Budget will be judged on housing, says McGrath

Fianna Fáil took a swipe at the Government’s housing and health policies even as it welcomed measures in the budget which the party said it secured as part of the confidence-and-supply agreement.

Finance spokesman Michael McGrath opened his speech by pointing out that Tuesday was also world homeless day.

He warned the Government that more than anything else in the budget, it would be judged by how it tackled the homeless and housing crisis.

Mr McGrath said of the figures that would be quoted from the budget, some were far more important than others.

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He said there were currently 8,270 people in homelessness including 3,048 children.

He also highlighted that more than 600,000 people were on hospital waiting lists.

The Government had stated money was not an issue on housing but he said if that was the case then there should be “no more press releases, no more policy launches and glossy brochures. Just get on with it.”

Mr McGrath also criticised Sinn Féin and said they would attack the Government and attack his party for the confidence-and-supply agreement.

“Sinn Féin is the classic hurler on the ditch – full of opinions, full of wisdom but when the opportunity comes to don the jersey, take to the field and take some responsibility – whether it be in Westminster, Stormont or here in Leinster House – they run for the hills.”

He said: “It’s easier to throw stones from the sidelines rather than go into the battle and fight your corner.”

Mr McGrath warned the Government it was making a “very big assumption about the yield” from the increased stamp duty tax on commercial properties, given that stamp duty on non-residential property transactions brought in €256 million last year.

If the projected €400 million yield from the tax “does not materialise, then there is a hole in the public finances. There is a risk here Minister and it is one you need to be aware of.”

USC reductions

He cited 11 areas in the budget that were part of the confidence-and-supply agreement including reductions in the USC, which was Fianna Fáil’s focus.

He said the reduction in the charge would have an impact for more than 1.8 million people earning more than €13,000 a year.

Combined with the rise in the entry point for the higher tax rate, “someone earning the average annual earnings in Ireland of €36,919 will have gained around €246 per year in this budget”.

He said workers and pensioners were now paying much more tax than before. He said that in 2007, a total of 2.156 million workers paid a total of €13.6 billion in income tax.

“In 2017, a total of 2.063 million workers are expected to pay a total of €20.2 billion,” he said, adding that with 100,000 fewer workers in that time, they are paying almost 50 per cent more in income tax.

“Ten years ago income tax represented under 29 per cent of the total tax take, €6,300 for every worker. Now it represents 40 per cent of the total tax take, €9,800 for every worker. This clearly shows that the income taxpayer is shouldering a substantial burden in this economy.”

He said that Ireland had to stand resolute “in defence of our regime” on the 12.5 per cent corporation tax rate.

Mr McGrath said the EU’s policies on tax harmonisation were wrong for Ireland and would only reward larger countries. He reminded the Government that the Lisbon Treaty “made it very clear that unanimity is required when it comes to corporation tax matters. It was on this understanding that the Irish people ratified the Lisbon Treaty in 2009.”

Fianna Fáil spokesman on public expenditure and reform Dara Calleary described the budget as "an important moment for centre ground politics".

“Fianna Fáil has left its print on this budget. We have stood up to the mark to ensure this country has a stable government in these uncertain times. But not at any price.”