Kieran O'Donnell (Limerick City, Fine Gael)

I am pleased to support this Bill. I very much welcome the restoration of the minimum wage to its previous level. I also welcome the halving of the rate of PRSI to 8.5% in respect of workers whose income does not exceed €356 per week. The hallmark of any Government should be its fairness, and these are fair and progressive measures.

The allocation of resources to social welfare must be viewed in the context of an activation programme. We are already moving in that direction. For example, I compliment the Minister on developments in her Department in recent weeks which have seen a greater integration between FÁS and social welfare offices in terms of finding people jobs.

While one must tweak issues in every case, I wish to raise an issue I encountered recently, whereby someone was offered a job by FÁS that involved commission only. This must be re-examined and reformed as such a scenario, in which someone refuses a job that was commission only, is not quite fair. The jobs for which people apply must be seen to be sustainable and must pay a fair and reasonable wage.

I now wish to turn to the self-employed. I was self-employed myself for 14 years and this group will play a key part in bringing Ireland back out of recession and we must encourage an entrepreneurial culture. At present, those who set themselves up as self-employed, many of whom will fail given the current climate, will not qualify for jobseeker's benefit because they pay a stamp S, rather than a stamp A contribution. Although such people will qualify for jobseeker's allowance, that payment is means tested and many such individuals will have assets of a complicated nature. Moreover, the system has not evolved to allow the Department of Social Protection conduct examinations that would allow it to process such cases in normal time. It can take three or four months before such individuals are deemed to be eligible to be in receipt of jobseeker's allowance. A fair system must be developed whereby a person who pays a stamp S contribution can receive jobseeker's benefit for a reduced period, such as, for example, three to six months. Moreover, the process by which the review for jobseeker's allowance takes place must be speeded up.

On the basis of fairness, social welfare fraud must be cracked down on because many people who are in genuine need of social welfare are getting a bad name because fraud also is taking place at the same time. Consequently, one must ensure the credibility of a scheme. I have strong views in respect of social welfare fraud and it is welcome that the Minister is committed to dealing with this issue and intends to examine it in a structured but fair fashion. I wish to make one reference to the subject of social welfare payments and getting people back into work. A system must be found by which people are encouraged to return to work and that avoids scenarios whereby people who are offered jobs will lose many additional entitlements. A period must be established over which people can return to employment, while retaining some entitlements such as, for example, a medical card on a phased basis.

I note section 10 of the Bill provides for the transfer of the supplemental welfare allowance to the Department of Social Protection, which I welcome. I also note the Minister's comments to the effect that administration of the rent supplement scheme is to be transferred from the HSE to the relevant local authority. I wish to make a few comments on the aforementioned scheme. Apart from the issue of who administers the rent supplement scheme, there must be reform in this area. The rent supplement scheme was established as a temporary measure but has become a permanent scheme on which €600 million per annum is being spent.

Members will be aware that if one participates in the rent supplement scheme for more than 18 months, one qualifies for the rental accommodation scheme, RAS, which is administered by the local authority. However, the controls in place for the latter scheme are much more stringent and the same controls should now apply to the rent supplement scheme. I will explain in simple terms how this arises. At present, someone who has a housing need and who seeks rent supplement is directed by the local community welfare officer to the local authority to demonstrate he or she has a housing need. However, at that time, no proper reviews are conducted of those who seek rent supplement and they are taken onto the scheme. Moreover, people can remain in receipt of rent supplement for an indefinite period. However, those who opt for the rental accommodation scheme face Garda clearance and review. A tax clearance certificate for the landlord is required, agreements are made between the landlord and the local authority and between the landlord and tenant and, in addition, an agreement is made regarding anti-social behaviour.

From my perspective, the area in which the greatest number of difficulties arise, certainly within various areas of Limerick, is the rent supplement scheme. I suggest a simple measure, namely, the introduction of the procedures that obtain for the rental accommodation scheme into the administration of the rent supplement scheme in whatever incarnation it appears after coming under the aegis of the local authorities. When dealing with the public purse, one must be seen to be both fair and to have mechanisms in place in respect of social welfare fraud.

See this speech in context