Ireland: FG Finance Spokesman Richard Bruton and Simon Coveney TD attack FF supplementary budget impact on Middle Class and Families-7/4/09

Families Pay the Price for Fianna Fáil's Failures - Bruton

No Jobs Plan as Dole Queues Set to Hit 520,000 in 2010

Banks & Speculators Bailed out with €90bn Gamble of Taxpayers Money

Ordinary families are being hammered with today's Budget and are being made to pay for Fianna Fáil's failures on the economy, according to Fine Gael Deputy Leader & Finance Spokesman, Richard Bruton TD. He also pointed out that there was no serious plan to protect and create jobs, despite the fact that the Government were expecting 520,000 people to be on the dole queues next year. In addition the creation of a new asset management agency for toxic debt represented a €90 billion gamble with taxpayers' money to bail out banks and property developers.

"Many families will be brought to their knees by the taxes and levies imposed in this budget. Fine Gael proposed a savings programme of €3.5 billion split 1/3rd on tax increases, 2/3rds on spending controls. This Budget does the reverse and results in ordinary families picking up the tab for Fianna Fáil's destruction of our economy. In fact 75% of the Government's current savings in year one of their plan comes from increased taxation. Because of this reliance on taxes rather than spending controls a family with two children with an income of €60,000 will lose €4,600 in extra taxes as a result of this Budget. That represents an 8% cut in their family income.

"Wider than this raid on Irish families, with 520,000 people expected on the dole next year, the absence of a plan to get people back to work is an astonishing omission from today's presentation. The Taoiseach announced 'jobs jobs jobs' as his priority at the Dublin Chamber of Commerce earlier this year. This Budget shows no evidence that employment was a priority. There is no stimulus package, no pro-jobs tax measures and no real sense that the Government have any idea of how to get the country moving again.

"Finally, Fianna Fáil has taken a massive €90 billion gamble on behalf of the taxpayer in bailing out the very property speculators and banks that dragged our economy over a cliff in the last few years. Rather than adopt the Fine Gael policy on this issue which would see the banks being responsible for the bad debts they had racked up, it is now the taxpayer that is exposed. We have precious little by way of detail about this new bailout plan for the property speculators and banks and the real risk is that this bailout will leave the taxpayer fatally exposed to the bad debts of others.

"If ever there was proof that this Government was not capable of leading the country out of this recession, then today's Budget is final proof. No plan for jobs, the wrong balance on tax increases and spending cuts and a dangerous bailout plan for property speculators and banks confirms that this Government is hopelessly out of its depth in dealing with the economic crisis that they caused. I have said repeatedly that no economy can tax its way back to recovery - this Fianna Fáil Government had just decided to try it anyway. As usual, when Fianna Fáil get it wrong, ordinary families pay the price."

Budget pounds young families, middle income earners the hardest- Coveney

Parents in their 30's with young families pay the bill for disastrous FF mistakes

Young families and those on the modest and middle incomes will bear the brunt of the pain inflicted by the Government's Budget today (Tuesday), Fine Gael Communications, Energy and Natural Resources Spokesman, Simon Coveney has said.

"All the pre-Budget pretensions by the Government that this Budget would be fair have been proven to be totally false.

"Those on middle incomes will take the hardest hit. This is especially true of young families.

"Ordinary families will be hit for an average of €2,500 and those families just starting off will take a particularly hard hit. For example: Two parents in their 30's, one with an income of €56,000 and the other a stay at home parent, who purchased an apartment seven years ago and have one child will see:

- Their income levy doubled
- Their health levy doubled
- Their PRSI up 4%
- Their Mortgage Interest Relief abolished
- Their Child Benefit massively reduced next year
- Their Early Childcare Supplement abolished within the year

"The Budget is a targeted attack on our young generation. Those in their 20's and 30's on middle incomes who, if they are lucky enough to hold a job, are already struggling with mortgage repayments and the high cost of living."

