The Minister of State at the Department of the Environment, Deputy John Browne, was in possession and he has 17 minutes.
Financial Resolutions, 1993. - Financial Resolution No. 10: General (Resumed).
Debate resumed on the following motion:
That it is expedient to amend the law relating to customs and inland revenue (including excise) and to make further provision in connection with finance.
—(The Taoiseach.)
Wexford): The budget was framed with a view to creating and protecting jobs. High interest rates created a major problem. I welcome their reduction over the past few months but I am concerned at the delay in passing it on to mortgage holders. Some of the lending institutions only passed on the benefits from 1 May. This delay is unacceptable as people were under severe pressure to meet mortgage repayments.
This year's public capital programme increased by 27 per cent to £2.340 million and the share of the programme financed from the Exchequer will be up by £170 million. No less than £143 million of this increase will be applied to housing, roads and sanitary services. The capital provision for my Department's programme has increased by nearly £177 million or by a 38 per cent increase on the 1992 outturn. This is a clear indication of the Government's priority in regard to essential social and economic services. The allocation of nearly £90 million of the Cohesion Fund to roads, sanitary and environmental services will bring spending in these areas to a record level in 1993.
Our construction industry is of great importance. Investment and employment in construction is determined, to a large measure, by the general economic climate at any given time. The Government plays a significant role in encouraging activity in the industry through the financing of a diverse range of projects. The total public capital programme expenditure on construction is estimated at £1.367 million this year, an overall increase of over 22 per cent on last year's outturn. The increased investment will generate jobs in the industry direct and indirectly. This year 3,500 new houses will be constructed in the local authority area. This is a substantial increase over 1992. At this stage every local authority would have received their 1993 allocation. As has been pointed out by the Minister for the Environment, Deputy Smith and the Minister of State, Deputy Stagg, it is important that each local authority ensures the construction of these houses without delay. Obviously this will be advantageous to those seeking housing and it will create jobs and ensure a vibrant construction industry in the coming year.
The 3,500 housing starts represent a three and a half fold increase on the number authorised in 1992. On average, each house start will provide one additional job with a further job being provided in ancillary services. When the expanded programme is fully underway an additional 4,000 jobs, direct and indirect, will be created in 1993. There are many different schemes of local authority housing construction at present, the shared ownership scheme, direct local authority housing and voluntary housing. Through a combination of these schemes there should be a substantial reduction in the number of people on our housing lists during the lifetime of this Government. The Programme for a Partnership Government gives a commitment to build as many local authority houses as possible through shared ownership and voluntary schemes, thus ensuring that as many people as possible thoughout the country have the right to a house.
The Programme for Government provides for an accelerated programme of remedial works in bathrooms for people who still require them. In various parts of the country, there are houses, and particularly in urban areas, built in the thirties and forties which do not have bathroom facilities. It is important that the Government give a commitment in this area. During the past number of years we have seen tremendous progress in this area and in excess of £80 million has been spent in upgrading many substandard local authority dwellings. An increase of £1 million was announced in the budget which means that £17 million will be available in 1993 for such remedial works. I hope this will make major inroads in regard to the provision of bathrooms in local authority dwellings in 1993. I hope this programme will be continued over the next few years to ensure that this problem is resolved once and for all.
One of the largest and most important items of expenditure in the local authorties' annual programme of works is road maintenance. In 1993 the Department of the Environment will contribute £20.7 million in grants for national road maintenance and £65.3 million in discretionary grants for non-national road maintenance and improvement. With this level of investment, supplemented by large amounts from local resources, we must ensure we are getting value for money. The Minister for the Environment has set up in the Department of the Environment a new "value for money" unit. This unit will work with local authorities in ensuring that maximum efficiency and effectiveness is achieved in all programmes in 1993. I hope this "value for money" unit will ensure that moneys are spent properly, that the works carried out are performed to the highest standards and that we will not see a wastage of funds in any area of road building during the coming year. With the support of funding committed under the operational programme on peripherality and new funding anticipated under the Cohesion Fund, investment in the improvement of the national primary and secondary road network will total £242 million in 1993. In 1992 the expenditure was £167 million. The introduction of the Cohesion Fund is responsible for £40 million of the increase of £74.5 million. The new funds will help the local authorities and the Department of the Environment to accelerate the pace of construction and improvement works on our national road network throughout the country. As we have heard so often, the Cohesion Fund will level the playing pitch and I hope every county will benefit substantially.
Despite very severe financial difficulties, the Government are again providing substantial funding for non-national roads in 1993. Local authorities will also devote much of their resources to this area. We have emphasised on many occasions the need to ensure that the greatest possible value for money is secured from this investment. In the past four years the Exchequer has provided over £250 million for works on regional and county roads. Returns to the Department indicate that local authorities invested almost the same amount in that period. We are also aware that the county roads are still a major bone of contention. I am glad to see my colleague from Wexford has arrived. I hope she will not call a quorum today to spoil the party.
The same trio meet again.
(Wexford): I was beginning to wonder why everybody walked out when I began to speak.
I have taken the bare look off the Minister of State.
(Wexford): The case has been made on a number of occasions from all sides of the House that some of the funds from Europe should be made available for county roads. The Minister for the Environment, Deputy Smith, the Minister of State, Deputy Stagg, and I have had a number of meetings with the Commissioners with a view to seeing how this can be achieved. The suggestion has been made that 10 per cent of the funds should go towards county roads to bring them up to the required standard. While it is important to build ring roads and upgrade our national and primary roads, it is important also to maintain a standard on our county and secondary roads. I hope we can succeed in securing a level of funding from Europe to assist in this area. There is a certain reluctance to make moneys available for county roads. In the counties which depend on tourism, agriculture and other areas of economic activity it is important that the road structures are up to the required standard. We will fight tooth and nail to ensure that some moneys will be made available from Brussels for county roads. Obviously increased funding is important. It is important that the next tranche of funding from 1994-99 is spent in the proper fashion and that we get value for money.
