Dáil debates

Wednesday, 16 October 2013

Financial Resolutions 2014 - Financial Resolution No. 8: General (Resumed)

 

6:00 pm

Photo of Séamus KirkSéamus Kirk (Louth, Fianna Fail) | Oireachtas source

I am grateful for the opportunity to make a brief contribution to the budget debate.

The chief executive officer of ALONE claims yesterday's budget is another example of how this Government fails to support those in need. ALONE supports older people in need through a befriending service, long-term housing and crisis support in the community. It said:

The measures detailed in Budget 2014 will further isolate a significant percentage of older persons, specifically the cut to telephone allowance. We find the additional cuts to the bereavement grant, invalidity pension and increase in prescription charges are more examples of how the government each year "chips away" at various funding for the most vulnerable in Irish society.
The abolition of the telephone allowance is the third round of measures which are hitting the living standards of older people. This allowance enables older people to keep in touch by telephone with their family and neighbours. It gives them the comfort of keeping in touch without breaking the bank. It makes them feel safe and secure in their homes. It is a miserly cut affecting the older generation, which feels isolated enough already. The Government is in the process of gutting the household benefits package while failing to recognise its social and economic value. It goes against every instinct of Irish people, who have always valued the principle of social solidarity and intergenerational support. These decisions are shameful and totally unfair.

Electricity prices increased by 15% in 2011 and 6% in 2012, and are going up by another 2% this month. Gas prices are up by over 30% since the Government came to power. Further increases will be directly felt by the 410,000 recipients of the telephone allowance. Mr. Eamon Timmins of Age Action Ireland stated today:

Older people are struggling to make ends meet as a result of the cumulative impact of a succession of austerity budgets. Many are part of a generation that did not spend money it did not have. Our concern in the wake of the budget is that the most vulnerable of older people may now be left facing even more difficult choices with dwindling incomes as a result of the budget changes.
The abolition of the telephone allowance over the last two years has taken €26 a month from pensioners and others who qualified. This is the equivalent of a cut in the basic State pension of €6 per week. The cumulative impact of the cuts to the household benefits package represents an unprecedented attack on older people, carers and people with disabilities. The elderly must be protected. They helped shape and support our great nation. Now is the time to show leadership and reverse these charges against the elderly.
Young people are seen as a soft target, and these proposals [the cut to jobseeker's allowance for people under 25 years of age] threaten to hit hard those most in need of support. Social welfare payments to young people under 21 are already disproportionately lower at €100 per week. These proposals would extend this lower rate to those aged 24, and also reduce payments to those under 26.
That was said by Mary Cunningham of the National Youth Council of Ireland. Fianna Fáil condemns the Government's latest insult to young people by slashing jobseeker's allowance for new applicants under the age of 25 years to €100 and extending the €100 rate to existing recipients who reach 22 years of age. The cut in the core-rate income support along with the failure of the Government to implement effective labour activation measures will push more young people towards emigration. These cuts are discriminatory in nature. This is shown by the fact the Government is willing to hit those under the age of 25 with core payment cuts. This policy also shows that the Government is intent on using emigration as a policy tool to reduce unemployment numbers. Ireland once had the largest youth cohort in the OECD, at 16% of the population. The figure was 12% in 2012. Emigration has been a central reason for this dramatic decline. The Government is using emigration as a policy tool to reduce unemployment numbers. This budget measure may well reduce unemployment numbers further, but it will also reduce the number of young people who plan their future in Ireland. The youth of today are our future. We must create jobs so our educated workforce gets a chance to utilise its skills and work in Ireland. Not only will cuts to the jobseeker's allowance increase emigration, but confidence is at an all time low. We must all work together so people between the ages of 18 and 26 years are supported.

With regard to agriculture cuts, over €70 million will be taken from Irish farmers in 2014 following the budget when account is taken of the various adjustments to the Common Agricultural Policy budget, along with today's announcement of a cut in the suckler cow and rural environment protection schemes. The only good news for farmers in the budget is the new genomics scheme for suckler cows, which will benefit farmers with suckler herds, at a cost of €23 million. The Minister must ensure that assistance is given to as wide a group of farmers as possible through the advisory service, Teagasc and others so they can avail of this new scheme. With over 1 million suckler cows in the country, it is absolutely vital that as many farmers as possible who have suckler cows can participate in this scheme. I cannot emphasise strongly enough the importance of the suckler herd for the beef supply, which has been such an integral and important part of our export statistics for a number of years. Many farmers who have not had any dealings with genomics previously may need significant assistance to become used to the new scheme. Agriculture and agri-food is a success story for Ireland and continued support is welcome.

The cut to maternity benefit is anti-women and anti-family. The slashing of child benefit, the taxing of maternity benefit, the failure to progress child care provision and cutbacks to the vital back-to-school allowance have been felt most by women and families.

Child benefit, which is a vital source of income for mothers, has been cut by €10 in 2013 following cuts in previous budgets. The back to school allowance was slashed by €50. Announcements on child care have fallen desperately short of the Scandinavian child care model promised by the Minister for Social Protection, Deputy Burton. The Minister for Education and Skills is overseeing a €250 increase in the student contribution fee in 2013, with a further €500 to come.

Standardising maternity benefit at €230 per week is absolutely anti-women and anti-family as it means a de factoreduction of €32 per week for the vast majority of women. This will hit women and their families at a time when they are already struggling with reduced income and increased costs. A reduction of maternity benefit will force many women to go back to work earlier than intended. This is not in the best interests of women, children or society.

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