Dáil debates

Wednesday, 22 April 2009

Social Welfare Bill 2009: Second Stage

 

2:30 pm

Photo of Cyprian BradyCyprian Brady (Dublin Central, Fianna Fail)

At this time of economic turmoil throughout the world, the fact that we have managed to maintain the majority of our welfare payments must be commended. Nobody involved in public life likes making changes, particularly to the welfare system which affects people's standard of living on a daily basis and their prospects for future improvement. In the current crisis every effort must be made to protect the most vulnerable in society. In order for us to do this, all sections of society must adapt and adjust to the times in which we find ourselves.

In the past decade successive Governments have managed to improve people's living standards, whether they were working, unemployed, old-age pensioners or on illness or invalidity benefit. Rates of payment have increased yearly for many years, while waiting times in processing claims and appeals have reduced year on year. The efficiency of the Department of Social and Family Affairs has improved over time, due in particular to the use of technology. We have seen a rapid and dramatic increase in the number of claimants. This increase is unprecedented in such a short period of time and is due to a number of factors, including the increase in the population and the new communities who have come here in recent years to take advantage of the progress made in the economy. We must take these issues into consideration when dealing with our current problems. The Bill goes some way towards doing this.

The number on the live register at the end of February 2008 was approximately 190,000. This figure increased by 165,000, or 87%, to 355,000, approximately, at the end of February this year. As the Minister stated, these numbers represent families and individuals who must deal with the spectre of unemployment. This is shocking for them. Having worked in an employment exchange I have seen at first hand the effect of having to seek social welfare assistance for the first time on people who have been employed and had a certain standard of living. Having to go through that experience is extremely traumatic. Every effort has been and is being made to ensure those experiencing unemployment for the first time are given priority and dealt with as efficiently and sensitively as possible. The increase in staffing in the Department and the reallocation of resources are designed to ensure this happens. Behind the figures and statistics there are families and individuals who must be catered and cared for. It is said a society can be judged on how it treats its most vulnerable members. Every effort is being made to look after the vulnerable.

Despite the remarkable increase and the speed of the increase in the numbers looking for social welfare payments, the system cannot change overnight. It must adapt and be adapted. All that can be done is being done in order that the resources available will be used properly and efficiently to ensure as quick a turnaround as possible and to ensure those most in need are provided with the basic means to live from day to day. Some of the changes required are being made in this legislation. The Minister has pointed out that, putting aside borrowing, the social welfare expenditure provided for in the budget is expected to account for 60% of anticipated Exchequer current revenue from tax and other sources. This is a significant amount of money. We will spend almost €22 billion this year on our welfare system. There are not many countries of the size of Ireland that are either willing or capable of doing the same. Credit must be given for the fact we will maintain the system in the current climate.

Some hard decisions had to be made in the the current economic environment. Nobody in public life likes making harsh decisions that affect people on a daily basis. The decisions made on the welfare system by the Department were not taken lightly or easily, but they were made in the best interests of ensuring the resources we have available and can provide are used fairly and efficiently to ensure those who need help most receive it.

Some of the changes to be made are to the rent supplement scheme. For many years high rents have been paid to landlords for substandard accommodation, as I have seen in my constituency. Advantage has been taken of people in the market. Some of the changes proposed in the legislation will ensure landlords take their responsibilities seriously and take account of the changes taking place in the rental market. Rents are changing daily. The Department must ensure those landlords receiving rent supplement on behalf of tenants provide an adequate standard of accommodation at a reasonable price. The market will dictate this and the changes being made in the legislation will ensure it will happen. It is in the interests of tenants that standards improve and rents are adequate and fair in the current economic environment. Housing authorities, particularly in major cities, are not in a position to provide emergency or short-term rental accommodation. The only alternative, therefore, is for the State to step in and provide people with the means to find accommodation. Some of the changes being proposed in the Bill will ensure standards and the efficiency of the rental supplement system will improve.

It is also proposed to increase the minimum contribution made by individuals and families towards their rent. One of the reported impediments to the transfer of rent supplement claimants to the rental accommodation scheme is the significant difference between the contribution required of the tenant under the rent supplement scheme and that which they are required to pay under the differential rent scheme. This has been an issue. I understand from the Minister's contribution that a commitment has been given to ensure there will be a transfer of a significant number, up to 1,000 people, to the rental accommodation scheme. While this system has been slow in taking off and difficult to implement in some areas, it will prove itself in time. Co-operation is needed from landlords to ensure the system is successful. The onus is on local authorities to ensure the rental accommodation available is adequate, of a decent standard and at a decent price. Some of the changes proposed in the Bill will ensure that will happen.

New measures to improve processing times for claims are being introduced, including a streamlined process for those who have made a claim in the previous two years.

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