Chris Andrews (Dublin South East, Fianna Fail)

I thank the Ceann Comhairle for the opportunity to speak on the Social Welfare (Miscellaneous Provisions) Bill. Reading the Bill, one would be forgiven for being unaware of the extreme difficulties faced by the economy. When one takes into account that more than 75% of funds in the recent budget went on health, education and welfare, one can see that the Government is committed to showing fairness and equity to vulnerable sections of communities throughout society.

We find ourselves in changed economic circumstances compared to this time 12 months ago. There is no doubt that tough decisions will have to be made. As the Taoiseach recently announced, it is estimated that in 2009, 10% of the public sector bill will be paid for through borrowing. This will have a significant effect on public finances and we must take this into consideration, as the Minister of State, Deputy Mansergh, has just outlined. I am pleased the Bill ensures that continued payments will be made to those who are most in need and that it targets resources at the most disadvantaged. Targeting disadvantaged sections of society is more important now than it has ever been. Looking at the budget, one can see the Government is committed to doing this.

While there has been some alleviation of pressure due to reductions in interest rates and the decreases in the price of oil, these have not always been passed on to customers straight away. I have advocated and will continue to advocate the passing on of these benefits to customers immediately. The banks, particularly in recent times, have shown a great reluctance to pass on interest rate cuts to the consumer, and this must be highlighted. Given that measures have been put in place to support the banks, they now need to step up to the plate and support the hard-pressed consumer. However, it is important to remember that these reductions in cost, while alleviating inflationary pressures, do not always confer a direct benefit on those most in need. I therefore take this opportunity to welcome the announcement made two weeks ago by the Minister, Deputy Hanafin, that an extra payment would be made to social welfare recipients at Christmas.

This Bill provides for more than €515 million in increased support for pensioners, families and job-seekers. Spending on social welfare will grow by almost €2.6 billion to more than €19.5 billion in 2009. Given the economic climate, this is an ambitious target.

As I will not have time to examine every aspect of the Bill I will focus on three main areas: its effects on older people, families and job-seekers. From the start of January 2009, there will be an increase of €7 per week in the maximum personal rates of payment for contributory and transition State pensions. This will bring the new weekly rate to €230. The State non-contributory pension is also being increased by €7 per week, bringing the new rate to €219 per week from January 2009. This will be of direct benefit to more than 440,000 pensioners.

The fuel allowance is important, as people across the country recognise that fuel for older people is a key issue. I am pleased that the fuel allowance is increasing by €2 per week to €20 per week from January 2009, an increase of 11%. In addition, the number of weeks covered by the allowance is to be extended by two to 32 weeks from April next year. Critics may argue this is not enough, but it is a move in the right direction. Not everything happens as quickly as we would like, but given the economic climate it is a very positive move in the right direction. I hope fuel costs will continue to decrease. The cost of this scheme is €30 million in 2009 and will affect nearly 300,000 households. That has a significant impact on families across the country. When loneliness and social exclusion are constant threats we must ensure the vulnerable and older people are not left behind, and this budget ensures that.

Budget 2009 will provide increases for families with children in receipt of social welfare payments. Social welfare dependent parents receive an extra €24 per week for each child on top of their basic social welfare payments through the qualified child increase. From January 2009 this will be increased by €2 to €26 per child. The family income supplement, FIS, paid to low-income working families will be increased by €10 per week in respect of each child, giving an average extra payment of €6 per child per week. It is estimated that 29,000 families will benefit from FIS in 2009. Approximately 2,000 additional families are likely to become eligible for a FIS payment. It is vital those families most in need are targeted with increased payments. Budget 2009 sees reforms to the child benefit system whereby the payment of child benefit to over 18 year olds will be phased out between now and 2010. This is designed to ensure the most vulnerable and those too young to work will continue to receive payments. The Social Welfare (Miscellaneous Provisions) Bill contains provisions to extend the number of people eligible to claim back to school clothing and footwear allowances, which I welcome.

The jobseeker's allowance will be a particularly contentious issue over the coming years and the number of people signing on to the live register has increased to over 260,000 earlier this month, which is the highest figure in over ten years. Jobs are being created every week in Ireland. Unfortunately we do not always hear about it. Some commentators are reluctant to mention it in case it gets in the way of the doom and gloom story some like to peddle. Government policy is committed to continuing to attract investment and promote indigenous industries. We had a presentation from Guaranteed Irish and it is a very cost effective scheme. It is important that consumers and retailers highlight the need to buy Irish.

I welcome the increase in social welfare expenditure of €2.6 million next year. I also welcome the targeting of resources towards the most vulnerable in society. We need to be prepared and realistic when planning in the future. We must ensure the Exchequer is looked after responsibly and that future welfare support payments are there when we need them. This Bill gets the balance right and I commend it to the House.

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