Pearse Doherty (Donegal, Sinn Fein)
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Inné, d’fhógair an Rialtas go raibh sé ag dul a thabhairt faoiseamh cánach do na daoine is saibhre sa tír seo. Ní hé seo na mílte daoine ach cúpla duine a bhfuil ciste pinsin de €2 milliún acu cheana féin. Tá sé ag dul a thabhairt faoiseamh cánach de €320,000 do na daoine seo. Tá an Stát ag iarraidh gnáth-cháiníocóirí na tíre seo cuidiú leis na daoine seo ciste pinsin a bheith acu suas go €2.8 milliún.

Yesterday, the Minister for Finance, Jack Chambers, announced that he was going to give a massive tax break that would only benefit the wealthiest members of our society, namely, those in receipt of gold-plated pensions. This is the only tax measure that the Minister, Deputy Chambers, has announced in advance of budget 2025. It speaks volumes about the Government’s priorities, in that its priority is to ensure that it looks after those who have massive gold-plated pensions.

When the Minister, Deputy Chambers, appeared before the Committee on Budgetary Oversight and I asked him how much this would cost ordinary taxpayers, he did not have a clue, but we know that it is estimated to cost hundreds of millions of euro. Those in receipt of gold-plated pensions are already well catered for in this State, courtesy of ordinary workers and families. They can build up pension pots of as much as €2 million, and for every €1 they put in, the taxpayer gives them 40 cent back. This allows them to retire at 65 years of age on pensions of €70,000 and tax-free lump sums of €200,000. Most people can only dream of pensions of this scale – indeed, most workers are only paid a fraction of these amounts, never mind their pensions on retirement – but the Government wants to go one step further for those at the top. Fianna Fáil and Fine Gael want the taxpayer to fund these gold-plated pensions until they reach €2.8 million in size. Asking those who work in Tesco, nurses, gardaí, firefighters and teachers to help build up the pension pots of those are the very top to the tune of €2.8 million in order that they can retire on State-supported pensions of €100,000 per year is madness.

These are gold-plated pensions, as even where the taxpayer contributes 40% to these funds, it is only the select few who can afford to put that amount of money into their pension pots. This massive tax break is only for the wealthiest individuals with pensions already amounting to more than €2 million. The Government is planning to give these individuals a massive tax break of €320,000. That is how much an individual will benefit as a result of the Government’s decision yesterday. It is crazy. These are not the ordinary people I mentioned who work hard on shop floors. These are people with pension pots of €2 million already and who have a pension entitlement of over €70,000. Meanwhile, those on the State pension languish and are left with crumbs off the table.

This choice by the Government would be wrong at any time, but it is definitely wrong when we are dealing with a cost-of-living crisis and workers and families are struggling. I am not surprised by Fianna Fáil and Fine Gael because we always know where their priorities are.

How many people are captured by this? Last year, 254 people had pension pots of more than €2 million. The average pension pot is approximately €111,000. People can only dream of €2 million, but the Members across the way do not believe that is good enough. That is why they are asking ordinary people to help build up the pensions of the elite until they get to €2.8 million and giving them a €320,000 tax reduction. What does the Minister say to the taxpayer who is struggling to pay bills? Why is the Government asking such taxpayers to contribute – that is what is being asked of them – 40% to pension pots for the elite, reaching €2.8 million?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Just to bring a bit of reality to this conversation, the Deputy will know that the previous Minister for Finance appointed Dr. Donal de Buitléir to undertake an independent examination of the standard fund threshold, which was reduced in 2014. As a Government, our main focus in respect of pensions, particularly for middle-income workers, is to ensure that they have pension provisions and that we have a good State pension provision as well. Since this Government entered office, the weekly State pension has increased by €29. In our budget negotiations, we are focusing closely on ensuring that those on the State pension receive the increases they deserve. Our work on the non-contributory old age pension has also been significant.

I would contrast this to Sinn Féin's proposals in respect of average workers who are making provision in the private sector for their pensions or public sector workers who are paying into AVCs. The Deputy and his party have proposed year on year to reduce the pension tax relief to the standard rate, which would take the legs out from under the average nurse and average-----

Pearse Doherty (Donegal, Sinn Fein)
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We have not.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Sinn Féin has proposed to reduce it to 20%,-----

Pearse Doherty (Donegal, Sinn Fein)
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We have not.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Deputy, please.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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-----which would reduce the pension tax relief that they receive.

