenient facts.

 

They put politics first in everything.

 

And if you cannot acknowledge what has been achieved, how can you protect it? How can you build on it?

 

 

It is, unfortunately, the sad reality of so much political debate in the last few years that the Opposition has been reduced to a cynical and relentless series of attacks. Attacks which claim that nothing positive has ever happened in our country and that just demanding more of everything is the answer.

 

Even during the pandemic, the addiction to destructive opposition showed itself repeatedly. Every measure we introduced to help workers and businesses was attacked as paltry – and when we had to end emergency measures we were attacked again.

 

And we saw another level of cynicism at the start of this debate when Sinn Fein representatives started attacking levels of welfare payments which their party had actually called for.

 

The waves of insincere anger and empathy we constantly hear in this chamber are used to look for headlines, while ignoring the fact that to govern is to make choices - that simply shouting ‘more’ means that they are refusing to contribute anything constructive about what we should be doing.

 

We have seen already seen in this debate the stark reality of the divide here between those who see problems and want to overcome them, and those who see problems and just want to exploit them.

 

In response to a balanced, ambitious, and progressive budget we have heard an incoherent barrage of attacks and no meaningful debate.

 

 

I know that the Opposition would like nothing better than to claim that they are facing some form of neo-Thatcherite government. Of course, the reality is that we have been consistently progressive.

 

The biggest income boost of the measures in our cost-of-living package and the more permanent Budget package goes to the poorest sections of our society. Everyone benefits, but the biggest benefit goes to those who need it the most.

 

Next year fully 24% of all income taxes will be paid by the top 1% of earners. EU figures show that Ireland has one of the most redistributive tax and welfare systems.

 

It also shows that inequality has fallen since 2019. The relevant coefficient is subject to minor annual fluctuations, but overall, it has fallen by nearly 4% because of this government.

 

In this year’s Budget, the increase in disposable income for the poorest families will be four times that of the highest income bracket.

 

It also has to be said that many of the pre-Budget proposals from the opposition would be deeply regressive in their impact and would permanently narrow the tax base at a time of uncertainty.

 

The fact that we are the only country in the world where the far left wants to abolish all property taxes shows you just how cynical their approach is.

 

Fundamentally, we have to strike a balance which is fair to all sections of society. We must help those in need, but equally we cannot penalise the very people we need to create employment and opportunities for us all.

 

This Budget again demonstrated our commitment to helping families during a sustained cost of living crisis which has hit across much of the world.

 

Energy prices remain artificially elevated due to a combination of Russia’s imperialistic aggression against Ukraine and the flawed operation of elements of the international energy market. An exceptional situation requires exceptional measures. The energy credits which we are providing will help families and businesses when energy use is at its highest in the middle of winter.

 

Increases in pensions and all social protection schemes will underpin an increased disposable income for those who are most in need of help. At the same time, every taxpayer will see important improvements in their take home pay. We are providing €2 billion to further support households respond to the cost of living and this will help those on lower incomes to a higher degree.

 

 

At the core of this Budget is a sustained investment in securing our country’s future. The roughly €15 billion to be spent in the public capital programme will address both the urgent needs of today and strengthen the foundations on which we can ensure prosperity well into the future.

 

It is absolutely right that we focus on waste when it appears – when projects cost amounts which cannot be justified by the outcome. The fact that the C&AG systematically reviews public capital spending is a great strength of our system.

 

But however much certain projects develop problems, the overwhelming evidence is that capital investment is delivering for the Irish people.

 

There are many roads that have come in on time and on budget - The N4 Castle Baldwin, N59 Moycullen Bypass ,Dunkettle Interchange ,Listowel bypass for example .There are also schools, primary care centres as well as 1,200 hospital beds which include the Mater and Kilkenny hospital extensions that came in on budget – so let’s also acknowledge success when it happens .  

 

Our investments in water, in economic infrastructure, in health, in schools and in every area of capital investment shows a sustained commitment to securing our country’s prosperity and progress not just today but, in the years, ahead.

 

Housing remains, and will be for many years, one of the most important challenges we face.

 

A rising population as well as unmet demand means that we have to continue to do everything possible to increase the supply of homes for people to buy or rent.

 

But there is equally no other area of public policy which requires as sustained and diverse a programme of action.

