M J Nolan (Carlow-Kilkenny, Fianna Fail)

It is important in the context of this debate again to remind oneself of the background to the budget and the difficult job faced by the Government and by the Minister for Social and Family Affairs in particular, who was trying to protect a budget on which there were more calls and demands because of the economic recession in which we now find ourselves. The Minister is to be complimented on fighting the good fight and on securing an increase in real terms on her budget for 2010. In so doing, because of the increased demands arising in particular from the increase in jobseekers, the Minister was obliged to make savings in other areas. Having spoken to and listened to her, it is clear that she tried to minimise the effect of these cuts and she has succeeded in so doing. By common consent, everyone is agreed that given the funding that was made available to her and the savings she was obliged to make, she did, in so far as was possible, protect those who are most vulnerable, that is, families and, in particular, families with children.

As 2010 approaches, Members should remind themselves again that the Minister has secured and will pay out €676 million more than she did in 2009. The choices before the Minister were stark and it is important to recall what she has achieved in this regard. While some benefits are being reduced by 4.1%, in that context, it is important to recall that over the past 12 years, successive governments have delivered unprecedented increases in social welfare payments. During that time, the jobseeker's allowance and disability allowance have both increased by 130%, while the carer's allowance for those aged under 66 and the one parent family payment have increased by almost 150% and 130%, respectively. Moreover, it should be recalled that over the same period, the cost of living has only increased by 40% and, consequently, a real increase was experienced by those who are unfortunate to be dependent on social welfare.

Even throughout the economic difficulties of the past two years, the Government has done its best to prioritise social welfare. The October 2008 budget provided for increases of between 3% and 3.8% in the basic payment rates at a time when inflation for 2009 was expected to be 2.5%. Consequently, an increase was awarded that was above the rate of inflation. However, it is now the case that the consumer price index has fallen and that a real benefit has arisen to those who are in receipt of social welfare payments. Consumer prices have now fallen to the same levels that obtained almost two years ago in February 2007. After the budget of 2010, the lowest weekly rate of payment for those aged between 25 and 66 will be €10 per week higher than they were in February 2007. Next year, the State will still spend €21.1 billion on social welfare, which comprises a significant part of total Government expenditure and will remain so. Consequently, it is important to acknowledge that the Government is still committed to assisting and helping, where possible, those who need help.

I believe the Government was correct to deliver such significant increases in welfare payments when the resources were available over the past 12 to 14 years. However, in the current economic environment, it simply is not possible to continue to spend at the same level as when tax revenues were much higher. Members will have noted the decline in tax revenues and I understand they are levelling off at present and hopefully may increase next year. Unless the Government takes steps now to reduce overall public expenditure and restore stability to the public finances, we risk making the economic situation far worse for everyone, including welfare recipients, in the long term and the choices it would be necessary to make in the 2011 budget would be far more stark.

It also is important to remember that a technical analysis carried out by the Department of Finance has suggested that between October 2008 and October 2009, a 3.25% fall was experienced in consumer prices for retired householders. Moreover, a consumer price fall of 5.75% was experienced by unemployed householders, while the equivalent consumer price fall for working householders was 7.5%. Therefore, while decreases in the cost of items such as mortgages and cars will naturally have had a greater impact on higher-income families, the overall cost of living also has dropped for low-income families in general.

One area the Minister did not cover in her contribution last night and which must be addressed is the critical situation arising for householders who find themselves with one or both partners out of work and who hold large mortgages. There is genuine concern in this regard and I know I am not the only Member who has been approached by individuals and families seeking assistance, help and advice on how to deal with significant mortgage arrears and who now are in receipt of social welfare benefits. I hope the Government will address this issue early in 2010. While it has been far too preoccupied with securing a successful budget, which it now has done, this issue will have social consequences. It is a serious worry to many families in which one or both partners had secure jobs in better times but who now find themselves with a severely reduced income or with no income at all, apart from social welfare benefits.

As for young people signing on for jobseeker's allowance, I support the Minister in her innovative proposal that young jobseekers coming on the live register must now register for training or educational places. It is a positive measure. We should be up-skilling and re-skilling.

Young people, in particular, should not lose the opportunity, when they are unemployed, to get an education or learn a trade. I am glad FÁS has committed to increasing the number of training places and I welcome the opportunities this will afford to young unemployed people. They will benefit from such programmes. I commend the Minister and Government for minimising the effect of the savings which had to be made in the social welfare budget.

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