Gerard Murphy (Cork North West, Fine Gael)

We are constantly reminded by the Government of continual increases in the old age pension. Only pensioners realise the proportion of their weekly money that they return to the Government in stealth taxes and charges for essential living requirements. The cost of waste disposal, rent, heating and gas has increased enormously in recent years and the amount of disposable income available to old age pensioners is extremely limited.

It is well established that indirect taxation affects the most vulnerable in society, especially the elderly. People are on fixed incomes and no amount of propaganda that the Government puts out can disguise the fact that the basic costs of running a pensioner household for a week eat substantially into a pension that I accept has increased to some extent. Owing to indirect taxation and stealth taxes, pensioners are no better off today than they were ten years ago.

Public spending on pensions as a percentage of GDP is projected to increase from 4.7% in 2004, the lowest in the EU, to 11.1% in 2050. That figure will still be one of the lowest in the EU. Public spending on long-term care will rise from a low of 0.6% in 2004 to 1.2% in 2050, approximately 4% less than that spent in a country such as Sweden, despite our economy being among the strongest in Europe. Despite all the promises and announcements, the Government is not prepared to spend the amounts required for essential services. In addition, there is the constant element of fear in old people's lives. How much longer will they be capable of independent living? How many hours more will be cut from their home help? Every elderly person has experienced cutbacks in home help in recent years.

The Minister points out the increased allocation in each health board area, either failing to realise or choosing to ignore that the cost of home help has risen substantially and that the number of elderly people seeking it has also risen. There are many other issues with which I would like to deal that have already been covered, but the most critical is home help. When it is not properly catered for, enhanced subvention becomes a necessity for those in long-term care. The other two issues that have been addressed today and require immediate attention are the disabled person's grant and the essential repairs grant. If we can get those three matters right, we will save the Exchequer substantial sums in long-term care.

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