Oireachtas Joint and Select Committees

Wednesday, 16 July 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion (Resumed)

3:10 pm

Mr. Robin Hanan:

A number of speakers have referenced the work by the Vincentian Partnership for Justice, which is increasingly being recognised as a way of establishing a basic minimum essential standard of living. The European Anti-Poverty Network Ireland proposal sets out short and long-term objectives. We see it as being really important that this year's budget, as we come out of recession, lays out not only what needs to be done next year but a longer term programme for building a more social inclusive society. In this regard, we are proposing a five-year transition towards a minimum income level, namely, the lowest level of non-contributory welfare payments which would bring everyone within that minimum essential standard of living. Of course, this has implications for all other benefits because to maintain that standard without increasing poverty traps - and rid ourselves of current poverty traps - one needs to look at ways through which other more conditional benefits are retained. We spoke earlier about the rent supplement scheme and the fact that its withdrawal on a progressive basis rather than slowly as people move back into work and so on is leading to the creation of poverty traps. The sudden withdrawal of rent supplement is a serious disincentive to people returning to work.

In regard to the term "minimum income" as part of debates across Europe on how to build a social element into the two pack, six pack and fiscal regulations to which the chairman referred earlier, we are trying to find a common basis of what is required to live a dignified life in any country across Europe. In terms of the figure suggested for the first year, we see this as being a first step as part of a five-year programme.

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