John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank Deputy Kyne for being absolutely bang on ten minutes. I join with him and others in welcoming the measures contained in the Social Welfare Bill. Deputy Kyne has outlined a few of those measures and I wish to refer to a couple of them in particular. One of the most difficult cuts and, if I am to be perfectly honest, probably one of the biggest errors the Government made was the decision approximately three budgets ago to reduce the respite care grant. It was a decision made in difficult times to try to make the figures balance. I welcome the fact the grant is being restored to its previous level. I thank the Minister of State and his senior colleague, the Tánaiste, for that restoration. Carers make an extraordinary contribution to society. As well as saving the State billions of euro annually, they are looking after their loved ones, which in most cases is what people want to do if they are in a position to do it. The restoration of the respite grant to its previous level is to be welcomed.

The initiative in the legislation to extend the period for which carer's allowance is paid after, for instance, the person who was being cared for has passed away from six weeks to 12 weeks, is to be welcomed. Ongoing expenses after someone has passed away are a fact of life and this is, therefore, a welcome initiative. I also agree with Deputy Kyne on the Christmas bonus. There has been a 75% restoration of the Christmas bonus and that is also welcome.

Members of the Opposition said the announcement in the budget of a €3 increase in the State pension rate was not enough. In an ideal world, we would like to increase it by more but it is a step in the right direction and an acknowledgement from the Government that pensioners living on fixed incomes and who have had to endure hardships over the past seven or eight years since the downturn in the economy should see some return. I, therefore, welcome that increase too.

I agree with the point Deputy Kyne made on the back to education scheme and certain difficulties, although that might be the wrong word, concerning the way it operates in practice. Now that we are moving into a time when the Exchequer will have a little more in terms of resources, the adjustment that he referred to in that regard could be made.

It was interesting to listen to some of the previous speakers from the Opposition who have decried the Bill but none of them, from what I have heard, has offered any indication as to where the money for the increased expenditure they wish for in the social welfare budget would come from. Usually those on the left, the hard left or the far left in Irish politics would say we should tax the wealthy. Our taxation system has been judged independently by the OECD to be the most progressive in the OECD. I am referring to income tax and the universal social charge. The top 17% of earners pay more than 80% of the total universal social charge and income tax collected annually. This country has a significantly progressive personal income taxation system. If members of the Opposition want to give wish lists in this House on where spending should be increased, it behoves them to give some indication of where the money for those increases might come from. I would welcome such an approach as being a more realistic contribution to the debate.

The reason the budget, as presented, and the Social Welfare Bill are positive for the first time in many years is the economic situation has improved. People have made many sacrifices and it is only right that some of those who have made sacrifices and are in receipt of social protection payments should see a marginal improvement in many of those social protection schemes.

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