Will we have environmental impact assessment for Cohesion Funds?
(Wexford): I hope to make a fair effort to secure increased funding for the south east area.
It is the Minister of State's area.
(Wexford): A recent survey carried out by the Waterford Chamber of Commerce indicated that in the last allocation of Structural Funds only about 3 per cent came to the south east. Obviously we have a duty to ensure that on this occasion we get our fair share.
What Cohesion projects in the south east are included in the submission?
(Wexford): I promise to make them available to the Deputy later. In the Department of the Environment we are committed to the public capital programme to ensure that the maximum benefits are derived from the Cohesion Fund, that the construction industry is given as much help and support as possible and also that local authority housing construction will commence in the near future. The Department of the Environment has had numerous meetings with local authorities throughout the country to ensure there is no delay in this area. Obviously housing construction will be of major importance to those on the housing lists but it will also ensure that jobs are created and maintained.
Thank you, a Leas-Cheann Comhairle, for allowing me time to speak on the budget. I know that interest in the budget has now decreased. It is, unfortunately, a one day debate as far as the general public is concerned. There are a few items I would like to speak on today. Given the present chronic housing shortage, I welcome the Government's commitment. In my constituency there is an enormous waiting list and I know that, to a certain extent, the Government's commitment to housing will relieve it. The allocation of £20 million to relieve hospital waiting lists is also welcome.
An issue that very much concerns me is the plight of widowers. Being a widower I know what it is all about. My wife died approximately five years ago and I was left with four children to raise. When my tax assessment form came the following year I learned, to my amazement, that I was taxed as a single person which added enormously to my problems. A number of people are compaigning in this regard. I appeal to the Minister to do something for them because they are under enormous pressure, having been left on their own. One person who comes to mind is a man with five children, a schoolteacher by profession. He cannot afford to employ a housekeeper and has been forced to give up his job. I appeal to the Minister to look into this very important matter.
Another issue that concerns me is VAT on clothing. I hope the Minister will do something to relieve the pressure on small businesses, particularly the man with the corner shop who employs three or four members of his own family and who will be under enormous pressure in keeping his business going because of the extra VAT on clothing.
Does the Labour Party support the increase on VAT on clothing? Will they vote for it?
The Government has promised that the 1 per cent levy on employees is a temporary measure and I ask him to remove it as soon as possible.
Thank you, a Leas-Cheann Comhairle, for giving me the opportunity to contribute on the budget, even at this late stage. As a member of a local authority I welcome the increased allocation for local authority housing. Having been reared in one of those council houses, I have a special grá for that area.
To be parochial, the housing situation in Westmeath County Council has been critical in the last few years and a three and a half fold increase, although welcome, should be perceived as the beginning because it only makes a dent in the problem. I urge the Government to continue its planned programme and to build at least 5,000 local authority houses next year. The assessment of housing needs is based on those of March 1991. Further assessments have been carried out and about 300 people are awaiting housing. Things have changed in the last decade and we must take cognisance of this change. Otherwise, we will have failed the people who sent us here to represent them. The Minister should note that moneys put into housing consitutes not only a welcome relief to those on the housing list but is critical to job creation. Many small builders are now eagerly watching each financial statement emanating from the Department of Finance to see if they will get an allocation for house construction or capital programmes. These are vital to their survival and that of the people they employ. I hope the building of 3,500 houses will generate 8,000-9,000 jobs in the current year. If we continue on those lines it will give some hope to people who are languishing on the unemployment list.
The area of health is close to my heart. I certainly welcome the proposals to provide £20 million specifically to reduce the waiting lists in our public hospitals. It is one area where I would have no problem about borrowing £25 million or £30 million to speed up orthopaedic treatment, hip replacements and other elective surgery. We should make an all out attempt to ensure that the waiting time for operations is cut from its present scandalous level of up to two years to six months. That is the minimum we should aim for and it is vital that we continue along this road in the area of health.
The extra £8 million to provide additional services for the mentally handicapped will go some way towards helping those in need. The Governments's commitment to handicapped people and their families is borne out by this extra allocation on top of the £6 million already given. I am not in agreement with the increase in hospital service charges and I hope the promised reviews will mean the end of such increases.
It seems to have been overlooked that, despite stringent financial circumstances, social welfare benefits have been maintained and kept pace with inflation. Some of the increases announced were beneficial. As the eldest of a family of ten, I can tell the Minister that the child allowance was a very important part of the family income. The increase of 27 per cent in child benefit is especially welcome and was mentioned quite frequently in the housing estates where I canvassed in the November election. I am glad, therefore, to see this commitment honoured. Some people are disappointed that it will not be given until September. Nevertheless, September is a crucial period for parents and this extra money will be welcome to clothe children and finance books, etc. This 1 per cent levy is a cause of great concern to many people, including me.
Will the Deputy vote for it?
I am glad to see Fine Gael has cast away the monetarism it pursued and is trying to persuade everybody that its members are the new socialists.
Has the Deputy abandoned the socialist levy? We should know where the Labour Party stand.
The Deputy should not be in any doubt about where we stand.
Debate adjourned.