Regarding the Government's decision, the Minister for Finance considered the independent de Buitléir report carefully, taking into account its recommendations. If the Deputy has seen the report, then he will know that we have not accepted all of its recommendations. The Government has agreed to implement a staggered approach to changes in the standard fund threshold, with some changes to be legislated for this year, but no changes will take effect until 2026. This is a phased change to the standard fund threshold, providing a phased increase from 2026 to 2029 of €200,000 per year. The Deputy will remember that the standard fund threshold used to be €5 million and was reduced.

Pearse Doherty (Donegal, Sinn Fein)
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The last time Fianna Fáil was in government.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Our focus has always been on, in the first instance, average workers and those who assist them in making provision for their pensions and, in the second, ensuring a continued increase in the State pension, which the Government has always prioritised. We will make it a priority in this budget as well. There has been an increase of €29 in the standard weekly State pension since this Government entered office. We need to see increases in pension provision for and pension take-up by workers. That is why measures such as auto-enrolment are important. I cannot assume Sinn Féin will support that measure; it is a Government proposal, so Sinn Féin will probably reject it.

The Deputy is trying to create an impression that the Government is looking after a small cohort of people and no one else. That is not the case. The Government is acting on an independent report in a structured and phased way. No changes will take place next year, but there will be a phased approach to increasing the standard fund threshold from 2026 onwards.

Our main focus is on ensuring pension provision for workers. This country has near-full employment because of the economic policies of this Government and the hard work of our people. We have 2.75 million people working in this country. Our country still faces challenges, so when they look across at the Opposition benches, they see how that economic prosperity would be put at risk if Deputy Doherty were the Minister for Finance. There is not a bandwagon that he will not jump on. He will bend in the wind on any issue. That is not the way to run a country or an economy.

Louise O'Reilly (Dublin Fingal, Sinn Fein)
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We are steadfast on this.

Pearse Doherty (Donegal, Sinn Fein)
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The Minister is talking rubbish. I challenge him to produce an alternative budget to back up what he said about standardisation. It was a complete mistruth, and he knows it. He cannot defend this decision. I asked him a simple question about why we should ask Tesco workers, hairdressers and shop floor workers to help contribute to pension pots of €2.8 million for the wealthiest in Irish society. This measure will entitle the wealthiest to State-supported pensions of €100,000 and a tax cut of €320,000. That is what the Government announced yesterday. Why is the Government asking ordinary people to do it? Why does it believe the State should help people build up pensions to that level?

The Minister is correct, in that the pension pot used to be €5.4 million.

That was the last time Fianna Fáil was in government, right before it wrecked the economy and brought the IMF to our shores. It was madness then. It is madness now. We should not go back. Answer the question. Why should ordinary workers help to contribute to the pensions of the most elite in Irish society? Ordinary people do not have a whiff of pensions of €70,000, €80,000, €90,000 or €100,000. Why does the Government believe they should contribute to this? Why should this tax break of €320,000 go to people who already have pension pots above €2 million?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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It is nothing of the sort, and the Deputy knows that. I do not know whether the issue of pensions is a matter he discussed when he went to London to meet potential investors in this country recently. This is about acting on an independent report that has come forward. In a very phased way from 2026, the standard funding threshold will be increased. While we are doing that, the Government has been reforming the pension arrangements in this country and is bringing forward auto-enrolment for workers, which is really important.

Pearse Doherty (Donegal, Sinn Fein)
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Crumbs. The tax break is €320,000.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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It is not crumbs.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Please, Deputy.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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About 50% of people in this country have made pension provisions themselves. That is it. About 50% do not have any pension provision. That is our absolute focus. That is why we need to keep things such as the ability to claim tax relief at the marginal rate, not like the Sinn Féin proposal that any average worker out there who is earning will pay more in tax.

Pearse Doherty (Donegal, Sinn Fein)
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Nonsense.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I will send Deputy Doherty the documentation from Sinn Féin that proposes to reduce the pension tax relief to the standard rate. That would be a real cost to workers and people.

Pearse Doherty (Donegal, Sinn Fein)
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The Minister cannot defend the policy; the indefensible.

