Ann Phelan (Carlow-Kilkenny, Labour)

I wish to share time with Deputy Eamonn Maloney.

I congratulate the Government and the Minister for Social Protection, Deputy Joan Burton, on bringing the Bill before the House. I preface my words by stating that fraud does not take place only in the social welfare system. Fraud is at large in the country in general. Most reasonable people would consider that if this amending legislation did nothing other than give legal effect to the restoration of the minimum wage rate from €7.65 to €8.65, then it would be worthwhile.

Most reasonable people would consider that the shameful act of cutting the lowest-paid workers pay perpetrated last year by the previous Government was its final act in a line of similar races to the bottom. A cut in the minimum wage a few weeks before Christmas 2010 was reminiscent of the Dickensian era, to say the least. Employers could have used the opportunity to squeeze the lowest-paid workers in the State by slashing their wages, the episode, in effect, becoming a shabby form of exploitation. To add insult to injury, the official line at the time was that this was all part of an effort to ensure a competitive economy.

The prevailing question on everybody's mind was whether the 11% reduction in the minimum wage implemented last year proved beneficial to businesses teetering on the brink of bankruptcy. The previous Government soon discovered that our economy could not be fixed by cutting the wages of the poorest workers. The measures in today's Bill will offer a huge boost to low-paid families, particularly part-time workers whose numbers include a disproportionate amount of women. They will also boost the morale of non-unionised workers and young people. Equally, they will show how foolish were the cosy captains of some of our employers' associations in claiming that a reduction in wages for the poorest workers would be good for Ireland.

On reading the proposed amendments one is struck by the extent of the difficulties faced by the Minister arising from the EU-IMF deal. Her room for manoeuvre is limited. However, I welcome the stimulus measures included under the jobs initiative. I refer in particular to the halving of employer PRSI and the introduction of a national training fund levy. I recognise the integrity of our national social welfare scheme, which depends on fairness in its allocations to those in our society who have been hit by hard times as much as it depends on the management of scarce resources to prevent fraud. As the net contributor of funds, taxpayers are demanding the best possible stewardship of their contributions so scarce resources go to those who merit them. In this regard, I welcome the inclusion of stronger measures to be extended to the social welfare inspectorate.

I compliment the Minister on concentrating our minds and efforts through her revamping of the national internship scheme. Jobseekers will gain invaluable benefits from placements in the private, public, community and voluntary sectors. Internship, as a mentoring scheme, provides the opportunity for students to be paired with a professional who will act as counsel in aiding their advancement in the working arena. Internship experience will comprise an essential element of their course of study and add practical experience to their academic knowledge.

I assure the Minister of my willingness to work with her in her efforts to reform the social welfare system in a manner that includes jobs and fairness as its cornerstone. As members of the Labour Party and of the Government we must subscribe to the ethos of a people at work. As the Minister stated, we need to emphasise the value of work and the value of opportunity. This programme will provide that opportunity and I greet it as a much welcome departure from the paralysis of the last Government.

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