Pension age stays, childcare costs cut: Key takeaways from programme for government

Government schemes to help homebuyers also extended under new programme for government

Members of the Regional Independents Group: Kevin 'Boxer' Moran, Noel Grealish, Gillian Toole, Michael Lowry, Marian Harkin, Barry Heneghan, Sean Canney. Picture: Gareth Chaney / © RollingNews.ie

Smaller class sizes, gym membership tax credits, a new transport police and the retention of the pension age are among the measures contained in the draft programme for government.

Members of the Fianna Fáil and Fine Gael parliamentary parties are holding separate meetings in Leinster House to sign off on the document before it goes out to the wider membership over the weekend, paving the way for Micheál Martin to become Taoiseach next week.

Among the key measures in the document, which has been agreed with both parties as well as the Regional Independents and the two Healy-Rae brothers, are:

• The retention of the pension age at 66;
• A phased ending of the means test for the carer’s allowance;
• A retention of the lower Vat rate on gas and electrical bills;
• A new public transport security force modelled on the existing airport police force; 
• Creating a further 300,000 jobs by 2030;
• Reducing the cost of childcare to €200 per child; 
• 300,000 new homes by the end of 2030;
• Building a new prison at Thornton Hall to house 1,500 inmates; 
• Department of Public Expenditure to become Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation;
• Reform of the triple lock legislation in keeping with the existing policy of active military neutrality.

The Apple tax money will be spent on energy, transport, water and housing as had been flagged. However, health digitisation has also been added to this list to transform and bring the health system up to date.

Housing

Under the programme, the incoming government is set to establish a new starter homes scheme as part of a new national housing plan.

It has called for the introduction of a follow-up to the Housing For All plan, with an aim to deliver more than 300,000 new homes by the end of 2030. 

The new ‘starter homes’ scheme itself would promote “home ownership and secures long-term rental tenures for young people and fresh start applicants".

The programme for government says it will aim to deliver an average of 15,000 starter homes per year, which would be driven by the existing First Home and Help to Buy schemes — both of which are due to be extended to 2030.

The document has also pledged to extend the existing vacancy and dereliction grants to 2030, as well as introduce an “above the shop” refurbishment grant.

The document has also committed to progressively increasing the renters tax credit in the years ahead.

Justice 

Among the measures in the area of justice are funding for at least 5,000 new gardaí and staff over five years, as well as a commitment to increasing the Garda training allowance to make it more attractive to join the force.

The document says the government will expand the training college in Templemore and "consider" a second facility and allow trainees to carry out some of their training at regional technical universities as well as an "accelerated graduate entry programme" for the gardaí.

The document also says there will be a new Rural Safety Strategy as well as the rolling out of a nationwide "see something, say something" text line, the banning of face coverings at protests and a proposal to ban protests at private homes.

The government says it will build a new prison at Thornton Hall to house 1,500 inmates and appoint 20 new judges in the next 12 months.

On national security, it proposes the establishment of a new National Security Committee chaired by the Taoiseach.

Infrastructure and transport 

While a standalone infrastructure department will not be introduced, it will be rolled out as part of a wider reshuffle of the Department of Public Expenditure.

The department will be expanded out to become the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation.

The document says that delaying project delivery results in higher costs while also hampering “our ability to provide the necessary infrastructure to service a modern society and economy”.

“It also represents a real risk to our competitiveness and to our attractiveness as a location for foreign direct investment,” it adds.

A new Cabinet committee on infrastructure, led by the Taoiseach, will be established to “drive infrastructural delivery, accountability and value for money”.

On transport, the new rejigged department will be responsible for streamlining the delivery of major transport projects, such as the Metrolink.

The programme calls for an increase in the number of average speed cameras throughout the country.

Alongside a review of the National Development Plan, the document calls for new public transport projects to be considered for inclusion, which includes further investment in light rail in cities other than Dublin.

It adds that every metropolitan area should have a “tailored transport strategy”, which includes “frequent bus services and light rail where appropriate”.

The document also calls for the commissioning of an independent study on continuing the Metrolink track from Dublin city centre to southwest Dublin.

The new government will also examine further expansion of free public transport for children.

On road infrastructure, the document says that the incoming government will invest in all road projects within the current National Development Plan, but that it will consider other “important road projects” as part of its review.

