Oireachtas Joint and Select Committees

Thursday, 22 November 2018

Select Committee on Social Protection

Social Welfare, Pensions and Civil Registration Bill 2018: Committee Stage

10:00 am

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

I will put this in its full context. As far as I am aware, in many countries throughout the OECD there is a differential between the rates of pay to people under a certain age and those over a certain age. That is a fact. In 2010, when these changes were made in Ireland, we were just coming into line with international practice. That includes practice in the UK, including Northern Ireland, where Deputy Brady's party presided over that system when they condescended to sign up to government for a number of years. In any case, the fact of the matter was that the initial differential was introduced by a Fianna Fáil-led Government in 2009. I cannot recall the figures at the time but the difference was marginal. It has been widened considerably since.

The Minister mentioned the rationale for it. There was robust debate on the matter at the time. That will be shown in time when Cabinet minutes are released etc. The Minister has said that the wisdom of the policy is proven by the results. I do not think this is necessarily a case of cause and effect. The question must be asked as to whether, had this change not been introduced, we would be in roughly the same position in respect to youth employment as we are today. There is no definite proof of that and as far as I know, that is what Deputy Brady is trying to ascertain in his amendment.

He wants the study to see if the differential rates of pay have had the desired impact and what type of downside consequence it has had. There are always going to be downside consequences when one cuts social welfare benefits to whomever. I am not totally convinced, being mindful of the arguments made at the time, that the policy actually achieved the results it was brought in to achieve. We have a record low rate of youth unemployment now but I do not know whether that policy has anything to do with it. While I am open to correction, my understanding from the Minister's reply, to bring the matter up to date, is that she is doing this anyway.

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