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Paul Murphy Labels Budget a Giveaway to Banks and Landlords

Paul Murphy Labels Budget a Giveaway to Banks and Landlords

Paul Murphy criticised the government's budget as favouring banks, landlords and developers and said it leaves renters, workers, pensioners, carers and the unemployed worse off in real terms. He laid out detailed objections to the fuel allowance changes, cuts to public transport funding and proposed gaming industry tax credits lacking worker protections.

Main assessment


The speaker described the budget as benefiting banks, landlords and developers while providing "less than nothing" for renters, workers, pensioners, carers and the unemployed. He argued that many groups would be worse off in real terms next year because increases fail to match inflation.

Fuel allowance and means-test concerns


Murphy criticised a €5 weekly increase in the fuel allowance as inadequate against rising fuel costs, saying it amounts to about a third of what is needed when costs have increased by roughly €500. He highlighted that the announced increase in the means threshold - raising permitted means above the maximum state pension contributory rate to €120 - will not take effect until 6 January, leaving some pensioners unable to claim support this winter; he called for the change to be applied immediately and noted exclusions for those on illness benefit and PUP.

Public transport funding cuts


He accused the Minister for Transport of proposing an 18% cut in the PSO - contrasting last year's PSO payments of €659 million with a proposed €539 million next year, a €120 million reduction to CIE and related services. Murphy also pointed to what he said were large cuts in capital investment for sustainable mobility, carbon reduction and public transport totaling about €1.69 billion compared with the previous year, questioning how the Green Minister could endorse such cuts.

Paul Murphy — frame from speech: Paul Murphy Labels Budget a Giveaway to Banks and Landlords (13.10.2021)

Gaming industry tax credit and worker protections


On the proposed tax credit for the gaming industry, Murphy warned that working conditions in the sector are poor, with long hours, only 15% paid for overtime (and that 15% being those on less than a living wage) and limited employer pension contributions. He argued that any employment condition should go beyond a tick-box approach and include adherence to WRC codes of practice, payment of at least the living wage, guaranteed right to disconnect, paid overtime and proper pension provision.

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Transcript
This is, as we explained yesterday and outlined clearly, a budget for the banks, a budget for the landlords and a budget for the developers. It is not an exaggeration to say that there is less than nothing for renters, less than nothing for workers and less than nothing for pensioners, carers and the unemployed. All of whom would be worse off in real terms this time next year, because what has been given is less than the rate of inflation. I did a general speech yesterday. Today I want to go into detail in relation to a couple of aspects, because when you delve into the budget, you see just how much that is the case. To start with the issue of fuel allowance. The Minister and the Government made much of the fact of giving an extra €5, an amount that is not enough to cover the extra costs of fuel. You can do the maths, it is about a third of what is necessary in the context of fuel costs going up by €500. The Minister said to a director to address this, I am increasing the weekly rate of the fuel allowance by €5, this increase will apply from midnight to night. He went on to say, I am also increasing to €120, the amount of means allowed above the maximum state pension contributory rate for the fuel allowance. What he did not say there was, when is that going to be introduced? Clearly people were intended to be left with the impression that, just like the rate, the means test is also increasing immediately. I have been dealing with a guy who is a pensioner, his wife is a pensioner, that is the income they have, a small amount of extra income, and between them they are €5 over the current means test. Then he heard the news that they have increased it by €20, great, they will be able to afford fuel this winter. But what did I hear from the Department of Social Protection today? That the new means test will not apply until 6 January next year. It is cruel, that is mean, it is downright scabby, not to just say that we are going to allow people to pay for their fuel from now. To say that he has to wait until January before he can get fuel allowance. What is he and other people in his position meant to do? How are they meant to pay their fuel this winter? Why are they expected to wait until January? I would urge the Government, even at this late stage, to change that, to say that even that limited change in allowance, which still excludes those in illness benefit, excludes those in PUP, that change should be brought in immediately. The second point, very quickly, is in relation to Minister Ryan, who looked very pleased with himself yesterday and today with claims of green fingerprints on the Budget. But actually, the Minister was caught red-handed proposing a dramatic 18 per cent cut in the PSO subsidy for public transport. Last year, the Government gave 659 million euros in the public service obligation payments to CIE etc. Next year, Minister Ryan wants to give only 539 million, a massive 120 million euros cut in funding for public transport. A so-called Green Minister taking money away from public transport. On top of that is the cut. On top of that cut to current spending on public transport is what certainly looks like in the Budget books a massive cut in capital investment. Massive cuts in the sustainable mobility, carbon reduction and public transport amounting to an incredible 1.69 billion euros compared to last year. How on earth has a Green Minister for Transport signed off on such swinging cuts? Finally, I want to deal with the question of the tax credit for the gaming industry. It is a growing industry in Ireland, but it is an industry, and there was no mention of this by the Minister, where working conditions are very poor. There is huge pressure on people to work very, very long hours, particularly at crunch time, where only 15 per cent get paid for overtime, 15 per cent is those who are on less than a living wage. The vast majority of them do not get any pension contribution from their employer. The Minister says in the Budget book that we are going to have a condition of us to be quality employment like with the film industry. But it cannot be the same tick box exercise that they say, oh yes, we will abide by the laws in relation to employment, and then they get the tax credits. At the very minimum, in order to be able to avail of them, there needs to be a commitment to abide by all of the WRC codes of practice, to pay at least the living wage, to guarantee staff's right to disconnect, paid overtime and proper pension provision. Thank you. Thank you.