Billy Kelleher (Cork North Central, Fianna Fail)

This budget had a backdrop of challenging times. However, it protected the vulnerable against inflation which is welcome and shows the commitment of the Government not only to sustaining sound public finances but also to ensuring resources are made available to the most vulnerable in society. We are changing and it is regretted that unemployment is rising and is projected to be at 7.3% next year. This will cause major challenges not only for the Department of Social and Family Affairs but also for training, upskilling and redeployment of people who find themselves unemployed.

As Minister of State with responsibility for labour, I am conscious of the importance of ensuring we do not spiral into the situation we had in the 1980s when people entered long-term unemployment with no training, upskilling or potential for other job opportunities. We are working with State agencies, particularly FÁS, to ensure that when people go on the live register, training and upskilling opportunities are made available to them along with redeployment into other areas of the labour market about which they would not have known much. We must be committed to this to ensure we do not have people spiralling into long-term unemployment.

Last March and April we took part in negotiations on a European directive on equality for temporary agency workers. Ireland was never opposed to the fundamental principle of equality. We wanted to ensure we had a level playing pitch with other European states which have collective bargaining in place. We wanted to ensure that temporary agency workers, who are a fundamental plank in the flexibility of our labour market, have protections while at the same time ensuring Ireland has equality with other European countries in order that we are not at a competitive disadvantage.

With regard to the social partnership process, I urge the social partners to consider what we achieved in the negotiations at EU level and recognise that we now have in place a system whereby the social partners decide the priorities with regard to temporary agency workers and in many other areas. We should be proud of this achievement. However, it is now up to the unions, employers and other stakeholders in social partnership to sit down and analyse how best to ensure equality of treatment and protection of workers' rights while ensuring the flexibility in the labour market which is fundamental to our success in trading and competing with other countries in the global market. I urge them to examine the challenges in the coming months and ensure we have competitiveness, protection of workers' rights and flexibility.

In recent days, a great deal of misinformation was put out about medical cards. When the Minister for Finance announced in his budget speech the withdrawal of medical cards and a means test for those aged over 70 it led to a great deal of concern. It was churned and used emotively by Members opposite which did a disservice to the calm and rational debate we wanted to outline the changes made by the Government with regard to means tests.

For those aged over 70, the income limit will be €240.30 for a single person and €480.60 for a couple. This is the same as the highest amount of the State contributory pension following the increase in the budget. A single person whose sole weekly income is €240.30 or a couple whose sole weekly income is €480.60 or less will qualify for a medical card. Other social welfare payments such as fuel allowance or the living alone allowance are not counted in the means test. A person whose income is more than these amounts will be asked for additional information.

I am sure many people contacted Members on all sides of the House with regard to the means test. It is important that we put the facts in front of the people. The means test income is income after expenses. Full account is taken of the real expenses a person can expect to have in the following year, such as rent, mortgage, GP costs, medicines, medical appliances, nursing home fees, maintenance payments, income tax or PRSI. It is fundamentally important that when people speak on these issues that they speak in a factual way and do not strike fear into people.

The Government has explained the reasons for introducing means testing for those aged over 70. The majority of people who received medical cards after a means test will not even be contacted by the HSE. It is those who acquired them by reaching 70 years of age who are involved. Queries were also raised with regard to the health levy and whether people would pay it. The health levy will not be payable by people aged 70 and over.

When we debate in this House it is important that we debate the facts and not ramp up emotive debates for cheap political gain. There was a reason for making the changes and when people analyse the decisions taken in the budget and the clarification in the guidelines for means testing they will see we do not want to take from those on social welfare payments. The guidelines published today show the sliding scale from medical cards to GP only medical cards to the grant of €400 for medical expenses for people who do not qualify for either medical card.

I compliment the Minister for Finance, Deputy Brian Lenihan, on the budget. He took difficult and brave decisions. We know the backdrop and the challenges we face. In the coming years this budget will be seen as having been taken in difficult circumstances to ensure sound finances and, most importantly, to protect our competitiveness. An upturn will come, although we may face challenges in the foreseeable future, and the budget will ensure we are well placed to take advantage of it. In the meantime, we will protect the vulnerable and invest in infrastructure, health and education as was outlined in the capital spend of the budget. We know where we are and what we want to achieve in the coming years. The budget is the first step in weathering the difficult storms out there and it will leave us in good stead in time to come.

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