Seymour Crawford (Cavan-Monaghan, Fine Gael)

I welcome some aspects of this legislation. For some reason, the economy, which was in the black to the tune of €6 billion just over two years ago, is now in the red to the tune of €15 billion. That cannot be entirely attributed to outside economic issues. Some people have to answer for what has happened. I welcome the fact the social welfare budget has increased by between 15% and 17%, depending on how one interprets the figures. That increase was necessary, unfortunately, as a result of this country's economic problems.

I listened with interest to the complaint made by the Minister of State at the Department of Finance, Deputy Mansergh, to the effect that people have been taking a populist stand. The Government has done some populist things over recent years. It has taken out big advertisements, at massive expense to the taxpayer, to publicise matters like the introduction of medical cards. The Minister of State said we should be realistic when we talk about medical cards. We were told five years ago that 200,000 extra medical cards would be introduced to the system within the lifetime of the last Government. Just 30,000 such cards were provided, however. That is the reality. It contrasts with the Government's populist hype. I am glad the Government rowed back, to some extent, on the decision it initially took to abolish the automatic entitlement of people over the age of 70 to the medical card. It got its answer on the streets from people who are not to be ignored. I am pleased the Government also did a U-turn on the issue of disability payments. That is important and valuable.

As someone who deals with cross-Border issues, I would like to mention a letter about such an issue I received from the Department of Social and Family Affairs some time ago. I had been trying to get child benefit and children's allowance payments to be made to the family of a man who lives in the South but works in the North. I was told in the letter that the man in question was better off availing of the Northern Ireland child allowance and the tax benefits available to him in that jurisdiction, rather than the allowances available here. We often hear propaganda to the effect that payments are much higher in this State than elsewhere. When one assesses the various packages, one finds the reality is different.

Like the last two speakers, I would like to mention the increase of €2 in the fuel allowance payment and the extension by two weeks in the period in which the payment is made. While those measures are welcome, the reality on the ground is totally different. The fuel allowance scheme does not take account of the fact that the cost of oil, electricity and gas has increased dramatically over recent times.

I mentioned the living alone allowance during previous debates. The allowance is possibly more significant in rural areas than it is anywhere else. Deputy Clune compared the housing problems of cities with those of rural areas. The living alone allowance is extremely important for those in rural areas. If two people are living together on an old farm or in a village, but one of them dies or goes into a nursing home, the person who is living alone still has to keep the car on the road and heat the house. A miserly living alone allowance of €7 is being paid to a person in such circumstances. I appreciate a change cannot be made in this year's budget. If the Minister is still in the Department of Social and Family Affairs this time next year, I urge her to consider increasing the living alone allowance. I ask her to reflect on the economic realities of rural areas. Drivers in such areas have to contend with increased petrol and car tax costs. I appreciate that car insurance costs are not as bad as they used to be. This issue needs to be dealt with.

My colleague also referred to the social housing issue, which will become more serious in the coming year. Local authorities have depended on builders to provide their percentage of social housing but no construction is taking place now. The Government will have to re-examine this issue. Building has been under way on a number of sites in my home town of Monaghan for a few years but social housing has not been provided as a priority. When it will be provided is a different story. As the years go by, significantly less development will be undertaken and, therefore, less housing will be provided. The Government has the choice of buying up available housing to provide social housing for those who need it or to adjust the rental allowance scheme to make sure claimants can live in proper houses. I met a couple recently who pay €160 per week to rent a house. The woman has just had a baby and the man is on short-term work, yet the owner of the house would not agree to them availing of the rent supplement scheme. This is a serious issue and it is one of many that are coming more to the fore than previously.

I refer to another young couple to highlight another issue. The young man is a non-national and he married an Irish girl three years ago. He was only able to start work eight or nine months ago because he had to await documentation. His job is slowly ebbing away and it is not for the want of trying. He is working as hard as he can and his company has retained him because of his effort. If he is made redundant at Christmas or in the new year, he will be caught in a bind because of the increase in stamp contributions from 52 to 104 to claim unemployment benefit. Will the Minister re-examine this proposal to consider how it will affect individuals who are genuinely trying? It is not easy for her and others from an economic point of view but we do not want people living in desperation. This young couple has a mortgage to pay and other commitments to meet and they are under severe pressure

Further education initiatives and support from employment and training agencies are needed to get people back to work. Contrary to what was said about job creation, the number of people signing on in Carrickmacross has increased from 500 this time last year to 1,000, yet I cannot say factories have closed down because cutbacks have been made all round. A factory in Monaghan town employed between 230 and 250 people only a few years ago. While it has not closed, only 15 people work there now. The situation is dire.

Farm assist is an important issue and I urge the Minister to promote that scheme in order that farmers have an opportunity to get that benefit. Many of them in recent years have worked off the farm in the building industry and so on to supplement their incomes and they do not have that opportunity any longer. They must be facilitated.

I am grateful for the opportunity to contribute to the debate. Fine Gael appreciates the economic problems of the country. In spite of what the Taoiseach and others have said, we put forward meaningful and realistic proposals to save money and to make sure money was available to address the issues I have raised. Cuts in the social welfare budget are unfair and, unfortunately, we have no choice other than to oppose the legislation.

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