Dermot Fitzpatrick (Dublin Central, Fianna Fail)

I welcome the Minister for Social and Family Affairs, Deputy Brennan, to the House and I congratulate him on his Social Welfare and Pensions Bill 2005. It is a clear demonstration of his commitment to addressing the needs of people with disabilities, their carers, children, the elderly, widowed people, the unemployed, lone parents and many others who are disadvantaged, vulnerable or on the margins of society.

The Bill continues the Government's substantial year on year increases on social welfare spending, representing an increase of almost 60% in four years and a doubling of the 1997 spend. At more than €12 billion, the budget for the Department of Social, Community and Family Affairs is the largest spending allocation of any Department. It means that for every €3 spent by the Government in 2005, almost €1 will go on social welfare entitlements, benefits and supports. An estimated 970,000 people on average are expected to claim weekly social welfare payments this year. Overall, almost 1.5 million people, including dependants, will benefit. That means that two out of every five people in the State are in one way or another receiving vital welfare supports.

Overall, since this Government took office, Ireland has changed dramatically, and the facts speak for themselves. The number of people at work has increased to almost 1.9 million. The rate of unemployment has fallen dramatically, from 10% to 4.3%, the lowest rate in the EU and among the lowest in the world. The number of low paid removed from the tax net has increased, and this year all those on the minimum wage have been taken out. Spending on social welfare has more than doubled, from €5.74 billion in 1997 to an expected €12.25 billion in 2005. Over the past decade, while gross average industrial earnings have increased by 71%, social welfare payments have improved by between 87% and 95% and by even more for larger families. Substantial improvements in the conditions for entitlement to a range of social welfare schemes and services have been implemented. New social welfare benefits such as farm assist, carer's benefit, widowed parent grant and respite care grant have been introduced and enhanced. The social welfare increases of the 2005 budget range from more than 7% to over 10%, while inflation this year is expected to come in at 2.5%.

I support the policy of concentrating resources on enhancing the child benefit scheme. Child benefit now accounts for over 66% of child income support, while in 1994 it constituted less than 30%. There are sound reasons for that policy. Child benefit is neutral vis-À-vis the employment status of the child's parents and does not contribute to poverty traps. As a near universal payment, child benefit is not taxable, not assessed as means for other secondary benefits and is payable to the primary carer, usually the mother. When account is taken of those aspects of payment, it will be seen that child benefit is a most effective child income support mechanism.

I very much welcome the support given to carers who provide a valued and worthwhile service. Everyone in this House and in society generally knows the commitment and sacrifice involved. With more people living longer, carers play a vital role in providing qualify-of-life supports. Another fact also sometimes overlooked is that many of the carers are now becoming old age pensioners themselves. They are caring for very elderly parents; it is not unusual now for people to live into their 90s. They require — and, if in reasonable health, should be entitled to — care at home. I welcome the Government's support in that matter.

Regarding old age contributory pensions, I raise the matter of women who had to leave paid insured employment on their marriage. Many of those women now find themselves short of the necessary average yearly contributions to qualify for an old age pension in their own right. Will the Minister examine the situation in which those people find themselves with a view to giving them a pro rata pension commensurate with the stamps that they paid or the social welfare payments that they made when in insured employment?

It would be remiss of me not to thank the staff of the Department, who carry out their duties diligently and with great good humour and courtesy, something that I have found throughout my political career.

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