Dáil debates

Thursday, 9 December 2010

Social Welfare Bill 2010: Second Stage (Resumed)

 

12:00 pm

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)

We were told then by the Minister for Finance, Deputy Brian Lenihan, that the worst was over. Hindsight is great but as we know now we are facing a €6 billion deficit. In that context it was always going to be difficult to prevent certain cuts in the education sector but I welcome that key initiatives we pushed for and which we promised we would remain in Government for have been achieved.

The staffing schedules in primary and second level schools have remained the same. The proposal to cut 500 special needs assistant places did not take place. Cuts in capitation, when measured against the real drop in the consumer price index, still show an increase at a time when tender prices for school buildings are falling. We were not able to stop the drop in school building investment but it matched tender prices.

I regret many things about the education budget where cuts had to come in but a rational analysis of the overall education budget will show that it stands head and shoulders above other Departments. I make no apologies for my own part in that because I believe education is the way out of the mire we are in. We need to maintain our high levels of education and, in that context, I support the stand up for education campaign to invest 7% of GDP in education. We need to keep investing in the right direction.

In that respect also, my party has always opposed third level tuition fees. In 2009, despite efforts, and reports in the media that they would be reintroduced, we prevented this move. There was no increase in registration fees last year even though it was earmarked. This year, again in the context of €6 billion worth of cuts and increased taxes, pressure was always going to come on student charges. Once again, what was touted in the media as a €3,000 to €3,500 cost ended up being €2,000, and for second and subsequent children it remained at €1,500. I do not like the fact that students and their parents will have to pay an extra €500 on registration fees, but I hope people will recognise that we have done our best to minimise the impact when they will be hit in so many other ways.

Other aspects of the budget will have been hit more because of investment in education. As I stated, I cannot apologise for that, but there are areas where further tweaking can be done. One question that has always been asked, which also relates to the social welfare budget, is about pay for Deputies and Ministers. In 2002, when pensions increased by 6%, Deputies' salaries increased by 13%. I described it as a urination on the less well-off. A couple of Members of the Seanad criticised the Green Party in very disparaging terms, and one person referred to "this gentleman" - I use that in the most expansive way possible or the broadest sense of the word. It shows how much has changed that there is now at least a recognition across all sides of the House that politicians need to show leadership and set an example. We have seen changes in salaries, such as in 2008 when Ministers first took their pay cut and last year when a new, long-overdue vouched system was introduced. Some might say it is still not good enough that the Taoiseach is among the highest paid in the world, and I would concur with that. All I would say is that I hope it is a step in the right direction and it continues over the next couple of years on an incremental basis so that we come more into line with countries whose standard of living we share, for example, Spain, where the cost of living and wages are much lower.

We aspire to be Germans but the only reason we do so is because we have borrowed money from them and we are maxing out our credit cards on German savings. We cannot be Germany. I recognise, although concerns have been expressed - I will be speaking in the debate later on - that we cannot have the second or third highest minimum wage when we are not the second or third wealthiest country. To repeat the argument on comparisons with Germany, the Germans do not even have a minimum wage. However, that is another debate and I hope to speak on that later this evening. Regarding Deputies pay, the percentage change in 2010 was a reduction of 17.3%. This year, there will be a 9.3% decrease, which I very much welcome in the context of what is going to happen.

The new special PRSI contribution for officeholders coming in this year has not been advertised and it is just as well to put it on the record because the media have reported that Deputies will not be taking a pay cut. My understanding is that as well as Ministers, the Taoiseach, the Tánaiste, Deputies and Senators, it will also affect members of local authorities. There will be a 4% cut for Deputies on top of the other taxes and levies that are coming in. In my view, it is still not enough, but it at least shows some level of movement given the situation we are in. Hopefully, over the next couple of years, Deputies salaries will come down, although I do not share the view of some out there that Members should be getting the average industrial wage because the hours of a Deputy are far longer that those of someone working on the average industrial wage. In addition, what got us into the mess partially was corruption, where people topped up their income by making dodgy decisions, particularly at local government level when Deputies were also councillors. This was one of the arguments put forward for raising Deputies' pay so that they would not be forced into getting a little unofficial dig-out. At least now the dig-outs all are supposed to be legitimate and referred to the Standards in Public Office Commission.

I hope the finance Bill is introduced as quickly as possible, although, obviously, it will not be ready on 12 January in terms of the amount of work to be done. I also hope there is time to bring in, or at least publish, the corporate donations legislation so that we get rid of the link between politicians and money once and for all.

