Dáil debates
Wednesday, 12 December 2012
Social Welfare Bill 2012: Second Stage (Resumed)
3:40 pm
Éamon Ó Cuív (Galway West, Fianna Fail) | Oireachtas source
Tá sé deacair agam a thuiscint cén bunús a bhaineann leis an gcur chuige atá ag an Aire. Anuraidh, d'ionsaigh sí mná agus muintir na tuaithe. I mbliana, is teaghlaigh atá sí ag ionsaí, agus arís muintir na tuaithe. Ar ndóigh, is iad na teaghlaigh agus gasúir todhchaí na tíre ach is cosúil gur cuma leis an Aire faoi sin.
Is é an dearcadh atá ag an Rialtas, seachas athrú a dhéanamh de réir chumas íocaíochta nó é a roinnt beagán ar gach uile dhuine, ná díriú ar sainghrúpaí faoi leith a cheapann siad atá leochaileach agus nach mbeidh in ann troid ar ais. Níl cothramas ann agus níl ceart ann. Ba cheart go mbeadh náire ar Pháirtí an Lucht Oibre faoin méid atá déanta.
Caithfidh mé a rá nach bhfuil iontas ar bith orm nach bhfuil an t-Aire anseo tráthnóna, mar caithfidh go bhfuil sé deacair éisteacht le cur síos mion ar an mísc atá déanta aici i mbun a cuid cúramaí.
I will deal with the cuts in social welfare in the context of wider Government policy. Rather than taking a little from many or being progressive by taking more from those who can afford to pay, the Government has a policy of targeting vulnerable groups in small numbers. It attempts to pick them off in the hope that these groups do not have the capacity, the time or the organisation to fight back. The Government has no regard for whether it is possible to carry the burden or whether the proposed measure is progressive or regressive.
According to commentators, from the downturn in the economy until the change of government, budgets were broadly progressive in that those who could pay the most took the biggest hit. Since this Government came to power, there has been a complete reversal of engines. In last year's budget, the attack was on women, children and rural dwellers; this year it is families with children and, yet again, another mean cut for farmers. The cumulative effect on families as a result of the changes in PRSI, motor tax, child benefit and property tax is very large and is disproportionate. It will push many families with children over the edge financially. Families and children are our future; they should have been protected in the budget instead of being specifically targeted.
I could speak further about the budget but, unfortunately, we are constrained by time because of the refusal of the Government to allow time to hear a proper and detailed analysis of the choices facing it. As my party's spokesperson on agriculture I will direct my attention to the changes made over two years to the farm assist scheme, which provides a safety net for low-income farmers.
Until last year, 70% of the income of a low-income farmer was assessed as means. In other words, the total farm assist payment was calculated and 70% of one's farm income was deducted therefrom. There was a special allowance of €127 per annum for each of one's first two children and €190 per annum for each of the third and subsequent children. Over two years, the Minister has eliminated all of these allowances. Now, if one earns money on one's farm, one's farm assist payment is reduced on a euro-for-euro basis. Consequently, if a single person earns €200 from farming, his farm assist payment is reduced by €200. All the time and effort devoted to farming the land will literally yield one no money. This is going back to the old days and it will kill all incentives to work small farms.
This step has been taken by a Government that could not bring itself to increase the universal social charge by 3% on incomes over €100,000. Accounting for all the various taxes, including the universal social charge and PRSI, such an increase would mean that the part of one's income over €100,000 would be taxed at a rate of 57%. The Minister, Deputy Burton, has no difficulty imposing an effective tax rate or deduction of 100% on the very first euro of income earned by small farmers.
The Government's strategy is clear: protect the rich and impoverish the poor. For example, a farmer with two children who has a farm income of €200 per week will have lost €65 per week over the past two years. This is on top of all the other cuts, the property tax, etc. A single farmer in similar circumstances will have lost €60 per week. A farmer with a farm income of €400 per week and five children stands to lose €133 per week before taking into account the changes regarding child benefit, car tax, property tax and so on. The Government is literally taking the crust of bread out of the mouths of poor people. In a Department that spends €188,000 per minute, the total saving this year in this regard will be €4 million. This would not keep it going for an hour. There was no need to do this. It has nothing to do with the troika or cutbacks; it is policy. It is interesting to note that 80% of the farmers who receive the most through the farm assist scheme are west of the Shannon, or west of a line from Cork to Derry. We know the interest of the Labour Party in that part of the world.
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