Alan Dillon
Question:16. Deputy Alan Dillon asked the Taoiseach for an update on the economic policy unit of his Department. [45024/23]
View answerTuesday, 24 October 2023
Questions (16, 17, 18, 19, 20)
Richard Boyd Barrett
Question:17. Deputy Richard Boyd Barrett asked the Taoiseach for an update on the economic policy unit of his Department. [43875/23]
View answer
Paul Murphy
Question:18. Deputy Paul Murphy asked the Taoiseach for an update on the economic policy unit of his Department. [43879/23]
View answer
Mick Barry
Question:19. Deputy Mick Barry asked the Taoiseach for an update on the economic policy unit of his Department. [45265/23]
View answer
Cian O'Callaghan
Question:20. Deputy Cian O'Callaghan asked the Taoiseach for an update on the economic policy unit of his Department. [46600/23]
View answerOral answers (9 contributions)
I propose to take Questions Nos. 16 to 20, inclusive, together.
The economic policy unit is part of the economic division of the Department. The unit assists me, as Taoiseach, in achieving sustainable and balanced economic growth and in advancing the Government’s economic priorities. The unit also advises me on a broad range of economic policy issues and provides me with briefing and speech material on economic and related policy matters. It seeks to promote the Government’s economic commitments as outlined in the programme for Government, especially where these are cross-cutting issues affecting multiple Departments. In particular, it assists the work of the Cabinet committee on the economy and investment and several related senior officials groups. The unit is also responsible for co-ordinating Ireland’s participation in the European semester process, the annual cycle of economic and fiscal policy co-ordination among EU member states. This includes preparing each year the national reform programme for submission to the European Commission. The national reform programme provides an overview of economic reforms and policy actions under way in Ireland, including in response to country-specific recommendations received. The unit is also responsible for liaison with the Central Statistics Office, CSO, and for the preparation of the national risk assessment.
A pressing concern that is affecting the heart of our tourism and hospitality sector in Mayo and beyond is an acknowledgment of the pivotal role the sector has played in supporting our communities and the State's humanitarian effort, especially in response to the Ukrainian crisis. As we know, approximately 30,000 beds, of which 25,000 are hotel beds, have been taken out of circulation to accommodate refugees under the Department of Children, Equality, Disability, Integration and Youth. While we stand in solidarity with those efforts, we cannot ignore the economic repercussions this displacement has had on our tourism sector, particularly in regions like Mayo where occupancy rates are traditionally high. Recent analysis revealed that in counties like Offaly, Mayo, Leitrim, Meath and Clare, the impact of this displacement is significant, with more than 20% of registered tourism accommodation now unavailable. While I am pleased that the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media has secured funding in budget 2024 of up to €10 million to support businesses facing trading challenges in these regions, the situation raises important questions. I would like clarification from the Taoiseach on the measures the Government intends to implement to support downstream businesses affected by this displacement, which is evident from the comprehensive approach that is being taken by Fáilte Ireland in engaging with these companies. It is really important that we support them as best we can to ensure they have sustainable tourism into the future and these regions are not negatively impacted.
The severity and extent of our housing crisis is shameful in one of the wealthiest countries in the world, but it will also increasingly become, and is already, an economic problem. When workers cannot afford to live because rents and house prices are so high, that is a serious economic problem. It is increasingly the case that people are going out to work and working very hard but rents and house prices are so off the Richter scale that they are ending up homeless and there are no supports for them.
Following on from our earlier engagement on this issue, the Taoiseach is saying cost rental is coming and can address this issue. At the moment, however, it is not available and the delivery of it is pretty small compared with the huge numbers of working people finding themselves homeless or threatened with homelessness. I am asking whether in the interim, until we deliver the sort of massive scale of social and affordable housing that is necessary, the Government will take some measures for people who are working but are over the social housing income threshold, who cannot afford to live and who are ending up homeless or threatened with such. As the Taoiseach knows, approved housing bodies and the State are buying up new developments for social housing. One of the things the State could do is also buy up new developments for cost rental. This could ensure people who are over the thresholds but have incomes that are not enough to pay the rents being charged out there would get some rent support in order to have some chance of accessing rental accommodation. Some urgent measures need to be taken on this front.
It is a week until the scheme of temporary special leave with pay for healthcare workers with long Covid is due to expire. This is a scheme for healthcare workers who contracted long Covid as a result of their work on the front line. It is due to expire in a week and there is still no announcement, as far as I know, as to whether it will be extended. These are workers who got a round of applause in here and from ordinary people across the country. Now, in the words of one of the workers affected, they are getting a kick in the teeth from the Government. It is scandalous. Long Covid should be recognised as an occupational illness across the board but particularly for healthcare workers who were asked to, and did, go on the front line when there was no vaccine and very little knowledge about Covid and who contracted long Covid as a result. They should be cared for, protected and provided for by the State, not thrown off this scheme unceremoniously. Will the scheme be extended?
