Seanad debates

Wednesday, 18 December 2002

Social Welfare Bill, 2002: Second Stage.

 

Photo of Maurice CumminsMaurice Cummins (Fine Gael)

Cuirim fáilte roimh an Aire. I acknowledge the significant increases in the old age pension and child benefit in previous budgets. It was only correct that people on social welfare should share some of the benefits enjoyed by other sections of the community in recent years. When the purse strings tighten, however, the poor and vulnerable suffer the brunt of the cutbacks.

All budgets involve choices, particularly a budget in the difficult economic environment brought about by the Government's spendthrift policies in the last two years. The Minister for Finance said that a key budget objective was to protect the weak in society. Those experiencing disadvantage, particularly in housing, were alarmed at what the Government chose to do and what it failed to do. Requiring the recipients of SWA rent supplement to contribute a minimum of €12.40 instead of €7.60 towards rent means that the €6 increase per week in benefit is illusory. It is the economics of Paul Daniels, appearing to give an increase and then taking it away.

The failure to protect the vulnerable is even more obvious when consumer price inflation is taken into account. This is the most inflationary budget in many years and new announcements are made every day of the week. There was no budget increment for social housing and capital spending for local authority and social housing programmes has been cut by 5%, instead of being increased by 10% as committed to in the national development plan. That was another promise and another lie. The cost of new housing, social and private, has increased through VAT, in addition to the attack on first-time buyers through the withdrawal of the first-time buyer's grant.

Cutting back investment that supports local services such as schools, hospitals and local transport is another attack on low income families, as they depend on these services so much. The social infrastructure component of the public capital programme shows a cut of 5% in 2002 despite significant inflation. No wonder Threshold stated that the budget neglected the key aspects of disadvantage and poverty – inadequate and unaffordable housing and accommodation. The promised protection of the weaker sections of society has been withheld from those who need it most.

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