 

Over 115,000 homes have been built so far during our mandate. We succeeded in step-changing home building from 20,000 a year to 40,000 and we are now pushing hard to build on this momentum.

 

Our radical overhaul of unreasonable delays in the planning process will soon complete its passage and we can begin to enact its provisions. Hopefully, we will be able to act faster in the face of the sort of systematic blocking of projects we have so often seen from Sinn Fein politicians, as they work hard to try to delay urgently needed homes.

 

We are acting to train more workers to build the homes. To free up more land. To make essential utilities available.

 

And of course, we are providing funding to help people who want to buy a home of their own.

 

Having introduced the first ever scheme to assist people with the cost of rent we are now building further on it.

 

Amongst the many absurd attacks from Sinn Fein in the last 24 hours has been the claim that we are giving up on housing. The fact shows that we are actually accelerating action on housing.

 

It is absolutely true that Sinn Fein talks a lot about housing, but when you look more closely at the Emperor’s New Housing Policy you find that there’s nothing there.

 

A collection of invented figures and a series of actions which would make things much worse. Fewer houses, slower building and cancelled supports for home buyers – that’s the reality of their brave new future.

 

Of course, we don’t need to look in the crystal ball when it comes to Sinn Fein’s housing policy – all we have to do is look at its abject failure on housing in Northern Ireland. No action. No increase in home building. No expansion in social or affordable housing.

 

Next year will see new records in home building in critical sectors and a further acceleration of the progress delivered by Minister O’Brien and this government. There is a long way to go, but progress is clear.

 

We believe in the importance of public services. We believe in the essential role of government in ensuring that the public has access to high-quality public services which deliver clear outcomes for them.

 

The challenge of expanding access and quality in health remains and we are again demonstrating our commitment to a public health service which is there when people need it and which helps people to live longer, healthier lives.

 

My party eagerly took up the challenge of leading the Department of Health when we entered government, and the facts show a deep and lasting programme of investment and development in our health services since then.

 

It is absolutely correct that people point out where there are failings and where there are problems in the health system.

 

Equally it is absolutely wrong to refuse to acknowledge the progress we are seeing.

 

There has been an unprecedented expansion in health professionals delivering care. Waiting lists are falling. New primary care centres are serving people throughout the country.

 

As with all major staffing expansions in complex areas, the impact of these staff will continue to increase rapidly. With almost 1,200 extra acute hospital beds available and a rapid expansion of services into new specialisms, we are seeing an historic expansion in our public health services.

 

A revolution in specialist health services for women will be a lasting legacy of our work, and next year the availability of Hormone Replacement Therapy will make this often-vital treatment available to women irrespective of income.

 

And perhaps more than anything else we have, led by Minister Stephen Donnelly, enacted a sustained series of initiatives to reduce the cost of accessing healthcare.

 

60% are now eligible for GP care. In patient charges have been abolished. The cost of drugs and many other charges have been reduced.

 

And next year this progress will continue. Many of the new posts and services will develop to their full potential -and other new posts and services will be created.

 

The absence of anything even close to a health policy from the opposition is seen by the attempt to claim that a record health budget with record numbers of health professionals and record numbers of patients being treated is something to be attacked.

 

Our programme of investment, development and reform in health will continue.

 

For me and my party education has always been a priority for us and this has continued during this government.

 

Today there are over 7,000 extra teachers in our schools than on the day Deputy Foley became Minister for Education. 1,300 major school building projects have been funded. 1,300 new special classes and 7 new special schools have been opened. A programme of curriculum reform has been rolled out.

 

Because of the expansion in teaching posts, we have implemented there has been pressure in filling all posts – but this will be overcome as extra teachers qualify.

 

What is most important about all of this, is that it is having a direct and meaningful impact in improving educational outcomes for Irish pupils. Early school leaving is at its lowest ever level – now amongst the best in Europe.

Scores in reading, maths and science are now well above international averages. And, as the European Commission has pointed out, the gap in attainment between socio-economic groups is closing.

 

This progress didn’t happen by chance, it happened because of important choices we have made to invest in and reform education.

 

And next year will be no different. Funding for all schools will increase. A further significant expansion in support for children with special needs will be implemented.

 

Free school textbooks will be provided for all classes. And we will also implement our plans to make schools safer spaces focused on learning and development, with funding to pay for measures to ban access to smartphones during schooltime.

