Oireachtas Joint and Select Committees

Wednesday, 20 March 2013

Joint Oireachtas Committee on Education and Social Protection

Report on Child and Family Income Support: Discussion

2:00 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

In response to an earlier question, Dr. Sweeney said he did not pretend that the proposed solutions were perfect, but we know that. He also made the point that when a fixed amount of income is being redistributed, there will be winners and losers. I can understand that but surely we should be aspiring to an ideal whereby people at the top of the scale - the richer ones - should suffer most, while the poor should gain most. I know that we cannot achieve perfection but, no matter what example is used, these recommendations fall a long way short of that. A hell of a lot of poor people will lose quite substantially if those recommendations are implemented. I do not care which figure is used but we should consider the examples. A lone parent earning €20,000 per year with one child and the lone parent's allowance will lose. A married couple earning €30,000 a year will also lose, as will somebody earning €35,000 with one child. I do not think anybody could describe a person earning €35,000 a year gross, with one child, as being particularly well off.

At the other end of the scale, one may take the example of a person earning €60,000 while their partner earns €40,000. On a total income of €100,000 they will lose €1,140. Meanwhile, a family with an income of €250,000 will lose €760 which is slightly more than half what the people earning €100,000 will lose.

As regards what people on the family income supplement will lose, it was said that a compensatory factor is that those who do not currently qualify for FIS will gain. I agree with Senator Moloney who bemoaned the absence of FIS for the self employed. It is a very good point. If I am an employee working the requisite number of hours and am in receipt of FIS, I will lose money but it does not make me any happier that somebody else who was not gaining it up to now will do so.

I have two questions for the departmental witnesses. First, can they provide some other figures or examples and circularise them as quickly as possible? Second, it was stated that the report will probably have to be implemented over two or three budgets, and I accept that. However, if it will take so long to be implemented - and if it is the Government's intention to implement it - should they not start in the next budget in October? Has the Government indicated that it will start to implement this report? We are now coming towards the end of March and the budget is in October. Surely the preparatory work would want to start now.

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