Deirdre Clune (Cork South Central, Fine Gael)

The two main elements of the Social Welfare Bill 2009, namely, the doubling to 4% of the health levy and to 2% of the income levy, will have a severe impact on low-income and middle-income families. People earning less than €15,000 per annum will be subject to the income levy. In other words, those who earn the minimum wage or less will be brought into the tax net, while those earning more than €25,000 will face the doubling of the health levy. These measures come from a Government that claims to be protecting low earners and those who are at risk of poverty. However, the impact of both levies certainly will ensure poverty will visit many doors on foot of its introduction in less than two weeks' time on 1 May. As I noted, these two aspects of the Bill are extremely disappointing and Fine Gael certainly will not support and will vote against these elements of the Bill.

I wish to tease out matters pertaining to the early child care supplement. The Minister stated in her contribution that it will be replaced by the preschool provision and this already has raised serious questions about how it will be implemented. In general, the early child care supplement was perceived as a means of paying for child care for women who were working. I acknowledge it was available to women regardless of whether they were at home or in the workplace but the €20 per week was highly valuable. While I support preschool and acknowledge getting children to school early has a value, I would not replace one with the other. A mother with a six-month old baby who wishes to work will not receive any support from the State until the child is eligible for preschool, assuming the Government will implement its proposals, which I cannot envisage being in place before January. However, I will give it the benefit of the doubt in this regard. However, the supplement of €20 per week has been highly important to people, especially those with two or three young children. It constitutes a very important contribution towards child care. The cost of child care has not gone away. It still is a major issue for people who are on low to middle incomes. It comprises a major chunk of their take-home pay and the impact of this measure on parents of young families, combined with that of the levies, will be significant.

The Government should reconsider this decision because the supplement is of relatively recent introduction and has been of benefit to working parents. There always was an expectation or hope it would increase rather than being abolished. The parents of young children in child care will always require support because while the costs are not excessive, it is an expensive product in respect of the regulations that must be adhered to, the cost of premises, the staff-child ratio and so on. These elements add to the cost and many of those running crèche or child care facilities constantly work to keep charges down. They work with parents to ensure the latter can see where the monthly payment is spent. I have spoken to many people on this issue in the past three weeks. There is a consensus that this will drive child care into the black economy. People will not be able to afford to use a crèche and will depend on relatives if they are lucky enough to be in that situation. The crèche, which can be expensive, will not be an option for many. I ask the Government to hold its fire on the early child care supplement. It will have a severe impact on working parents of young children.

I appeal to the Minister, who was in the Chamber earlier, to examine rent supplement and, with the Minister of State with responsibility for housing, to work with local authorities to advance the rental accommodation scheme. It is of great value to tenants and those on local authority housing schemes. It gives security to tenants and there is much property at the moment for which this scheme could be advanced. It is a matter of providing the staff and resources at local authority level to ensure the product on offer is advanced. The scheme gives security to the tenant, who is dealing with a local authority, and the standard of accommodation has been improved. It has been a success and people are happy with it. It is not moving as quickly as it would if resources were made available. There is so much accommodation available to local authorities. It is an attractive proposition for landlords, who are guaranteed rent for 12 months or three or four years depending on the arrangement. It is a useful product and I appeal to the Minister to work with the Minister of State with responsibility for housing and local authorities to ensure it is advanced.

I will speak on the Christmas bonus tomorrow.

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