I wish to share my time with Deputies O'Connor and Moynihan.
Management of Public Funds: Motion (Resumed).
The following motion was moved by Deputy Gregory on Tuesday, 11 May 2004:
That Dáil Éireann—
—notes:
—that the Government has squandered up to €60 million of taxpayers' money on the electronic voting fiasco;
—that the Government has squandered up to €199.8 million on the clearing of the site at Abbotstown;
—that hundreds of millions of euros in taxation is forgone due to exemptions granted by Government to wealthy tax exiles, stud farm owners, mega-rich rock stars and authors;
—that the Government has squandered up to €15 million on the Punchestown Equestrian Centre;
—that the Government has squandered up to €100 million due to its failure to address the excessive fees paid to the legal profession in the tribunals of inquiry;
—the two recent budgets where tax reductions on the profits of major corporations resulted in a loss of €634 million each year to the Exchequer; and
—the mismanagement by the Government causing massive cost over-runs on the Luas project;
—in the context of the accumulated loss of up to €1 billion by Government mismanagement and reckless policies, further notes:
—the failure of the Government to address the rich-poor gap in Ireland which is the widest in the EU, while the Government has reneged on its own commitment to raise the lowest social welfare rate to an adequate level to address poverty;
—the failure of the Government to address health apartheid with continuing poor access to services and ongoing crises in public accident and emergency hospitals while private hospitals thrive on massive tax breaks;
—the failure of the Government to address the spiralling housing waiting lists, which have now grown to 48,000 households;
—the continuing neglect of disadvantage in education and the failure to address appalling conditions in schools;
—the failure of the Government to introduce a rights based disability Bill;
—the refusal of the Government to honour the task force recommendation to provide €18 million for care of elderly emigrants in Britain; and
—the dramatic reduction by the Government of community employment scheme places from 40,000 to 20,000 with the subsequent reduction or elimination of essential community services;
—calls for:
—an equitable taxation and improved social welfare system to reverse the widening rich-poor gap;
—the ending of the two tier health system, the proper funding of a health service providing guaranteed comprehensive health care for all with access based on need, an end to waiting lists, the granting of the additional 200,000 medical cards, the immediate provision of a dedicated inter-hospital helicopter emergency medical service and an effective ground ambulance system;
—an emergency programme of social-affordable homes while imposing controls on speculation and profiteering in housing development land giving rise to unacceptably high house prices;
—the immediate introduction of a rights based disability Bill;
—the allocation in 2004 of the full €18 million for care of elderly emigrants;
—the restoration of the lost community employment places to restore essential community services and the mainstreaming of community employment in the health services; and
—calls on the Irish people to turn out in overwhelming numbers in the local and European elections on 11 June to reject this Government's squandering and mismanagement of public funds at the expense of workers, the poor and the disabled.
Debate resumed on amendment No. 1:
To delete all words after "Dáil Éireann" and substitute the following:
"commends the Government for its continuing prudent management of the economy and the public finances since 1997;
congratulates the Government for:
—the creation of 300,000 new jobs;
—reducing unemployment dramatically, from 10.9% to 4.4% at present;
—exempting nearly 700,000 low paid from the tax net;
—tackling tax evasion and tax dodges in a vigorous manner;
—further developing and enhancing our public services;
—record levels of expenditure on the schools capital programme;
—the weekly increase of €10 in social welfare rates in Budget 2004, three and a half times the projected rate of inflation in 2004;
—the introduction of a national minimum wage which is now €7 per hour;
—co-operating with the Commission on Electronic Voting in completing the further recommended testing programme while noting that the many benefits of electronic voting have been acknowledged by the commission and that this approach will safeguard the investment in the system;
—investing historically high levels of funds in public infrastructure, specifically noting that Luas is being completed within the approved cost; and
—building record levels of new housing for our people; and
supports and welcomes the Government's determination to continue implementing its economic programme to the benefit of all."
—(Minister for the Environment, Heritage and Local Government).
That is agreed.
I am particularly pleased to have the opportunity to contribute to this debate. I especially welcome the opportunity to set out, in the clearest terms, my record and that of the Government in regard to the management of the economy and the public finances. I reject in the strongest possible terms the implication in the motion tabled by the Technical Group.
The Deputies proposing this motion obviously favour dealing in fiction rather than fact in the pursuit of their short-term electoral objectives. This is either because they cannot recognise the reality or because the reality simply does not suit their case. As the House is aware, the reality is that the Government has transformed this country over the past seven years to the benefit of all its citizens. We have fundamentally reformed the tax system; significantly increased spending on infrastructure; substantially raised the funding and staffing of our public services; provided more resources for the aged, children and the most vulnerable; and established the national pensions reserve fund to provide for future generations. The electorate recognised these achievements when they re-elected this Government in 2002, the first time in more than 30 years that the people re-elected an outgoing Government.
Those opposite do not wish to have to hear the uncomfortable truth. However, the record will show that in my period of office a thriving economic climate has been created in Ireland. We have recorded one of the best economic performances in the world and are a beacon for our new European partners. Economic growth has averaged nearly 10% per annum. Unemployment has been reduced from more than 10% to historically low levels, currently at just 4.4%. More than 300,000 new jobs have been created and long-term unemployment has been cut by 80%. These achievements seem to be recognised and lauded everywhere in the developed world apart from on the seats across the floor of this House. For instance, in August 2003, the IMF commended the Irish authorities for our "exemplary track record of sound economic policies".
The Government has established a climate which has allowed our economy to flourish. We have created an enterprise culture, one that has turned this country into a country of opportunity. Despite the international economic downturn in recent years, our economic record far exceeds that of our main EU partners. I am confident that if we ensure we regain competitiveness we can in the future improve our economic growth to reach 4% to 5% in GDP terms.
The achievement of the Government in successfully managing the public finances is evident and envied. We have the second lowest debt level in the euro area at under 33%. We have a sound budgetary position with a general government balance target this year of 1.1% of GDP. Though some of our EU partners have to make painful budgetary changes to ensure they respect the stability and growth pact, we, through prudent budgetary planning, have ensured that we have avoided that difficult experience.
I have completely transformed the taxation system. The Government's tax policy has helped to generate unprecedented growth in the economy, a spectacular increase in the number of people at work, significant increases in the disposable incomes of those at work and the effective elimination of long-term unemployment. Almost 670,000 income earners, that is 35%, are now out of the tax net compared to 25% or 380,000 in 1997. No one in the PAYE system pays tax at less than €246 per week as opposed to €98 per week in 1997-98. Those aged 65 and over do not pay tax until they reach €15,500 per annum, in the case of a single person, or €31.000 per annum, in the case of a married couple, more than double the level in 1997. We have the lowest tax wedge in the EU for the average single worker according to the latest OECD data. Business tax rates have been reduced creating jobs and growth without sacrificing tax revenue in many cases. The minimum wage, introduced by the Government, has been increased to €7.00 per hour. At the same time, anyone earning up to 90% of the minimum wage remains outside the tax net. We are targeting 100% exclusion as resources allow.
I have introduced more reforms of the tax system than most previous Ministers for Finance. While many would have been content to tinker with the system, this Government decided on and followed through with radical reform. I am convinced that this is the correct approach when dealing with areas where change is needed or overdue.
I fundamentally altered the system of tax allowances by converting them into tax credits. Apart from this being fairer, this new system opens up the possibility of using the tax code to target reliefs in a more focused way and at less cost than previously would have been the case. I also made the tax code fairer by widening the single standard rate band to enhance each individual's entitlement to a tax band in his or her own right. I substantially increased the powers of the Revenue Commissioners to pursue tax evasion through access to financial records, something those proposing the motion should acknowledge. I simplified many aspects of the tax system, introduced innovative new products to help the ordinary people better fund their pension requirements and brought the antiquated income tax year into line with the calendar year, as is the case for most other taxes.
