I do not often suffer from delusions but I thought that last year I saw the Taoiseach climbing onto a tram in Merrion Square and subsequently advertisements stating that the next tram would be along in 2003. Given the fact that Goodbody Consulting indicated that the cost of traffic jams this year to the economy will be in the order of €600 million, which is 60% of the entire budget of the National Roads Authority for this year, would the Taoiseach confirm, in view of the contradictions from the Minister for Transport, if the Luas project is shelved or not, and if the proposed traffic corps is shelved or not? How is it that traffic backs up from St. Stephen's Green to Chapelizod and that Harcourt St. resembles the Burma Road? Is it not a fact that more people from the greater Dublin area and beyond now spend more of their waking hours travelling to and from this city in sheer and utter frustration and that business is losing hand over fist as a consequence of the inability to manage the city's traffic? What moneys and facilities will be put into Operation Freeflow, when will it commence and why has it not done so already? In view of the fact that the Department's own website says it is responsible for providing a well functioning integrated public transport sytem, will we see the trams in 2003? Will we have Operation Freeflow next week? Will the traffic corps begin acting immediately? Will the Taoiseach order or instruct his Ministers to sort out the unholy mess that is the worst traffic situation of any city in Europe today?
Leaders' Questions.
Deputy Kenny asked many questions. He asked about the Luas which is proceeding a few months behind schedule but the work is going ahead. I congratulate all those working on it as they have done an enormous amount of work in a relatively short period and say that it will be March or April 2004 when the work is complete.
His second question was about the proposed traffic corps which is also proceeding—
Where is the money?
Under the national development plan €6.75 billion is being invested in our roads—
The Government will not pay—
—which is an all time high. A large part of the roads' infrastructure is in the Dublin area where more than €0.5 billion is being spent on the port tunnel which will take almost 20,000 vehicles off the streets per day. The extension of the Balbriggan by-pass to link with the Ardee by-pass is only a year and a half from completion, and the southern cross and the Glen of the Downs projects are almost complete as is the widening of the M50. The private sector is involved in the building of the M50 bridge. The Minister is ready to proceed with several other major projects; this means that about €1 billion will have been spent on roads between this year and last. Fifty major schemes have been opened to traffic covering over 100 kilometres of road, including the Ardee-Dunleer, Macroom and Blackpool by-passes, and the southern cross route. This year about 20 major projects are under way involving almost 200 kilometres of roadway, of which 130 kilometres are dual carriageway or motorway standard.
There is none of it going through or around Cork.
A number of other projects are under examination. A framework for PPPs has been agreed with the social partners. Tolling will provide a high quality road network sooner rather than later. Other projects are being considered. The metro, a longer term project—
He is about to go underground now.
These are only babies. They are not going anywhere.
—is being managed by the Rail Procurement Agency.
I agree with Deputy Kenny that traffic has increased. Our economy has grown by 8% in five or six years and the downside is that we now have 600,000 vehicles and 1.4 million cars which take up much space on the road. That is why we must continue with our progressive policies on rail, the Luas and our roads.
When the Opposition was in Government, people were emigrating.
It is like pressing button B depending on which answer one wants to hear. I am glad to hear the Taoiseach talking about progressive rail policies. He should explain them to the workers in Athenry who lifted the line from Limerick to the West.
The Taoiseach did not respond to some of my questions. When can we expect to see the Luas in operation as it is not joined in the middle? There is no money in the Estimates for the widening of the M50, which appears to be shelved, nor for the traffic corps. When will we see this corps? As I said, Harcourt St. being like the Burma Road is one thing, but the cost of €600 million to the economy is over ten times the estimated saving for the so-called abolition of the first time buyer's grant. Will the Taoiseach answer these questions and tell us when we will see Operation Freeflow on the streets for this Christmas? Business people are astonished that it is not operational yet as they are losing trade hand over fist.
The Taoiseach has one minute.
The projected date for Luas is Easter.
The culprit is coming into the Chamber now.
Almost as bad as being in Opposition.
I wonder if the Minister for the Environment and Local Government is putting the finishing touches to another press release.
Deputy Rabbitte, in fairness, the Taoiseach is entitled to the same courtesy as every other Member and it is wrong that Members should try to frustrate any Member of this House in putting their contribution on the record. I ask Members to allow the Taoiseach to continue without interruption.
I will try to answer as many of the questions as I can. The latest date for Luas is March-April 2004. The arrangements for the traffic corps are in place. The work on the M50—
Where is the money?
The Deputy does not want to listen.
Deputy Shortall, you are not the leader of your party. You are not entitled to ask the questions.
The work on the southern motorway and the Southern Cross is going on. On the issue of the Galway-Claremorris road, the Minister said that a final decision will not be made on that matter until publication of the strategic railway plan. He has also made it clear that the line is being maintained on a care and maintenance basis. There has been no rail on that line but it can be restored very quickly. Operation Freeflow normally starts on or around 8 December, usually the Monday of that week, and this year will be no exception.
