Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I am delighted to have the opportunity to contribute to the debate on the Social Welfare Bill. I intend to focus only on a number of the measures it contains because, given that it is so wide-ranging in nature, one cannot deal with all of them.

It is welcome that core social welfare rates are being protected. There are those in the Opposition who will demean and belittle that achievement. However, it is worth noting that basic social welfare rates were hit in budgets introduced by the previous Fianna Fáil Government. I refer in this regard to reductions in carer's allowance, the blind pension and the widow's pension. In one of the most difficult budgets in the State's history the Government has managed to avoid reducing the core rates. There is merit in this. Sinn Féin has not been slow to use the respite care grant as a political football. In Northern Ireland where it is in government the weekly rate of carer's allowance is £58.45, which is the equivalent of €72. In the Republic carers are paid three times that amount, namely, €204. Perhaps Sinn Féin is of the view that carers in Northern Ireland do not work as hard as their counterparts in the South. There is a huge disparity in this regard and it is worth highlighting.

In the context of the cut to the respite care grant, the one item of information which has not made the headlines is that in 2013 we will spend €5 million more on carers than in 2012. The overall amount relating to carers will increase from €770 million to €775 million, a fact which has become lost in the debate. That said, the cut to the respite care grant does not sit easily with me. I worked very closely with the Carers Association in the past, particularly in getting the carers strategy published. I acknowledge the huge sacrifices carers make for their loved ones and the knock-on benefits this has for the State. For this reason, I request that the method relating to how this cut is being imposed be reviewed. Considering that payment of the grant is not due until June, it would be possible to consider alternative and more targeted ways of finding the saving of €26 million required. We must also consider the possibility of putting in place an appeals mechanism for those most in need. The respite grant is not means tested and we must, therefore, ensure cuts are imposed on those who can cope with them. I ask that the debate on this matter not finish with tomorrow's vote. Last year changes to community employment schemes were announced in the budget, but a review of the matter led to more targeted changes being introduced. The process used in this regard was a great success. This is something which should be borne in mind.

I welcome the Minister's move to create 10,000 new places on employment programmes in 2013. She has visited most of the community employment schemes in south Kildare and those elsewhere throughout the country. She understands and has acknowledged the impact these schemes have in local communities. The increase in the number of places on the community employment, JobBridge and Tús schemes is welcome. I also welcome the new social employment scheme relating to local authorities. What is being done in this regard will have a real impact.

On the redundancy rebate, I am very cognisant of the significant shortfall in the social insurance fund. Some wealthy companies used the relevant scheme to subsidise moving their operations out of Ireland. I reiterate the point I made on previous occasions in the House, namely, that there is a need to differentiate between small businesses and very large companies such as TalkTalk which moved out of Waterford at the drop of a hat. I am concerned about the impact the removal of the redundancy rebate will have on small firms which have a small turnover of €700,000 or €800,000. I accept that there is an inability to pay mechanism, but what will be the position of an employer who has four staff and needs to let two of them go in order to keep the other two on? We should consider introducing some form of exemption in next year's budget. This could be similar to the current audit exemption for small companies which is based on employee or turnover levels. Such an exemption would provide some protection for small businesses, while not encouraging large firms to pull out of Ireland.

I acknowledge the fact that the headline rates for farm assist payments remain unchanged. Some €108 million was spent on this scheme in 2012. I have seen at first hand the value of this assistance to small farm families and rural communities. I request that the cuts announced to the farm assist scheme be carefully monitored. There is an estimated saving of €5 million in any given year in respect of these cuts. I hope the position will be monitored in order to ensure even more money will not be taken out of the scheme. Such a development would be detrimental. I accept the Minister's point on the flexibility of local welfare officers. Such flexibility is crucial, particularly in years such as this when the weather is very bad.

I acknowledge the fact that the Minister has found an additional €2 million for school meals. The allocation in this regard will increase from €35 million to €37 million. I have witnessed the impact of the school meals programme in my constituency. The provision of an additional 19,000 breakfasts or 6,000 hot dinners will be of benefit to 189,000 children in over 1,000 schools throughout the country. This is a real example of a targeted measure being introduced where it is needed most.

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