When one looks at the Government's record on tax reform and the creation of an infinitely more equitable tax system, it is easy to see the absurdity of the motion tabled by the Technical Group. Its members' audacity in demanding a more equitable tax system is truly breathtaking. Given their diversity of origin. the diversity of the terms of their motion should hardly come as a surprise — it is a real case of "whatever you're having yourself".
I reject totally the contention in the motion that the Government's expenditure policy has led to a squandering of public funds and has not addressed issues of social inclusion. No Government has been more socially conscious in the investment of public resources. The reality is that, since 1997, the Government has consistently framed expenditure policy in the light of the overall budgetary situation and the resources available. Accordingly, the exceptional economic growth in the years 1997 to 2000 enabled annual gross spending to be increased very substantially to a high point of 21% in 200l. As economic growth has moderated, we have, in the interests of sound management, followed a course of bringing spending increases more into line with increases in revenue. This has seen annual increases moderating from around 21% in 2001 to an estimated 7% this year.
Notwithstanding this necessary correction in the overall rate of spending, the Government has continued to accord priority to investment in the key areas of social and economic development. In particular, and contrary to the view expressed in the motion, this Government has continued to accord top priority to the areas of social welfare, health and education. It is important that the points in regard to social spending are placed on record. Health, education and social welfare spending will account for 68% of total voted spending this year.
Since 1997, this Government has dramatically expanded public spending on health, education and social welfare. Though I know those opposite find it hard to accept the facts, they are there for all to see. I remind the Deputies opposite that since 1997, health expenditure has increased from €3.6 billion to €10 billion; education expenditure has increased from €3.2 billion to €6.6 billion; and social welfare spending has been raised from €5.7 billion to €11.3 billion. Overall, spending on health, education and social welfare has increased from €12.5 billion to almost €28 billion, by any measure an extraordinary increase in resources. Commentators have questioned the level of improved services which we have secured for this level of investment. It is undoubtedly true that we must try at all times to ensure optimal value for money in investment funded by taxpayers. Again, however, I challenge the Deputies opposite to deal with reality rather than perception.
The gross allocation for the Department of Health and Children amounts to more than €10 billion in 2004. Over the period 1997 to 2004 gross expenditure on health will have increased by €6.4 billion or 178%. Cumulative spending on health from 1997 to 2004 is a massive €53 billion, and the share of total national public expenditure on health has increased from 19% in 1997 to 24% in 2004. Approximately 96,000 staff are now employed to provide health services. This compares with a total of 60,000 staff in 1997 and it ensures a considerably increased volume of activity in the delivery of care to the population. The national treatment purchase fund initiative is proving successful and surgical treatment waiting lists have been halved.
The gross allocation for the Department of Education and Science in 2004 will be €6.6 billion. The cumulative increase in gross expenditure on education during the period 1997 to 2004 amounts to €3.4 billion. This represents a doubling of expenditure. The 2004 Estimate provides for nearly 79,000 employees, which effectively means that the pupil-teacher ratio at primary and second level has improved significantly in recent years. Additional teachers have also been appointed to cater for the requirements of children with special educational needs, demonstrating that the increased investment in education has been translated into a higher level of frontline education services with a special focus on disadvantaged pupils.
Since 1997 the Government has, as a special priority, protected and enhanced the position of the weaker sections of our society. Spending on social welfare has increased substantially during this period. In 1997 the social welfare budget was approximately €5.7 billion. In 2004 it will be €11.3 billion, almost double the 1997 level.
During the same period the unemployment rate has fallen from 10.3% to 4.4%. This represents a significant improvement in real terms in the level of social welfare provision. Most of this additional money has gone to increase the rates of social welfare payments. In 1997, the lowest weekly social welfare rate was approximately €83 per week. This rate is now €134.80 per week.
There has also been a major acceleration in capital investment in the key social areas. The 2004 Exchequer provision for capital investment in housing will be more than €1 billion, an increase of €766 million or 275% on 1997. This provision will be supplemented by more than €650 million of non-voted capital investment by the local authorities. This investment in housing is producing results. Between 2003 and 2004 the range of social and affordable housing measures will have met the needs of more than 26,000 households. This represents a significant improvement in the annual output of approximately 8,500 units in 1995.
Health capital investment in 2004 will be €510 million, an increase of €343 million or 205% on 1997. Capital investment in education will be €509 million, an increase of €345 million or 210% since 1997. The Government is committed, under the five-year multi-annual investment programme I announced in the budget for 2004, to continue this level of social investment during the period to 2008.
As I have indicated publicly, I share the concerns expressed across the political divide at the costs of tribunals. I have certain measures under consideration which are aimed at reducing the costs of tribunals and which I intend to bring to the Government for consideration in the near future.
The Government has significantly increased the funds being invested in infrastructure. The future success of our economy depends on investment made now. Between 1997 and 2003 we will have spent almost €28 billion in capital spending. In 1997 we spent €2 billion on capital. This year we will spend €5.6 billion. This is close to 5% of the gross national product or double the level in other European countries. As a result, dramatic strides have been made in tackling our infrastructure deficit. The Government will continue this high level of capital investment and build on the progress we have made during the past seven years.
However, the overall level of capital spending must be consistently maintained. Sudden spurts of activity which drive up contract prices and are followed by lulls must be avoided. The objective must be to obtain real value for money as projects evolve. A focused and planned approach to spending is required to deliver this extra value. A coherent. strategic and cost-efficient approach to capital spending on infrastructure is critical in terms of maximising our future growth potential. Accordingly, I introduced in the budget for 2004 a rolling year multi-annual capital investment framework encompassing five-year investment envelopes for each Department. The Government is committed to keeping investment encompassed by the new framework at 5% of GNP — a total of almost €34 billion of Exchequer and public private partnership funding during the period to 2008.
I also remind the House that I have obtained Government agreement for my proposals for reforms in the area of public sector construction contracts and construction-related consultancy services. In the area of contracts, contractors will be required to submit competitive tenders where the price — including a cost for the identified risks they intend to manage and control — is tendered for on a lump sum, fixed price basis. This contract price should remain firm and fixed for the duration of the project to the greatest extent possible. I accept that the risk transfer will carry a cost in terms of higher upfront tender prices, but the final cost of a project should be less than under current contract arrangements. The changes, which should deliver significant savings, will also introduce greater pricing certainty in future.
I have also identified changes in the current method procuring construction-related services, such as those of architects and engineers, which should become the norm in the public sector. I want to see a move away from the position where fees rise as project costs rise. Some areas of the public service are already making progress in that regard. My intention is that the method of procuring these services and the payment method will be brought into line with procurement best practice. These proposals will, I believe, introduce greater competition into the procurement process and should deliver better value for money for the State.
Despite all the foregoing achievements, the Government is not complacent. We recognise that competitiveness is key to our continued economic success. Helped by limited indirect taxation changes in the most recent budget, inflation fell dramatically from over 5% in early 2003 to just 1.3% in March 2004. However, we must ensure that inflation stays low. In particular, we must ensure that our competitive position is not harmed by any decisions we make in the current pay talks. We cannot price ourselves out of export markets. We must address our loss of competitiveness and face the challenges for investment and jobs that will continue to be posed by other countries with lower cost bases. Pay increases which are out of step with our trading partners will result in job losses. The lower inflation rates of recent times need to be reflected in the next pay agreement in a moderate level of increases.
Neither has the Government allowed short-term considerations to outweigh longer-term strategic thinking. Within 50 years, we will have two pensioners for every five workers, double the current level. The establishment of the national pensions reserve fund will help to meet the future increased pension and health costs which the Exchequer will have to bear. The fund now contains €10.1 billion. The Government has always been prepared to take the longer view and invest in the country's future.
The Government has prioritised balanced regional development and in December's budget I announced a radical programme of decentralisation which will play a substantial role in enhancing regional development and fostering regionally balanced economic growth. The arrangements for decentralisation are well under way and I am confident that we will meet our target of completing the decentralisation programme in three years. This will result in a fundamental change to policy formation here and will offer considerable benefits to the communities to which civil servants will be relocated and to the country as a whole.
