Dáil debates

Wednesday, 4 November 2015

Social Welfare Bill 2015: Second Stage (Resumed)

 

2:40 pm

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael) | Oireachtas source

I am delighted to have the opportunity to speak on this important Bill. In coming into power nearly five years ago, this Government promised it would maintain basic rates in social welfare. This promise has been largely fulfilled despite the fact that we entered government during the most difficult economic times since the foundation of the State. It is worthwhile to remind ourselves that at that time the State finances were badly broken. As we all know, the troika were in town and exploring the possibility of our having to exit the euro.

Portugal and Greece were in a similar situation and many of their social welfare payments have been cut by up to 50%, particularly in Greece which continues to be in crisis five years on. That is very unfortunate for the Greek people and it is compounded by poor political decisions in Greece. In comparison, the Government here maintained basic social welfare rates during that period and continues to do so. Both it and the people faced up to the their problems and pursued an economic policy that concentrated on job creation as the best way of reducing poverty. The Minister, in the most recent budget, is now in a position to begin the process of increasing social welfare payments.

Job creation remains a priority for the Government, as it wants every family to feel the recovery. Thankfully, it maintained a massively strong social welfare safety net throughout the financial crisis. Our welfare safety net is among the best in Europe, as the evidence proves. Now that the recovery is under way, the safety net can be strengthened for the most vulnerable in society, while at the same time expanding measures to help jobseekers to get back to work. From a social and economic perspective, having a job is the most important way to increase a family's values and outlook.

The Bill will give effect to statutory schemes that can only be implemented by way of primary legislation. It provides for an increase in the monthly rate of child benefit to €140 from January 2016, an increase of €3 in the weekly pension for pensioners and carers aged 66 years and over and an increase of €2 for an adult dependant aged under 66 years and €2.70 for an adult dependant aged 66 years and over. We are all delighted to see the new carer's support grant being increased. It replaces the respite care grant. We are all aware of the great work carers do in minding their families and allowing people to remain in their homes. There will be an increase of €5 per week in the family income supplement thresholds for families with one child and €10 for those with two or more children. There are also changes in PRSI rates to benefit lower income families. Separately, the Tánaiste will move a regulation in the coming weeks to provide for a Christmas bonus of 75%, which will be paid in the first week of December.

While these increases are modest and prudent, they give confidence to the more dependent section of society that the worst of the financial crisis is over and that the fear of future economic hardship has eased. These measures, combined with the increase in employment figures, the equalisation of taxation between the self-employed and PAYE workers to encourage entrepreneurship, increased investment in health and education and much needed investment in child care, should be of most benefit to lower and middle income families.

I take the opportunity to compliment the Tánaiste and Minister for Social Protection and the Minister of State at her Department on their work in the Department in the past five years, particularly in sustaining basic payments and reforming the role of the social welfare office through the introduction of the Intreo offices to help people to get

The introduction of the JobBridge scheme, despite the criticism of it, has been hugely beneficial to the long-term unemployed and small businesses in creating employment. Over 61% of all those who have participated in the JobBridge programme have gained full-time employment as a result, which proves the success of the scheme. This is particularly the case when one compares it with other European schemes where the success rate is 34%. Another figure relevant to activation schemes is that when we had full employment there were 76,000 people participating in activation schemes. The current number is 83,000. This dismisses the myth that the activation schemes are decreasing the unemployment numbers. It proves that that is not the case. I commend the Bill to the House.

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