Brian Lenihans Budget Speeech may be sourced here

Ireland: FG €11bn/100,000 Jobs Stimulus Plan announced by Enda Kenny

FG Plan will Transform Irish Economy for next Thirty Years

Enda Kenny today unveiled his Party's plan (Rebuilding Ireland) to generate an €11bn stimulus plan to kick start the Irish economy and generate 100,000 jobs over the next four years. The plan involves the creation of a new industrial development holding company, NewERA (New Economy and Recovery Authority) that will be responsible for delivering a targeted series of large scale investments in green energy power generation, telecoms and broadband roll-out and an upgrading of all our water distribution and treatment networks. The ambition of the Party is to turn Ireland in to the most competitive and sustainable economy in Europe. The plan was brought to the Fine Gael Front Bench this week by the Party Spokesman on Energy and Communications, Simon Coveney T.D. The FULL TEXT may be downloaded here

This policy document is a worthy contribution to the debate on the future direction of Irish economic policy. It is well researched and is brimful of original and radical proposals, which have the potential to radically transform the Irish economy and drive future economic growth. The FG party and Simon Coveney in particular deserve our gratitude. FG in recent months has published a raft of well-researched policy documents. No opposition party in Irish political history has brought policy development to such levels.

Commenting on the plan today, Enda Kenny said;
"Fine Gael has a plan to get this country back to work. More than that, Fine Gael has a plan for our economy that will help make us the most competitive and sustainable economy in Europe. We have long recognised that the Fianna Fail model of selling property to ourselves was not a viable long term strategy for the Irish economy. That is why we have consistently driven the need to return to the basics that made our economy strong in the first place. That means getting costs down, regaining competitiveness and producing things that international consumers want to buy. This plan today sets out a roadmap that will get 100,000 people back to work in the next four years, but in the process, will position our economy as a world leader in green energy, make us energy self sufficient and a net energy exporter by 2020 and turn us in to a genuine hi-tech base for Irish and overseas investors.

"The creation of the NewERA holding company to drive industrial development in key strategic areas allows that entity to borrow monies from the EIB (European Investment Bank) and issue bonds that do not affect our national debt calculations. That is because, as a commercial semi state, the NewERA investments would be treated as financial investments seeking a commercial rate of return. By moving existing NDP investments and new additional investments "off the balance sheet" in this way our strategy also helps with the parallel objective of cutting exchequer borrowing.

"The additional €11bn in investments funds that NewERA will manage, on top of the outstanding €7bn worth of NDP projects in the relevant areas, will be funded from a combination of sources. These include the draw down of National Pension Reserve Fund monies, additional forms of borrowing by NewERA and the sale of existing state assets that it is judged no longer serve the strategic goals of the NewERA initiative. These sales will only take place when market conditions are favourable and will have to be approved by Government and the Oireachtas. The funds raised by these asset sell offs can then be used to replenish the NPRF and will, in effect, result in the swapping of old state assets for new state assets in the form of new green energy and broadband infrastructure."

Commenting on the report, its principal author, Simon Coveney said;
"As a people we can begin the fight back against the recession with this stimulus package. At the core of Fine Gael's vision for Rebuilding Ireland and cutting unemployment is our proposal for €11 billion in new investments in the cutting edge technologies and network infrastructures - energy, transport, communications and water - needed to reposition Ireland as the most competitive and sustainable economy in Europe.
"Supported by these investments, Ireland can drag its economy out of recession by:
- Unclogging the key arteries - like energy, transport, broadband and water - that have so damaged our competitiveness in recent years and held back private sector investment in Ireland;
- Becoming a world leader in green energy technologies;
- Giving tens of thousands of homes, businesses and farms a role to play in protecting the environment, and an opportunity to generate extra incomes, by selling their own renewable energy into the electricity grid;
- Starting to power our cars with domestically produced renewable energy, rather than spending billions on foreign fossil fuel imports; and
- Eliminating the "digital divide" and giving every child, home and business the same access to the education, entertainment, health and information services that will be delivered over "next generation" broadband telecoms networks.