I am delighted to have had the opportunity to set the record straight. The Government's record of economic management is one of substantial achievement. Those opposite might do well to reflect on those achievements before embarking on the production of a disparaging litany of old chestnuts. Constructive opposition is always welcome. However, it must be said that the motion tabled by the Technical Group hardly fits that description. I look forward to that constructive debate taking place one day, but the failure of those opposite to cost their proposals makes it impossible.
If a rainbow Government is the alternative to the current Administration, it will, on the basis of this debate, include colours never previously seen in any rainbow. One thing of which people may be certain is that there will not be a crock of gold at the end of it.
No two people see the same rainbow.
The Government's record has been clearly demonstrated and rather than cobbling together aimless motions, it would be much more constructive if the Deputies opposite could renege on the habits of a lifetime and offer the Government the commendation it deserves and which it has received from international organisations such as the IMF and the OECD for its continued prudent management of the economy and the public finances since 1997. The Government deserves to be congratulated for its achievements and its determination to continue implementing its economic programme for the benefit of all citizens.
How can any rational person regard as other than a success the creation of 300,000 jobs, an unemployment rate that has been reduced to levels that were once considered something to dream about, the exemption of 700,000 income earners from the tax net, the successful tackling of so much tax evasion, the closing off of so many loopholes, the spending of historically high levels of funds on public infrastructure, the building of record levels of new housing for people and the further development and enhancement of our public services?
I am talking about an even better deal for all in our society. It is a much better deal than any to which those who tabled this motion could ever aspire. The Government has delivered during the past seven years and we will continue to deliver to the benefit of all for the remainder of our term in office. Far from being criticised by those opposite for such a record, the Government deserves to be supported. I therefore commend the Government amendment to the House.
I too commend the Government amendment. I know Deputy Durkan will allow me all the space I need to speak for the four or five minutes I have available.
I suspect that behind the bravado and point scoring that goes on here, this Minister has more respect from Opposition Deputies than they might admit. He certainly gets much respect on this side of the House. I asked a constituent in Tallaght tonight his view of the Minister for Finance, Deputy McCreevy. His reply was that he always comes across as a man who keeps his head down and does his job. My constituent believes, as I do, that history will be kind to the Minister. History will be good to him.
(Interruptions).
The Minister for Finance does his job. I do not know whether any of the Opposition Deputies read The Irish Times but this morning’s edition says the fall in the jobless rate to 4.4% is a good sign of an upswing. Nobody could accuse that newspaper of being a Fianna Fáil newsletter. The article also stated that the unemployment figures were welcomed by the Irish National Organisation of the Unemployed, hardly a cover for Fianna Fáil. There is much testimony to this improvement. The Opposition should be fair to the Minister. He is doing his job, unemployment is down, the tax take is up and the Government is working. Of course there are some problems.
We will have elections in 30 days' time and I am confident people will vote for Fianna Fáil candidates who will do their job. They will vote in the European election for people like Deputy Eoin Ryan who will not be afraid to go to Europe and represent the country. People from Tallaght, Firhouse, Templeogue, Greenhills and all over the county will vote in the local elections for candidates who will join the local authority, who will not be afraid to make decisions and who will not sit on their hands and say the world is perfect. Let us come back the week after and see what has happened. I am quite confident people will do as I have said because they recognise that hard-working Fianna Fáil candidates will look after and work hard in their community. They are worthy of support and I believe people will support them.
Will they continue to waste money?
We will have to anaesthetise the Deputy before the elections.
I will not accept a lecture from any more colleagues in regard to social welfare. The record stands and I am not one to dig up issues about what was or was not done. Since 1997, Fianna Fáil Ministers have put their money where there mouths are year in, year out. People are happy with what has been done. I am expecting a group of elderly citizens from Bohernabreena to come in to visit the House. They will tell Deputies, as they have told me, that they have been looked after by Fianna Fáil Ministers year in, year out.
Everybody knows, whether the Opposition admits it or not, of the good response to the budget last year. This was not just reported in Fianna Fáil newsletters. I was greatly impressed by a number of the measures in last year's budget which had a pro-business approach to taxation. People in Tallaght, as elsewhere in this county and country, work. The budget also impressed many, including colleagues from the opposite benches, by providing multi-annual funding awards in the areas of transport, education and health. These showed that Fianna Fáil in Government is investing in major projects on a planned basis. We were not always able to say this was happening. The Minister for Finance was to the fore in ensuring this happened.
I noted what the Minister said about the catch-all motion of the Opposition. I would not be critical of my colleagues because it is good to have debate on Private Members' business. I have always taken the opportunity to speak on it as often as I can. I do not often support the motions, although I am sure the Opposition will raise a good responsible issue some day that I can support.
Many issues are listed in this motion, one of which is Luas. We all know of problems with Luas and we have criticised the various works taking place. The 7,155 people of the Tallaght region who sent me to Dáil Éireann are looking forward to the opening of the Luas service in late summer. It is somewhat unfair of people to be critical of Luas at this stage. People along the lines from Tallaght and Sandyford to town are looking forward to Luas in a big way. They believe Luas is a positive step forward. It is all right for Members to stand up week in, week out and criticise Government policy on this, that and the other. That is fair enough in a democracy. However, we should be fair and understand that good work is being done. This particular Minister is doing his job and representing people. I believe the Government is showing it does care.
It has a funny way of showing it.
There will always be some problems. Despite being a new Deputy and despite my efforts to keep a low profile on most occasions, I am never afraid to call for improvements in my constituency, and I will continue to do so. I congratulate the Minister on his work, wish him well in the future and commend the Government amendment.
I commend the Government amendment to the House. This is one of the first times in many weeks Members on the other side of the House have been in good humour. It is obvious they are not making a serious issue of the motion.
They are not too pushed.
Exactly. Many speakers have spoken about the various developments that have taken place in urban Ireland, but I will deal with rural Ireland. In early January, at a rural forum meeting in Duhallow, we had discussion on issues relating to decentralisation and rural planning and to how the Government dealt with these issues. When decentralisation was announced last December there was a furore from the Opposition benches saying it was unworkable and that it dissected the public service and moved away from a centrally-based service.
For far too long decisions concerning rural Ireland have been made in Dublin. It is about time decisions relating to Dublin were made in rural Ireland. We must welcome decentralisation from that point of view. I welcome the Government's drive and what it has done to get this moving. It has gone out to the 53 towns to seek sites and buildings and is working hard on these issues. Some European Governments are following closely the decision of the Government. One would swear from the furore following the budget that we were dealing with a vast continent rather than a small island nation. I welcome the priority the Minister and the Government have given to the issue.
Development has taken place across the country over the past seven or eight years. In the most remote rural areas one sees fine houses being built and people young and old working in their own localities. For the first time since we gained independence we have been able to provide enough employment for our young people. Instead of exporting our people, we now bring people in to fill job vacancies in our economy.
Deputy O'Connor mentioned that our unemployment rate is one of the lowest in the world, which is welcome. We have a great man at the helm of the Department of Finance, Deputy McCreevy, as reported in The Irish Times, The Independent and The Observer. Opposition Deputies might not like to know that although we quoted from the newspapers this evening on this issue. I commend the Minister and the Government on their handling of the economy.
I note with some amusement and interest every year that, immediately after the budget, the Deputies opposite, who now berate the Government for what it is and is not doing, try to produce their newsletters before the Government Deputies in their constituencies. I doubt very much if there was bad news in the budgets in recent years for the Opposition to put out. It is time for realism and it is time to face facts on the issues. The Government has done well. It has generated a wealthy economy and long may it continue. Under the guidance of the present Government it will go far. I again thank the Chair for allowing me to contribute and I commend the Government amendment to the House.
I propose to share my time with Deputy Lynch.
Is that agreed? Agreed.
