Róisín Shortall (Dublin North West, Labour)

The Labour Party is opposed to section 3 of the Bill, which proposes to reduce a range of benefit payments, including jobseeker's benefit, illness benefit, health and safety benefit, injury benefit, disablement gratuity, carer's benefit, invalidity pension, widow's contributory pension, widower's contributory pension and guardian's payment, by €8 per week. All of those who will be affected by this measure suffered similar €8 cuts in their welfare payments last year. Throughout the past year, we have heard from many groups representing people in those categories about the impact last year's cuts have had. The difference the cuts made to their lives was that they made them much more difficult and created hardship. The rationale that was used at the time was that there had been a reduction in the cost of living. While I do not doubt such a reduction had taken place, the principal factors in last year's reduction in the cost of living were house prices, interest rates and rent. Those factors did not apply to many of the people in these categories. There may have been some kind of cost-of-living justification last year, but there is no such justification at all this year. We know there has been no appreciable reduction in the cost of living across a range of items. Yet, the Minister is saying to people who have already suffered a cut of €8 in their payments that they must accept a further €8 reduction. There are many people in receipt of the benefit payments to which I refer who are just about keeping their heads above water. These individuals will not be able to manage in light of the additional cut that is being introduced.

The proposed cuts are savage in nature. The Minister had a number of choices open to him in respect of this matter. Earlier, he gave a long, rambling speech regarding how he had no choice but to cut welfare payments. Notwithstanding the fact that it completely mismanaged the economy in recent years, the Government had choices available to it in the context of how it proposed to balance the books. The Labour Party set out a range of options which could have been pursued. For example, the Government could have introduced an additional tax in respect of people with incomes in excess of €100,000. That would have been one fair way of proceeding. In addition, the Government could have made much quicker and more considered progress in respect of the tax reliefs on pension contributions. It has taken an extremely easy approach in this regard. There is potential for much more significant savings to be made in this area.

In the context of ending the reliefs on property-based tax reliefs, the Government took its time and proceeded at a very slow pace. These reliefs could have been removed much more quickly, which would have allowed the Government to avoid the necessity for cuts in welfare this year. Unfortunately, it did not take the approach I have suggested and instead targeted the cuts at people on the lowest levels of income. I refer here to those who are on welfare payments and those in low paid jobs, that is, the working poor. It is regrettable that this step has been taken.

The Joint Committee on Social Protection heard all about the difficulties experienced by those who have been struggling with the cuts introduced last year from the numerous groups - the Society of St. Vincent de Paul, One Family, Social Justice Ireland, Focus Ireland and various others - which came before it in the past 12 months. I wish to make special reference to the Chairman of that committee, Deputy Healy Rae, whose behaviour in all of this has been reprehensible. A man who should be aware of the situation and who should know all about the levels of poverty that exist has entered into some form of grubby deal in order that he might maintain his political dynasty in Kerry South. Deputy Healy Rae has simply ignored the various concerns of the people to whom I refer and who have looked to him during the year for some kind of protection. These individuals have a right to expect that the Deputy, as Chairman of the joint committee, would stand up for their rights and oppose the cuts to their welfare payments.

The way Deputies Healy Rae and Lowry have behaved in recent times is disgraceful. I hope that all of those people in Kerry South and Tipperary North who are dependent on carer's allowance, injury benefit, jobseeker's benefit and invalidity pension are aware of what the Deputies who represent them are doing in their name. Deputies Lowry and Healy Rae appear to have no compunction with regard to completely selling out those of their constituents who are dependent on welfare payments. That is a disgrace. I hope that in the forthcoming general election the people in the Deputies' constituencies-----

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