"The ownership of a wide range of existing and new state companies involved in energy, transport and communications will be vested in NewERA. Among the existing state companies that will be moved under NewERA will be the ESB, Eirgrid, An Post, Bord Gais, Bord na Mona, Coillte and the Metropolitan Area Networks (MANS). The new commercial state companies will include;
Smart Grid (ESB Networks restructured and split off from the ESB Group) that will invest an additional €3.3 billion (over and above existing investment plans) between 2010 and 2013 to develop a 21st century "smart grid"Broadband 21, to invest an additional €2.5 billion in amalgamating and building out the diverse telecom assets of existing state companies,BioEnergy Ireland will merge together Bord na Mona, Coillte and the National Council for Forest Research and Development (COFORD), to invest €800 million in 2010-13 to become a global leader in the commercialisation of next generation bio-energy technologiesRenewable Energy Ireland which will invest in early stage green energy companies and applied renewable energy research, with a particular focus on technologies that can be licensed.Irish Water will take overall responsibility for providing safe clean drinking water and treating waste water through an expanded water infrastructure investment programme.Greener Home Bank will help tens of thousands of home owners across the country upgrade their homes to challenging new energy and waste water standards.

"The new jobs will be spread evenly between regions and skill levels, and will include thousands of jobs in the following areas:
- Telecoms, civil and structural engineering- Plant maintenance and operation- Scientific researchers- Insulation and home energy appliances- Plumbing, electrical work and other construction crafts- Software programming and support- Forest maintenance and timber processing- Digital content production for health, education and Government services

Deputy Coveney continued;
"By stimulating new investment and job creation in the economy, and by moving some NDP investments out of the exchequer and into "NewERA" commercial state bodies, NewERA investments will also cut the Government borrowing requirement by just over €4 billion by 2013.
"If Fine Gael were in Government tomorrow we would begin preparations straight away so that the NewERA investment and stimulus programme could proceed in 2010.
"Among the actions by Government now needed to make this happen are:
1. New legislation establishing by May the New Economy and Recovery Authority (NewERA) as an independent state company, and allowing the Government to vest ownership of commercial State companies into NewERA;
2. The appointment of a board of directors by June and a management team by September.
3. A further amendment to the National Pension Reserve Fund Act 2000 by May further extending the Government's powers to direct the €9.2 investment by the NPRF Commission into NewERA over the period 2010-13.
4. Government recapitalisation of the EBS by June, making it a state-sponsored mutual building society, with a new board of directors appointed by Government.
5. The establishment of ESB Networks as a stand-alone company, separate from the rest of the ESB Group, and re-branded as "Smart Grid".
6. New legislation by the Autumn establishing Irish Water and transferring the responsibilities for maintaining and upgrading our water infrastructure from local authorities to the new State company.

"Fine Gael has a plan to get our economy back on the right track. We can become a world leader in key industries and create a thriving and, importantly, a sustainable economy. The smart decisions have to be taken now though so that we avert a further slippage down the competitiveness, jobs and IT league tables of the world."

Ireland-Government votes down FG private members motion on autism

Last night the Government on a vote of 75 to 66 voted down an FG private members motion supporting the provision of ABA for any child who was recommended for the method by psychological assessment.


Fine Gael Education spokesman Brian Hayes in an impassioned speech accused Minister Hanafin of having a “belligerent, authoritarian attitude”. He challenged FF backbenchers to pressurise their party leader on the issue.


Former FF Minister for Education Mary O’Rourke supported the thrust of the FG motion. She alleged that there was a “lingering animosity” in the Department against the provision of ABA services.
The public gallery was packed with parents of children with autism. Undoubtedly some anticipated that Mrs O’Rourke might vote for the FG motion on the basis of her comments. Unfortunately she voted with the Government against the FG motion. FG TDs Simon Coveney and Kieran O’Donnell referred to Mrs O’Rourke’s contradictory stance, in Dail speeches.