If Government Ministers were subject to penalty points for every €1 million of Government funds squandered or misdirected, a majority of the Ministers in the Fianna Fáil-Progressive Democrats Government would by now have received enough penalty points to put them off the road and deprive them of their ministerial cars. If Ministers such as the Minister for the Environment, Heritage and Local Government, Deputy Cullen, the Minister for Finance, Deputy McCreevy, the Minister for Health and Children, Deputy Martin, the Minister for Education and Science, Deputy Noel Dempsey, or the Minister for Justice, Equality and Law Reform, Deputy McDowell, were contestants in this weekend's Eurovision Song Contest, their score would definitely be nul points for wasting money and failing to deliver on their litany of election promises.
We have an opportunity in this debate to recall beautiful magic moments of the Government: the Red Cow fiasco, courtesy of the Minister for the Environment, Heritage and Local Government, Deputy Cullen; Punchestown and its shed delivered by the inimitable Minister for Finance, Deputy McCreevy; the saga of €105 million of public money spent, courtesy of the Minister for Health and Children, Deputy Martin, on a new building for Blanchardstown Hospital, including an accident and emergency unit which, one year later, is still empty and unused; €52 million poured down the drain on e-voting, a joint production, courtesy of the Minister for Education and Science, Deputy Dempsey, who produced the idea, and the Minister for the Environment, Heritage and Local Government, Deputy Cullen, who expanded an original idea to new heights of folly and cost; and communities bereft of a Garda presence despite promises of an extra 2,000 gardaí, courtesy of the Minister for Justice, Equality and Law Reform, Deputy McDowell, and the Progressive Democrats.
The Government has shown itself increasingly arrogant and out of touch with the concerns of voters and taxpayers. There is now mounting evidence that not alone is the Government guilty of arrogance, it is also increasingly inept and unable to manage public funds properly. Hence we have a litany of broken promises and failed projects which have cost the Irish taxpayer tens of millions of euro while leaving public services in a shambles.
Over the past three years, the Government has spent some €100 million on consultants, in many cases to do Civil Service work. Despite these astonishing sums spent on consultancy services, the Government remains unable to deliver efficient public services in health, education, justice and transport. I will list some of the spending on consultants in case people have forgotten. The Minister for Social and Family Affairs spent in excess of €22 million on consultants and yet was the author of the savage 16 cutbacks in social welfare which hurt the most vulnerable in society before she was forced into a humiliating reversal of the cuts she imposed on widows and widowers. The Minister for Education and Science spent almost €3 million on consultants when communities in new areas cannot get primary schools built for their children. The Minister for Transport seems unable to function without layers of consultant advice while Dublin's transport chaos worsens by the day. The Minister for Justice, Equality and Law Reform has spent €25 million on consultants while unable to deliver the 2,000 extra gardaí promised before the previous general election.
Many of our communities are bereft of any kind of sustained community Garda policing effort. Many old people lock their doors at night and do not come out. They are afraid because there is no visible policing presence on our streets. Cities such as New York, Boston and Washington and parts of the UK have experienced dramatic reductions in crime levels and safety for citizens because they have put police officers back into the communities and onto the streets where they belong. Many of our gardaí seem to be chasing forms or trying to work out computer systems that cost millions of euro and that simply do not work.
Overseeing all this is the Taoiseach, President of Europe for the moment, who seems to have lost his capacity to appreciate the sheer level of misery being endured by those on hospital trolleys, especially the elderly, by parents waiting for services for their disabled children, a subject that was movingly discussed on RTE the night before last, and the spiralling and out-of-control cost of housing which debars many young people from purchasing a home of their own. Deputy Michael Moynihan of Fianna Fáil spoke about the well-off young people in rural areas who can build large mansions. Good luck to them, but what about the tens of thousands of young people in towns and cities who cannot put a home of their own together and who, when they must rent, pay enormous sums of money to landlords, many of whom do not even pay taxation?
On 11 June the electorate will get an opportunity to pass a mid-term report on the Government. They should vote against it and bring to an end the waste and ineptitude for which taxpayers are paying dearly. I heard a Fianna Fáil Deputy speak about the realism of his party. In its rebuttal during this debate, it listed the action it has taken and the points of which it is proud. It states it is tackling tax evasion and tax dodgers in a vigorous manner. Where is that happening? What about non-resident millionaires who can attend every race meeting, pay no contribution in taxation and have their private jets at Dublin Airport while this year more than half of PAYE taxpayers will pay tax at the top rate of 42% plus a further 7% in social welfare and levies? I do not know why the Government is proud of tackling tax evasion.
The health and education services were starved and much of the deterioration in those services occurred while Fianna Fáil and many of its prominent members who once occupied those benches, Mr. Lawlor, Mr. Burke, and people who currently serve, were involved in high level tax avoidance. The end result of that culture, which was allowed to fester and prosper by Fianna Fáil and those people who were in the party's tent at the Galway Races making donations to the party, is that our health services have been robbed. An elderly person who must wait for 48 hours on a trolley should know that the people who caused that to happen are Fianna Fáil and the Progressive Democrats.
We have had seven years of unparalleled economic growth. That was created when the rainbow coalition and previous Governments of which the Labour Party was part were in power. Unfortunately, when we should be enjoying the fruits of that growth fairly throughout society, we still have the spectre of old people spending days on trolleys and young people and children unable to get a place in a school.
I thank my colleague, Deputy Burton, for sharing time.
As I knew I would be speaking during this debate tonight, I took the time today to re-read An Agreed Programme for Government, which was produced by Fianna Fáil and the PDs after the last general election. I admit I would have been quite impressed if I had examined the programme as someone who takes a cursory interest in politics, who does not actively participate in politics or does not show the type of in-depth interest in politics that we do as public representatives. I would have thought the Government was addressing our needs.
It is true that we need "a further 2,000" gardaí and "increases in child benefit", as the programme for Government states. Given that we have never been wealthier, it is right that there should be a "major expansion of our overseas development aid programme". Of course we should look after those less fortunate than ourselves. It is absolutely the case that the condition of school buildings should be improved.
As a taxpayer, as someone who has paid tax all my life and believes in the concept of paying tax, I must admit that the programme for Government looks very attractive. The only difficulty with it is that it is a tissue of lies. Those who wrote and promoted it knew it was lies and that the promises in it would never come to fruition. The people will not forgive them for that.
Like all Members of the House, I have been canvassing in recent weeks. When I called to a house last night, the woman at the door told me she is undecided about who to vote for. Like most people, she said she will not vote for Fianna Fáil or the PDs, but she is undecided thereafter. She cannot decide who to vote for because she was left with an utter disdain for politicians after a Fianna Fáil Minister canvassed her before a previous election. She promised to vote for him because he said he would do something for her about a small local issue. Although she gave him her number one vote, he would not return her telephone calls after the election was over. She said she telephoned him at least 20 times. She told me the experience left her with a bad taste in her mouth and, as a consequence, she is reluctant to vote again.
Such an attitude is the legacy that Fianna Fáil and the PDs have bequeathed to the country. They have brought politics into disrepute not only by the illegal actions of their members, but also by being prepared to say anything on the doorsteps. They are prepared to tell lies as long as they receive votes. This woman believed them when they said they would ensure that certain things were done. While that woman has learnt a lesson, I am sure many other people have not yet learnt it.
More people will be caught out.
That is right. They will continue to do it. I can see already that announcements are being made. The Minister for Health and Children, who seems to have more publications than Rupert Murdoch, is already making announcements. It has already been claimed that elderly people in Cork are being looked after. The Minister has promised that additional money will be allocated, even though he knows he does not have it and that he cannot keep his promise. It is okay for me because I am healthy and able-bodied. I can take care of myself, but vulnerable people are most susceptible to the tactics I have outlined. The Government does not care about elderly people who have security concerns, for example.
The Deputy from Tallaght spoke earlier. We can forget his name but we will not forget that he is from Tallaght because he mentions it every time he opens his mouth. I refer to Deputy O'Connor.
He should change his name to "Tallaght".
The Deputy from Tallaght is beginning to sound like the Taoiseach because he speaks in unfinished half-sentences. He supports the Government because he believes what it says is true.