I accept that some countries have a different starting place on the basis of what has been a disgraceful history of pogroms, expulsion and extermination of the Jewish people, but we must deal with the Israeli regime that is in existence at this point in time. We can judge the people in that regime by their own words and deeds. They are involved in maintaining an apartheid state and in annexation of lands that are not theirs. We could call it settler colonisation in the modern day. At this point in time, they are involved in downright slaughter and ethnic cleansing. If we cannot necessarily get support from European partners, we should look to be a beacon of light and at least to present ourselves as having the back of the Palestinian people. I request Government support for the Illegal Israeli Settlements Divestment Bill 2023 or an alternative measure. There is a difficulty in that the State, through its agency, the Ireland Strategic Investment Fund, ISIF, is able to invest in companies that have involvement in illegal occupations. That is utterly unacceptable and we need to ensure it is absolutely banned. Sometimes, we have to take that first brave step. Doing so would at least tell the Palestinian people that somebody cares.
Deputy Dillon raised the really important role of the tourism industry in our economy and society. I remember very well that back in 2011, when I was Minister for Transport, Tourism and Sport, we had just experienced an appalling economic crash, with mass unemployment, mass emigration, empty houses and falling incomes. Three industries lifted us out of that, namely, the multinationals, farmers and the food industry, and the tourism industry. I do not think we could have recovered in the way we did without them. The tourism industry received help, with a reduced VAT rate, The Gathering, the abolition of the travel tax and a lot of investment in attractions. One of the best things about the sector is that it was able to create jobs in all parts of the country and often in places where the only other jobs might be linked to agriculture or the public sector. The tourism industry needs help again. The taking out of so much bed stock because of the refugee crisis has had a very severe impact on certain businesses in certain parts of the country.
How can we help? The €250 million fund for small business will benefit small businesses such as hospitality businesses by helping them with their costs. There is €10 million set aside for a targeted scheme, particularly for businesses that have seen their footfall drop as a consequence of accommodation being used for refugees. The Minister, Deputy Catherine Martin, is working that out and has had a meeting with the Irish Tourism Industry Confederation. She wants to make sure the scheme is targeted to help those businesses to survive and pivot. We have also done some other things in the budget, including increasing the VAT thresholds, which will help a lot of very small businesses to have better cash flow. The Minister is correctly very keen for me to point out that the money we provide for Fáilte Ireland, Tourism Ireland and all those important bodies is 30% higher than it was in 2019. If we strip out the exceptional payments that were made during the Covid period, the budget for next year is still 30% higher than it was prior to Covid. That gives Tourism Ireland the marketing money it needs to promote Ireland abroad and Fáilte Ireland the money it needs to improve attractions around the country.
Deputy Boyd Barrett correctly said the housing crisis is not just a social problem but is also an economic problem. That is absolutely true, not to the extent that we are losing a lot of investment or jobs at the moment, but there certainly is a high risk of that. It certainly contributes to employers struggling to recruit; not as much as full employment does but it definitely is a factor. As I have said previously, we keep the social housing income limits under review. They have been increased recently and we may well increase them again in line with prices. The Deputy suggested we should buy up new developments for cost rental in the way we do for social housing.
I do not think that is a bad idea; we just need to be careful. Many new developments are being bought up by approved housing bodies, with funding from the Government, for social housing. They are often estates, houses and apartments that people would have hoped to buy and own. That is causing some difficulties for us around the country.
What we need is more supply, and significantly more supply. Of the 30,000 new homes built last year, I am not sure how many of them were on the open market for sale. When you strip out own-builds, social housing and apartments built by funds and others, probably only about one third of those 30,000 houses were actually available for people to purchase. If we were to step up the purchase of homes for cost rental, there could be even fewer homes for people to buy, and we have to be aware of that because we should prioritise homeownership. The solution, of course, is more new housing of all types, getting up from 30,000 and closer to 40,000 or 45,000 in the years ahead. That is what we plan to do and the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, will come to the Government early in the new year with proposals to increase those housing targets.
Deputy Paul Murphy asked a question about long Covid and the occupational scheme. I will have to check with the Minister for Health, Deputy Stephen Donnelly, about that. I do not know the exact answer but I will come back to the Deputy within the next few days. When it comes to Covid-19, our general approach has been to remove the exceptional status that was afforded to it in the past. It is now endemic. It is part of the many viruses any of us can get at any given time. It makes more sense to treat Covid as we would any respiratory virus, such as influenza, and to treat long Covid in the same way we would treat any other chronic disease. Rather than having a specific scheme for a specific disease, we should apply the same approach we apply to others.
The Government does not do that, however. It is not counted as an occupational illness.
What about ISIF and the divestment Bill?
I am sorry but I will have to come back to the Deputy on that.