Dáil debates

Thursday, 8 December 2011

Social Welfare Bill 2011: Second Stage

 

5:00 pm

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent)

I accept the Government has been left with an intolerable mess and it is a source of bitter sadness that so much of it could have been avoided. We know that it was due to the reckless greed of previous Governments and bankers, and lax or nil regulation. It was all human error and thus avoidable. Our membership of the euro probably contributed because the cap on Irish bank lending was removed. There was endless availability of credit, leading to repercussions in the property market and we now find ourselves with a shortfall of €16 billion and an adjustment of €3.8 billion between tax increases and spending cuts in 2012. At the beginning of the week we seemed to be going in the right direction - towards a more equal society when I considered the principles outlined by the Ministers, Deputies Howlin and Noonan, the principles of fairness and accountability.

TASC does very good work in presenting balanced reports and summaries. I am struck by a comment in its press release in which Dr. O'Connor stated:

Many of the measures introduced today will have a cumulative effect on low-income groups when considered not only in the context of the spending cuts announced yesterday, but also the impact of previous Budgets. [It is often overlooked that this is not the first austerity budget.] By the same token, some of the more progressive measures announced today, such as the rebalancing of USC, will be offset by the impact of yesterday's spending cuts on low income households, some of which may still find themselves worse off. This reinforces TASC's long-standing recommendation that all budgetary measures be subjected to equality-proofing prior to implementation, and equality auditing after implementation.

That is the crux because it is not a budget in which the citizens of the country are being treated equally.

The First World War poet, Siegfried Sassoon, wrote a wonderful poem, Base Details, which contains an analogy for us. He referred to the generals "Guzzling and gulping in the best hotel," who then "toddle safely home" to their beds. While we are not talking about generals, we have their equivalent - the very wealthy, the high earners, the executives and the directors who work in the State, semi-State and public sector, banks, universities, public life and the private sector. They are not hurt by the budget and will not be struggling. They will go on with the guzzling and gulping and it is a case of carry on regardless for many of them, whereas certain sectors of society have been hurt very badly. The other group mentioned in the poem were the young heroes who were being sped along the line to their deaths. While I trust that nobody will die because of the budget, there is such a thing as a metaphorical death. Some will suffer disproportionately. The pain caused by the budget is disproportionate because it will increase inequality.

I accept that there are positive aspects for senior citizens whose pensions, free travel pass, free television licence and living alone allowance are untouched. However, the change in the eligible period for fuel allowance will cause a problem. Perhaps the shorter period might be sufficient, but it is part of the psychology of old age that there is a fear that they will never have enough. That fear will prevent them from using the fuel initially to keep it for a time when they might just need it. Of course, they are very susceptible to the cold and there is a real danger that they will become ill or, worse, suffer from hypothermia. As Deputy Catherine Murphy said, this is happening at a time when gas and oil prices are rising.

There are other positive aspects. Basic social welfare payments will remain the same, including jobseeker's benefit, blind pension and one-parent family allowance. I accept what the Minister said about working families, but the tax system is not fair. The high earners - there are many - should be paying a higher rate of tax.

The community sector is being further eroded. This is the sector that provides the services and support for many vulnerable people and there has been an increase in demand for its services. Yesterday I mentioned Brother Kevin of the Capuchin Day Centre which two years ago gave out approximately 400 food parcels each morning; last week it gave out 11,000 on one morning. The Wheel organisation highlights how the other cuts will have a cumulative effect on those dependent on social welfare and low incomes. It points out that the increase in VAT will result in a considerable loss of income to charitable organisations which cannot reclaim VAT.

Community employment schemes are facing major cuts in the training grant - a 66% cut in operating budgets which will have a detrimental effect on the delivery of vital programmes in education, parenting, child care, vocational skills, after-school services, services for the elderly and the disabled, and drug rehabilitation, as well as the giving of work experience. Many participating in community employment schemes are early school leavers, persons who got caught up in addiction and are homeless. Through the schemes they are given an opportunity to learn and develop new skills. They become involved in developing literacy and numeracy skills on which they missed out when they were younger. Many use the schemes as a first step on the ladder towards further education. New participants will not be able to claim other social welfare payments at the same time and it was those other payments that enabled them to avail of the schemes. My experience of the schemes in the north inner city has been very positive because they have made a real difference in people's lives. I would hate to see those participants opting out or projects closing because of these regressive measures. The projects work with extremely vulnerable individuals. Some of the projects provide a lifeline and coping skills.

Without community projects, there will be further severe pressure on health and social services. The youth and drugs projects have coped with the cuts to date - some might manage with this cut, but others will fold. It is very difficult to reconcile what each of the Ministers is saying about increases announced in budget when we know the position on the ground is very different.

I supported the increase in excise duty on cigarettes and would have supported an increase in excise duty on alcohol. The sale on the streets of Dublin's inner city, and I am sure other areas, of cheap alcohol, cigarettes and illegal pills is leading to shattered lives and communities. Alcohol Action Ireland maintains that an increase in excise duty on alcohol would have raised an additional €186 million. We all know what could have been done with that.

I welcome what has been said in regard to disability payments. However, as I have stated repeatedly, people with mental health issues and disabilities should never have the added stress of worrying about their allowances being cut in a budget. I do not believe any humane government would consider doing so. There are people with disabilities and multiple disabilities who will never work but need and are entitled to an allowance that will enable them to live in dignity.

While many landlords take their responsibilities seriously, parts of Dublin central are plagued by irresponsible, unscrupulous landlords who charge rents that are completely disproportionate to the type of accommodation they offer. They are flouting all health and safety measures and are leaving people in vulnerable situations. Any initiative to deal with that would be welcome.

Budgets are about choices. There is a great deal of anger, frustration and hurt out there because of the choices made in this budget.

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