If one were to examine the programme for Government without knowing its history, one would think it is a good programme for Government. It is true that we need additional gardaí on the street, increases in child benefit and additional beds for the elderly. Has anyone on the other side of the House spoken to elderly people who are crying because they cannot go on? I have spoken to elderly people who are locked in their houses because they have to look after their spouses or mothers. Such people are in desperate need of assistance, such as a respite for one weekend each month, so they can get some sleep. When they get such help, however, they cannot sleep because their sleep patterns are out of kilter. Did anyone on the other side of the House see the recent "Prime Time" programme on the issue? What will we do about it? Ireland is not a poor country any more. It is a wealthy country but it has the infrastructure of the Third World. We are a disgrace.
That is rubbish. It is total and utter balderdash.
The Minister of State should visit the accident and emergency unit at James Connolly Memorial Hospital.
Have the Deputies been to the Third World?
I have lived there.
It is total and utter gobbledygook.
I want to tell the Minister of State something.
I do not need the Deputy to tell me anything. She has been talking rubbish for the last half an hour.
A national association of nurses has said that the accident and emergency department at Cork University Hospital, which has been a building site for the last three years, cannot be opened because sufficient numbers of staff are not available. The Government did exactly the same thing with the Mercy Hospital.
That is not true. The Deputy must be joking.
It built a new extension but it did not provide additional staff.
There was enough staff. I was on the board of the hospital at the time and I know that there was staff.
We lost the beds.
Beds were not lost.
We were promised——
The Deputy is incorrect. She is wrong again.
The Minister for Health and Children, also known as Steve Silvermint, the cool clean hero, promised before the last election that the women of Munster would have BreastCheck.
At least he did not go around printing money.
He stood up there and he said, "You will have BreastCheck."
Did he print social welfare cards?
We are still waiting for it.
He did not.
He is about to roll out the claim again for the next election.
The Deputy should examine her own folk.
He is a disgrace. All he does is stand there and get headlines. The Minister of State is as bad as him if he defends him.
The Deputy is all talk.
Did the Minister of State watch "Prime Time"?
Did we go printing money, like Deputy Lynch's party?
Did he watch "Prime Time"?
Which one of the Deputy's parties printed the money?
It is not as if these things take long. It is about political will.
Who printed the social welfare cards?
The Minister of State does not care.
The Deputy can speak about justice in that context.
The Minister for Social and Family Affairs spent €22 million on consultants.
Who received £1 million from North Korea?
She spent a great deal of money on consultants to advise her about what to do, but she still got it wrong with regard to widows. She was prepared to take €6 million from a group of people that she felt could not damage her. They got the support and sympathy of the country. The Minister was prepared to cut the level of assistance given to women and men went out to work to ensure that their families had the same level of support they had when their spouses were alive. How mean can one get?
The Government spent €52 million on a voting system that nobody wants. That is the baseline figure, but it will increase. The Government spent €15 million on a whim on the Curragh and ponies, without the matter ever coming to Cabinet. As Deputy O'Connor from Tallaght said, "Everyone likes Charlie because he says it as it is." He says it as Deputy McCreevy says it is. The Deputy said the Minister is doing his job, but on behalf of whom is he doing it? He is definitely not doing it on behalf of the mentally handicapped, the intellectually disabled or the elderly. As a wealthy country, Ireland should have First World services, but we do not.
One sees large houses being built in the countryside — it astonishes me to see the size of them — but many couples cannot get married and many people cannot move out of their family homes because they cannot afford a two-bedroom semi-detached house in an average estate. The Government says that it is doing a great job, but it is not doing a great job. I hope it will know just how bad a job it is doing when 11 June has come and gone.
That is what the Opposition said before the last election.
We said that before the last election,
The Opposition was proved wrong.
The Government was prepared to say whatever it took to get elected, unfortunately.
The people did not believe the Opposition.
The lies seemed to roll off the candidates' tongues.
The Deputy should re-read her own party's manifesto.
The Government said it would provide 2,000 extra gardaí, new schools and more medical cards, but instead it cut back on——
There are more schools.
That is not true.
More money is being spent on schools than has ever been the case.
There are 100,000 fewer medical cards in the system than there were two years ago. The Minister of State should read his brief.
The figure is 4.4%. Health expenditure has increased from 3.6% to 4.4%.
The Minister of State is deluding himself.
Again.
It is important that we do not eat into other people's time. I wish to share time with Deputies Cuffe, Crowe and Ferris. The Green Party supports this motion. Every part of it rings true. It shows the shameful litany of money wasted and squandered, and serious issues ignored. Many of those issues have been alluded to tonight. It is tempting to talk about the electronic voting issue, because it is such a debacle, and a squandering of money that has angered many people. I spoke to people last night who were very relieved, though the squandered money was incensed them, that they would not have electronic voting, because they like to vote starting from the bottom. They told me that they like to put Fianna Fáil candidates at the bottom, and work their way up.
That is wishful thinking.
Then they see who is left at the top.
Fianna Fáil goes from the top to the bottom.
It will be interesting to see what happens on 11 June. Electronic voting would have taken that modus operandi away from those people, as they would have had to start at the top, and it is easier to start with Fianna Fáil at the bottom. I do not know how they vote, but they decided to tell me that much.
I cannot argue with any part of the motion. In the context of mismanagement of public funds, it is all very clear. There is however, one aspect of the squandering of money and the mismanagement of funds which needs to be remarked on because it will grow in terms of its seriousness. In time, this Government will be seen as a government which turned Ireland from a Celtic tiger into a drowned rat. It was predicted in last Sunday's newspapers that Dublin City Council would have to spend €150 million on flood prevention. The increasing likelihood of extreme weather conditions and resulting floods, was noted. This is happening worldwide and Ireland is not exempt. The Government nevertheless ignores the issue. It cannot be ignored. Future generations will look back at this Government and wonder if it was only when floods took place that the Government woke up and smelled the diluted sewage in the floodwater.
As a combination of oil scarcity and climate change levies sends oil prices rocketing, this Government will be left like the unicorn splashing around outside Noah's Ark. If one looks at the figures and sees the United States using oil for 40% of its primary fuel consumption, the EU average figure at 43% and this country with a comparable figure of 60%, Ireland is clearly suffering at the hands of this Government in terms of future strategic planning. The long-term cost will be even greater than the squandered sums of money referred to in this motion. We are annually importing 9 million tonnes of oil, a figure growing yearly, with peak oil production expected in 2010. The increased price of petrol is already noticeable, but that does not seem to matter to this Government. The emphasis is all on motorways and according to the Government it is much more preferable to invest in them than in rail and bus.
Looking at the figures, it is clear the Government has not realised its mistakes. Housing starts stand at 70,000 per annum. There is not enough social and affordable housing, and what is built in that area is built without proper insulation. I do not know if the Minister of State realises his legacy of mismanagement contained in the motion before us. If he is going to ignore the needs of future generations, it behoves him to say that he does not care. He should admit he does not mind being criminally irresponsible for future generations, or care when people tell him he is backing the country into a cul-de-sac. That is what he is doing. He is mismanaging today's funds and running up a huge bill, along with a great deal of misery, for future generations.
While we are debating the myriad issues before us, it is an opportune moment to talk briefly about a very glossy volume I received almost two years ago, shortly after my election to Dáil Éireann. The quality of the printing is superb. There is fine gold print on the cover and back, and the quality of advertising within the volume jumps out of the page.
The frontispiece is sponsored by Dunloe Ewart, and the back page by Treasury Holdings. In between are advertisements for Bulmer's cider, Tullamore Dew whiskey and Bass beer. From page one to 50 are advertisements by car dealers, builders, estate agents and publicans. This tells us a great deal about those behind Fianna Fáil, and about who is running the country.
