Dáil debates

Wednesday, 12 November 2008

Social Welfare (Miscellaneous Provisions) Bill 2008: Second Stage (Resumed)

 

9:00 pm

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)

I am grateful for the opportunity to contribute to the debate. The Bill displays no imagination regarding how to get people off social welfare and, more important, back to work, particularly through retraining and education. It represents a missed opportunity and social welfare recipients must wait for 12 months before they can retrain or upskill. The new 1% income levy on 2.1 million workers and pensioners demonstrates a lack of support when it is needed most. Many Members have referred to the Bill's provisions but I would like to refer to a wider issue. I am incensed about the €10 air travel tax on business travellers and tourists using airports on the western seaboard. I use Knock Airport at all times because it is my local airport. A €10 levy is charged currently, which I supportively pay. However, the new €10 tax is anti-western seaboard and anti-rural airports.

The Government has failed to protect the most vulnerable even though 300,000 people live in consistent poverty. Many people are deprived and live in local authority housing which is not properly insulated and which does not have proper heating infrastructure. It is galling sometimes that they must go to the local shop or co-operative to lug briquettes and coal back to the house and pay between €80 and €100 every time just to keep the house warm. They are in a no-win situation. It must be ensured they are not deprived of basic necessities such as heating, food and clothing. More than 700,000 people are at risk of poverty and live on incomes of less than €200 per week.

Aspects of the legislation are good. The Government rolled back on its decision regarding the 1% levy to exempt those earning less than the minimum wage, which is welcome. It is disappointing, however, that the threshold was not increased in order that low earners would be exempt from the tax.

The price of food and non-alcoholic beverages has increased by 6.1% while the price of gas, water, electricity and other fuels has increased by 12%. Health, education and transport costs have also increased by 4%, 6% and 6.5%, respectively, but social welfare payments will increase by the minimum and they will not keep pace with inflation. The State pension will increase by €7 per week, which is welcome, but the programme for Government promised that pensions would be €300 per week by 2012, which is not achievable. If the Minister of State can convince us otherwise, I will be delighted. I refer to energy poverty. In 2005, 6% of the population went without heating at some stage due to lack of money. Fr. Seán Healy identified a strong correlation between energy poverty and the standard of housing and 2,000 winter deaths annually.

Post-primary school transport charges have increased. At the beginning of the year, it cost a family with two children in the junior cycle €198 to send them to school by public transport. Within five months, there were four increases and the cost increased to €600. This is not only anti-family, it is also anti-rural. Good public transport is available in cities and most parents have no option but to use it. The cost has increased by 203% in five months, which is exorbitant. Unfortunately, this is an attack on rural-based families. The Minister of State at the Department of Education and Science should examine this to ensure no other increases are applied because most people will be unable to avail of public transport if the cost continues to increase.

The 1% levy is expensive. New applicants for jobseeker's benefit will need 104 rather than 52 paid contributions to be considered eligible. From January the benefit will be limited to 12 months for current claimants with 260 or more social insurance contributions. People must be upskilled in order that they can return to the workplace but the Bill does not address that.

The airport tax is anti-western seaboard. There are airports in Kerry, Shannon, Sligo, Knock and Galway. I flew from Dublin to Manchester last Saturday evening and a €2 levy was applied but when I fly from Knock to Manchester, the levy is €10. That issue needs to be addressed. It is not related to the legislation but it is anti-west of Ireland and it should be addressed immediately.

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