Barry Cowen (Laois-Offaly, Fianna Fail)

From 2000 to 2010, when resources were available, Fianna Fáil tripled social welfare expenditure. It now continues to emphasise the need for a safety net for the most vulnerable in society and those affected by the economic crisis. In meeting our targets under the EU-IMF programme of financial support, the advances Fianna Fáil made across social welfare programmes should be protected, especially given the potential for EU support for our bank recapitalisation.

In July at a summer school in County Donegal, the Minister for Social Protection, Deputy Joan Burton referred to the huge advancements over the past ten years in social welfare rates for pensioners, unemployment benefits, child benefit, care and medicine schemes, improvements to capital and servicing the disability sector, supplementary allowances, back-to-school and education advancements. She said Fianna Fáil was cynical in increasing benefits and rates for electoral gain. The same Minister, however, referring to pension increases, claimed:

I recognised that they were well deserved, since it was the pensioners who made this country what it is today. They need the extra money to meet our very high and inflationary cost of living, not least the cost of heat, gas and electricity, not to mention the VAT of 21% that they pay on almost everything.

On increases in fuel allowances, she once said, "I welcome the increase in the fuel allowance of €4 to the princely sum of €18 a week. It is approximately the cost of a bag of coal and half a packet of firelighters but welcome for all that". It is a pity then, since assuming office, the Minister has cut the fuel allowance, the electricity and gas allowances for the elderly, for the most needy, the most deserving and those, as she said herself, who made this country.

Allied to this we have the constant threat since assuming office of this Government not being able, prepared or principled enough to take advantage of changed financial circumstances which have since evolved that would allow it to honour its commitments. This motion is necessary, as it will offer the opportunity for facts to be laid bare and for markers to be finally put down.

The most vulnerable in society can no longer be left worried and frightened by the threat of cuts to social welfare rates. Those very people voted in their numbers for a change of Government. They were mindful of election promises and commitments. The Labour Party, for example, promised to overturn last year's budgetary cuts of 4%, cuts that continued the heavy lifting of the previous Government. These were necessary cuts taken in the face of an oncoming election, when no amount of populist rhetoric, grandstanding or politics of anger could change or alter the necessary adjustments of over €6 billion then required to stabilise public finances.

That initial promise to overturn those cuts evaporated on the formation of the Government because the post-election commitment was to maintain rates rather than overturn them. This was re-affirmed by the Taoiseach and Tánaiste and Minister for Foreign Affairs and Trade after 100 days in office. The Tánaiste and Minister for Foreign Affairs, Deputy Gilmore, said the entire range of commitments in the programme for Government remain the Government's policy. He further re-affirmed his commitment in The Irish Times on September 7. Not to be outdone, the Taoiseach recently told the same newspaper on September 20, "The Minister for Social Protection ... has expressed the Government's interest in keeping headline rates of social welfare intact".

When I saw the successful Labour by-election candidate, Deputy Nulty, celebrating his election win with the Plough and the Stars flag rather than a rose-tinted red one, I was heartened that he too would reaffirm the commitments given to his Dublin West constituents. On the plinth today, in the company of the Tánaiste and the Minister for Foreign Affairs and Trade, that commitment was given by Deputy Nulty.

This motion offers a definitive opportunity to the Minister for Social Protection to finally agree with her colleagues and assure this House rather than the media outside that this commitment stands, that her colleagues in the Labour Party cannot be forced back to their constituencies with a U-turn of this magnitude. I would expect it from the far right of Fine Gael. Has the Plough and the Stars been defamed, however? Is the red rose to wilt so quickly after it blossomed for Michael D. Higgins over the weekend?

Constitutional republicanism is a virtue paramount to our democracy. It was defamed for too long by a terrible substitute called militant republicanism. One does not have to look too far in the Chamber to see its exponents. Improvements to the lot of the poor, underprivileged, sick, disabled and carers is and should be awarded with electoral success because that is what politics is all about, the essence of constitutional republicanism.

We make no apologies for the advancements made in social welfare by Fianna Fáil Governments. The only apology emanating from this debate will be from the Fine Gael-Labour Government when it should apologise to the electorate for making promises in this area that it did not need to and, more importantly, the irresponsibility of playing on feelings of a fearful electorate.

As stated earlier, the social welfare budget has increased substantially. Pension levels increased since 2000 by 130%, unemployment benefits by 130% and child payments by 330%. The changed European context and prospects for EU support for bank recapitalisation means that we should save money on the banks that we can use to protect those affected by the crisis. Self-employed people should not be penalised from social welfare supports after taking the risk in setting up a business. The Government's emphasis should be placed upon further anti-fraud savings and job creation to reduce social expenditure while reaching a new agreement with the EU to ensure we have financial support for our bank recapitalisation. Money saved on this should be used to alleviate pressure on the unemployed.

Fianna Fáil introduced several measures that the Minister, Deputy Burton, is claiming credit for in the drive to exact greater savings from curbing social welfare fraud. Despite the fanfare surrounding this anti-fraud drive, the Minister's measures are the same actions introduced over the past several years. For example, in 2009 the Department reviewed 750,000 people. In 2011, that target has been increased to a whopping 780,000. Welfare fraud savings in 2007 came to €447 million, €476 million in 2008, €484 million in 2009 and €483 million in 2010. This year's target is €540 million while for 2012 it is €625 million. Based upon answers to parliamentary questions I received two weeks ago, I am not convinced this year's target will be met. Laughably, earlier this year when listening to the Minister answer questions in this House, it could be construed that maintaining welfare rates was dependent on savings in her Department such as this.

Today, in its pre-budget submission the Society of St. Vincent de Paul stated:

Ireland is facing a serious social crisis and there is a palpable worry and uncertainty among people on social welfare and child benefit rates. Further cuts including the proposed flat-rate annual household charge will push them further into debt and poverty – they have no more to give.

Social welfare forms a major part of the income support of 2.1 million people and is a substantial generator of economic activity. Despite the soft hints from certain quarters and the accusations of unfortunate recipients having made lifestyle choices, Ireland does not spend a disproportionately high amount on social welfare given its unemployment numbers.

Social welfare acts as an automatic economic stabiliser. Some commentators have suggested that we should apologise for the cost of bringing our percentage expenditure of GDP on social welfare from 10% in 2000 to 20% in 2009, which is below that of France, Finland, Germany and Austria and on a par with that of Italy, Belgium and the Netherlands. The eurozone average is 19%. Having built up significant social welfare supports, Fianna Fáil undertook a progressive budget of fiscal consolidation in light of the economic crisis. It is ironic that the Government is now accepting praise from the troika for implementing measures they voted against at the end of last year.

The Government should not slam on the brakes too hard and jeopardise economic recovery by undermining domestic demand. Despite statements to the contrary from several Government members, the troika has agreed that a balance must be struck between fiscal consolidation and pro-growth strategies. Several colleagues and I recently met with representatives of the troika and were relieved to hear their views in this regard. They recognise that decisions in this budget are a matter for the Government. They acknowledge that the means by which savings are made are a matter for the Government.

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