Michael McGrath (Cork South Central, Fianna Fail)

I wish to share time with Deputy Michael Kennedy.

I commend the Minister on securing a social welfare budget of almost €17 billion for 2008 and on receiving almost half of the extra €1.7 billion that has been made available since the publication of the pre-budget Estimates. Overall, 31% of the country's gross current expenditure in 2008 will be accounted for by social welfare spending and this is a measure of the level of priority we attach to the area.

There is an excellent social welfare system in Ireland today that guarantees a minimum level of income and a basic standard of living for every citizen in the State. I am speaking from personal experience as, when I was only eight years old, my father was told he could never work again. He and my mother managed to raise five children on social welfare income and gave us the same opportunities afforded to other children.

I would like to take this opportunity to acknowledge the staff of the social welfare system who provide an outstanding service to public representatives and the public. There are fine information services available to the public, in particular the outstanding website, information leaflets, telephone lines and citizens advice centres around the country. I often find that our task is to communicate with people regarding their social welfare entitlements because many members of the public do not know their full entitlements and need information to let them apply and benefit from schemes. In this regard, I welcome the extra allocation of €1.8 million in the 2008 budget to the citizens information board. This will allow for the enhanced availability of resources and information services in the year ahead.

We have a duty to ensure a decent quality of life for elderly citizens. I acknowledge the presence in the House of the Minister of State with responsibility for older persons, Deputy Hoctor. I welcome the increase in the contributory and non-contributory State pension to €223.30 and €212 per week, respectively. Elderly people made enormous sacrifices in more difficult economic circumstances. Many worked abroad for long periods and have returned home for their retirement. It is important that we provide them with a level of income that allows them to live out their days in dignity and with a degree of self-respect.

I welcome the progress made towards the commitment to a State pension of €300, at a minimum, by 2012. I also acknowledge the improvements in recent years in the household benefits package, electricity, fuel and telephone allowances and the provision of free television licences. These measures take some pressure off older people. It is interesting to note the recently published findings of the EU survey on income and living conditions, which confirm that the risk of poverty rate for older people has fallen from just under 30% in 2003 to 13.6% in 2006. While it might seem cold and impersonal to speak in statistical terms about poverty, it is important to benchmark the progress being made. It is necessary to have an independent analysis of our efforts to address poverty among older people.

The Bill is to be welcomed for providing an increase of €27 per week in the qualified adult rate, which brings the payment to such persons to €200 per week. This represents 94% of the target figure, which will be achieved in full next year. I have argued at meetings of the parliamentary party and in other fora that the corollary of a policy of individualisation in the tax code is that one must also implement individualisation in the pension system and afford all adults full independent pension provision in their own right. I welcome the huge progress made in recent years in this regard.

We all have an obligation to engage in the pensions debate. I welcome the publication last October of the Green Paper on pensions. It addresses the challenges we face in this area and puts forward various options to tackle them. I encourage everyone to make a submission on the Green Paper so the decisions made on pensions policy are broadly based and take full account of the views of those directly affected. It is essential that we work to reduce the numbers relying solely on social welfare income in retirement.

Previous speakers referred to carers. I welcome the progress in adequately recognising and rewarding the work of thousands of carers throughout the State. Through sacrifice and dedication, such people ensure their loved ones can remain in their own homes and, in so doing, they save the State millions of euro every year in nursing home charges and other supports. Their role must be supported in every way possible. The initiative introduced last September to allow applicants claim up to half the carer's allowance while retaining their primary social welfare income was a significant step forward. Many thousands of people have applied to avail of this benefit in recent months.

The weekly income disregard for carers is increased in the Bill by €12.50 per week, or €25 for a couple, to €665. It is important to make the public aware that a couple can now earn more than €34,500 per annum and still qualify for the carer's allowance under the means test. Several people have told me they were sure they would not qualify for the allowance. In many cases, however, their income is such that it meets the qualification criteria. We must continue to highlight the improvements in the income thresholds and disregards. One of the key Government commitments in the national partnership agreement, Towards 2016, is the development of a national carers' strategy. I welcome the progress in this regard and look forward to its expected completion next summer.

I also welcome the greater emphasis being placed by the Department on encouraging and facilitating people to move away from dependence on welfare towards participation in the workforce. The Minister's announcement of a revamped family support programme with a budget of €6.5 million in 2008 is a significant initiative. This will provide funding for projects run by third parties to assist welfare recipients and family members to enhance their employability through education, training and personal development. The Minister has also provided for the deployment of an additional 30 facilitators with clerical support staff to further the work in this area. These programmes will complement the schemes already in place, including the back to education and back to work allowances. There is a role for everybody in the workforce. People of working age who are physically capable of work should be required to make some practical contribution to their local community. This will afford immense benefits for themselves in terms of self-esteem and will also benefit their communities.

I welcome the improvements in the back to school clothing and footwear allowance, which is to increase by €20 per child, from €180 to €200 for children aged between two and 11 years and from €285 to €305 for children aged between 12 and 22 years. I am particularly pleased that the Bill provides for an increase of €2,000 in the widowed parent grant to €6,000.

I ask the Minister to move ahead with plans to provide a local social welfare office in Carrigaline, County Cork. I understand the OPW is considering possible sites for the office. It is important that services are provided locally to serve Carrigaline and the lower harbour area, particularly since the social welfare office in Passage West closed earlier this year.

See this speech in context