The social contract in Ireland is “certainly fractured at the moment” but it is not broken, according to the Finance Minister.
Paschal Donohoe was speaking after the ESRI warned that young people today will be the first generation since the foundation of the State to be worse off than their parents.
In a report published earlier this week the institute warned that young people were hit hardest by the pandemic – with employment among 15 to 34-year-olds at the end of last year down 14% on pre-pandemic levels.
On The Hard Shoulder this evening, Minister Donohoe said the Government’s main challenging coming out of the pandemic will be proving it can “meet the needs of so many young people that have such concerns about their future.”
“I believe [the social contract] is certainly fractured at the moment,” he said.
“The reason I don’t believe it is broken is that I would still, respectfully, make the case that we are in a country that provides very good education, I believe.
“We are in a country that can meet and does meet many needs that our citizens have. We are in a country that, for example, I would make the case, has shown its ability to respond back to an extraordinary challenge like the pandemic.
“But I would still not make the case that it is a social contract that is meeting the needs of all at the moment. It clearly isn’t.
“It is particularly in the area of housing and then, I believe, pensions in times to come, combined with the pay that some kinds of work make available, that I acknowledge we have a lot to do.”
Kieran sat down with @Paschald in the Department of Finance this afternoon to talk housing, higher taxes and #ThePlan
Full interview coming up after 5pm on @NewstalkFM pic.twitter.com/UslfyJzYmZ— The Hard Shoulder (@TheHardShoulder) May 13, 2021
The ESRI report found that young people are experiencing ‘wage stagnation’ and warned that the housing crisis was exacerbating the situation.
Minister Donohoe admitted that the Government needs to do more to tackle the crisis.
“In 2016, the amount we were spending on the building of new public housing in Ireland was €900m,” he said. “This year it is €3bn.
“The State is the largest builder of homes in Ireland at the moment and over the last four years or nearly five years, we built over 80,000 more homes.
“But even though I make that case now, I am equally clear that we are not doing enough. It doesn’t meet the needs of our society. It doesn’t meet the needs of those who can barely afford their rent and want to buy a new home and we need to redouble our efforts.”
"You are screwed." @kierancuddihy reacts to the latest ESRI report which states that home ownership for people in their 20s and 30s are the lowest they have ever been. Has our social contract been broken? @TheHardShoulder pic.twitter.com/YL3iqVggOA
— NewstalkFM (@NewstalkFM) May 11, 2021
He rejected claims the Government was trying to screw young people when it comes to housing.
“I would challenge the inference or suggestion I’m looking to screw anybody,” he said.
“I’m a public servant. I am in here and I am very privileged to be a politician and a minister and I believe in serving the people, the common good and in advancing the interests of my country.
Good chat with @kierancuddihy for @TheHardShoulder earlier today. Nice to welcome @NewstalkFM to the office for a change. Good discussion around Ireland’s future spending, managment of the economy and other important matters of the day. Tune in at 5pm pic.twitter.com/0L8ablio02
— Paschal Donohoe (@Paschald) May 13, 2021
“That being said, I do accept the charge that for younger people in particular – and these are younger people who have, in many cases, foregone their jobs, have foregone their income and foregone freedoms that they, correctly, took for granted over the last year - had to go through really tough times to protect the health of everybody and I therefore absolutely understand why so many feel the way you have just described.
“What I am committed to doing is making the case for what we have done but also acknowledging that for somebody like me who really does believe in the political centre and really does believe in a particular way of practicing politics that for many of your listeners of a certain age, they feel that is not delivering enough for them.”
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