Budget 2021: Offaly Minister insists it had 'many important measures for rural Ireland'

Green Party Senator and Minister of State with responsibility for Land Use and Biodiversity, Pippa Hackett, has welcomed the 2021 budget, saying it includes many important measures for rural Ireland. She made the comments amid criticism that some measures, namely an annual increase in Carbon Tax, would hit rural communities harder than others.

The Rural Independent Group in the Dáil, which includes Offaly TD Carol Nolan, openly criticised the budget delivered on Tuesday, labelling it as “a gross injustice to rural living, farm families, motorists and livelihoods."

“The carbon tax hikes contained in the budget will hit rural Ireland and the poorest in our communities disproportionately hardest," group member Mattie McGrath said. The group claimed "there is nothing contained within it that will make a positive or noticeable difference to most people across rural Ireland."

However, Offaly Senator Pippa Hackett said: “We’re increasing the fuel allowance, the live-alone allowance, and the qualified child allowance.

“Next year we will spend €1bn on public transport throughout the country and €300m on retrofitting 29,000 homes. The retrofitting programme will employ 8,000 people and create 1,500 apprenticeships for retrofitters. The Midlands Retrofit Programme is already underway.”

In terms of budget for her own Department, the Minister welcomed measures that provide financial supports for farmers to enhance their land, diversify their incomes, and tackle the climate and biodiversity emergencies.

“As a farmer myself, I’m proud to announce support for the forestry, organic, and horticulture sectors,”, she says. “The allocation of €103 million will incentivise farmers and foresters to move to a new model of forestry using native broadleaves and continuous cover.

“I am delighted to have secured a 33% increase in the budget for the Organic Farming Scheme, to nearly €16 million. As an organic farmer, I have seen how it can deliver greater profit margins for the farmer.

“In horticulture, a 50% budget increase (to €9 million) will help Irish growers. We are currently net importers of fruit and vegetables – apples, carrots, and even the humble spud. We need to get back to growing more of our own food so we can reduce the carbon footprint of what we eat.”

Minister Hackett highlighted the targeted nature of spending on mental health, in the disability sector and for dementia care.

“During these extraordinary times we need to protect our most vulnerable people and I believe Budget 2021 does this effectively,” she says. “We have included supports for lone parents and an increase in the Carers Support Grant. Mental health services are to receive an increase of €38m in their budget. €13m will go to dementia care and 30 dementia advisors are to be hired. Disability services will receive a €100m increase in their funding. 990 new posts will be created for Special Needs Assistants.

“We also need to place value on our arts, heritage and recreation and I’m delighted to see additional spending in those sectors, particularly the support for artists and venues who are struggling at this time but are so crucial to our recovery.”

BUDGET 2021 - AT A GLANCE:

- The pension age increase to 67 will not proceed. It will remain at 66

- Headline social welfare rates unchanged 

- €4 billion to be spent on the health service

- No increase to income tax

- €3.4 billion unallocated Covid-19 Recovery Fund to be used as needed by the government next year

- €5 billion to be put into the Department of Housing - focus on social and affordable housing supply

- The price of a packet of cigarettes will increase by €0.50, bringing average pack price over €14.

- Wage subsidy scheme will be extended to end of 2021

- People can earn just over €400 in casual work without losing Pandemic Unemployment Payment

- ICU beds to increase from 255 to 321

- Price of petrol and diesel to increase by €1.20 and €1.50 per tank fill respectively 

- Carbon tax will increase by €7.50 per year until 2029 and €6.50 in 2030 to achieve €100 per tonne

- Help To Buy Scheme extended through 2021. Max rebate for deposit of €30,000.