Oireachtas Joint and Select Committees

Wednesday, 21 January 2015

Joint Oireachtas Committee on Education and Social Protection

Impact of Social Protection Payments on Income Distribution: Discussion

1:00 pm

Photo of Marie MoloneyMarie Moloney (Labour) | Oireachtas source

I also apologise for not being present for the entire briefing because, again, I was in the Seanad for a vote.

I thank the delegates and while I am not into all of the ESRI's figures and so on, I do know about the social welfare system and what people on the ground are getting. That is my strong point, not figures.

While Dr. Donal de Buitléir stated we had the most progressive tax and transfer system in the OECD, both absolutely and proportionately, I note that whenever somebody appears on television, he or she claims we have the most regressive tax system.

I cannot understand why people differ in those views. I ask Professor Callan to tell us why everyone differs in this assessment. The witness has outlined reasons some households are, so to speak, workless. I refer to the Minister's proposal on the back to work dividend. Will this have a positive effect for getting people back to work? Much of the time, the people I meet say they are better off not working because they can claim all these benefits. It is terrible to think that a person could be better off being unemployed rather than working. It is important that people are working and we should make every effort in our power to ensure that people are in the workforce. It is preferable for their own good socially, even if it is not economically preferable. It is important for people to be out working and interacting with others.

I have a concern about the future of the State pension. People are living longer, thankfully, and they are in better health. If we do not take action, will it be possible to provide State pensions in the future? It is vital that all those currently working know that at the end of their working days a State pension will be available. I ask for the views of the delegation on this point.

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