I call Deputy Rabbitte on another question.
I heard the Minister for the Environment and Local Government this morning pleading with builders who, he said, ought to have a sense of moral obligation to bail out the Government in the housing crisis?
Does the Deputy believe they should not make any contribution?
Is the Minister a leader of a party?
The same rule applies to Ministers as to all other Members in the House.
May I ask the Taoiseach and the narky little Minister—
The Deputy can do better than that.
—if it is considered that the €3,800 is irrelevant in policy terms and is being trousered by the builders? Why did the Taoiseach's party promise in 1997 to increase the amount to £5,000? Why did he not abolish it during the boom when the builders were already taking excessive profits in the building industry? Is it not the case that in reality the €3,800 is a leg-up for first-time buyers and that for some young people it is the difference between acquiring and not acquiring a home? Is the Taoiseach aware of the credit squeeze now being put on by the Central Bank which will make it more difficult for young people to acquire a home? Following this morning's parliamentary party meeting, does the Taoiseach anticipate that the backbenchers will try to save their faces by ringing the wagons on this issue only and that they are prepared to ignore the €24 million cut from the primary schools refurbishment programme, the €59 million from the capital programme for third level education, the €80 million from the capital roads programme, the €14 million from the non-national roads programme and the €44 million from the FÁS employment schemes?
Does the Taoiseach anticipate that all these matters are not of interest to his backbenchers? Are the backbenchers prepared to ignore the fact that not one new garda will be put on the streets, after all the promises from the Minister for Justice, Equality and Law Reform, Deputy McDowell, and the Taoiseach about the provision of 2,000 extra gardaí, in favour of taking a stand on the first-time buyer's grant? If they take a stand on the first-time buyer's grant, is the Taoiseach prepared to at least concede that to them?
As I have said many times in the past few days, the framing of this year's Estimates took place in a different context from that of recent years. Our economy has been growing at an average rate of between 8% and 12% over recent years. That has allowed the Government, with much criticism, to continue to increase expenditure by 20%. That has put huge increases into the base of all subheads and as a result people have seen better services, more resources, more staffing, enormous increases in pay across the public sector and more money put into the capital programme. Even now our capital programme spending is approximately double that of most other European countries.
The reality is that the economic position has changed totally. Growth this year will be about 2% or 2.5% of GDP. Instead of projected revenue of 8% or 8.5%, it will be 3% so this year we have to sustain what we have and try to reduce the substantive increases we put into all the areas in recent years as mentioned by Deputy Rabbitte, including the 40% in the past two years.
We have almost doubled the allocation to social and affordable housing in the past two years over the 2000 base but we are not able to continue to maintain the bases plus 20% this year. As one of my colleagues said, this year's base is a plateau; it is not a decline. It is a bridge into the future and if we sustain our policies and continue to put the money into areas such as health, which received over €650 million this year, education and infrastructure, for which we still have €5.3 billion, we can then maintain our economy and try to hold on to the extra 600,000 jobs – there are 1.8 million people working – and get through this difficult period.
The alternative is to bring in policies that will reverse all our tax reforms. Increased taxes will immediately result in fewer people in employment and affect our export base, and we are not prepared to allow that to happen. We have to manage carefully through a difficult time and as soon as circumstances permit, we will again implement higher value social policies, but we are sustaining very high increases into the base of 2003 and I am glad the Government has been able to do that.
I wish to focus on the first-time buyer's grant because the Taoiseach should not mislead the House. There is a 5% cut in the Book of Estimates for social housing for next year. That is the reality. There is not an increase, as the Taoiseach suggested. Is it the Government's view that there is a moral obligation on builders? Is the reality not that the moral obligation is on the Government? If the Taoiseach is serious about savings of €38 million on the first-time buyer's grant, why does he not claw back some of the tax breaks for investors, elaborated on at considerable length yesterday in The Irish Times by Frank McDonald? If the Taoiseach is interested in making savings of €38 million, why does he not claw back some of the capital gains tax breaks for speculators? Why does he not claw back some of the stamp duty lost after the imposition of the third Bacon report? Why does he not tackle any of these areas for revenue raising rather than intruding in the aspirations of young people to buy their own home?
Is it not the case that investors now pay the same in stamp duty as first-time buyers? First-time buyers are expected to compete in the market with investors—
That is not true, and the Deputy knows it.
Please allow Deputy Rabbitte to conclude as his minute is up.
It is correct. The Minister brought it back last year. Is it not the case that the rental income for investors is now higher than mortgage repayments? Is the moral obligation on the Government or on the builders, who are doing what builders do?
I will quickly address the points made by the Deputy. On the question of the social affordable housing, the Exchequer provision for housing next year is down 5% on the 2000 levels.
That is what I said.