Ivana Bacik (Dublin Bay South, Labour)
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Mine is a simple question today. How can the Minister say his Housing for All policy is working when over 4,000 children are homeless? Everyone deserves the dignity of a roof over their head, and the basic responsibility of the State to provide shelter and homes is even more pressing when it comes to children and young people. On the formation of the First Dáil, the first document produced was the first Democratic Programme for the new Republic. Labour's significant contribution to that delivered the strong commitment that the first duty of the Republic would be the welfare of all its children, a principle as resonant today as it was a century ago. In the intervening years, so much has changed and our economy has grown, but we cannot say that this is an equal Republic for every child. Our Republic has not discharged its vital duty to protect the welfare of our children.

Next Friday, we will learn yet more grim records have been broken when August's homelessness figures will be published. Already, 4,401 children are in emergency accommodation in this State. That heartbreaking figure is not indicative of a working housing policy. Indeed, it represents a shocking increase of more than 70% in child homelessness over the three years since Housing for All was launched. This is not just an empty statistic because each child in homelessness is a child whose life has been blighted by the experience. There are children doing their homework on the floor of a hotel room and a family hampered and humiliated by a failure that is a failure of Government. No amount of glossy pamphlets or flashy press conferences from the Government can obscure the reality that for those who seek a home, things are getting worse and not better.

On every key metric, the Government's housing policy is failing. It is failing people of every generation. It is clearly failing our children. It is failing renters because the Government failed to incorporate the protections we proposed in our renters rights Bill. It has failed because there have been rent increases of 27% over the past three years. It has failed because more than 23,000 eviction notices have been issued from quarter 2 of last year to the second quarter of this year alone.

The Government is failing those who wish to buy a home. The average age of a first-time buyer is now 39 and the CSO has revealed that house prices have increased by almost 10% in the past year. That news comes on the same day that the Central Bank warns that the Government will miss its house building targets this year. I know the Taoiseach has assured us that the Central Bank is wrong, but the Government has consistently missed targets on social housing and the dogs on the street know that the targets are too low anyway. The Central Bank, the Housing Commission and many more agree with us in Labour that new targets of more than 50,000 new builds per year must be published. We have not seen those targets yet. Speculation about election dates is now rife. That speculation is going everywhere. The Minister's Government colleagues have thrown around spending promises all summer like confetti at a wedding. We all know there is a very limited time left to this Government. In the limited time available to the Government, will it change tack on housing, invest the Apple billions in delivering homes, introduce real protections for renters and, crucially, pass our homeless families' Bill to protect children and keep them out of homelessness?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I thank Deputy Bacik for her questions and comments. Those in emergency accommodation and homelessness remain the number one challenge for this Government. In a number of counties across the country, we are seeing continued decreases in the numbers accessing emergency accommodation and increasing exits from such accommodation. In quarter 2, 630 households were able to exit emergency homelessness accommodation into safe and secure homes. The big focus for me and this Government is to continue the increase in social housing output. Last year, we delivered more new social homes than we have done in over 50 years.

Joan Collins (Dublin South Central, Independents 4 Change)
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Shame.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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We will hit our social housing target this year. We have delivered over 6,000 affordable housing solutions this year. When we came into government, there were no affordable housing solutions. There was no cost-rental housing or secure tenancies for working people. Nearly 2,000 tenancies have been put in place through cost rental that we legislated for and funded. We will see a continued increase in house building and delivery across the country. In the past 12 months, there have been over 50,000 housing starts.

Regarding the Central Bank projections, that is a matter for it. Central Bank projections in the past couple of years were off and we know what the pipeline is. There is a pipeline of about 25,000 social homes alone being built or in design and planning at this stage. The number of focus remains an increase in housing output, along with good public and affordable housing and private housing.

There are now almost 500 first-time buyers a week purchasing their homes, the highest number since 2006. Many first-time buyers are using the measures we brought in, such as the first homes scheme, which has over 11,000 registrations. The first home scheme bridges the gap for first-time buyers. Nearly 50,000 household have claimed the help-to-buy grant, whereby they get €30,000 of the tax they have paid back into their pockets to help with a deposit. Those numbers are increasing all the time and this will remain our focus.

To be fair, the Deputy and her party colleagues have always been very constructive with regard to the debate on housing. It is still a challenge. The single biggest focus I and this Government have is continuing to exit people from emergency accommodation to safe and secure housing. As the Deputy and I know, as I chair the national homeless action committee, this is a complex issue. People enter into emergency accommodation for a myriad of reasons. Those reasons can include notice to quit, family break-up or a number of other reasons. We publish that data very openly and transparently every single month, as we will do again on the last Friday of this month.