 

Throughout my public life expanding access and quality in higher education has been a deep commitment for me. The fact that investments in research which we made two decades ago today underpin industries employing thousands showed that this commitment could make a difference.

 

This government has continued to expand higher education, and we are very conscious that funding cannot just go to new initiatives, it is paramount that the core funding of higher education is increased. The €150 million which we have agreed for this is a major step forward.

 

Ensuring that Ireland has a strong and effective voice in European and International affairs is a core value for my party and for all members of this coalition government. It is a foundation for our shared programme for government.

 

We stand with the values of democracy, human rights, and cooperation.

 

It is a great pity that many in the opposition here refuse to acknowledge how Ireland has promoted both its interests and its values through its foreign policy.

 

In this Budget we are providing for a further expansion in our diplomatic network and the promotion of our priorities.

 

Next year will see the highest ever level of overseas development aid – focused as always in helping some of the poorest communities in the world.

 

And we will also be expanding funding for climate finance initiatives, helping to reinforce our international standing as a leader in this field.

 

Once of the first major initiatives I launched when this government began was the first ever major programme of funding for North/South initiatives.

 

The Shared Island Initiative has been a resounding success. It is funding research essential to building understanding and reconciliation – detailing the economic, social, environmental and health realities in both jurisdictions. Its funding major infrastructure. Its piloting new services and, most of all, it is delivering the sustained and deepening dialogue which was missing for so long.

 

The Shared Island Initiative will be funded to push forward its work in the year ahead – delivering action where for so long all we had was speeches.

 

 

The men and women who serve our country as members of Óglaigh na hÉireann deserve our thanks and respect, particularly at times like this when they are representing our country and the United Nations with such distinction in an exceptionally difficult circumstances in South Lebanon.

 

They defended our democracy in the face of an illegitimate campaign of violence and we must never lose sight of the vital role which they play in protecting us and our values.

 

In the two years since I took responsibility for the Department of Defence, I have worked to begin a new era of investment and support for Óglaigh na Éireann.

 

The historical deficit in many areas has been undeniable, and we needed to chart a new way forward.

 

We still have much to do, but in a short period a wide range of issues have been tackled.

 

The Budget for next year reflects this, with a 9% increase supporting a wide range of improvements for individual members of the Defence Forces and investments in capabilities. It will amount to fully one quarter more than the allocation in 2022.

 

Next year we will complete the purchase of a long-needed air transport capability. And we will move forward in addressing obvious weaknesses, through progressing both radar and sub-sea systems.

 

Vitally, the Budget provides fully for major improvements aimed at increasing recruitment and retention.

 

I believe that we are only at the start of a programme of investment, reform, and development in our defence forces, and next year marks an important step forward.

 

A core objective of this government, led on this matter with great determination and grit by Deputy Eamon Ryan, has been to leave a lasting legacy in terms of tackling urgent environmental challenges.

 

Recent news that Ireland’s carbon emissions have begun to fall show that progress is possible.  This has involved actions across government, required sustained action by all ministers.

 

Our approach has fundamentally been to seek to assist people in reducing emissions and protecting biodiversity. When new funding has been raised, we have directed the revenue towards helping communities and industries to transition while protecting employment.

 

It is a terrible indictment of Sinn Fein’s absolute disinterest in the environment that it wants to roll-back initiatives which are finally delivering progress.

 

 

I profoundly reject the idea which we too often here in this House that there is or should be a conflict between meeting essential environmental objectives and having a strong farming and agrifood industry.

 

Farmers and the agrifood industry represent our most important indigenous industry. They are world leaders in many areas and provide the social, economic, and cultural foundation for rural Ireland.

 

I believe we can protect and grow their work while meeting environmental objectives, and what’s more we are seeing this become a reality because of work we have been progressing.

 

Minister McConalogue has worked tirelessly on behalf of farmers and the agrifood industry. This can be seen again in the Budget allocation for next year, which improves direct supports while also introducing and expanding a wide range schemes which will help the sector to innovate and prosper.

 

 

Ceann Comháirle,

 

The Budget proposed by government is fair, it is ambitious, it protects our economy and provides for our future.

 

It is balanced and progressive.

 

It will help families under pressure, expand essential public services and deliver the largest investment programme in our history.

 

I commend it to the House.