Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

We have had some time to digest the budget and assess its impacts. Yesterday when I spoke, I was happy to recognise some of the positive changes in the budget that will benefit different groups of people. I also said that this is an election budget. It screams it from the rooftops. As the Taoiseach said, he would not apologise for any of the benefits, double payments or early payments contained in this budget. Of course, who would? That puts money in people's pockets and that matters.

However, we have had time since to reflect and better analyse this budget and look at the real ongoing lasting impacts it will have on people. I had a look at the parliamentary review of budget 2025 today and that certainly provided some interesting insights but, first, on the taxation side, this budget was largely progressive. There were some blips. Social Justice Ireland reminds us that yet again, workers earning between €15 and €20 per hour gained least from this budget. In this budget, a single person on €30,000 will gain €5.34 per week whereas a couple, with one earner, on the same amount, €30,000, will gain just 55 cent per week.

I also saw in the Government's tax policy changes document, the one it gave us yesterday, that a married couple on one income, a PAYE worker on €25,000, will actually be paying a slightly higher effective tax rate in 2025 than last year.

It is increased from 5.3% to 5.4%. Most of it is progressive, but it is interesting that if you compare the lowest, it has gone from 5.3% to 5.4%. The effective tax rate of the highest, which is an income earner on €175,000, has decreased by approximately 0.6%. It is mostly progressive, but not entirely, and not progressive enough.

I come back to the Parliamentary Budget Office review of the budget. They have done an analysis on selected social welfare rates, minimum wage and average weekly earnings for the past five years, 2021 to 2025. The minimum wage has increased by 13.3% and that is good. Most of the others have decreased. I will come back to that. What I find interesting is that it is not the State that pays the minimum wage. It is employers. Of course I support a headline increase of 13.3% in five years. We need more, but it is not the State that is paying it. It is small and medium size businesses paying, and many of those businesses are reviewing their viability because of all the extra costs of doing business. This budget has increased the cost of doing business. A lot of people think business is big business, but most of the business in this country is small business. They are in our local towns and villages, and we will see the fallout from the impact of this budget in the coming 12 months. I return again to the Parliamentary Budget Office review of the real change in average earnings and social welfare taking inflation into account. Average weekly earnings fell by 1.2% over the past five years. The review took five social welfare payments. The contributory State pension fell by 2.6% over the past five years. Non-contributory State pension fell by 1.8%. Widow's pension increased by 0.6%. Working age supports increased by 1.1%, but carer's allowance fell by 0.4% over the past five years. Those are the real figures. Despite what we hear from Ministers about the impact of this budget that is the reality of it.

I also want to look at the commentary from Social Justice Ireland, which clearly states that the €12 core social welfare rate increase is totally inadequate and €25 is needed so the Government could benchmark social welfare rates to 27.5% of average weekly earnings because that was the target set by Government in 2007. We are not getting closer. It also states there has been no attempt to reduce poverty in line with the Government's own targets in the roadmap for social inclusion. Perhaps the most damning response refers to the one-off measures and double payments, which the Taoiseach said he would not apologise for and, as I said, nobody would. However, one offs are no solution to the challenge of poverty and income adequacy. Indeed, when you strip them out as they will be in the next budget or the budget after, households on fixed incomes will have been left watching in dismay as all other groups stretch their lead over the poorest and income gaps will widen further. Social Justice Ireland says a €25 increase in core social welfare rates would enable households to buy essentials routinely and not just as treats. I have asked for this at several budgets. Will the Government please look at making tax credits refundable? It makes such a difference to low-paid workers. Yesterday, I got the chance to say I was disappointed that there was no cost of disability payment. While a €400 one-off payment is welcome, the cost of disability is ongoing and cannot be tackled with a one-off payment.

Finally, I searched looking for funding for roads infrastructure that we so badly need in the northern and western region to try to close the ever widening economic gap. The upgrading of the N17, Knock to Collooney, has to be an absolute priority. Despite my reading and rereading of the section titled road networks and road safety, there was no mention of the N17. I recognise it is just one piece in the jigsaw puzzle that will deliver balanced regional development, which only got two mentions in the entire budget - regional airports and urban regeneration. That will not cut the mustard.

See this speech in context