Dáil debates

Wednesday, 8 June 2011

Social Welfare and Pensions Bill 2011: Second Stage (Resumed)

 

6:00 pm

Photo of Andrew DoyleAndrew Doyle (Wicklow, Fine Gael)

We all talk about fixing our economy and balancing the budget. There are two ways to do this - we reduce what we spend and increase revenue through taxes. People talk about getting rid of the black economy and getting more people back to work. We can approach this in two ways. The first is to go after the social welfare fraud which occurs. For a number of reasons there has always been a level of this fraud. One reason is that it is not attractive for people to take a job at a certain level of pay nor is it attractive for a person to offer a job at that level of pay because he or she knows it is impossible to compete. Deputy Collins spoke of people competing with employers who employ persons in the black economy. That is true. One hears of taxpaying, self-employed persons who try to employ workers but they cannot compete. This is happening throughout the country. As well as the person who offers those terms of employment, there is the person who commissions the contractor responsible.

Apart from the issue of raising the age for the old age pension, most of the opposition expressed has been about other issues not contained in this Bill which are perceived to be coming down the line, such as the joint labour committee measures. We must get real about the JLCs but that is probably a matter for another day. We are restoring the minimum wage to its original position.

It is proposed to reduce employers' PRSI. All of a sudden, there is a gap between being unemployed and employed, or between giving a job and taking a job. That is what it is about if we are serious. This is a pragmatic Bill. It puts certain steps in place. The pension change that is being made in the Bill is a reflection of the fact that we are all living longer, thankfully. Until 1970, the retirement age for pension purposes was 70. Pension levels were minuscule at the time. Some eminent State employees have been able to extend their working careers. A former President of the High Court extended his term by two years because he was still a young man and wanted to continue in his job.

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