Olwyn Enright (Laois-Offaly, Fine Gael)

I thank the Labour Party for tabling this Private Members' motion, which is particularly important given the fact that, while it does not require legislation, no mention has been given to the Social Welfare Bill's deplorable cut in the Christmas bonus. When political legacies are discussed in future, one thing is for certain - the Minister, Deputy Hanafin, will always be remembered as the Minister who abolished Christmas by robbing people of their Christmas bonuses.

I was amazed in the debate that followed the budget both on the airwaves and in the House to hear one Minister after another state there had been no cut in social welfare. I heard the Taoiseach say on the news that the Government would not countenance cutting welfare rates and then attempt to take credit for increasing the rates in the good times. I am not sure what the Government considers the Christmas bonus to be. Clearly, it sees the bonus as something of a luxury, something trivial that is not a necessity or important. I am not sure how Government Members spend Christmas or whether they just treat it as another time of the year without the extra associated costs, but Christmas is a time of greater expense for the majority of people. While many enjoy Christmas, they are filled with dread wondering how will cope and how they are going to afford it. I know of the dread that comes early in January for families in particular when bills and outstanding credit union loans must be paid. Worse, a moneylender's loan may need to be paid, but there is often no money to pay it.

Last night, the Minister seemed to discount or trivialise the issue of moneylenders. It may not be something that concerns her, but it is a matter of great concern to the many groups working with people in financial difficulties. The morning after the budget, members of a local credit union contacted me to inform me that people would experience difficulties after Christmas. They are concerned that those difficulties will now be compounded. The Free Legal Advice Centres, FLAC, the Society of St. Vincent de Paul and many similar groups have expressed vocal concerns about moneylenders and the appalling lack of regulation thereof.

Three weeks ago, the House discussed the issue of rising debt. Fine Gael made sound, sensible proposals to deal with the issue and we asked the Government to give us its views on legislating for rising debt, regulating moneylenders and so on. Now we find ourselves in a situation where these problems are going to be compounded and trebled by the Government's abolition of the Christmas bonus. In light of this motion, I ask that the Government consider the matter of regulating moneylenders. Some of their websites cite interest rates of up to 150%. That they are legitimate moneylenders is a part of the difficulty. When people are in dire circumstances, they will go for the easy option at the time, but it is not easy to pay up to 150% on a loan. With a financial institution, one might only pay 10%. This matter must be addressed, particularly given the current climate.

Every family is entitled to celebrate Christmas. The extra payment is what allows Christmas to happen in many poor households. For others, and this has been stated publicly by many groups representing different sectors dependent on the bonus, it amounts to a fill of oil and the payment of bills. People have become wholly and solely dependent on it. I want to concentrate on its importance for families with children in particular. If one is on jobseeker's allowance for the required period and it is one's only income, together with a top-up for one's children, one cannot save for Christmas out of the amount received and does not have the opportunity to put money aside.

Last night, the Minister addressed the issue of deflation, but the amount spent on necessities comprises the largest part of many social welfare recipients' household budgets. Deflation is not helping them. The Minister should remember that they will lose the early child care supplement of €1,000 per year per child under six years of age. Other Members have discussed pensioners losing the bonus.

The Government's decision to scrap the bonus is reprehensible and must be reversed. I have lost count of the number of people who have asked me how they would afford Christmas this year. They cannot believe that the payment will not be made, as they will not be able to buy presents or have proper Christmas dinners. The decision shows the most Scrooge-like mentality seen in the State to date. I do not know when the Minister was last in a toy shop, but €204 will not go far in providing three or four children with Christmas presents. How does one explain to a five year old that we are in tighter economic times? It is not a lavish payment that allows families to go wild. Rather, it allows them to keep their heads above water. Many of them are borrowing, even with the bonus, to meet the cost. They are already to the pin of their collars and what the Government is doing will make the situation far worse.

The Government can dress this up any way it likes. It can call it the lesser of two evils, but the axing of the bonus is a social welfare cut. The Minister's statement, namely, that it would be the first payment to be returned were there a windfall, is rubbish, nonsense and disingenuous. If the Minister for Finance will contribute, perhaps he can tell the House whether there will be a windfall anywhere in the Exchequer.

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