Statement by An Taoiseach Enda Kenny at the Announcement of Government Priorities 11th July 2014

Good afternoon everyone.

This morning the Tanaiste and I announced a new Cabinet to drive forward our agenda for the economic and social recovery of Ireland.

This afternoon we are publishing a new Statement of Priorities for the remaining 21 months of this Government’s term.

When we first entered office we outlined our plan to restore financial stability and return the economy to growth so that Ireland could successfully exit the EU/IMF bailout on schedule and restore our international standing.

Thanks to the hard work and sacrifice of the Irish people, that central national objective was achieved last December.

Today the economy continues to recover strongly as we emerge from the unprecedented economic crisis that engulfed our country.
Jobs are being created. 61,000 last year at a rate of over 1,000 a week representing the fastest employment growth rate in Europe.

But we also recognise very clearly that many families are still struggling to see signs of this recovery in their lives.

The job of this Government is to now use the space afforded to us by a recovering economy to introduce new measures to help working families.

We will be prioritising the decisions needed to broaden and deepen the economic recovery in a manner that is felt in the daily lives of individuals, families and communities across the country.

First and foremost this means jobs, jobs and more jobs.

We have to get Ireland working again and we intend to hit our target of full employment by 2020.

In the coming months there will be an unrelenting focus on the domestic economy by attracting more finance and investment to small Irish companies and to expand their presence in foreign markets.
Only yesterday Enterprise Ireland reported a record €17.1bn in exports by Enterprise Ireland client companies last year, achieving record levels of job-creation.

We need to build on that by helping small business trade online, get more credit available, and by targeting a 25% increase in the number of new start ups in the next five years with a new entrepreneurship policy.

We are committed to enacting legislation to establish the Strategic Banking Corporation which by 2018 we expect will make up €4 billion in low-cost funding available to small and medium sized businesses.

Equally, we have to target more job creation around the country.

Central to this will be targeting 25,000 extra jobs in the agri-food industry by implementing our €4 billion rural development programme.

In addition, the publication of the tourism strategy this week will form part of our plans to create 50,000 new jobs over the next decade.

The domestic construction industry will also continue to be a priority.

We need to start investing more in Ireland’s future and we will publish a revised capital investment programme for the remainder of the decade alongside Budget 2015.

It is imperative we improve the supply of housing for both home purchasers and renters. We are already seeing the consequences from the lack of supply in high demand areas.

Our Statement of Priorities outlines a number of actions to improve housing availability and affordability in this regard.

We will also publish new planning laws to support faster recovery and higher standards in the residential and commercial construction sectors.

In addition to creating more jobs we have to ensure that the fruits of recovery are felt by the workers leading Ireland’s recovery.

While this Government has already removed 330,000 earners from the Universal Social Charge, the introduction of that charge by the previous Government brought the top rate of tax to 52% for individuals and families on average incomes.

This is not tolerable or sustainable in the long run.

The Government wants to make work pay for working families.

To that end, we will roll out a 4 point plan to make work pay.

1. Firstly, we will reduce the 52% tax rate on low- and middle- income earners starting in Budget 2015 and to be delivered over a number of budgets. This will also help promote more job creation and improve Ireland’s attractiveness as a location of investment.
2. Secondly, we will establish a Low Pay Commission to make recommendations on the minimum wage to Government which is based on consultation and evidence.
3. Thirdly, In Budget 2015 we will also introduce measures to assist low income families by improving the system of child income supports such that those moving from welfare to work will retain payments for children to ensure that people are better off in work.
4. Finally, we will also increase access to subsidised childcare and after school places by extending eligibility and rebalancing parental contributions for families making their way into employment.

We also recognise the sustained and vital contribution of older people to our community and society.

As we roll out a universal GP service for the entire population we will prioritise the over 70’s in the next phase of its roll out.

It should also not be forgotten that a large part of Ireland’s progress to date has been due to this Government’s responsible and sustainable management of the public finances.

Well over 90% of the budgetary correction is already done and the sacrifice and hard work of the Irish people cannot go to waste.

For this reason we are committed to hitting our target of reducing the deficit to below 3% of GDP by 2015.

As we return to more normal times the Statement of Priorities offers a roadmap on how we intend to help working families and low and middle income workers.

To ensure the dividend of recovery is spread among all our people, in every city, town and village.
We will do everything in our power to see that recovery is felt everywhere.

Tanaiste