The programme calls for an increase in the number of average speed cameras throughout the country, as well as the introduction of road safety cameras to detect phone use and non-wearing of seatbelts while driving.

There is also a promise to allow for the public to upload their own dashcam footage to a new Garda portal.

Drugs

The incoming government is to take a health-led approach to drugs, as Fianna Fáil’s proposals on cannabis decriminalisation are kicked to touch.

It is understood that the Oireachtas Committee on Drug Use, set up during the previous Dáil, would be reconstituted to examine the Citizens' Assembly report on the matter.

Previously, Taoiseach Simon Harris argued against decriminalising cannabis, saying that there needed to be a health-led approach, but cautioned against “creating a social acceptance” to drug use.

The measure was pushed by Tánaiste Micheál Martin, saying it was not the same as the legalisation of the drug.

The establishment of a transport police was seen as a particularly important measure for Dublin TDs, who want to see the use of 24-hour public transport.

The document also sets out an aim to reach a pupil-teacher ratio of 19:1 in primary schools.

Migration 

Under migration, the new coalition promises a "fair, but firmer" system which would continue much of the changes set out in the area in recent months.

Additionally, it is calling for accelerated processes for those who arrive in Ireland with no documents or who have already had applications denied in the EU. Those who are subject to an accelerated border procedure would be housed in specific accommodation.

Migration will return to the Department of Justice, while asylum applicants will have to contribute towards their own costs. The document also says that the Government will use fewer hotels and give communities more notice when facilities are being opened. Charter flights will be used for deportations "as needed". It also suggests that in some cases the right to appeal could be limited.

Enterprise

On enterprise policy, the government has targeted creating a further 300,000 jobs by 2030, which they say will be “supported by strategic investments, supportive enterprise policies, and a focus on fostering a vibrant economy”.

The document says the new government would “recognise the central role data centres play in contributing to economic growth and the enterprise economy”. However, it says that it must ensure “efficient grid usage” and that any waste heat is captured for district heating.

It adds that the government will “work to ensure that Ireland is the most secure location for data storage, management, and services within the EU”.

The incoming coalition's enterprise policy also calls for the ratification of the controversial CETA trade deal, despite a Supreme Court ruling finding that the EU-Canada trade deal was unconstitutional[/url[.

It will also review and “simplify” the existing tax system for businesses and enterprise to help “promote innovation and economic growth”.

For workers, the programme for government commits to promoting flexible working arrangements that would “benefit both workers and employers”.

Michael Lowry, Barry Heneghan and Kevin “Boxer” Moran at Leinster House this afternoon.

Tax

The new government has pledged to continue the practice of indexing tax bands and credits for individuals “if the economy remains strong”.

However, in the case of an economic downturn, the incoming coalition has said that they would continue to maintain spending on public services, but postpone tax cuts and changes to tax credits.

“We would work to protect the funding of existing level of public service delivery,” the document reads.

It is also pledging to continue to run budget surpluses throughout its five-year term of office, but that it will “fund appropriate levels of current and capital expenditure growth to meet the needs of our people and address the challenges of our growing population”.

The new government will also begin an early review of the National Development Plan, which is slated to be complete in six months' time.

Business supports

Businesses are in for further supports, with plans for an employers' PRSI cut.

Further measures contained within the programme for government include a commitment to cut the Vat rate for hospitality to 9% in the next budget.

The document also contains a commitment for further business supports.

There are also plans to expand out the existing First Home Shared Equity scheme, which will see it become applicable to those trying to buy second-hand homes.

Both the First Home scheme and the Help to Buy scheme will be extended out to 2030.

Fine Gael’s proposals to put €1,000 into a savings scheme for all newborns, known as the Acorn scheme, will also not form part of the final document.

However, the programme for government will call for the idea to be explored.

It is understood the document itself has a commitment to enact the Occupied Territories Bill.

It is also understood to contain commitments to further reduce the third-level student contribution fee over the incoming coalition's term of office.

Rejuvenating Cork City

A taskforce aimed at rejuvenating Cork City will be formed "soon" according to the document. It will follow the model laid out by a recent scheme to improve Dublin.

The document also commits to working to complete the Cork Events Centre, as well as building an elective hospital and surgical hub in the city.

It says that building the long-delayed events centre would "enhance Cork's cultural landscape and boost the city's regeneration".

There is also a commitment to review the country's aviation strategy in order to maximise the use of Shannon, Knock and Cork airports.