No Government TD broke ranks to support the FG motion. FF TDs at constituency level supported the demands of the parents. This support evaporated in the Dail. Green Party TDs as usual failed to provide leadership on the issue and in their utterances are indistinguishable from FF.

Undoubtedly the provision of ABA services -for children recommended by psychological assessment- would be costly for the taxpayer. Nevertheless the costs are miniscule in relation to wastage of exchequer funds on PPARs and Electronic Voting.
Interestingly today The Public Accounts Committee heard that a €9.57m contract awarded for work on part of the Limerick main drainage scheme ended up costing the exchequer almost €83m. The extra €73.43 million would certainly resolve the difficulties in relation to ABA services.


This Private Members Motion has undoubtedly heightened awareness of the problem. It has embarrassed the Government. Nevertheless the problem will fade from public consciousness unless FG can keep the issue on the political agenda. The Government must relent. Parents of autistic children and the children themselves have suffered enough.






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Ireland-Fine Gael unveils radical proposals to improve broadband access

Fine Gael's Communications Spokesman Simon Coveney TD, today launched a radical plan designed to pressurise the Government into the the delivery of next generation broadband across the country and in so doing improve Ireland's competitiveness. The Government has been lethargic and complacent for too long. Hopefully the FG proposals will elicit a prominent Government response.

The ten point plan is strong on analysis of the problem but more importantly it is brimful of concrete proposals designed to expedite the roll out of the next generation broadband communications infrastructure delivering high speeds.

Mr Coveney stated that Government broadband policy had failed to deliver in terms of penetration and in particular in terms of bandwidth and download speed. Ireland is 33rd out of 35 OECD countries for average internet speeds, ahead of only Mexico and Turkey.
"According to the latest OECD figures, 15.4% of the Irish population subscribes to broadband, with speeds of little over 3 Mb per second, while the OECD average is 13.7 Mb per second...
In Denmark, the Netherlands and Switzerland, over 30% have broadband access."

Many of Ireland’s developed economy competitors have long since seen the importance of investment in Next Generation Access.
Korea is recognised as the world leader in such investment. Through its “Korea Information Infrastructure Project” (KII), launched in March 1995, the government invested US$800 million in putting a government-owned fibre-optic backbone network in the ground.
Successive investments by both private and public sectors have seen the country remain close to the top of global league tables for both penetration and average speeds ever since. It now enjoys average download speeds of 43.3Mbps.
Japan is another country in which the government recognised at an early stage the importance of investment in high-speed internet infrastructure, and the country now enjoys average speeds of 93.6Mbps

"Fine Gael's document 'Creating a Fibre Nation' mandates the Department of Communications to undertake a comprehensive audit of all ducting capable of accommodating fibre optic cable, both in public and private ownership. Following this audit, we are calling on the Government to tender out to the private sector a ducting roll out programme that will facilitate and encourage the investment in fibre optic cable that is required for next generation broadband access.

"What is particularly important is the need to upgrade the existing copper wire infrastructure to fibre optic cable.
"Essentially what the State needs to do is invest in expensive ducting infrastructure as well as coordinating existing infrastructure to create a broadband fibre network with adequate back haul in the ownership of the private and public sector.

"There is also an urgent need for legislation to be passed to require ducting for broadband to be installed in all new housing and apartment developments as well as being part of all new road-building.

"Fine Gael also calls on the Government to review and upgrade its National Broadband Scheme to provide for high-speed internet access to rural areas of the country. Otherwise Government policy will be adding to an already existing urban-rural divide.

"For any country competing in the global economy, next generation broadband access is essential, but for Ireland, shortcomings in this area are a serious impediment to our plans to create an economy based on technology, innovation, research and development".

The full FG broadband policy document can be viewed at Fine Gael