Paul McGrath (Westmeath, Fine Gael)

The Minister might consider the matter.

It is welcome that maternity benefit, which also comes from the social insurance fund, has increased to 80% of gross earnings. When one pays car insurance, one is fully covered in case of an accident. Why only give those on maternity benefit 80% of their income from two years previously, which in many cases would be much lower than their current income? They should be given 100%.

I welcome the increase in the back to school clothing and footwear allowance, which is a good idea. In July and August every year I am pestered by people with regard to the nominal income threshold for this allowance. If a family is above the income threshold, it does not get the allowance. There is no excuse for somebody who qualifies for family income supplement not qualifying for the back to school clothing and footwear allowance. Qualification for family income supplement automatically suggests that the State acknowledges that a person is on low income. Nonetheless, if a person is above a certain threshold, he or she does not qualify for the allowance. There should be a clause in the Bill whereby if one qualifies for a family income supplement payment, one automatically receives the back to school clothing and footwear allowance. An automatic payment would save the Department's officials endless hours of trying to find ways to make people qualify and would speed up the process, as well as bringing clarity and fairness to the system.

The Government's child care package has gone down reasonably well but I see one major flaw in it, namely, the question of a person being able to earn €10,000 tax free by virtue of looking after children in his or her own home. While I stand to be corrected, it is the only payment within the State, apart from the rent a room allowance, that is not subject to tax. To take an example, if my wife looked after two or three children at home, she would not necessarily have to be qualified or have met the relevant health and safety standards. At the same time, my daughter might have qualified from child care courses and work in the local child care centre, which is subject to inspection. She must pay tax on every penny she earns whereas, in theory, my wife could earn €10,000 tax free. What will be the result? Staff will be sucked out of the child care sector, in which the Government has invested substantial capital spending, and put into the uncharted waters of the black economy. A system will develop to the detriment of the provision of child care spaces elsewhere. The issue must be carefully considered.

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