Dáil debates

Friday, 11 December 2009

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages

 

4:00 pm

Photo of Seán PowerSeán Power (Kildare South, Fianna Fail)

A few years ago, we could never have foreseen the type of budget introduced on Wednesday. As a member of a Government party, it does not give me any joy or satisfaction to see social welfare payments being reduced. There have been very generous increases in social welfare payments in recent years and people in receipt of them have become accustomed to increased.

Were there alternatives? We live in a small country with more than 2 million people in receipt of some form of social welfare payment and where social welfare accounts for 33% of total Government expenditure in a year. That gives some indication of the amount of money we are paying in social welfare each week. The Minister and the Government were faced with a very difficult choice.

If one looks at people's habits, three or four years ago, they were saving approximately 2% of their disposable income but this year, it will have increased to 12%. It is purely out of fear of the future. People have little confidence in the future and are saving money because they do not know how rainy the rainy day will be. The Government must restore confidence at home in order to encourage people to spend and invest money. I know that is not possible in some cases. Equally, it is important to instil confidence in the people who lend us money, that is, that we are in charge of our destiny, we have a plan in place and we will be able to honour any debts which accrue.

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