Dáil debates

Thursday, 24 October 2013

Social Welfare and Pensions Bill 2013: Second Stage (Resumed)

 

6:40 pm

Photo of Catherine ByrneCatherine Byrne (Dublin South Central, Fine Gael) | Oireachtas source

It is not easy for any Minister or Government Deputy to stand up in the House and talk about cuts, but we have to do so because the former Ministers in the previous Government, with their brass necks and their attitude, heard all, said nothing but allowed everything to happen. They stood back and allowed the country to go down the drain and took no responsibility for anything at any time except for the golden package with which they left when they were kicked out.

Let us be clear on one point: many speakers who have crossed the floor from the Labour Party and Fine Gael did it for one reason and one reason only - to save their own brass necks. I am disappointed that some of the speakers could be so negative about a Minister who has brought social welfare into a new era and has changed the policies of many previous Governments that destroyed the social welfare system to the point at which many people believed they were better off staying at home rather than going to work.

I have spoken to a number of people in my constituency, including the people who elected me to this House and my family and friends, who felt that the budget was hard in a number of areas but they accept the fact that without pulling together and making a contribution we will never get out of the economic crisis which has plagued us for the past four years. This budget is the budget to take us out of the bailout. Instead of criticising it we should be all jumping for joy. I believe it is the fairest budget the Government has produced, considering the economic crisis in which we found ourselves when we were elected two and half years ago.

The Government was elected on a mandate to create jobs and get the economy moving again. Almost 34,000 new jobs have been created this year. Those figures were not plucked out of the sky; they are real figures. We have come a long way from the days before this Government came into office, when we were losing an average of €7,000 jobs per month. I note from the Minister's speech that she is optimistic that the number on the live register will fall below 400,000 for the first time since May 2009. We are making progress; it may be slow, but we are taking the right steps. The fact is that the more people we have working the more income will come to the State and the more services can be provided to the vulnerable and the old. The reality is that the money is just not there for us to do everything we would like to do, but we are making progress.

The Government has had to show backbone and fortitude to get us out of the economic mess in which we found ourselves after years of reckless giveaway budgets that were instituted by previous Governments just to make sure people were re-elected. Not only did the previous Government spend every penny in its own purse but it spent every penny in the purse of every citizen in this country.

It must be pointed out that the Opposition, some of whom orchestrated the dire economic situation in which we found ourselves a few years ago, have not come up with one constructive proposal for how we might achieve the savings needed. It is easy for Opposition speakers to stand up and throw out soundbites, but the reality is that they have no concrete plan to get us out of the shackles of the bailout they got us into in the first place.

Despite what has been said, the Government has sought in this budget to protect the vulnerable in society. With regard to supporting the elderly, we have not touched the State pension, the carer's schemes, free travel or the free television licence. Similarly, in recognition of the fact that fuel poverty is a big issue for the elderly people, we have not changed the fuel allowance, and the excise rate on fuel has also been left unchanged. Furthermore, the tax treatment of the elderly remains unchanged, with no change in net income for pensioners as a result of the budget. Those aged 65 and over will continue to be treated more favourably under the Irish income tax code than all other taxpayers.

On the specific issue of medical cards, I fully agree with the review designed to take unused medical cards out of the system, as we, the taxpayers, are currently paying for any wastage that occurs as a result of this. It also appears from figures released recently that half of people with discretionary medical cards are 200% over the income limits for the means test. This Government is seeking to protect the vulnerable and ensure that medical cards go to those who really need them and those who are most in need. The reduction in income thresholds for those over the age of 70 will mean that those with an income of less than €500 per week, or €900 for a couple, will still be entitled to a medical card. This means that 85% of those over the age of 70 will still have their medical card and 97% of those over the age of 70 will still have either a medical card or a GP card.

On the issue of the telephone allowance, we must remember that it was costing the State €44 million or more, a figure we just could not afford any more. It is worth noting that the other elements of the household benefits package, such as the free television licence and the electricity allowance, have not been touched. It is time for phone companies to step up because they have a responsibility to their customers. They are private companies making profits and they should be willing to stand up and be counted in the country.

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