I will concentrate on the housing issue and the lack of social, local authority and affordable housing that has become more acute in recent years. The Green Party is committed to providing affordable housing. Just a few days ago we launched our new housing policy. We wish to create a national housing authority under the auspices of the Department of the Environment, Heritage and Local Government which would shape and influence the development of national housing policy to ensure a balance between private, public, social and affordable housing. We would commit ourselves to providing a huge increase in the number of social housing units annually until the waiting lists are cleared. We would restore the original provisions of part five of the Planning and Development Act 2000. That was a good Act but its contents were gutted by the incoming Government and the strong commitment to providing social and affordable housing was thrown away, due, I suspect, to the influence of developers and builders on the parties in Government.
The Green Party would ensure that local authorities instead of developers would benefit from rezoning. We would guarantee that local authorities could buy land at existing use value plus a small percentage to ensure that they would be able to develop housing within their jurisdiction. We would tax resources rather than labour to ensure that the tax burden was shifted away from those working to smarter taxes on the site value of land, including residential investment property, second homes and derelict sites. We would introduce a site value tax on undeveloped zoned land. We would instruct the Central Bank to change its guidelines for the lending institutions to limit the amounts they can lend for house purchases. Things are fine if interest rates remain low, but if there is even a slight jump in rates there will be many homeowners suffering unduly because of the laissez-faire approach of our banking institutions and the similar approach of this Government.
Huge housing reforms are necessary, as is Government investment. It is not good enough to let the free market decide, to let those who paid for the advertisements in Fianna Fáil's 75th anniversary volume to call the tune on housing policy in this country. I call on the Minister of State to make a change in housing policy, to ensure that local authorities are given the funding they need to provide decent, affordable social housing, and that the commitments made to the voluntary sector in Fianna Fáil's election manifesto are honoured. The Government must ensure that the people, rather than a small coterie of developers, builders and contributors to the Fianna Fáil coffers, build up Ireland.
I do not know if we are approaching this debate in the right way. Many of the speakers noted how mean these cuts were and how bad this Government has been. Perhaps we should be talking of how generous the Government is in terms of the money it is giving away. The motion refers to the mismanagement and squandering of resources. Last night a person in Tallaght informed me that we are always giving out about the Government and never talking about the positive actions of the Government.
The positive that I wish to highlight is the amount of money the Government has given away. The motion refers to the money that was squandered on the site at Abbotstown and the hundreds of millions of euro forgone in tax exemptions. The Minister for Finance, Deputy McCreevy, is on record as saying that he does not know the amount forgone in tax exemptions. This is from the Minister for Finance. Contrast this generosity with the Government's response to the local authority housing waiting lists that have grown to 48,000 or to the one in five or 300,000 children living in poverty. The Society of St. Vincent de Paul, which deals with the effects of poverty, speaks of the doubling of its numbers and the one in five who form part of the new poor.
This most be one of the most generous Governments in the western world in terms of what big business has received. Big business benefited from tax reductions worth €634 million. The recently constructed fine ramp at Connolly station has had to be removed because of Luas works. The equestrian centre at Punchestown received €15 million from this Administration. The Government is just like Santa and one must be among the very good children of the nation for Santa to visit or, in this case, for the Minister for Finance to do business. Clearly, the sick, the elderly and the student population must have behaved very badly in recent years.
The Government has excelled again in looking after the legal profession with costs at the tribunals running to €400 million and possibly exceeding €1 billion by the time they conclude. A great deal of money was spent on e-voting and on purchasing electronic voting machines. The Government has spent €100 million on spin doctoring which has obviously made a great impression on the public. I wonder how much the Taoiseach spends on make-up, for which someone is again being generously rewarded.
The Government is the unexpected beneficiary of €225 million extra in capital gains tax, yet it persists with the 16 cuts in welfare. This is down to its generosity. The ordinary man on the street is doing well, but unfortunately in many cases he must sleep on the street. This is a generous Government to its friends — the rich in society. The gap between rich and poor is widening and the hard-earned wealth of the taxpayer is being squandered.
I register my support for this motion. The Government has acted in a way that has worsened the situation of the least well-off in society. At the same time, it has ensured that those with access to power and who control a disproportionate share of the wealth in society are best looked after, as was ably described by Deputy Crowe. Those dependent on social welfare or low wages are made to feel privileged to be given miserly increases in payment or tax credits, while those who are really privileged and can well afford the expense are given hand-outs from the public purse, such as that to Punchestown, and tax breaks that run into hundreds of millions.
It is quite clear that the underlying ideology of the Government is in thrall to right-wing economic theories and that even more malign influence of right-wing social theories on which extremists or so-called "neocons" in Washington based their attack on US working class people. An example of some of this thinking can be found in the Irish branch of the Freedom Institute which, I believe, numbers some of the young tigers of the Progressive Democrats among its members. Among the policies they advocate is the abolition of the minimum wage. How long will it be before some of these bright young people arrive here as Progressive Democrats Deputies? Perhaps they will follow the example of the Minister for the Environment, Heritage, and Local Government, Deputy Cullen and seek office by defecting to Fianna Fáil and carrying their right-wing ideology into that party.
It is quite clear that the ideology of the Progressive Democrats carries great weight in the Government. I do not object to the right of the party to promote its agenda, but I know that many ordinary members of the Fianna Fail Party and elected representatives are deeply unhappy with that influence and the manner in which Progressive Democrats policies adopted by Government affect many of those who traditionally voted Fianna Fáil. I sense that the unhappiness is growing as Fianna Fáil members get a negative reaction on the doorsteps during the current elections campaigns.
Barely a day goes by that I do not hear from a person or group in my constituency and in other parts of the country who suffer the effects of the Government's policies. Last week in the House, I raised the underfunding of Tralee General Hospital in the past two years. That amounted to almost €4 million since the beginning of 2003 and has forced the hospital to curtail its services and close 30 beds for three months giving a total loss of 2,700 bed days. Beds are denied to those in need because the funding has been cut by almost €4 million, yet the Government can waste approximately €50 million on an electronic voting system that is not being introduced and can sell 2,000 ballot boxes for €45. What will it cost to purchase them? The Government was able to give €15 million to Punchestown yet cannot afford between €3 million to €4 million to cover the cost of beds at Tralee General Hospital. A hospital service is being penalised because of the way it looks after people in need.
I visited Tralee General Hospital after leaving Leinster House on Thursday evening last and saw four elderly people on trolleys in the emergency department. There were 43 people sitting around and between two dozen nurses and doctors tried to attend to the patients. They are run off their feet and are demoralised by the actions of the Government.
I deal also with constituents whose places on community employment schemes are under threat as local organisations are unable to secure sports capital grants in spite of being designated a priority RAPID area. Numerous people suffer because of the withdrawal or downgrading of transport services, schools and provisions for the disabled and farmers on the early retirement scheme. Last Saturday in Kilrush I met 16 people who were let go from a local employment scheme in January of this year because there were no funds. These people refused to take redundancy because they were committed and dedicated to the service they were providing as an outreach to the marginalised areas in County Clare. They were penalised because of their efficiency and the service they supplied. They looked after those most in need in society.
I sense a growing anger among people and it will be reflected in next month's local and European elections. Of much greater concern is the feeling of despair among many people. In Tralee, Listowel and other towns in Kerry, unemployment is far above the national average and not only is the Government doing little to address this, the Tánaiste and Minister for Enterprise Trade and Employment, Deputy Harney, refused to meet the democratically elected representatives of Tralee Town Council at their request, who wished to express their concerns at the neglect by Government.
This Government is a disgrace. It has let down the people of rural Ireland and the people most in need, namely, our sick, our children and our elderly. This Government should pack up and go back to the people and let them put in a Government which will reflect their wishes and aspirations and what they deserve.
I have listened to my colleagues on the opposite benches tonight doing their utmost to undermine the great successes that this Government has achieved throughout its time in office. However, the facts, to which I hope they will listen, cannot be disputed.
Thanks to our economic performance over the past decade, Ireland has been held up by numerous international bodies as a shining example of the way in which things should be done. Our economic growth has averaged nearly 10% per annum since 1997. Ireland's growth is now undergoing a period of adjustment from the unprecedented double-digit growth of the late 1990s to a more sustainable pace of growth in the medium term of up to 5% GDP per annum. However, our growth levels still surpass the performance of our euro area neighbours.
