Simon Harris says Government’s role to address ‘fractured social contract’

Economic and social factors are contributing to people having children later in their lives, the Tanaiste has said, as he raised concern over a “fractured” social contract.

Simon Harris said it is the job of Government to assist and enable people to make their major life decisions.

Ireland’s total fertility rate – measured by live births per woman – has declined from 3.85 in 1970 to 1.47 in 2024.

The Department of Finance’s own analysis finds that “births per woman have dropped well below replacement rate”, meaning that the population is ageing.

An increasing old-age dependency ratio will put pressure on the public finances with rising costs for pensions, healthcare and social services.

Mr Harris told the Press Association: “It does raise a number of important policy questions and considerations. One, obviously, is the the importance of skilled labour and skilled labour coming to our country and the very positive contribution that people who come to Ireland from abroad to work make in the country.

“How we factor that into our new national migration and integration strategy is important.

“Secondly, I think we also have to look at other issues in terms of how we can help and support people in terms of the social contract.

“People being able to buy their own home earlier, people being able to therefore consider their own life choices at an earlier stage and then other issues around childcare and the cost of raising a family.”

Mr Harris said the “two of the big” social and economic priorities for Government remain housing and childcare.

“People should always be prepared to make their own life decisions – it is entirely a matter for an individual – but the State should always be enabling people to make the decisions that they want.

“And where there’s housing delays and a childcare system that needs to be built and more affordable – I think they are real big challenges.”

Asked if he believed couples were delaying having children due to financial pressures around rising rents, increased house prices, and inflation, Mr Harris said: “I don’t know if that’s all of it and I don’t want to fully speculate on that important issue.

“But what I do accept is if you’re not able to buy a house until a certain age in Ireland, or if childcare costs become a barrier in terms of decisions people make about their own lives – they are concerns for Government and society.

“The job of a Government is to assist people and where it can’t directly assist to at least enable.”

He added: “Childcare is something that I feel really strongly about because I think there are people who had a whole variety of decisions on hold, including their own careers, the amount of hours they can work – so it’s in economic as well as a social issue.”

Mr Harris pointed to increases in the weekly figures for first-time buyers and an increase in home construction.

“But we know have got a lot more to do and the target of 300,000 homes over the lifetime of the Government remains the target,” he added.