Dan Wallace (Cork North Central, Fianna Fail)

I too pay tribute to the Minister, Deputy Brennan, on the initiatives he has taken and the foresight he has shown in terms of the social welfare code. I am pleased to have an opportunity to make a brief contribution on the Social Welfare and Pensions Bill.

Most financial commentators, when addressing the annual budget, focus primarily on the impact on the economy of the various decisions announced by the Minister. We hear a great deal about the impact of taxation measures on take-home pay, and the effect of changes in reliefs and taxation policies on employers and large organisations. It is important to acknowledge that the decisions taken in recent years in various budgets have allowed our economy develop into one that is the envy of our European neighbours. It is equally important to acknowledge that we are in our current position because of sensible and prudent management of our finances. Those who are less well-off in society are equally affected by the decisions taken on budget day but the same level of focus and attention is not given to the impact of increases and changes in benefits to the lives of those who depend on social welfare. This Bill will give effect to many of these changes.

It has been previously acknowledged that our ability to look after the less well-off in society is directly related to the level of growth in the economy. Because of the growth levels achieved in the economy generally, and other Government initiatives, additional funds are now available to cater for this sector of the community. We have a duty to deliver on the expectations that have been created. Real and telling increases in social welfare rates should be provided to help people who are dependant on the State for income.

The budget for social welfare at €12 billion is the largest of any Department and it is vital that it is distributed in a manner that creates maximum impact for those in receipt of payments. Many organisations work to alleviate hardship among the less well-off in society and these organisations constantly articulate the needs of their clients and seek ongoing improvements in the rates of payment to ensure that we continue our aim to work towards narrowing the gap between rich and poor in society. The increase in benefits outlined in this Bill, are an acknowledgement of the role played by these organisations.

One aspect of the Bill that is especially pleasing is the significant increase in child benefit payments. This benefit is vital because it is a real support for parents and is payable regardless of the status of the parent. It allows many parents to pay the necessary child care costs associated with remaining in the workforce, while for others it ensures they have the additional resources necessary to improve their quality of life. We must continue to improve this benefit in future years. l am glad the Minister shares my view in this regard, as he has indicated to the House.

I welcome the fact that, in this his first social welfare Bill, the Minister has affirmed his commitment to carers, a sector of our community that continuously does Trojan work in homes across the country. In homes all over Ireland people are caring for family members, the elderly and people with disabilities in a compassionate way. They are doing so in a way that the State could never hope to match. They need our support for the difficult but worthwhile work which benefits the whole of society. The various provisions in the Bill will provide real assistance to carers through improvements in a variety of different measures. The Minister has also moved to allay the concerns of people with SSIA accounts that their savings might adversely affect their benefits. Under no circumstances should we place any disincentive in the way of people who have shown the foresight to avail of the scheme and build up a nest egg for eventualities. The increase in the means test disregard is a significant measure because it means people can now continue to save and avail of the full maturity value of their SSIA without having any concerns about the impact on their benefits. This measure will provide important peace of mind to such people.

The second part of the Bill relates to pensions and the provision of adequate income into retirement for our current workforce. We hear a great deal about the pensions time-bomb and the fact that because of the current demographic profile of our population, we are likely to face a serious strain on our resources in future, with people living longer and the prospect of a smaller workforce having to support a larger retired population. The implications are obvious and I am pleased that the Minister identified this area as a priority in his speech. We need people to save more from an earlier age so that they will be independently wealthy in retirement. The incentives to individuals to save are quite significant with full tax relief available on contributions into the fund. We need an ongoing information campaign to encourage people to avail of these reliefs and build their own funds.

The lone parents' allowance has been referred to and I am glad the Minister is examining this whole area. The best thing we can do is give examples to the Minister of how best he can make changes. As I have said so often at meetings of the Joint Committee on Social and Family Affairs, it is only when the anomalies in the system are brought to the notice of the Minister and his officials that they change. For example, a lady who is a lone parent with one child contacted me this week informing me that she had been advised by the Department that because she had increased her income from working, her lone parents allowance was being disallowed. She was further advised that if she worked two hours less per week she would retain that benefit. If a person is over the limit, will the Minister consider reducing the amounts by the corresponding increase? For example, if a person earns €20 or €30 more per week, his or her payment should only be reduced by that amount. The cut-off point is a disincentive. The lady to whom I refer is making great strides to provide for her child and yet the system mitigates against her.

I have also referred to family income supplement during meetings of the Joint Committee on Social and Family Affairs, as Deputy Stanton will recall. The committee was unanimous in its view of the need for the Department to carry out an intensive awareness campaign on the family income supplement. It is an excellent payment for people with low incomes who are working and yet the numbers availing of it are quite small. I appeal to the Minister to give some attention to this matter and intensify the awareness campaign to let people know of their entitlements.

This Bill should be acknowledged as one which has as its primary focus the requirement to cater for the needs of those most in need in society. The various measures contained in this Bill will help to alleviate hardship, offer hope and improve quality of life for many people from many different backgrounds. It will do so through the provision of better services and a fairer sharing of the available resources. There is no doubt that these measures will make a significant impact on poverty and will directly benefit the lives of many people. I support the Bill.

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