Seanad debates

Tuesday, 14 December 2010

Social Welfare Bill 2010: Second Stage

 

6:00 pm

Photo of Paudie CoffeyPaudie Coffey (Fine Gael)

Only last week the Senator relayed how she had called to a house in which the occupants were on the breadline. They have worked and contributed to our society, but they have been devastated by the economic crisis that has hit the country. More significantly, it has put them on the breadline. Many such families were not in receipt of social welfare previously. In some cases, both providers in a home have lost their jobs and they are striving, might and main, to make their mortgage repayments, pay their ESB bills, among others, and provide for the necessities in keeping a household. It is a sad reflection on our society that we have arrived at this position as a result of Government policies followed in recent years propagated by the boom in the property market.

Fine Gael has been responsible in opposition. We acknowledge it is necessary to find new ways to keep the public finances in order. The Government deficit is running at €20 billion a year. Somebody should have sounded the alarm bells when we see the devastation caused by the economic crisis. A budget is about making choices. Fine Gael believes bad choices have been made in the budget. As previous speakers said, carers, the disabled, widows and blind people are vulnerable. A figure of €90 million has been mentioned as being the amount required to protect the payments to these categories. The cuts in the allowances paid to them will impact heavily on the most vulnerable in society. Many of them could not seek employment, even if there were jobs available. Carers have to stay at home to care for those who need care. Because of their disability many of the disabled are at a disadvantage in seeking work. The same applies to blind people. Last week on radio I heard blind people speak about their real life experiences. A basic requirement is that they be able to afford to feed the guide dog allocated to them.

On child benefit, as I said last week, the hard decision has not been made. Surely we could find a fairer system or mechanism. There are millionaires who could cope very well without receiving child benefit. I have been told candidly by individuals that they set aside their child benefit payments in a separate account to fund their children's education. At least, it is being spent on the children, but such parents do not need to receive the benefit. Surely we could come up with a fairer way to ensure the funding is targeted at those who need it most - those who are most vulnerable.

There are many hidden measures in the budget that will have an impact on the social welfare budget. My constituency of Waterford encompasses a large rural area. Many of the children in the constituency travel to school by public bus. Serious hikes in the cost of the school transport system are again being imposed on families who are already at the pin of their collar in trying to meet their basic requirements such as their mortgage repayments, heating and lighting bills. This added burden will push many into the poverty trap and towards dependency on social welfare payments.

Fine Gael has offered alternatives. We have said we would have introduced social welfare cuts but that we would done so in a such a way that people would have been incentivised to stay in employment rather than to move to social welfare payments. I was told by two employers in the past week that they had offered a job to a person who was unemployed, at an hourly rate of €12 or €13, but in both cases the person concerned refused the offer of a job because, having regard to their entitlements under the social welfare system as structured, it would not have made financial sense for them to take up the offer. That is the nub of the problem. We should be creating an economic climate in which jobs will be protects jobs and employers incentivised to take people from the dole queues, which would lessen the burden on the social welfare budget.

The issue of social welfare fraud was mentioned. If we were candid, we would admit that there is fraud in the social welfare system. It is a problem that must be tackled once and for all. We cannot afford to continue paying benefits on foot of fraudulent claims. I am sure the Minister can give us examples to highlight the progress made in rooting out fraud, but there is still a long way to go. The net effect of fraudulent claims is that there is less in the system to provide for those who are most vulnerable and most in need.

I mentioned the electricity companies. One month ago I called on all electricity suppliers to show leniency during the recession by not disconnecting a customer's electricity supply, the most demeaning and base action that can be taken. Most people are responsible when it comes to paying their bills. I am glad that the electricity companies have stated they will not disconnect a customer's gas or electricity supply during the current spell of bad weather. I would like the period in which such leniency will be shown to be extended for at least a year or two to allow people to recover from the effects of the current crisis.

Practical measures need to be taken by the Government, State agencies, suppliers and communities to assist those in most need. Now more than ever we need to help those who are vulnerable. Many are on the breadline and need our assistance.

Comments

No comments

Log in or join to post a public comment.