Dáil debates

Thursday, 10 November 2016

Social Welfare Bill 2016: Second Stage (Resumed)

 

1:05 pm

Photo of Seán HaugheySeán Haughey (Dublin Bay North, Fianna Fail) | Oireachtas source

I propose to share time with Deputies Aindrias Moynihan and Fiona O'Loughlin.

Under the confidence and supply arrangement agreed by the Fianna Fáil and Fine Gael parties, my party secured a commitment that available resources will be allocated on the basis of a ratio of at least 2:1 in favour of public expenditure over tax cuts. This ratio has been exceeded in budget 2017, with a 3:1 split between spending on services and investment in citizens, on the one hand, and reduced taxation, on the other.

The Economic and Social Research Institute, ESRI, has demonstrated that the least well-off will benefit most from budget 2017 in proportional terms. That being said, the gains arising from the budget are modest and nobody will be substantially better off as a result of it.

The budget and Social Welfare Bill provide for an increase of €5 per week to core welfare payments. The Fianna Fáil Party secured agreement on increases to the State pension in the confidence and supply arrangement. We welcome the increases in weekly welfare payments to carers, the disabled, lone parents and the unemployed. It is imperative that the benefits of a growing economy and improving public finances are distributed to all those who depend on the State for a significant proportion of their income needs. Excluding the State pension, this is the first increase in weekly welfare rates since 2009 and it will go some way towards ensuring the social welfare payments these groups depend on to maintain their income keep pace with the modest inflation which has occurred in the past seven years.

A core objective of social welfare payments is to provide recipients with a minimally adequate standard of living in the context of that which prevails in society as a whole. Therefore, subject to the continued improvement of the economy and public finances, we should aim to ensure the relative position of welfare recipients keeps pace with increases in average earnings in future.

Fianna Fáil also welcomes the increase in the Christmas bonus to 85% of a person’s weekly social welfare payment. This will assist individuals and families in receipt of long-term social welfare supports with the additional costs of Christmas expenditure.

On the free travel scheme, in June 2014, Age Action Ireland felt compelled to launch a campaign under the slogan "Hands off our free travel pass". A working group comprised of representatives of the National Transport Authority, Department of Social Protection and Department of Public Expenditure and Reform wanted savings to be made to the scheme. Options considered included a restriction on the hours of use of the free travel pass, the imposition of a small subscription charge and the introduction of restrictions on the use of one mode of transport. Thankfully, nothing came of these deliberations in budget 2015. Nevertheless, pressure from civil servants and others to modify the free travel scheme will continue and we must be vigilant in that regard.

While the free travel pass is a small benefit, it has a significant impact on the lives of elderly people. It allows them to get out of the house, travel to all parts of the country and engage in social activities. It does more than anything else to combat social isolation. The scheme's effects were revolutionary when it was first introduced and it should not be touched. All Deputies should support Age Action Ireland when it proclaims, "Hands off our free travel scheme".

Community Law and Mediation, formally the Northside Community Law Centre, is an independent community based organisation that works to empower individuals experiencing disadvantage by providing free legal representation, education and mediation services to the community. At a national level, the organisation seeks to have a wider impact through its campaigns for law reform and by acting as a resource for other advocacy organisations. Community Law and Mediation is part-funded by the Department of Social Protection and this funding from the Department regularly comes under threat. The Minister will launch the organisation's annual report on 30 November 2016. Its funding should be maintained and increased because it provides an invaluable service.

One key area for which the Social Welfare Bill does not make provision is the need to increase equality of access to the contributory State pension for a considerable cohort of women. A number of women have been in contact with me in recent months highlighting their inability to access the full State pension. Under an anomaly in the system, a woman who exited the workforce prior to 1994 to look after her children or a relative is not entitled to disregard years spent outside the workforce when her social insurance record is being calculated for pension purposes. The effect of this is that many of the women who took time out of the workforce prior to 1994 may not have sufficient contributions to access the full State pension. In contrast, those who have left the workforce since 1994 to raise a family or care for a relative are entitled, under the homemaker’s scheme, to have up to 20 years of time spent in the home disregarded when it comes to calculating their yearly average social insurance contribution, thus making it easier to qualify for the full pension.

The Government should move towards a position in which women who exited the workforce prior to 1994 have the same pension rights as those who currently benefit under the homemaker’s scheme. A concerted effort to end the unfair treatment these women experience would make a strong statement that this country values the social contribution of everyone who took time out of work to care for their family. It is essential that future budgets move to ensure that women who have taken time out of the workforce to care for children or a sick or elderly family member are not penalised when it comes to calculating their entitlement to the contributory State pension.

Through our responsible approach to Government formation, Fianna Fáil has achieved a greater emphasis on fairness and improving public services after years of underinvestment. While we have experienced a considerable improvement in our economic fortunes in the past three years, a sustained commitment in future budgets is required to guarantee a social recovery for all of our people.

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