Dáil debates

Thursday, 16 June 2011

Social Welfare and Pensions Bill 2011: Report and Final Stages

 

1:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)

Deputies Higgins and Ó Snodaigh have continuously bemoaned in today's debate the fact that the cut in the minimum wage has been reinstated, arguing that it would be better to have it done at another time. This morning there was the absurd suggestion that we wait three days, three weeks or three months for the Irish language translation, which would hold up the reinstatement of the cut in the minimum wage. That is unacceptable and ridiculous. Either the Deputies are for the reinstatement of the cut in the minimum wage or for some reason unknown to the rest of us, they are not for it and are looking for devices to oppose it.

Similarly, over the course of last night's debate absurd objections were raised to the most modest of proposals to reduce the level of fraud in the social welfare system. I acknowledged the concerns raised by Deputies Ó Snodaigh and Wallace in regard to unscrupulous employers and I undertook to keep the operation of this part of the Bill under close supervision.

I have committed the social inclusion section of my Department to evaluating the impact on those on low incomes of proposals to reform the JLCs. I respect Deputy Wallace's point of view given his experience as an employer and in the construction industry but the majority of employers do not want to cut the wages of their staff. The reinstatement of the minimum wage protects those on the lowest incomes and that is why it is important to include it.

I do not accept the specious argument that we should postpone this package. It provides for the reinstatement of the minimum wage and a national internship scheme which gives people the opportunity to build up work experience. Employers will be allowed to make significant savings on their PRSI contributions until the end of 2013. I do not accept the suggestion that the scheme should be confined to new employees because our focus is on retaining jobs as well as generating additional employment. The jobs incentive package includes a decrease in the lower rate of VAT for tourism related industries with the intention of generating activity and employment.

I acknowledge the concerns expressed by Deputies Wallace, Ó Snodaigh and Costello in regard to exploitation of employees. The data collected by my Department from the reduction in the minimum wage indicates that the numbers involved were relatively small. We will continue to monitor the matter closely but our discussion on delaying the restoration of the minimum wage was at times absurd. What is wrong with the Deputies opposite that they want to delay dealing with the interests they are supposed to defend in order to get an aistriúcháin?

Three sections in the Bill deal with the curtailment of fraud. I found some of last night's contributions on the subject of fraud to be off the wall. We cannot maintain taxpayer confidence in our social welfare system if, as Deputies suggested last night, we back off on cases of fraud and overpayment. We should be realistic about this because we are in a difficult situation. The Government's task is to get people back to work and the country back on its feet so that we can wave goodbye to the IMF. The previous Government signed us up to weekly, monthly and quarterly reports to that institution but this package is designed to stimulate the economy. I would of course like to see more in the package but we have to make a start somewhere. Certain Deputies would prefer to postpone action until the rainy season comes in the autumn.

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