Unemployment has been reduced from over 10% to historically low levels. According to April's live register release published yesterday, unemployment now stands at 4.4%. Over 300,000 new jobs have been created since 1997 and 31,000 in the past year. Inflation has fallen dramatically over the course of 2003. The most recent Central Statistics Office data shows that it is currently at 1.3%. This is its lowest level since July 1999.
The achievements of the Government in successfully managing the public finances, particularly during a time of great global uncertainty, are all too evident. Ireland has the second lowest debt level in the euro area at under 33% and last year there was a surplus in the general Government balance of 0.2% of GDP. The Exchequer returns for the first four months suggest the Government is on track to meet its budgetary targets for 2004. The policies we have pursued put us in a good position to weather the recent international economic downturn and to benefit fully from the current pick up in the global economy as it continues to develop.
Oil costs US$40 per barrel.
This Government has overseen the radical transformation of the taxation system ensuring that it is more equitable, fairer and simpler to comprehend. This has resulted in concrete, financial benefits to those on middle and lower incomes and the elderly. For instance, the numbers of income earners out of the tax net has increased from 25% to 35%. No PAYE worker earning less than €246 per week pays tax. The levels at which those aged 65 and over pay tax have been raised and anyone earning up to 90% of the minimum wage remains out of the tax net. Moreover, business tax rates have been reduced leading to increased employment and more growth without sacrificing tax revenue in many cases. The powers of the Revenue Commissioners to pursue tax evasion have also been strengthened.
The public expenditure policy of this Government cannot be called into question. The public finances are in a sound position and we will ensure that this remains the case so we can properly provide for not just short-term needs, but also for the next generation. This requires a strategic and disciplined approach to public expenditure, one which entails spending according to the resources at our disposal. As I mentioned earlier, economic growth has moderated somewhat in recent years and this has obviously had a bearing on our spending policy. Expenditure increases have fallen from around 21% in 2001 to an estimated 7% this year in keeping with our resources. However, we have still managed to prioritise spending in key areas, including health, education and social welfare. These key social inclusion areas will account for 68% of total spending this year.
It costs €16 for four cups of coffee.
Addressing our infrastructure deficit has also been a priority of this Government and, in the period 1997-2003, the Government has spent almost €28 billion in capital spending. This year approximately €5.6 billion, or 5% of GNP, will be spent in that way. In addition, the Government has agreed to reform the area of public sector construction contracts and construction-related consultancy services to ensure better value for money in future projects.
Another key concern of this Government is balanced regional development. The decentralisation programme announced on budget day will play a substantial role in enhancing regional development and in fostering regionally balanced economic growth.
Will the Minister of State fill us in on that?
The Deputy should have watched the 6 o'clock news. It will offer significant benefits to all stakeholders.
Welcome to Parlon country.
Allow the Minister of State to speak.
I wish to disagree in the strongest terms with the motion that has been put down by those opposite. The facts speak for themselves. This Government has consistently managed the public finances in a prudent way. It has facilitated unprecedented growth and full employment and delivered economic and social benefits for all. I commend the Government's amendment.
I ask Deputy Durkan to allow the Technical Group to make its contribution without interruption.
I wish to share my time with Deputies Harkin, Healy and Joe Higgins.
I support the motion tabled by the Independent Members of the Technical Group. It is a detailed motion which sets out specifically several areas where millions of euro have been squandered by this Government and it also sets out areas which are crying out for funding and which have been starved of funding by this Government, areas where the funds squandered would have brought about massive improvements for people who are struggling on a daily basis with disabilities. The funds squandered would have brought about an improvement for children who are forced into substandard schools each day. The funds squandered would have restored the number of community employment schemes to original levels and would have allowed the mainstreaming of community employment places in the health sector.
I wish to deal specifically with the failure of the Government to honour its commitment to mainstream community employment places in the health sector. Why are the disabled so badly treated by this Government? Why did the Government give a commitment to mainstream community employment jobs in the health services and give such hope to people availing of services provided by organisations such as the Irish Wheelchair Association and then renege on that commitment? The answer is simple. The disabled are a soft touch, they have a poor voice and this holier-than-thou and mighty Government took its revenge on the disabled and reneged on commitments given in the programme for Government.
If it is the Government's intention to ignore the contents of this motion, as it seems to be from the contributions yesterday evening by the "in denial" Minister for the Environment, Heritage and Local Government and the hysterical Deputy Conor Lenihan, neither of whom addressed the issues our motion raised, then, if nothing else, I beg it to honour its election commitment and mainstream those jobs now.
The motion addresses a number of health issues which need attention and I wish to add another. I am being parochial in so doing, but I make no apology. I refer to the Tuam health campus. It has been decided by the Western Health Board that a 60 bed hospital with X-ray facilities and an ambulance base is required in Tuam to serve the north-east Galway, south Mayo and west Roscommon region. The planning brief has been on the Minister's table since 8 October 2002, but it has not received the approval of the Minister to proceed. This is despite a previous commitment from the Minister for Health and Children to build the hospital and a similar commitment from none other than the Taoiseach and despite Tuam being designated as a hub town under the national spatial strategy.
The money squandered by this Government would have built hundreds of Tuam hospitals. I ask that the promises made by the Minister and the Taoiseach are honoured and that the Government underpins the national spatial strategy and gives approval to the Tuam health campus.
The Minister of State, Deputy Parlon, said the facts cannot be disputed and he is quite right about that if nothing else. There are 48,000 families on local authority housing lists, a 50% increase since this Government took office in 1997. There are more homeless people than ever before. In my county, there are 1,000 families on the local authority housing list. That is a fact. People must wait three to five years for local authority houses. That is also a fact. One of the promises in the programme for Government was that 15,000 social housing units would be built but not one has been built yet. That is another fact.
The previous Government ensured that developers would continue to rip off those who wanted to buy homes for themselves. Local authority housing lists are swollen with people, such as gardaí, bank officials and teachers, who would normally be considered to have good, middle class jobs. Now, however, they cannot even get onto the first step of the housing ladder. They are on local authority housing lists all over the country.
Not true.
The reason is that Fianna Fáil and the Progressive Democrats have allowed developers to rip off potential house purchasers. Developers have been allowed to hoard land and thus make huge profits at the expense of young couples who wish to establish homes for themselves.
I feel strongly about the Government's mismanagement of the health services, particularly as we have a unit in the South Tipperary General Hospital in Clonmel which cost €25 million. That state-of-the-art facility has been vacant for the past 12 months while people are crying out for health services. The €2 million needed to open that unit should be granted immediately.
I am grateful for the opportunity to speak on this Private Members' motion, sponsored by the Independent group. In yesterday's debate, and again today, we have heard the usual figures being trotted out concerning the money that is being spent by the Government. How many times do we have to say that it is not how much money is spent, but how it is spent that counts? The money in question was entrusted to the Government by taxpayers who expect value for money, yet this motion contains a litany of instances where huge amounts of money were misspent or squandered. Reading through the list, one can see that millions of euro in taxes have been lost to the State due to exemptions granted by the Government to wealthy tax exiles, stud farm owners, mega-rich rock stars and authors. At the same time, thousands of people living in Border counties, many of them elderly, are distressed, fearful and shocked when faced with tax bills of 330% in penalties on any interest earned on moneys on deposit in Northern Ireland banks.
It is a scandal of the highest order that the very rich — those who can afford second or third homes, yachts and palaces outside this country — who can voluntarily exile themselves for the required period pay little or no tax. Many people in Border areas were forced to emigrate to seek work in Britain. They returned home with their savings or a pension in sterling in a bank in Northern Ireland and are now being hit with excessive tax demands.
That is not true either.
