Arthur Morgan (Louth, Sinn Fein)

I thank Deputies Upton and Wall, and the Labour Party, for sharing time. I welcome the opportunity to address Second Stage of the social welfare Bill. The Bill amounts to a serious attack on the income and welfare of some of the most vulnerable groups in society and, unless it is substantially amended, Sinn Féin will vote against it. It highlights the Government's disconnect from the needs of the people of this island and its bankruptcy of ideas on how to deal with the shortfall in the public finances and the downturn in the economy.

The Minister has made a decision through this Bill that she will target our welfare support for vulnerable groups in society regardless of the consequences. The Bill is mean-spirited. The latest CSO data has shown we have already reached 250,000 in the number signing on the live register. All indications are that the unemployment rate will increase over the next 12 months. As people are losing their jobs, they need adequate protection but, rather than protecting vulnerable families, the Government has decided to exclude them.

The doubling of the required number of PRSI contributions from 52 to 104 for the jobseeker's allowance is very disappointing. This will prevent a large number of people over the next 12 months from availing of welfare at a time when they need it most. This targeting of mainly younger people and workers who recently joined the workforce is unnecessary and will compound the difficulties these people face when they are let go. The Minister has provided no alternative for these younger people so they can move into other areas of work. This is simply a knee-jerk reaction to the shortfall in public finances. There is no plan here to help young people who will have to cope with unemployment. The restriction will simply leave them exposed to utter hardship.

Another extremely disappointing aspect of the Bill is the targeting of child welfare. The Bill gives no increase in the main income supports for families in the child benefit scheme and the early child care supplement. As inflation is currently at 4.3%, this decision devalues child welfare. It is, of course, an effective cut. What is even worse is that there are cutbacks in both the child benefit and early child care supplement which will exclude families dependent on this welfare. The changes in eligibility in the early child care supplement, which affect five and a half to six year olds, will lead to a loss in income for struggling parents of up to €550.

The Bill proposes to shut out parents of 18 year olds from child care benefit. This is a particularly crude measure in light of the financial burden on parents of older children. Raising older children is estimated to cost between 20% and 80% more than raising younger children. At a time when we have rising food and energy costs for families, the Minister proposes to remove up to €1,000 per annum from the income of families with children aged 18 years. Many of these are teenagers in low income families who are still in second level education and, at 18, will rely on child care benefit while they are doing the leaving certificate. Removing the child care benefit will place these teenagers in an impossible position and will force at least some to drop out of school. This is at a time when young people need qualifications such as the leaving certificate more than ever. The compensation up to the end of 2010 will be of little comfort to those who will be excluded from child benefit. It does not go anywhere near meeting the loss of income families in this position will experience.

Another cutback for low income families with children in education is the removal of funding under the school books scheme for the children of low income families attending non-DEIS schools. This has been estimated to cost between €15 and €55 per child. It beggars belief that a former Minister for Education and Science could preside over a cutback which will effectively make access to education far more difficult for low income families. In total, these cutbacks in child welfare will result in losses of between 20% and 50% in the value of child care supports for welfare-dependent children in these age groups. This in itself shows the insincerity of the Minister when she claims to be protecting the most vulnerable in society.

Another scandalous aspect of the Bill is the restriction in eligibility for illness benefit. Again, by simply doubling the amount of qualifying contributions, the Minister is placing the lives of people with disabilities, injuries or illnesses in jeopardy. These people may have no alternative source of income and it will of course expose them to poverty.

Not only has the Bill excluded people from welfare protection, it has done nothing to protect those in receipt of welfare. The increases provided in the Bill of €7 in pensions and €6.50 for people of working age, the disability benefit and the carer's allowance are miserly and will not offset the soaring costs people with low incomes are experiencing at present. In 2008, food and energy costs have more than doubled while overall inflation is running at 4.3%. The increases for basic welfare in the Bill are inadequate and should have been raised to €15 per week.

The minute gains for people through the increases in the fuel allowance were lost through the hike in the minimum contribution to the rent and mortgage supplement from €5 to €18. In addition, more limitations have been placed on the mortgage interest supplement through caps on the amount which will be imposed by the HSE.

There have also been many areas of welfare the Bill has ignored. There is nothing in the Bill for the living alone allowance and there are no changes in the back to work allowance to make it more accessible.

We have always supported the work of the Money Advice and Budgeting Service. However, the proposals to amalgamate the body into the Citizens Information Board is totally unacceptable. MABS is doing good and important work and rather than reduce its standing, it should be strengthened by putting it on a statutory footing.

My party has for a number of years called for an overhaul of the social welfare system. We believe a fairer and simpler system would ensure that people are properly protected from the downturn in the economy and that their applications for welfare could be processed more efficiently. This can be achieved through a longer term benchmarking scheme against which the evolution of social welfare rates can be measured. We have repeatedly asked for the removal of anomalies in social welfare that are preventing people returning to work and even from applying for welfare.

We all accept we are facing difficult economic circumstances and that the current public finances require prudent spending. We do not, however, agree on cutting back on welfare supports upon which the poorest people in society have relied. These are unjustified and will damage the lives of the people who need support. There are areas where the Government could have raised revenue but it chose not to. It decided to retain tax breaks for private hospitals and to continue to protect the wealthiest in society but went for the soft targets — the elderly, children and the unemployed.

The Minister's decision to strip the Combat Poverty Agency of its independent statutory status and to integrate it with the Office for Social Inclusion is nothing short of censorship. The Combat Poverty Agency had for almost two decades highlighted the issue of poverty and the impact of State policies on people living in poverty. The research and findings the agency brought into the public domain demonstrated the failure of successive Governments to address poverty. Due to this independent critical voice and because the Minister wants the reality of poverty to be hidden from the public, she has decided to silence the agency.

Yesterday on Question Time, the Minister was not able to state the costs attached to merging the Combat Poverty Agency and the Office for Social Inclusion. There does not appear to be any proper plan as to how the two bodies can be integrated. This in itself demonstrates it is not a cost-saving measure or proper reform but simply a political decision to gag the only independent body which could provide the public with high quality independent research on poverty in Ireland.

The decision to revoke a body, created in primary legislation through an amendment on Committee Stage of the Social Welfare (Miscellaneous Provisions) Bill is unprecedented and cynical. The Minister made a decision some time ago that the agency would be wound up. She could have easily expressed her decision in the Bill. The manner in which the Combat Poverty Agency is being dealt with is nothing short of a disgrace.

The Bill is dishonest, mean and targets the poor.

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