I am optimistic, based on the fact that the number of exits are increasing substantially and nearly a thousand households have been prevented from entering emergency accommodation in quarter 2 of this year due to measures like new build homes and the purchase of homes for tenants in situ, which has been an unquestionable success and is continuing into this year.

Ivana Bacik (Dublin Bay South, Labour)
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I listened carefully to the Minister's response but no matter how many figures he throws across the floor at me, on the key metrics his housing policy is failing. Rents, house prices and homelessness are all up. The Minister said the number one challenge is ensuring that people can exit from homelessness, but the number of exits is simply not keeping up with the number of entries into homelessness. I gave him the figure of 23,000 notices to quit in the 12 months between the second quarter of last year and this year. The primary cause of people entering homelessness is because they cannot find a home. They have been evicted and cannot find a home that is affordable to rent or buy.

I again ask what change in tack the Minister will make in the limited time left to him and his Government to ensure that we see a change and do not see an awful increase in homelessness at the end of every month. He published the figures and is well aware of the rising number of children in homelessness. What is he going to do about it in the next few months? I am offering him a constructive proposal. We published our homeless families Bill, backed by NGOs in the sector and those working on the coalface with families in homelessness. Will the Minister adopt our Bill? He supported it previously in opposition. Will he adopt it now and try to have some change to help support children in homelessness?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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We have to make sure that where people end up in a situation where they do not have a home, they are supported in the best possible accommodation that can be provided for them for as short a time as possible.

That is the reason for the Government support this year to the tune of €242 million for homelessness and emergency services and we will add a supplementary to that this year. I have always given the commitment to the NGOs in the sector that whatever funding is needed will be given. Last week, Focus Ireland acknowledged that it is optimistic about the number of exits from homelessness because of the increase in social housing output. The Government has delivered 115,000 new homes since it came into office and that was from a very low base, I might add. By most fair assessments, people would see that as progress. However, significant challenges certainly exist and my main focus is on continuing the housing output, which I believe will be between the high 30,000s and 40,000. That would be a significant step up. It will be made up of €5 billion in investment in housing the Government is making-----

Ivana Bacik (Dublin Bay South, Labour)
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And the targets?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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-----on behalf of our citizens. It is the most significant investment that has ever been made in the history of the State. However, we are dealing with a situation of significant under-delivery over a ten-year period and catching up on the pent-up demand.

Homelessness and exiting people from it remain the number one focus of me and the Government.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Despite the Minister's claims of success and his promises and commitments, while the Dáil was in recess the human misery resulting from the housing and homelessness crisis continued and escalated. Given that the Housing Commission and now the Central Bank have told us that the Government's plan, Housing for All, provides for approximately half of what is necessary to deal with the deficit in housing, future needs and especially the deficit in social and affordable housing, the future is grim. It is important for us to focus on what that means for human beings.

I will talk about some of the cases that came across my desk in the past week. Anthony is 67 years old. He has aggressive COPD and a heart condition. He has been homeless and couch surfing since October last year because he was evicted through no fault of his own.

I have known Gavan since he was a teenager. He is 62 years old. He is seeing a heart specialist and lung specialist and has an open ulcer on his leg. He was sleeping in his car. Then he was sleeping in his tent, which was recently stolen from him. He is homeless with nowhere to go.

Robert is 69 years old. He has heart disease and will be out of his home on 21 September because his wife died and the family is selling the home. He has nowhere to go. He was never on the housing list because he never thought he would be in this situation.

Linda is in her 50s. She is disabled, has scoliosis and cardiac disease. She has had a pacemaker since she was eight years old. She is couch surfing and has now been separated from her son because when people are couch surfing it is difficult to find a place for both themselves and their children.

There are other people, such as Sinéad who after 14 years on the housing list lost all her years because her son dropped out of college for a year and got a job. His income brought the family household income over the threshold and now all her 14 years on the waiting list are gone. He is now back in college, the family is back under the threshold but all the years are gone.

This is the sort of hopelessness people are facing. What will the Government do differently for these older people, vulnerable people, families and children who are in an absolutely dire state? In most cases, they are being told to go to hostels in the city centre, dormitory accommodation. Nothing is available in the locality. There is no prospect of a council house any time soon or, even worse, they have been knocked off the council list altogether-----

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Thank you, Deputy

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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-----with no prospect of being able to afford the private rents that are out there.