Joan Collins (Dublin South Central, People Before Profit Alliance)

I support the Sinn Féin motion. I raised this issue previously with the Minister of State, Deputy Kathleen Lynch, when I specifically put the question to her on the basis of the 2010 UNICEF report, The Children Left Behind: A League Table of Inequality in Child well-being in the World's Rich Countries, and asked her whether she would stand over a cut in child benefit or oppose it if it was brought in as part of the budget cuts. She did not answer, obviously.

Welfare payments, even at the inadequate levels paid at present, play a crucial role in combatting poverty. If left to market forces, the figures show that those at risk of poverty would be 41% of the population, and an incredible 52% in the EU-27, according to an European Anti-Poverty Network, EAPN, report. When social transfers are included, the level of poverty risk falls to 16% both in Ireland and the EU-27. The role of social transfers in affecting poverty levels is further confirmed by that 2010 UNICEF report, The Children Left Behind.

Some 600,000 families with over 1 million children are paid universal child benefit, which I support. For the record, contrary to the claim that welfare in Ireland is high and a disincentive to work, welfare payments in Ireland are the lowest in the original EU-15 states and a report from the same group, EAPN, from 2009 states in regard to social protection spending in the EU-15 that while there was an average spend of 27% of GDP, Ireland was the lowest at 18.2%.

Some €809 million was cut from welfare in 2010 and €873 million was cut in 2011. Factoring in the Christmas bonus cuts and cuts in fuel allowance earlier this year, in excess of €1.7 billion has been cut, which is almost 14% in five years. This is despite what the Minister said in her contribution about unemployment having trebled and more people now depending on the welfare system.

Hands off the people on social welfare. It is impossible to see where €700 million can be cut without cutting the basic rates. We hear rent supplement being flown as a kite in recent days, another cut in lone parent's allowance has been put into the public arena and the possibility of child benefit cuts is being suggested. People are stressed out by all this talk of cuts to their income. It is imperative that a child poverty impact statement is made along with any budget deduction next week because it is imperative we know how this budget will impact on child poverty.

I am not asking the Minister to say what she is going to cut; I just want her to say that she is not going to cut in these areas, which will suffice to calm people down. There are choices. The top 1% of Irish adults hold €131 billion of wealth in this country and the top 5% hold €219 billion. That money is not being touched and they are not being taxed on their assets.

In practically every other country there is an asset tax. Why does the Minister not pursue them, make them pay their fair share and use the money to reverse the cuts, rather than impose more?

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