Séamus Healy (Tipperary, Workers and Unemployed Action Group) | Oireachtas source

I welcome the opportunity to speak to the Bill. I also welcome the measures contained in the Bill such as the Christmas bonus, the increase in the living alone allowance, the 35,000 hot meals to be provided for school children and other similar provdisions. What is contained in a Bill, however, is not always what is most important and this Bill is a classic example. What is not included in it is very important. It will, effectively, implement a freeze on social welfare payments and the national minimum wage. It will implement the measures included in a budget that was deeply regressive, cut the living standards of the poorest families in society, is socially unjust and will widen the gap between rich and poor. The excuse for doing this in the past, of course, was austerity. The excuse this time is Brexit. There is, however, no justification whatsoever for implementing a freeze.

Many independent organisations, agencies and individuals confirm that there is great need in society and that money is available to address them.

Social Justice Ireland, for instance, has described the budget as a betrayal of the most vulnerable in society. It is worth reading a small paragraph of its analysis. It states:

Budget 2020 failed in its basic task to protect the vulnerable. While TDs will see their salaries rise by about €1,600 in the coming year (€30 a week) many of Ireland's most vulnerable people will see their welfare payments remain unchanged.

Among other things they will face additional increases in the cost of food - [and] public transport as a result of increased carbon tax.

Social Justice Ireland also states the poverty gap has widened as a result of the budget and as a result of the implementation of the measures in this Bill. It states:

One in every six people in Ireland lives with an income below the poverty line (15.7% of the population). Based on the latest CSO data, this corresponds to approximately 760,000 people. Social Justice Ireland has consistently pointed out that a lesson from previous experiences is that the vulnerable in our society get left behind unless welfare increases keep pace with increases elsewhere in the economy.

Social Justice Ireland calls for an increase of €9 per week in social welfare payments across the board to keep in line with cost increases.

The ESRI states in its commentary that the budget had a greater impact on the incomes of poor households. It has calculated that the budget will reduce the incomes of the poorest 10% of households by 3%. Mr. Michael Taft, a trade union economist, explains that pensioners will, as a result of the budget and the fact that there is no increase for pensioners in this Bill, be less well off to the tune of €168 per year. He states that keeping pace with inflation and what the Government has forecast to be cost of living would require at least €3.22 more per week. Government inflation forecasts are 0.9% in 2019, 1.3% in 2020 and 1.4% in 2021. Therefore, it would take a minimum increase of €3.22 per week for pensioners to maintain their current standard of living.

We know already that middle and low-income families and social welfare recipients struggle daily to make ends meet. They have hardly two cent to rub together at the end of the week. Any additional costs whatsoever, such as costs associated with an unexpected illness, bereavement, Holy Communion or confirmation, puts them into debt and puts serious pressure on low-income families.

We know from many agencies that circumstances are very difficult for the low-income families. The ESRI and CSO have pointed out that there are 760,000 living below the poverty line. We are aware that there are 110,000 working poor and 137,000 working on the minimum wage. There are 230,000 children living below the poverty line. Some 28% of the population experience fuel poverty, and 44.5% of lone-parent families experience deprivation. We are aware that the lowest 10% of income earners pay the same percentage of their income in tax as the wealthiest 10%. Therefore, it is shameful that the Government has frozen the incomes of these poorer families. Worse still, it is not just a freeze but a cut to the income of pensioners, social welfare recipients and those on the minimum wage. There is no justification for that.

There is money available to pay increases to the affected groups. The Social Insurance Fund is currently in surplus to the tune of €1.4 billion. Only yesterday, the Minister for Finance, Deputy Paschal Donohoe, told us that Ireland's fiscal position for 2019 would be better than the 0.2% budget surplus he forecast about a month ago. He went on to say he would deliver a budget surplus of in excess of 0.5% in 2020. Therefore, the money exists.

Ireland is one of the richest countries in the world. In fact, it is the eighth richest. Recent studies shows that the top 10% of wealthy people in this country own 58.4% of all wealth. The top 5% own 46.4% of all wealth, and the top 1% own 27.3% of all wealth. It is worth thinking about that. These figures prompted the well-known economist David McWilliams to propose a wealth tax. He stated wealth tax revenue of anything from €2 billion to €20 billion could be collected on a sliding scale, depending on whether a tax of 0.5% or 5% is imposed and the category for which it is introduced. A minimum of €2 billion in wealth tax revenue would be available to the Government if it were prepared to make exceptionally wealthy people pay their fair share of tax. Of course, the Government chose to support very wealthy individuals through the assignee relief scheme. Some €28 million was available, meaning individuals could gain up to €130,000 per year in tax relief.

Studies shows there are 2,055 super-rich individuals in this country. This is the fifth highest proportion in the world, ahead of the United States, the United Kingdom, Germany, France and Japan. We have 421 super-rich individuals per 1 million of the population of the State, yet there is no wealth tax. The financial assets of the richest 10% in this country are now worth €50 billion more than at the peak of the boom, which was in 2006. Again, there is no taxation of these super-rich individuals. We hear regularly about broadening the tax base. I suggest to the Minister that it is about time we broadened it to force the super-wealthy individuals to pay their fair share of tax and support society generally.

The figures I have given show there is no justification whatsoever for cutting the income of pensioners, social welfare recipients and workers on the minimum wage. We know what they need. The Government has the money and a means of getting money to make a reasonable payment available to poorer families. It is worth reminding the House that this Bill not only freezes the income of poorer families but also cuts it. I call on the Government, and Ministers of State Deputy Finian McGrath and Deputy Halligan in particular, to introduce a supplementary budget to do the right thing, to give at least the increase that Social Justice Ireland is looking for, €9 per week, and ensure the minimum wage is increased accordingly.

What has happened in the budget and what will be implemented in this legislation is unacceptable. There is a great need out there and the Government has the money and the wherewithal to tackle the situation and to give reasonable increases to families that are poor and families that are under pressure every day of the week.

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