Ray Butler (Fine Gael)
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I welcome the witnesses and thank them for coming in. Over many years, problems about the living alone allowance have been brought to me. In one presentation we heard: "Catherine told us, 'I cannot afford either life or home insurance. I have to go to bed early to save on heating and electricity. My husband passed away last year and I still have not paid off his funeral expenses.'"

The living alone allowance is too small. When somebody dies and only one pension is coming into a house, where before there was a couples’ pension of more than €400, the amount is reduced to €33. When the Minister came to the Seanad he said he is considering this and he is going to increase the living alone allowance. I would like to see it go up to a figure of almost €300 but that may be fantasy. It is a huge problem with all the extra charges brought in during the recession that people living alone cannot afford. Heating and food are huge issues.

The bereavement grant and funeral grant have not worked out. There is funding for them but in some cases the death had to be reported to the community welfare office before the funeral director. The community welfare office got its own funeral company to deal with the funeral. People who went ahead and did it themselves got no grant even though they could not afford to pay it. That has to be reviewed. There is money in the Department for this. We should go back and some bereavement grant should be given. The new formula has not worked but has put extra stress on many people. The reduction of the fuel allowance from 32 weeks to 26 put a lot of hardship on people. I would like to see the new rate come in as well as the four weeks the witnesses have proposed. A lump sum payment is a very good idea.

I would like Ms Fahey’s opinion of school donations. They can be from €100 to €200 per school. There is intimidation in schools. I know of one in my area which will not give a locker key unless €100 is paid per child.

In another school in my area, a statement is sent out to those who have not paid the €100 upfront and the parents can pay off the sum over a period. I raised the issue at the Joint Committee of Education and Skills. This practice is totally illegal. The Department of Education and Skills does not encourage it but schools go ahead. I am aware that some schools have sums ranging from €50,000 to €300,000 in a bank account for the running of the school. I know schools can be underfunded at times. I have no problem with the parents associations fund-raising to get money to provide for the children in their school. However, demanding sums of either €100 or €200 per child from parents is extortion and is putting parents under serious financial pressure at a time when they have had to buy school shoes, school books and the uniform. This is a serious issue and I would like groups such as the Society of St. Vincent de Paul to state that people cannot afford it.

At a previous meeting of the Joint Committee on Education and Skills, I requested that we establish the number of bank accounts that exist in schools and whether the Department of Education and Skills knows how many accounts exist, but it could not give me an answer. I think it is a scandal that we do not know the number of school bank accounts and the amount of money involved. Schools ask parents who can ill-afford more outgoings for a donation of €100 or €200 per child.

A major issue is increases in social protection payments. In the past three to four years I have seen the impact of a small rise in a payment and how it can result in a person losing his or her medical card. I agree that the Department of Social Protection will have to engage in a great deal more consultation when it comes to raising social protection payments or the old age pension.

The economy is growing and an increasing number of people are finding work but I see the rise in personal debt. I am sure the witnesses are regularly getting through their doors people facing these difficulties. People are being bullied and harassed by institutions. They are becoming suicidal again. People need a small loan for a washing machine or to cover the cost of getting the necessities to send children back to school. I agree with the incentive the Minister has provided for credit unions to provide microfinance. Microfinance is a great idea but many credit unions have not signed up to this initiative. I would like to see them sign up.

Personal debt is a significant issue and I ask the witnesses to comment on whether the people they deal with are being harassed by institutions. The Irish Credit Bureau was past its sell-by date during the crash. We need to consider the system the Irish Credit Bureau has because it is past its sell-by date.