Dáil debates

Tuesday, 22 October 2013

4:25 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael) | Oireachtas source

I advise Deputy Daly that such payments will not be taken into account in determining if an individual has exceeded the €60,000 threshold. These are all protectionist measures and facilities because we recognise the importance of the contribution made by elderly people over the years. As the Deputy will be aware, those aged 66 and over are not liable to pay PRSI on any of their income, including their unearned income, in comparison with an average worker on €33,000 per annum who faces a marginal tax rate of 52%, including income tax, universal social charge and PRSI payment.

There are no increases on excise on fuel or on the 23% or 13.5% VAT rates, and all these measures are positive for the elderly. The bereavement grant has been removed. In the event of a death, the remaining spouse, civil partner or cohabitant receives six weeks of the payment after death. In addition, to that, anybody who faces genuine financial hardship in respect of a bereavement or a funeral can obtain assistance from the Department of Social Protection under supplementary welfare support.

There are also a range of additional supports for people following a death and which are worth considerably more than the bereavement grant. For instance, there is the widow's, widower's or surviving civil partner's pension, which is a weekly pension based on contributions or a means test. Second, the widow's or the surviving civil partner's grant is a once-off payment of €6,000 where there is a dependent child up to the age of 22 in full-time education. There is a guardian's payment where a person is looking after an orphaned child. If a person dies as a result of an accident at work or occupational disease, a special funeral grant of €850 is also paid.

The level of the living alone allowance has been maintained at €7.70 per week. There is a commitment from the Minister, Deputy Hogan, and the Minister for Social Protection in respect of the senior alert scheme. The level of coverage between the full medical card and GP-visit card for everybody over the age of 70, even after the changes are implemented, will be 93%. The announcement of an additional €200 million in the budget in new capital projects includes 5,700 grants for adaptation of houses for the elderly and the disabled.

As the Deputy will be aware, the DIRT measures do not affect married couples aged 65 and over with incomes below €36,000 or single people aged over 65 with incomes below €18,000. These are measures that have been introduced and maintained and protected for our elderly people. Therefore, the Deputy's charge of all these items being stripped away is invalid.

In respect of the Deputy's comment on Dublin Bus and in terms of that issue, I hope the workers will accept the proposals. Despite the introduction of a number of cost reduction measures, Dublin Bus has lost €84 million over the past five years and this level of loss is unsustainable. The Labour Court recommendations to achieve the savings have been accepted by the non-driver grades in the company but rejected on three separate occasions by the drivers, as the Deputy will be aware. The Government, ICTU and IBEC have together made one final attempt to resolve this and engaged industrial relations personnel who went into the company to examine in great detail and to analyse the issues which led to the rejections. Those people have published a set of proposals for operational change which will address the concerns of the drivers while enabling the Labour Court recommendations to be implemented, and I hope these can be accepted. I understand the drivers are balloting on the proposals later this week and I hope a positive outcome will result. It is in the interests of the drivers of the company and of the citizens at large.

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