Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank the Ceann Comhairle for allowing me to raise this issue, about which we have all probably received representations since Christmas and particularly in the past week, as correspondence has arrived from Eircom and Electric Ireland in particular relating to another of the bombshells from the Minister for Social Protection, Deputy Burton. It was sneakily announced in the budget but it is only having an impact on people now.

With the telephone allowance, there has been a 63% reduction in the contribution, meaning a figure that was €25.78 has been reduced to €9.50. For many older people this was a complete subsidy on line rental. The younger generation is moving away from landlines but that is not happening for the older generation. They need landlines for the traditional use of the phone and in many cases to allow use of monitored alarms and personal security. For many, this cut is forcing a reassessment of the need to have a landline and maintain security. The Minister of State knows there has been a surge of burglaries and robberies in my part of the country over the past three months, and this is replicated across the country. There is genuine fear and concern among people, and this cut will be felt by older people in particular.

There has been a complete change in the manner in which the electricity allowance works. It used to be a unit-based allowance that was directly related to usage but it is now an automatic payment of €35 per month. Such a payment is substantial but at this time of year - from January to March or winter in general - people and especially older people use much electricity for heat, light and a range of activities. I object to the manner in which the allowance is being changed from unit-based to a cash basis.

Was any consideration given to staging the change, allowing the biggest impact of the change to happen at a time when people could adjust electricity usage? We have just come through some cold days and one can imagine how bills will be increasing. The change comes at a time when electricity prices have increased by 15%, which is substantial, and this has come about because of oil price spikes. These increases are passed to the customer and we all see them in our bills, although it affects older people in particular. For some time the household benefits package has been a very important support for people over 70, providing security and assistance for necessary costs which rise as one gets older.

What consideration was given to staggering the introduction of the new system? Will the Minister, Deputy Burton, review the change and perhaps look to introduce most of the impact in April, particularly with regard to the electricity allowance? There are a number of issues that must be clarified. Many people may not have used all the units in their allowance, depending on the time of year, and they could carry forward those units. The Minister has indicated that negotiations were under way with Electric Ireland in that regard so is there an update?

How will the social welfare benefits package be affected with regard to Eircom? The company has advised that there will be further cuts in addition to those notified by the Minister because it is precluded from offering discounts to people by the telecoms regulator. Will there be further cuts to the telephone allowance? What advice is the Government giving to people and what communication has been issued to people about the cuts? The Minister is well able to talk and use volume when she wants to but is she bringing the power of her office to the negotiation with the various providers of energy and communications products to try to come up with better or more competitive packages for older people, reflecting their usage and need for these products?

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