Róisín Shortall (Dublin North West, Labour)

Effectively, the cut will take millions of euro out of the economy and threaten jobs further.

We are constantly hearing that the cost of living is going down. Yes, it is going down for some. If one has a large tracker mortgage and has managed to hold on to one's job, then one's cost of living is clearly declining. However, most people who receive the Christmas bonus do not have a mortgage. In most cases, they are either pensioners and their mortgages are already paid up or they are local authority tenants and their rent is related to their incomes. These rents have not decreased.

We accept that the reduction in interest rates by the European Central Bank in recent months has impacted heavily on the consumer price index. However, when one measures inflation without mortgage interest, prices are at a similar level to last year. In fact, they are down by just 0.3%.

Research by the Vincentian Partnership for Social Justice tells us that many people on welfare are already struggling to make ends meet. Its detailed analysis of the weekly budgets of typical family types, such as a pensioner living on her own, shows that, even at existing levels of welfare support, incomes are often not matching outgoings. This is why the Society of St. Vincent de Paul, instead of our social welfare system, has become the safety net for people at the lower end of the spectrum in recent years. If not for the Society of St. Vincent de Paul stepping in, many people would be having a dreadful time.

The Vincentian Partnership for Social Justice research also shows that, for a lone pensioner on a non-contributory pension without a car, the weekly shortfall is €43.61. That is the shortfall between what such a pensioner needs as a minimum essential budget and what he or she gets on his or her old age pension. In this instance, taking away the Christmas bonus means taking away Christmas. The same research shows that for most people on welfare discretionary spending is very low.

There is an obvious point about the demands of Christmas. Even for families that can withstand the pressures of advertising, there are still significant costs involved in even a modest Christmas celebration. Without extra income at Christmas, some of those families will be forced into the hands of moneylenders. There has been a 30% increase in the number of clients attending the Money Advice and Budgeting Service, MABS. In the first three months of this year, MABS dealt with more than 5,000 new clients, of whom 75 had sub-prime loans, 363 had moneylender loans, 254 had overdraft problems, 1,258 had credit card difficulties and 2,671 were in trouble with personal bank loans. Crucially, two thirds of these MABS clients were social welfare recipients. This statistic alone shows how dependent welfare recipients are on every cent they get and just how vital is the Christmas bonus.

In concluding, I wish to address my remarks to the many Fianna Fáil backbenchers and Independent Members who have run for cover tonight. Regrettably, not a single Government backbencher has turned up for this debate. I hope some of them are listening in their offices, as I intend to address my remarks to them. Members such as Deputies Lowry and Healy-Rae, who have been supporting the Government, as well as Fianna Fáil backbenchers who habitually proclaim their commitment to the less well-off, now will have the chance to decide where they stand on this crucial issue.

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