Will Deputy Rabbitte please let me give him the details? The provision of €932 million from Exchequer capital expenditure in 2003 is more than double the spending in 2000, which is what I said, when Exchequer capital spending was €452 million. When the non-Exchequer capital is taken into account, which is the local authority borrowing from the National Finance Agency, the total capital funding for housing next year is €1.7 billion, an increase of 7% on the amount provided in 2002.
The Taoiseach cut the allocation.
The Minister is endeavouring to keep up the supply of affordable houses into the market for next year as he has done for this year. A few years ago there were 8,500 houses and I hope this year there will be 12,000 houses available. Unfortunately, some things have to give, in some policy decisions. Two years ago we substantially cut the stamp duty to the extent of almost €5,000 in order to help first-time buyers.
Why did the Government cut off people who had paid deposits?
It is not that long ago since I raised the mortgage relief. We have helped first- time buyers in every way and we will continue to do so.
The Government has helped them by driving up house prices.
Deputy Ó Caoláin for another question.
The Taoiseach has published Estimates which break his pre-election commitment to extend medical card cover to a further 200,000 people. There are sick people who are denied proper medical treatment because of this. Today is United Nations Day of the Child and there are many parents who make huge sacrifices even to bring their child to the family doctor. Is the Taoiseach aware that the Department of Health and Children says there will be no new beds opened in 2003 and that in his own health strategy there was a commitment to provide 3,000 new beds over a ten-year period? Has the Taoiseach also noticed that the cost of medicines has increased? Will he tell the House if the health strategy has now been abandoned to all intents and purposes and is no longer relevant to this Government?
I am aware that today is the United Nations Day of the Child. The Deputy asks if we are concerned about these matters and I say we are. That is why this Government has trebled the amount payable for child benefit. The incidence of child poverty has been halved because of our policies. A sum of €40 million capital is being provided to increase the high support special care children's services and to be used in a range of other services such as foster care and family support services. We will continue to do that.
The Minister for Health and Children has made it very clear that he will continue to implement the health strategy. This year he has delivered on bed numbers. He will deliver on 109 more next year. He has provided capital funds of more than €500 million for next year for further improvements in infrastructure. I supplied a list yesterday. I do not need to give it again to Deputy Ó Caoláin.
We would have liked to be able to extend the provision of medical cards and it is still our wish. We extended the medical card scheme to the over 70s because it is necessary to look after the vast majority of the elderly who are in need. Surveys have shown that those who are not in need tend not to use the medical card anyway. It is a costly scheme—
The Government knew what the cost was.
—and we need €230 million extra this year just to maintain the 31% of the population who have medical cards without improving the service. The Deputy will accept that the general medical services scheme is a good but costly scheme. There is no point in extending the scheme before protecting the most vulnerable and that is what we are endeavouring to do. When resources permit, we will honour our commitment to improve the scheme but for the present we must ensure that we can pay for the service that is already in place.
The Taoiseach talks about the cost of the provision even for those who are currently in the medical card scheme. The reality is that for the 200,000 people and for many others, the cost is something that the Taoiseach has not calculated. This is part of the reality of the daily life condition for those ordinary people.
On a second health matter, the first major claim against the former consultant Dr. Neary from Our Lady of Lourdes Hospital in Drogheda was won in court last week. Will the Taoiseach and his Minister now establish a tribunal of inquiry into the barbaric practice of carrying out unnecessary Caesarean hysterectomies which happened for years at Our Lady of Lourdes Hospital and which maimed dozens of women for life? Will the Government also establish a compensation tribunal as sought by the group representing the women?
We cannot take that question. The Deputy's original question was about medical cards.
My initial question was on a health-related matter and this is a further health-related matter.
The supplementary question must be related to the first question.
My question was on a broad raft of health-related concerns.
The Deputy's question was about medical cards.
No. I outlined several areas.
I am ruling that this question is not related to it. I suggest that the Deputy hold the question over for another time.
With respect, I think the Taoiseach is in a position to answer what is a very important question.
It is an important question.
It is of major concern to the Members of this House.
If I was to allow Deputies to ask two Leaders' questions that would be six Leaders' questions a day. I cannot make one rule for the Deputy and another rule for the others.
I agree. I hope that you will allow the Taoiseach to answer the question that I have asked.
It is not related to your original question. The Chair is never wrong.
Papal infallibility.
I reiterate that we would like to extend the medical card scheme and that is the Minister's stated position. The pre-budget Estimates for 2003 for health is €8.9 billion. It includes capital expenditure and in addition €694 million in current spending is provided. That is a 9% increase year on year. The spending figure for next year will be €554 billion higher, 154% more than it was five years ago. That extra investment has resulted in record levels of activity in the acute hospital system. The Deputy raised the issue of beds. An extra €53 million next year will mean an overall investment package for the bed capacity of €118 million. The Deputy should accept that this shows we are honouring the proposals in the health strategy. The treatment purchase fund, the additional money for cancer services and the money for the primary care for GP services will, I hope, help his constituents in Monaghan as well as people everywhere in the country.