Tom Fleming (Kerry South, Independent)

Unfortunately owing to our straitjacket restriction within the confines of the IMF framework agreement, there was not too much room for manoeuvre to make decisions that would be more favourable and palatable for the majority of our citizens. I give credit to the Ministers and the Government for retaining most of the social welfare payments, increasing the exemption from the universal social charge from annual earnings of €4,004 to €10,036, and increasing the mortgage interest relief to 30% for first-time buyers who purchased between 2004 and 2008.

I am very concerned regarding the Department of Health cuts of €543 million which will have a detrimental effect on the provision of services. General medical services, mental health and community services will be particularly impacted as will the retention and upgrading of quality services in our public hospitals and public nursing homes. With the present policies our community hospitals are facing meltdown. If the approach of the Minister and the HSE is allowed to continue the vast majority of our excellent community hospitals will become history in a short number of years. That is the bleak outlook that faces us.

I believe there is a deliberate planned strategy to expedite the closing down of these fine and well run public institutions through the over stringent implementation of regulations by the HIQA. I urge the Minister of State along with his Government colleagues led by the Taoiseach to intervene to prevent these closures proceeding in the reckless and ruthless manner that the HSE is being allowed to do at the moment. At present it costs €850 per patient in private nursing homes and €1,300 in public hospitals. However, the €1,300 in public hospitals does not reflect that there is also ancillary care, appliances and other costs. I do not believe these are being included in the statistics that are being prepared. Therefore we are not getting a true cost-benefit analysis for public nursing homes vis-À-vis private nursing homes.

This matter should be revisited so that there can be more rational decision making based on true value for money. Historically they have given a wonderful service and with minimum refurbishments or alterations these public buildings are quite capable of continuing into the future. The next generation would regret it if we allow what is happening at the moment to continue. There are also jobs for the staff which provides a very high quality of care.

It was most insensitive and inhumane to even contemplate the proposals to dramatically reduce disability allowance payments for new claimants and eligible young people with disabilities. I understand the Minister for Finance has already made a statement that the matter will be revisited. I urge the Minister of State, Deputy Sherlock, to talk to the Minister for Social Protection to have this rescinded immediately in order to allay the fears and upset it has caused to these vulnerable people and their families. They are also very dependent on their families and this should not have been imposed on them in these tough times.

Another unnecessary decision is the six-week reduction in the eligible period for receipt of fuel allowance. We have a very damp climate and for the past two years we have experienced longer and colder winters. This matter should also be re-examined.

Child benefit should be means tested. While I am aware there would be a difficulty in administration, I believe it is the only fair and equitable method and would also protect lower-income earners and those dependent on social welfare. It would allow the greatest amount of money to be given to those most in need and would avoid the possibility of reductions in payments now or in the future. It is not too late to amend this and alleviate the hardship lower-income earners are experiencing. Other reductions in the back-to-school clothing allowance and the changes to the job seekers allowance only compound the situation for this category of people at present.

This morning I got a telephone call from a distressed constituent who outlined how her family will be affected by the budget's social welfare changes. Her son has sensory disabilities and receives domiciliary care allowance. She is also a recipient of carer's allowance. Her husband has gone from full-time employment to part-time employment in a garage workshop. The family is receiving family income supplement. His wages are €310 a week and the carer's allowance is €248 a week. The family income supplement threshold is €703. When the wage of €310 is deducted from the threshold of €703 it gives a figure of €393. The family income supplement is 60% of the €393, which is €235.

However, under the new system his part-time wage of €310 is still deducted from the €703 but now the carer's allowance of €248 is also deduced from the €393 leaving €145, and 60% of that is only €87.

With a loss of €148, he is now receiving €87. On a rough calculation, 148 by 52 is €7,696, plus losses in child benefit of approximately €230 per annum, which amounts to a yearly loss of €7,900 for these people.

I commend the Minister on protecting the special needs assistants complement. I urge him to strive to reduce the pupil-teacher ratio in the short to medium term, thus ensuring equality in the classroom for all pupils. I believe much can be achieved with a slightly smaller budget. Owing to procurement and competitive rates in terms of tendering, we can achieve the same amount of buildings constructed or refurbished and so on. Replacement of prefabricated buildings must be a priority as they are costing a great deal of money. Also, many jobs could be created through the construction of new buildings.

I compliment the Minister for Agriculture, Food and the Marine, Deputy Coveney, on the excellent job he is doing in his Ministry. There are many positives in the budget for him. The Minister has done a great deal since taking office. I wish him well in the future. Agriculture is a huge growth industry in this country. It is the lifeblood of rural Ireland. While there are a few negatives in the budget in this respect, overall the positives outweigh the negatives. Farmers' income is on the increase. It is hoped that will continue.

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