Ann Phelan (Carlow-Kilkenny, Labour)

Notwithstanding the national concerns in respect of the upcoming budget, I welcome the opportunity to commend the Department of Social Protection on its efforts to restore fiscal stability by eradicating abuse of the social welfare system and instigating job creation methods. The only way to alleviate our difficulties is to create jobs. We are all acutely aware of the financial constraints facing householders throughout the State and that individuals and communities are fearing the implications of budget 2012. The public is fully aware of the adverse effects of the economic crisis of recent years, particularly in the context of the high level of unemployment which, in turn, has resulted in emigration.

There are extensive challenges ahead, but it is imperative that we, as a Government and as a people, are realistic. The Government will take in €42 billion in tax and PRSI this year, of which an estimated €20 billion will be spent by the Department of Social Protection. Readjustments must be made within the Department if a stable budgetary position is to be reached. Moreover, there is a requirement on the Government to achieve the fiscal targets set out in the EU-IMF programme. All Departments have had to re-examine their methodologies in order to achieve fiscal stability.

The past 14 years saw the previous Administration introduce a series of giveaway budgets which have inevitably left us economically deficient, with a level of expenditure which far exceeds our income. That Administration was asleep at the wheel, allowing bankers, developers and international private investors free rein to bring this country to its knees in their quest for a quick profit. Under its watch, economic stress testing was an inane practice. Moreover, there was a complete and unmerited disregard of the services sector in general, with the primary focus being on the lucrative construction industry. Many sectors within the services industry suffered significantly as they were abandoned in pursuit of rapid financial gain. In the past three years we were subjected to the draconian initiatives of a Fianna Fáil Government whose sole purpose was to protect the wealthy by imposing unnecessary cuts on the vulnerable.

That is not the practice of this Government. Our primary aim is to protect the vulnerable, sustain employment, promote job creation and lay the foundations for economic recovery. The level of constraint placed on the shoulders of the Minister, who must operate within the parameters of the EU-IMF deal, is an unforgivable legacy of the previous Administration. That legacy deal makes her room for manoeuvre extremely limited. However, I welcome the stimulus measures she has initiated in recent months. I refer in particular to the halving of employer PRSI and the introduction of a national training fund levy. One of the most affirmative initiatives of the Department has been its concentration on reducing social welfare costs by encouraging those currently on the live register to take up employment and self-employment.

The results have proved encouraging, with the implementation of the JobBridge scheme producing 2,508 opportunities with host organisations and sole traders. To date, 2,185 interns have commenced work under the scheme. The Government is determined to provide the maximum number of people with the opportunity to define and improve their training and skills. JobBridge offers a great opportunity for individuals to gain experience within niche industries which may in turn lead to full employment. I welcome the steps taken by the Government to nourish existing employment and promote job creation.

I also commend the Minister on the introduction of the new anti-fraud initiative. In 2011, the total budget for social welfare is estimated at €20 million, which equates to 39% of gross Government expenditure. It is a mind-blowing statistic. The Department estimates that the level of fraud and error in the system ranges between 2.5% and 4.5% of total annual expenditure, with several specific benefits identified. However, similar patterns occur throughout the Continent. In other words, we are not greatly out of sync in this regard. Most social welfare subsidies which go awry tend to do so due to administrative and customer errors rather than intentional efforts on the part of claimants to defraud the system. I also recognise that the integrity of our national social welfare scheme depends on fairness so that those who have been hit by hard times and need the most get the most. As the net contributors of funds, the taxpayers are demanding the best possible stewardship of their contributions so that scarce resources go to those who merit them. In that regard I welcomed the inclusion of stronger measures to extend powers to social welfare inspectors to investigate employers' contractors and subcontractors.

I am aware that the Department is fully committed to recovering 100% of overpayments arising as a result of fraud or error. Australia has cross-checking of data with information consistent across all public bodies. However, it has the advantage of having a national database against which to check records which we do not have. The USA has similar schemes and systems in place. I realise the importance of relative cost effectiveness in analysing efficient counter-fraud actions especially given that social welfare represents €20 billion of the €42 billion earned from tax and PRSI. The number of anonymous reports has increased significantly in the past nine months, with more than 12,000 reports made up to the end of September compared with less than 9,000 in the same period in 2010. Advertising campaigns have been launched to combat fraudulent activities in the system. There is an ever-increasing acceptance among the public that they do not want to see the State defrauded.

The Department of Social Protection has recently undergone one of the most profound organisational transitions in the public service with the transfer of the community welfare service into the Department. This combined with the transfer of community and employment services activated under FÁS to the Department is a welcome component of the programme for Government and once completed should provide a more direct and efficient mechanism in providing income maintenance and support to families.

We all recognise the difficulty a person from a disadvantaged area faces. I do not envy the onerous task the Minister faces in trying to stay on course. However, she finds herself in such a situation as a result of what happened in the so-called boom. Where were the audits, and the checks and balances over the past 14 years that allowed the country to get so out of sync? What audits were done on all the houses built? Many of those who are unemployed came from the construction sector. It was a very bad administration that allowed one section of the economy to become a complete bubble and not consider the other sectors. Everybody is talking about jobs and we understand the equation that by getting people back working the social welfare costs reduce.

Since 2002 I carried out an exercise beginning with Spectra Photo Labs in Tralee. From 2002 - I did not look before that - we lost 50 jobs every week. The Minister, Deputy Quinn, tried to raise that matter on numerous occasions in this House during the term of the previous Administration but he was completely ignored.

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