Dan Wallace (Cork North Central, Fianna Fail)

I wish to share time with Deputy Carty.

Once again, I pay tribute to the Minister for Social and Family Affairs, Deputy Brennan, on the Social Welfare Bill 2006. In that tribute I include the Taoiseach for his commitment to social inclusion and the Minister for Finance, Deputy Cowen, because if he did not provide the resources the Minister for Social and Family Affairs could not distribute the generous benefits under discussion.

Every year in the wake of the budget the Minister's speech is dissected in the media by economists and politicians, financial commentators and representatives of major accountancy firms. The commentary focuses on the impact on the economy of the various measures announced. We are told how changes in taxation will impact on take-home pay and the exclusion or inclusion of reliefs will affect employers and large organisations.

It is important, however, that the budget is likely to impact in an equally significant way on the lives of people who depend on the State for income, although this does not receive the same prominence as taxation measures. This year the level of increases is significant and will improve the quality of life for people at all levels regardless of the social welfare benefit they receive.

The Government is meeting the commitments made since 1997 and reaffirmed in the programme for Government in 2002. These commitments created expectations that real and significant increases in social welfare rates would be provided to help people who depend on the State for income. I am proud to be a member of a party in Government that not alone promised to redistribute the gains made by the State to ensure that all sectors of the community benefit from our growing prosperity, but also honoured those commitments and took decisions to put these promises into effect.

Our ability to look after the less well-off in society is directly related to the level of growth in the economy and the strong performance of the economy generally gives us scope to offer meaningful and telling increases in rates of payment. We must acknowledge the role of the former Minister for Finance, Mr. McCreevy, and the present Minister, Deputy Cowen, in implementing prudent and sensible financial measures which have helped maintain the positive growth rates to which we have become accustomed.

Every year we receive submissions in advance of the budget from organisations working to alleviate hardship among the less well-off in society, which articulate the needs of their clients and seek ongoing improvement in the rates of payment to ensure that we continue to bridge the gap between rich and poor. I was particularly heartened in the immediate aftermath of this budget to hear representatives of so many such groups welcome this budget and acknowledge the Minister's contribution to improving income levels for welfare recipients.

Aside from the general improvement in rates, many aspects of this budget will have a direct and telling effect on people's lives. I am particularly pleased with the measures the Minister for Social and Family Affairs has introduced in the areas of education, child care and support for carers. One of the key drivers of our economy over the past 15 years was the wide availability of an educated workforce. Potential investors in Ireland often say that one of the key considerations when seeking a location for a new facility is the quality and availability of the potential workforce. Our investment in education has proved crucial in enabling us to attract industry, create jobs and provide sustainable employment and income opportunities for a wide range of people. It is therefore opportune that to move into a new phase of economic development as a strong economy in an expanded Europe, our commitment to education must be re-affirmed at the highest level. We must ensure the necessary resources are provided to allow our graduates train to PhD level. One guard against poverty is a job. Producing and educating a workforce and providing educational opportunities for people at all levels will eliminate the likelihood of people requiring social welfare benefits.

The commitment to children is also welcome with the significant increase in child benefit payments, along with the new payment for children under six years. These vital benefits provide real support for parents and are payable regardless of the parent's status. Deputy McHugh referred to having a means test for this payment. A previous examination of this showed it would be more costly. For that reason, it is better to leave the system as it is. For many parents, it will allow them to remain in the workforce, using funds to cover child care costs. For many others, it will allow them to remain in the home looking after their children.

Regardless of personal choices made by individuals, it is important for the Government to support them. For this reason, the increases in these benefits are to be welcomed. Another aspect of the Bill which will receive widespread approval is the proposal to increase maternity benefit by four additional weeks this year and by a further four weeks next year. This additional eight weeks will ensure a mother will have the benefit of time at home with her children at the most important stage for both the mother and the child in the early months of the child's life.

In addition to retaining the capital allowances for the development of crèches, which will encourage the development of additional approved child care places, childminding relief is another significant measure that will go some way in tackling the much publicised child care crisis. An individual may mind up to three children in his or her home and avail of tax free income of up to €10,000 per year. This will help formalise the situation that has developed where people mind children in their home but were heretofore not registered. It will also encourage other people to consider looking after children in their home, thus creating additional spaces.

We have often acknowledged the role of carers in society and highlighted their Trojan work in homes throughout the country. People working in their own community are looking after disabled and elderly relatives and neighbours in a caring and compassionate way which the State could never hope to match. This work is extremely worthwhile but all too often is not properly acknowledged by the State. I am glad the Minister for Social and Family Affairs, Deputy Brennan, has continued his trend set in last year's Social Welfare Act by affording special recognition to carers and their valuable role in society. This is being achieved by increasing the carer's allowance by up to €30 per week, representing a 17% increase. It is also noteworthy that the respite care grant has been increased by €200. These initiatives will be further enhanced by the new home care package, costing €150 million, announced recently by the Tánaiste and Minister for Health and Children, Deputy Harney.

These benefits are a clear recognition of the importance of carers to society and the Government's stated commitment to ensure people, where possible, are looked after in their homes. It also ensures financial consideration will not be a barrier to ensuring people who wish to be cared for at home can be. I pay tribute to the many organisations that came before the Oireachtas Joint Committee on Social and Family Affairs to articulate the needs of the people they represent. The Minister for Social and Family Affairs has responded positively.

A key aspect of the budget is the support that has once again been provided for the elderly sector of our community. In 2002 a commitment was made that the rate of the old age pension would be increased to €200 per week by 2007. With the recent increases in benefits, bringing the level of payment to €193 per week, it will exceed this level after next year's budget. This is a significant statement of the Government's respect for the contribution elderly people have made to the development of the economy over many years. The Government acknowledges that the good times we now enjoy are directly related to the efforts of our retired population who toiled in more difficult times. I am glad the rewards we now enjoy are being used to provide a meaningful pension for older citizens.

It is also worth noting we need to plan for the future so that today's workers will also benefit from a reasonable pension when they retire. The ongoing contribution to the National Pensions Reserve Fund to provide for future liabilities is an important initiative. It was an inspired idea when first introduced several years ago. As we have an ageing population, we need to continue to build on this reserve fund. We also need to encourage people to begin to fund their retirement and not leave it to the State to carry the full burden of providing for their future security.

I welcome the Minister's decision to place a cap on the level of fund a high earner can build up for retirement reasons, because I believe some individuals were using this facility to transfer huge sums of money from their companies tax free. However, in tandem with this measure, incentives to encourage other workers must be examined, especially those on the lower tax rate, to prioritise pension contributions and the provision of their retirement fund. Convincing people of the merits of this course of action will ensure the financial future well-being of society will be protected.

I welcome the increase in the threshold for family income supplement. Again, I ask the Minister for Social and Family Affairs to make every effort to ensure people are aware of their entitlements under the scheme. It is an excellent scheme but many families do not avail of it simply because they are unaware of it. While that is not the direct responsibility of the Minister or his officials, it could be better advertised through local community groups. More families would benefit if they availed of it.

This is a good Social Welfare Bill because it continues the trend of providing real and meaningful benefit increases to people dependent on the State for their income. There will always be competing demands for resources and different sectors of the community will have different priorities and ideas on how available resources should be distributed. The Government has, however, prioritised the claims for support of those most vulnerable in our society and responded to their needs by providing real and telling increases. These measures will make a significant impact on poverty by directly benefiting the lives of many people. I am pleased to support them.

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