Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

At the end of February we were presented with catastrophic unemployment figures. There were then more than 350,000 people out of work and we are losing jobs at a rate of 1,000 per day. Predictions of more than 500,000 on the dole by Christmas might very well prove to be conservative. This will mean tens of thousands more families becoming dependent on social welfare. When I asked the Taoiseach in the Dáil before the St. Patrick's Day recess, and again today, if we would have a new social welfare Bill arising from the supplementary budget, he answered the question in the context of expenditure cuts and revenue raising. The Taoiseach's replies were an ominous signal that social welfare will be included in expenditure cuts.

Already arising from last October's budget, newly unemployed people have been penalised. They are now required to have been in employment for two years before qualifying for jobseekers benefit, as against one year before the budget. The payment period for job seekers benefit has been shortened from 15 months to 12 months, after which the unemployed person must move to the means-tested job seekers allowance. Newly unemployed people are also facing very long delays before their claims for social welfare payments are assessed.

Low-income families have also suffered disproportionately from VAT increases, health charge increases, the cut in child benefit for 18-year olds and the cut-off of child care supplement at five years of age. Many of these families still do not qualify for medical cards because the threshold has been allowed to stay at a disgracefully low level. The Government has been strangely silent on this major issue. I challenge Government speakers to guarantee in this debate that existing levels of service for medical card holders will not be cut and that those who become qualified for medical cards through unemployment will not be faced with a diminished service after the 7 April budget. The opportunity for Government speakers to give an answer to that concern is afforded them in the course of these pre-budget statements this evening and tomorrow.

In its panic in the lead-in to the unnecessary 14 October budget, the Government lashed out at public services, cutting health and education. This was followed by public transport cuts with a hypocritical Green Party standing over the attacks on bus services and jobs in Bus Átha Cliath. These were instinctive acts by a Government that does not value public services for what they are — essential services for our society and economy — but sees them as goodies to be doled out when the revenue figures allow. The Government must ring-fence social expenditure to support all those who are on the threshold of poverty. Revenue must be raised through taxing those who can afford to pay, through eliminating waste in public expenditure and through job retention and job creation — the most critical element that the Government has failed to grasp so far. We need a real and effective employment strategy and it is glaringly absent from Government.

With regard to job retention, we need only look at the scandal of SR Technics to see how the Government has failed to be proactive and has allowed a big multinational company to take over the operation and then force it to close, even though it is a very viable business. The owners of SR Technics are mostly oil billionaires based in the United Arab Emirates. They have no interest in or knowledge of Ireland. They want to close the Dublin operation because their long-term plan is for a massive aircraft repair facility in Dubai. Yet what has the Tánaiste and Minister for Enterprise, Trade and Employment done? She has allowed IDA Ireland and Enterprise Ireland to refer directly to the owners of SR Technics all potential investors who have expressed interest in taking over the company or parts of it. As the workers have pointed out, it is they and the local management in Ireland who are the real stakeholders in SR Technics. Their plan for the survival of the company should be fully supported by Government and the Tánaiste should instruct IDA Ireland and Enterprise Ireland to work directly with workers who are the real resource at SR Technics. These jobs can be saved and I urge the Government to act effectively towards that end.

We in Sinn Féin have pointed the way with our 'Time for Action' proposals, including an employment fund to help struggling viable businesses to retain their workers. This is far preferable to allowing people to be added to the ever-lengthening dole queues. I urge the Government to take on board our proposals. I urge it also to take on board the constructive proposals of the trade union movement and I commend trade unionists on their campaigning for a better way forward. Workers are now being vilified in some sections of the media for preparing to take strike action next Monday. I am also aware that pressure is being placed on some workers in advance of that, which is outrageous. Workers have the right to make a democratic decision and to follow through in line with that trade union decision making process. We need to remember, however, that this strike is in opposition to the disastrous policies of the Government and in support of the better and fairer way forward that is possible.

I hope that from the collective of contributions in the course of these statements this evening and tomorrow the Government will take note and act in accordance with the commonsense proposals and ideas suggested. With no disrespect to the Minister of State, Deputy Mansergh, who is the sole Minister or Minister of State on the Government benches, I hope the Government will take heed and note of the contributions of Opposition voices over the course of these two days.

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