Arthur Morgan (Louth, Sinn Fein)

In order to give proper protection to families on welfare and to ensure that they do not fall into the poverty trap, it is time to set a new, longer-term benchmark against which the evolution of social welfare payment rates can be measured. An analysis should be undertaken to establish if a third of the average industrial wage is still sufficient to meet living expenses. Many poverty groups agree with that and feel that new percentage is necessary.

In spite of the Government's repeated claims of protecting the vulnerable, the reality is that vulnerable families are being neglected by the Government and put under significant additional pressure. The president of St. Vincent de Paul, Ms Mairéad Bushnell, warned that 2009 promises to be the most difficult year in a generation for that organisation. The proposed welfare increases are negated by the hike in the minimum contribution to rent and mortgage supplement, as well as by restrictions placed on families trying to access child benefit and the early childhood scheme. Struggling families with children between five and six years of age could have up to €550 per annum taken from their budgets, while families with 18 year old children in education will lose up to €1,000 per annum from 2010. The Government is damaging the working poor through the imposition of a 1% levy, while excluding families depending on welfare from the State.

There is further evidence that belies the Government's claim that it is protecting poor families. The 1% income levy applies to people on anything above the minimum wage. That should not be the case, as it should apply at the least to the threshold of the average industrial wage. That might provide some semblance of fairness to those families who are struggling on very low incomes. There is also evidence that the Government is not pressurising high-income families. My next amendment calls for an abolition of the PRSI ceiling, which would have allowed a sufficient income stream to deal with increasing the 1% levy threshold. The abolition of the PRSI ceiling would yield, at a conservative estimate, €295 million per annum to the Exchequer. This shows that decisions could be taken by the Government which would alleviate the poverty and suffering of low income families. I hope the Minister seriously considers accepting amendment No. 4.

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