What amuses me is that these accounts are called "offshore accounts". Imagine living in Letterkenny and calling Derry offshore. If a person lived in Manorhamilton, would they call Enniskillen offshore? Northern Ireland is the natural hinterland for Border towns in Cavan, Monaghan and Louth, whose inhabitants shop, work and bank in the North. Is that offshore? Many people who had legitimate bank accounts and who lodged small amounts of hard-earned money in the 1960s, 1970s and 1980s, on which tax was paid, now face the appalling vista of paying 330% in interest and penalties.
They have nothing to worry about.
Take the example of a nurse living in the South but working in the North because she could not get a job in this State with a bank account for 20 years in Northern Ireland, who has to pay £20, £30 or £40 interest every year. If the Minister of State guarantees that such a person will incur no penalties or interest, then I will have done a good day's work, but the Revenue Commissioners will not tell me that is the case.
Neither can the Minister of State, which is even worse.
That is what I am asking because the Revenue Commissioners will not tell me. I fully concur with the notion that everybody must pay their taxes. In the case of the people I mentioned, a modest penalty would suffice but 330% is unfair, unjust and will drive some people to the wall.
The motion calls on the people to reject the Government's squandering of public funds at the expense of workers. I fully agree but let me be more specific — I reject the squandering of €60 million on electronic voting and the €15 million gift to Punchestown. That is taxpayers money which is now beginning to pour into the Government's coffers from, in the main, distressed elderly people who are burdened by penalties of 330% on modest bank accounts they held in the nearest parish, village or town, which unfortunately happened to be across the Border in Northern Ireland.
The Minister of State should listen to that point.
I can sort that out too.
We are not finished yet.
This motion is a comprehensive indictment of resources wasted or foregone as a result of Government decisions. Due to the lack of these resources, the motion provides a long list of failures to resolve outstanding issues of great relevance to ordinary working people, pensioners and social welfare recipients. From the health service to the scandal of 48,000 families on local authority housing lists, my colleagues have illustrated this very well. Part of the wastage undoubtedly results from mismanagement and arrogance. Last night, it was incredible to see the Minister for the Environment, Heritage and Local Government still swaggering into the Dáil, adopting his usual Napoleonic stature and lecturing the Opposition. He said: "The three master chefs of the Technical Group ... come from the ‘can't cook, won't cook' school of catering. It is a pinch of Sinn Féin borrowing here, a dash of Green taxation there and a splash of indigestible Trotskyite madness for flavour." In any other jurisdiction, however, where politicians still retain some inkling of bourgeois honour — if that is not a contradiction in terms — the accountability school of catering would long since have kicked in and the Minister would be stewing in his own juice as a result of the wastage of €50 million of our people's funds on his electronic voting debacle.
It was €52 million.
I want to concentrate on deliberate Government policy, which is based on facilitating, pushing and consolidating the shifting of wealth from working people, who constitute the big majority in society, to the minority of capitalists and financiers who dominate our society economically — the major banks, corporations and transnational companies. Proportionately, since 1987, the amount of wealth going to this sector from working people has hugely increased. Their profits in rent have hugely increased also. Incredibly, as a result of two budgets, the Minister for Finance and the Government followed that by giving them back €634 million in corporation tax cuts annually.
At one time, some people in Fianna Fáil used to try to portray themselves as friends of the working man and woman. In the early coalition days, they used to try to blame the Progressive Democrats for right-wing ideology.
Yes.
If ever that scenario existed, it is long past.
Indeed.
This Government now has a seamless right-wing economic policy underpinning its economic actions. I suppose it was best illustrated a few years ago by the political bonding session between the Minister for Finance and the Tánaiste at the French villa of their tycoon friend. One can be sure that, as the chateaubriand sizzled and the fine wines flowed——
I wish I was there.
——there was no disagreement between them on the privatisation of our public services, the massive taxation cuts to big business and other right-wing policies.
And they have produced jobs for everybody.
Admittedly, the Minister of State, Deputy Parlon, was still making hay down in the midlands at that stage, but he has certainly joined the crew now.
Is it any wonder that, after seven years of Fianna Fáil-Progressive Democrats rule, figures given to me by the Minister for Finance show that a massive €154.5 billion has been repatriated by multinational companies in profits from this country? Last year alone, €30 billion was sent out, three times the amount spent on the entire health services, as a result of deliberate Government policy, resources that should remain in our society for investment in our economy and our social services.
The Deputy would drive away the multinationals. There would be 20% unemployment.
The Government is a funnelling agency for funding from working people to big business and the super-rich. We have sufficient resources in our society to meet the needs of all our people to live in reasonable comfort and dignity, but the wealth has to be removed from the hands of the few and from the stewardship of the Government. When the people come out on 11 June I hope they will give a crushing rebuff to the policies it has pursued.
Deputies
Hear, hear.
Amendment put.
The Dáil divided: Tá, 59; Níl, 50.
Tá
- Ahern, Dermot.
- Ahern, Michael.
- Ahern, Noel.
- Andrews, Barry.
- Brady, Johnny.
- Brady, Martin.
- Browne, John.
- Callanan, Joe.
- Callely, Ivor.
- Carey, Pat.
- Carty, John.
- Cassidy, Donie.
- Coughlan, Mary.
- Cregan, John.
- Curran, John.
- de Valera, Síle.
- Dennehy, John.
- Devins, Jimmy.
- Ellis, John.
- Finneran, Michael.
- Fitzpatrick, Dermot.
- Fleming, Seán.
- Gallagher, Pat The Cope.
- Glennon, Jim.
- Grealish, Noel.
- Harney, Mary.
- Haughey, Seán.
- Hoctor, Máire.
- Jacob, Joe.
- Keaveney, Cecilia.
- Kelleher, Billy.
- Kelly, Peter.
- Killeen, Tony.
- Kitt, Tom.
- Lenihan, Conor.
- McCreevy, Charlie.
- McDowell, Michael.
- McEllistrim, Thomas.
- McGuinness, John.
- Moloney, John.
- Moynihan, Donal.
- Nolan, M.J.
- Ó Fearghaíl, Seán.
- O’Connor, Charlie.
- O’Donnell, Liz.
- O’Donovan, Denis.
- O’Flynn, Noel.
- O’Keeffe, Batt.
- O’Malley, Fiona.
- O’Malley, Tim.
- Parlon, Tom.
- Power, Peter.
- Power, Seán.
- Sexton, Mae.
- Smith, Brendan.
- Treacy, Noel.
- Wallace, Dan.
- Wallace, Mary.
- Wilkinson, Ollie.
Níl
- Boyle, Dan.
- Breen, Pat.
- Broughan, Thomas P.
- Burton, Joan.
- Connolly, Paudge.
- Costello, Joe.
- Coveney, Simon.
- Crawford, Seymour.
- Crowe, Seán.
- Cuffe, Ciarán.
- Deenihan, Jimmy.
- Durkan, Bernard J.
- Enright, Olwyn.
- Ferris, Martin.
- Gregory, Tony.
- Harkin, Marian.
- Hayes, Tom.
- Healy, Seamus.
- Higgins, Joe.
- Higgins, Michael D.
- Hogan, Phil.
- Howlin, Brendan.
- Kehoe, Paul.
- Kenny, Enda.
- Lynch, Kathleen.
- McGinley, Dinny.
- McGrath, Finian.
- McGrath, Paul.
- McHugh, Paddy.
- McManus, Liz.
- Mitchell, Olivia.
- Naughten, Denis.
- Neville, Dan.
- Noonan, Michael.
- Ó Caoláin, Caoimhghín.
- Ó Snodaigh, Aengus.
- O’Keeffe, Jim.
- O’Shea, Brian.
- O’Sullivan, Jan.
- Pattison, Seamus.
- Penrose, Willie.
- Ring, Michael.
- Ryan, Eamon.
- Ryan, Seán.
- Sargent, Trevor.
- Sherlock, Joe.
- Shortall, Róisín.
- Stagg, Emmet.
- Timmins, Billy.
- Upton, Mary.
Tellers: Tá, Deputies Browne and Kelleher; Níl, Deputies Gregory and Harkin.
Amendment declared carried.
Motion, as amended, agreed to.