The Government’s decision to create a State Wealth Fund with the budget surplus “makes no sense” given the housing crisis, People Before Profit has said. 

Amid surging levels of receipts from corporation tax, the State is forecast to record a budget surplus of €10 billion this year and €16 billion in 2024. 

Minister for Finance Michael McGrath said the receipts could plummet as quickly as they have soared and that most of the cash would be saved rather than spent. 

“What this presents now is a once in a generation opportunity to make the nation’s finances safer and I do believe that this generation of politicians has an obligation to ensure that these windfall receipts are put to very good use,” he said. 

“Because we know we cannot make permanent expenditure commitments on the back of receipts that could prove to be temporary.” 

The tent of a homeless person living on the streets of Dublin City. Credit: Leah Farrell/RollingNews.ie

In March, Ireland’s homelessness figures hit a record high with 11,988 people in emergency accommodation and Richard Boyd Barret said the money should be spent on helping them. 

“The idea that the Government would consider putting billions of euros into a savings bank, into a piggy bank when there are children who have nowhere to sleep, who are sleeping in cars or being sent to hostels miles and miles away from where they go to school,” he said.  

"They’re being traumatised by the fact that they are their families are being made homeless - it just makes no sense."

In the 1990s, the Norwegian Government established a sovereign welfare fund following huge profits from its oil and gas industry. 

The fund is now the world’s largest single investor and in 2022 was worth $244,000 for every  person in Norway.

Main image: Richard Boyd Barrett TD.