Éamon Ó Cuív (Galway West, Fianna Fail)

Schedule 1 to the Bill provides for the reduction in the weekly rates of social insurance benefit payable to people of working age.

Section 4together with Schedules 2 and 3 to the Bill, provides for the reduction in the weekly rates of social assistance payable to people of working age.

Section5 provides for reductions of €10 each in the monthly rates of child benefit for the first and second child and for the fourth and subsequent children, as well as for the introduction of a new rate of child benefit for the third child, with effect from 1 January 2011.

Section 6clarifies the legislative provisions regarding the payment of various increases with disablement pension so as to ensure that the increases of disablement pension for qualified adults, children, etc., can only be paid where the disablement pensioner is entitled to an incapacity supplement.

Section7 provides for changes in the reduced rate of jobseeker's benefit for claimants who refuse to participate in an appropriate course of training or to participate in a programme under the national employment action plan.

Section8 provides for changes in the reduced rate of jobseeker's allowance for claimants who refuse to participate in an appropriate course of training or to participate in a programme under the national employment action plan.

Section 9provides for changes in the reduced rate of supplementary welfare allowance for claimants who refuse to participate in an appropriate course of training or to participate in a programme under the national employment action plan.Section 10provides for repeals consequential on sections 7, 8 and 9.

Section 11provides for the abolition of the income ceiling of €75,036 applying to the PRSI contributions payable in the case of employees, voluntary contributors and optional contributors who are engaged in share fishing, with effect from 1 January 2011. The section also provides for a number of consequential amendments to the Social Welfare Consolidation Act 2005.

Currently, PRSI is levied on gross income, less any superannuation contributions payable. Section 12 provides for the abolition of PRSI relief on employee superannuation contributions payable with effect from 1 January 2011.

Currently, both employer and employee PRSI is levied on gross income less any superannuation contributions payable. While section 12 provides for the abolition of PRSI relief on employee superannuation contributions payable, section 13 provides for a reduction of 50% in the PRSI relief available for employer PRSI contributions arising from the employee superannuation contributions payable.

Section 14increases the rate of PRSI contribution payable by self-employed contributors by 1% to 4%, and brings all the rates to 4%.

Section 15provides for the abolition of the health contribution payable under the Health Contributions Act 1979, with effect from 1 January 2011. This section also provides that any liability for health contributions assessed after 1 January 2011 in respect of tax years before 2011 are payable and that matters relating to the estimation, collection, recovery or refund of those contributions or of interest thereon or other proceedings relating to those contributions or that interest can be enforced.

I have already outlined a number of changes to the PRSI system which are included in this Bill. In addition to these changes, I will be introducing amendments on Committee Stage to provide for the application of PRSI to share options and gains and for a 4% charge to the Social Insurance Fund, with no benefits accruing, which will apply to holders of public offices.

The Department of Social Protection currently accounts for approximately 38% of the gross Government current expenditure, and will account for 39% in 2011. Therefore, it is not possible to stabilise and reduce public spending without any impact on my Department's budget. As I stated previously, if we fail to take action now the consequences for those depending on my Department would be much more serious because in a situation in which we require to borrow money to pay social welfare, it is important that we retain that ability to borrow it. I therefore commend this Bill to the House.

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