M J Nolan (Carlow-Kilkenny, Fianna Fail)

I welcome the opportunity to speak on the Social Welfare Bill 2009. It is unfortunate that Members must debate such a Bill at this time of the year, but the background is the extremely difficult economic climate we are experiencing at present. It does not affect this country alone as the world economy also is highly depressed. However, due to our dependence on world markets, this affects us more severely than some other small countries.

In her contribution on Second Stage yesterday, the Minister set out in great detail the reasons and purpose of this Bill. One can but stress that social welfare payments constitute such a large component of the Government's expenditure. Such payments now cost more than €21 billion of a total Government spend of €53 billion to €54 billion. However, the figure is even more startling in the context of the percentage of the revenue stream available to the Government devoted to the cost of social welfare payments. For this reason, it is difficult for any Minister for Social and Family Affairs to be obliged to outline savings that must be made in that Department and in the administration of social welfare payments in particular. The Minister must look with envy at some of her predecessors who, two or three days after the Budget Statement, were able to come into the House and herald great improvements in social welfare payments and benefits. Regrettably, matters have turned very quickly and the Minister is left with the unenviable task of ensuring that the best value for public moneys can be achieved from her Vote.

I am encouraged by one aspect of the Bill in particular, which I am sure strikes a chord with many Members and with the public. I refer to the changes the Minister proposes to make in the jobseeker's allowance that are designed to incentivise 18 and 19 year old jobseekers and to ensure that such young people, many of whom Members encounter during their work as public representatives, are not led into welfare dependency. I have been around for long enough to have experienced this during the 1980s, when young people left school with no chance or hope and went on to social welfare straight away. Many of them remained in that position and some have not worked since. As a country, a nation or as a community, we cannot afford to fall back into that trap and the changes proposed in the Bill go some way towards addressing that problem.

A person who is under the age of 20 who receives the maximum €204.30 rate of jobseeker's allowance at present will have that amount reduced to €100 per week henceforth. While reducing the amount is fine, I wish to emphasise the incentives the Minister has outlined in respect of encouragement and the carrot provided at the end of it. The full rate of the relevant scheme will be paid to 18 and 19 year olds who participate in a full-time Youthreach course for young or early school leavers. Alternatively, those who get involved in post-leaving certificate courses also will benefit from the positive aspects of this change.

The single aspect about which I am a little concerned is that, to qualify for a back to education allowance, such people must have been out of formal education for at least two years. This creates a problem for those who have completed their leaving certificates, are 18 years old and who then apply for jobseeker's allowance. We must ensure there is no margin for error and that individual students are encouraged at the first opportunity to undertake further education, retraining and upskilling. There is a bonus at the end of this in that they will be entitled to the full jobseeker's allowance.

I ask the Minister to examine the length of time it takes to process asylum applications, which has been brought to my attention. Perhaps savings can be made in this regard. I refer to the time it takes to process appeals following decisions against applications. A number of cases have gone on for years and during that time payments are being made from the Exchequer to individuals who must be repatriated. It is not just the cost and time of administration and processing applications and appeals. At the end of the process the cost of flying individuals to their countries, many of which are African states, is inordinate. I saw figures of up to €100,000 to charter a plane to bring individuals back. At a time of economic difficulty we must examine every aspect of our expenditure and see where we can economise. This is an area for the Minister to examine in consultation with the Minister for Justice, Equality and Law Reform and savings may be possible.

I welcome the announcement on the free preschool year for families, on the basis that €1 billion has been expended by various Departments on the provision of preschool places over the past number of years. The Minister is confident that most, and I hope all, families who wish to avail of the free preschool year can do so. It is a welcome addition.

Previous speakers referred to the difficulties encountered by self-employed businesspeople in accessing social welfare. Through no fault of their own, because of the downturn in the economy and the difficulties in accessing credit lines, self-employed people carried out work and are now find it difficult to get paid. I know self-employed carpenters and other individuals in the construction industry who are owed €70,000. They cannot get paid because the builders and developers in question are unable to sell houses. There is a chain reaction involving these businesspeople who have traded profitably for up to 15 years and have never sought to access help from the State during their working life. They now have no option but to seek assistance. They do not know what they are entitled to or what is available. They have great difficulty and perhaps a section of the Department could identify and educate these people on what to seek and how to make applications.

This brings into question the interdepartmental transfer of staff because of the pressures on the Department of Social and Family Affairs. The departmental officials in Carlow are most helpful and do their best in difficult circumstances. They are dealing with a major increase in the number of requests for assistance and inquiries about social welfare payments. In that climate they are working hard and are courteous and helpful. In consultation with human resources sections in various Departments, perhaps there could be an easier way to transfer staff. Within some Departments, where pressures are not so great, there may be a surplus of staff that could assist the Department of Social and Family Affairs. In the private sector it is a matter of form that this will happen. In Carlow a large company is rationalising and staff are obliged to move in order to retain posts. They are doing so at a lower income and it is timely that all Departments examine this.

I wish the Minister well in her proposals, some of which are enlightening. We cannot lose sight of the context and climate in which this Bill is debated. Hopefully the measures will be short-term rather than long-term.

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