Finian McGrath (Dublin North Central, Independent)

I thank the Leas-Cheann Comhairle for the opportunity to speak on this legislation. When the budget was announced I thought that finally the Government was listening to the views and policies of the Independent Deputies by taking a step towards narrowing the gap between the rich and the poor. I welcomed the fact that much of the additional Exchequer finances available to the Government were being targeted at the disadvantaged, the low paid and the disabled. I also welcomed the increased expenditure on social welfare, particularly the increase of €14 in the lowest rate of social welfare and the removal of national minimum wage earners from the tax net. They are all important and positive measures on which I commended the Minister at the time.

I particularly welcome the increased spending on services for those with disabilities. However, imagine my shock and horror when I discovered today on meeting a group of parents from St. Mary's St. John of God north-east services that, despite the promise of 250,000 extra hours of home support and personal assistance each year, their respite services will be cut drastically on 28 February. What is going on? The Minister promised major funding for services in this Bill, yet the Minister for Health and Children and the people involved in the health services — the Health Service Executive — want to cut services in these areas. This is crazy and unacceptable. From my information, in this case it is a question of funding. The families I met today and the people who work in the services have informed me that it is a funding issue, yet what is involved is the cost of employing an extra 64 staff. That is chickenfeed in this debate on the Finance Bill. I urge the Minister to deal with this matter in the next week or so. There is no excuse for this. I record my support for the families and friends of St. Mary's St. John of God north-east services. The bottom line should be about spending taxpayers' money wisely and efficiently on services for people with disabilities. I want to see an action plan in the next few months and an end to all cuts in services.

When dealing with this Bill, it is important to look at those areas where the budget did not deliver, particularly making work pay by easing the transition from welfare to work for those currently unemployed or in receipt of a social welfare payment. No assistance was given with the cost of child care, which continues to act as a barrier to employment, especially for women and single parents.

Many of the anomalies and imbalances between the welfare system and the tax system continue to trap people in welfare because it is not worth their while to take up low paid employment or a position in an active labour market programme. The threshold for the retention of secondary benefits remains unchanged at €317.43. I am disappointed the Minister for Social and Family Affairs failed to take the opportunity to rescind in full all the savage 16 welfare cuts. Only one has been fully rescinded, with ten amended slightly and five remaining unchanged.

I accept that the 2005 budget was more equitable than previous budgets but it is disappointing that not enough was done to address the needs of unemployed people, those on social welfare and those trying to access the labour market. This is an issue we must face because 65,000 children live in poverty. I urge the Ministers for Finance and Social and Family Affairs to target that sector in the next six months. Resources must be targeted at the most needy and I propose that those 65,000 children who live in and attend school in disadvantaged areas be supported as a priority.

I welcome the provision in section 9 of the Bill that exempts from income tax payments made by the Health Service Executive to foster parents in respect of the care of foster children. In addition, the section exempts certain discretionary payments by the Health Service Executive to carers for the care of former foster children aged 18 or over who suffer from a disability until such persons reach 21 or complete their full-time education course. Corresponding payments related to foster children made in accordance with the law of another EU member state have also been exempted under the section. All these are welcome measures.

There were many positive aspects to the budget and I commend the Minister for them but there are also major gaps and they must be tackled in the next six months.

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