Jimmy Deenihan (Kerry North, Fine Gael)

I will refer to a number of specific aspects of the budget. The failure to increase child benefit payments means that the value of this payment will fall by 2.5% in real terms in 2009 and this will have a negative effect on the households of the working poor. Even with the changes introduced in the family income supplement, many working poor households will see their standard of living fall in 2009. As a result of the changes introduced in the budget, there will be no reduction in Ireland's extensive child poverty. I refer to work carried out by CORI on the analysis of the budget in which this issue was emphasised more than any other aspect of the budget.

The social welfare increases are to be welcomed to some extent. However, as CORI and others have pointed out, the increases were fairly minimal when one considers an increase for a single person by just €6.50 a week and €10.80 for a couple and for those on State pensions an increase of €7 a week for a single person and €11.60 for a couple. These are very small in the context of the increases in food prices evident in supermarkets. The UK inflation rate is currently 5.6% and there is a likelihood it will continue to increase here. This will dilute the increases allocated in the budget, however welcome.

Fuel poverty was referred to by Deputy Perry. The Institute for Public Health conducted an excellent study on fuel poverty entitled, Fuel Poverty and Health, which highlighted the sizeable direct and indirect effects on health of fuel poverty. This study found that fuel poverty on the island of Ireland remains unacceptably high and that it is responsible for the highest levels of excess winter mortality in Europe, with an estimated 2,800 excess deaths on the island of Ireland over the winter months. Older people in particular need at least one hot meal a day and they need to keep warm. In many cases they cannot afford to buy oil or other fuel and so their houses and clothes remain cold and damp. I know from personal experience that this has a bearing on the state of their health.

There was an increase of just €2 per week on the back of the Fuel, Poverty and Health study despite a very strong lobby by CORI and others, including a motion in the House, and a strong demand that it should be increased. This fell on deaf ears as €2 is rather derisory in the context of what these people need. While I accept the payment was extended by two weeks, given the weather conditions and temperature levels in this country at present it should be extended to 40 weeks as it is needed most of the year. This should be a consideration for next year. It is very important that the Government would continue to increase the amount of the allowance and also the extent of time for which it is paid.

An aspect of the budget about which I am particularly concerned is that of the paid contributions required for entitlement to jobseeker's benefit. As we know, there are 251,000 unemployed at present. While the Government can rightly take some credit for the fact there are over 2 million people employed, the likelihood is that by this time next year there could be 350,000 unemployed. Although I hope this will not be case, there will be more people seeking jobseeker's allowance. The nature of employment may also be increasingly short term. The increase from 52 contributions to 104 will eliminate many people who are at present entitled to jobseeker's benefit, illness benefit and health and safety benefit. The Minister should examine this issue when considering Committee Stage and perhaps move half way in this regard. The change is penal and will affect many.

For the first time, there are over 4,000 people signing on at the social welfare office in Tralee but it does not have the staff to cope with the number of applications being submitted. I would like the Minister to examine the staffing complement and perhaps redeploy staff. There are major delays in assessing and approving applications at present and I appeal to the Minister to consider this.

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