Dáil debates

Thursday, 8 December 2011

Social Welfare Bill 2011: Second Stage

 

5:00 pm

Photo of Tom BarryTom Barry (Cork East, Fine Gael)

I commend the Minister on her great work to date. It is not easy to implement a budget like this in difficult times. It is very easy to criticise and while everyone likes to do so, unfortunately there is a job of work to be done. The Minister's Department is at present responsible for 40% of all current Government expenditure. This is a huge amount and it must be reduced because while we are relying on the kindness of strangers at present, we cannot do so forever. I am glad she has recognised, in a phrase that is new to me, those who are new to need. I would have described them as being the new middle-class poor. These are people who always got along reasonably well but who, through many mistakes in the past with regard to banks and mortgages, are now severely in debt. When in debt, it does not matter what class one comes from, one still is in debt and still is in trouble. It is important that Members recognise people who have fallen into these situations and who need help. The number of people who are not renewing their private health insurance is testament to this phenomenon but I note there are people at the lower end of the scale who are in receipt of free medical care. Balance is needed in this regard and many issues must be considered.

I congratulate the Minister on retaining the rates for jobseeker's allowance and other State pensions at their present level. This is important and sends out a clear message that the Government is anxious to support people in need. Child benefit must be considered because in the future, Members will need to know who should get it and who does not need to get it. It should be paid to the mother because the mother has a key role in the household. Perhaps it should be taxed subsequently or methods should be put in place to ensure it goes to those who need it most. I note the social insurance fund is in deficit, like everything else in this country, which is simply amazing. I have some concerns about the redundancy rebate being reduced from 60% to 15%, albeit not so much for large profitable businesses. I note some such businesses have blackguarded the system by letting go their employees, collecting from the State and then moving abroad. This was never meant to be how it would work. However, I would be concerned about small to medium-sized businesses which are hanging on by a thread. They pay their taxes and pay their way and this measure might catch them. I have spoken to the Minister concerned about it and he is keeping an eye on it. I hope it is something that will not cause us too much trouble.

I welcome that the issue of absenteeism is being examined because when a friend of mine who runs a company employing more than 200 employees allowed five sick days per year all five were taken and when he allowed three days per year all three were taken. They were regarded as a holiday. When he cleared that provision completely he reduced his absenteeism by 70%. That tells us something about the mindset of people. We have become somewhat casual in that regard.

I recall a commerce teacher of mine many years ago who said if one is ever in business, and I am in business, one should pay one's employees more in good times but in bad times never leave them slack. He said one should always make sure people turn up to work on time and finish on time because when one hits bad times one will always be able to stay in business with that work ethic.

Some people forget the way social welfare is collected. It is collected from those of us who work and businesses which pay their taxes and therefore it must be spent right. There is a demand that it be spent properly. I am delighted that the Minister is addressing the fraud and control measures because these affect many businesses when people operating in the black market work against legitimate businesses. I have a case in point in my business where I offered people work as late as last summer and they refused it on the basis of a lifestyle choice. That is something that must stop.

Better spent moneys targeted at those who need provision is the challenge, as well as to restore the position after years of squander. The challenge is to be fair to all people.

I thank the Minister for withdrawing sections 8, 9 and 10 regarding the disability allowance. It is a credit to her and a brave move, and she apologised in this respect, for which she must be commended.

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