Regarding the Social Welfare Bill, yesterday evening Deputy Michael Ring made an impassioned plea to Members on the Government benches to support Fine Gael amendments. He stated that the cuts that would affect carers, the blind, widows and the most vulnerable recipients of social welfare were unfair, heartless and cruel. I must say I agree, but in saying so I want to clarify, first and foremost, that this budget must be passed and I will vote for it and for the Social Welfare Bill. One cannot have a free for all whereby each Government Deputy votes on each individual amendment because one would not get a Bill passed within the timeframe. All I can do is make a plea to the Minister, Deputy Éamon Ó Cuív, that action can still be taken through last minute amendments.

There is a rational argument for asking, for example, whether some of the long-term unemployed should take an extra cut because of the more vulnerable or whether old age pensioners take a little bit of a cut. There have been cynical arguments that the reason senior citizens have not been hit directly in this budget is because Fianna Fáil is trying to protect the remnants of its vote, that the over 65s are Fianna Fáil voters. My deputy leader, the Minister of State, Deputy Mary Alexandra White, stated some time ago that the Green Party does not support putting an extra burden on those over the age of 65 who paid taxes at the higher rate over the years and who raised families to the height of the Celtic tiger boom, and who are most vulnerable. We supported the measures whereby additional pension income would be a source of additional revenue. That has been criticised by some, but it is fair that a pensioner who is on a very high income or who has a reasonable second income should contribute a little.

Deputy Ring asked people to vote on individual items. I do not think we can, but were Deputy Ring - I make this pledge before the House - to suggest that old age contributory pensions be cut by €2 and such an amendment was tabled, I would vote for it. However, I have a funny feeling that, no more than Fianna Fáil, Fine Gael will not support putting extra tax on pensioners and there lies the nub of the issue. There is a valid argument to be put forward that one cannot hit pensioners. There is also a valid argument to be put forward that one cannot hit the long-term unemployed. Therefore, the question is how one assists the carers and the blind from within that budget. Somewhere has to suffer and a judgment call has been made by the Minister, who I commend for his efforts. However, I urge the Minister to think again to see whether a little more of a shaving can come off certain areas or if there is a way of analysing the means of a household, including family members, so that those who are in a position to pay a little bit more can do so. Perhaps a commitment could be given here today, either through amendments from the Minister or that the issue will be analysed to see what the impact of these measures would be. It is unintentionally callous, once again, for the most vulnerable to be hit the most.

They have to be hit in a €6 billion budget but in terms of equality, the most vulnerable in our society should be protected the most. Given the relatively small amounts of money involved perhaps more juggling could be done.

We cannot imagine that social welfare cuts will make people happy. In a related context, today I received an anecdotal report, which I did not receive first-hand, of an individual who was in the queue in a social welfare office and went out to stay warm in his car. He returned to where his place was in the queue and was told to go back to the back. When he stated he would not do so because he had a place in the queue, he was set upon and beaten up. The social welfare office was forced to close. I believe there was also an element of racial motivation. If this is reported in the media and turns out to be true I want to condemn any attacks of this nature.

Complaints have been made about social welfare offices not opening early enough in the mornings to let people queue in the warmth. Some response has been made, but it does not cost much to have a little ticketing machine and a portable monitor so people know where they are in a queue; they can go to the shops and get themselves a cup of tea and return and know where their place is. It is very degrading to queue in the freezing cold to collect a relatively meagre income and to feel like one is being treated like dirt. This might help. It will not sort out the anger at the mess caused by decisions of people in the Government and elsewhere and the collapse of the banking system, but at least it may make life a tiny bit more comfortable.

People speak about treason in this House, and it has been mentioned by a number of Deputies that to vote for this budget would be treasonous. Treachery has a number of definitions but it is obvious that the intent is to evoke the spirit of 1916 and the idea that if one commits a treachery one will be shot in the head. I have received correspondence from Presentation sisters throughout the country and I have a letter which I think is worth reading. A letter from a convent in the west of Ireland urged Members of Dáil Éireann to put aside party politics at this critical time and unite to ensure the budget is passed when put before the Dáil. The signatories stated they believed that genuine patriots would put the interests of the country before personal gain to ensure a secure future for our country and its people. It was signed sincerely by Sisters Theresa, Goretti, Patricia, Mary, Maria, Bridie, Clement and Rita. They were not the only Presentation sisters-----

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