David Stanton (Cork East, Fine Gael)
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Question 4: To ask the Minister for Social and Family Affairs his views on the recent NESF Report No. 33, Creating a More Inclusive Labour Market (January 2006) which highlights the ever increasing inequality of society here; his views on the findings of the report; the action the Government intends to take as a result; and if he will make a statement on the matter. [4937/06]

Séamus Brennan (Dublin South, Fianna Fail)
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Since its establishment, the National Economic and Social Forum gave considerable time and consideration to labour market issues.

I welcome this latest report by the NESF which provides a significant and timely contribution to consideration of labour market strategies. The report covers a breadth of issues and the implications extend way beyond the social welfare system to include local partnership-based strategies, labour market and social inclusion measures and structures, make work pay policies, the national employment services, workplace strategies and progression of low-skilled workers.

The Government recently noted the contents of the report and agreed that it would be considered by all relevant Departments and agencies, and also by the senior officials group on social inclusion, chaired by the Department of the Taoiseach, in the context of wider labour market issues.

The report recognises that the market place is the main force in determining the quantity and quality of work available. However, this report highlights the existence of labour market vulnerability for many seeking work and within the workforce and identifies a number of interacting factors which may create this vulnerability for individuals and groups of people, even in today's tight labour market.

The report notes that more than €1 billion of State funding is being spent annually on measures aimed at helping people into work and tackling problems associated with labour market vulnerability. This encompasses the work of a number of Departments, including the Departments of Enterprise, Trade and Employment and Education and Science, as well as my Department.

To improve upon how this spending meets its objective, the report recommends that a national strategic framework should be developed to provide better opportunities in this area. This would ensure coherence and integration in a co-ordinated response to improve access to employment, training and education and to finding better quality jobs on the labour market. A more integrated strategic framework would be useful.

The report makes a number of specific recommendations with regard to the future direction and administration of social welfare employment supports and the family income supplement scheme. My Department is considering these as part of the overall Government response to the report.

David Stanton (Cork East, Fine Gael)
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Does the Minister note that the report also said the €1 billion could be spent more effectively? Does he agree with the report when it states there is now a wealthier but more unequal society than ever before? The report records that the richest 20% of the working age population earns 12 times as much as the poorest 20%, that there is less equality of opportunity in Ireland than in many other European countries and this has changed little over the past decade, that 14% of households in poverty are headed by an unemployed person, a rise of 7% since 1994, that Ireland ranks 51 out of 56 countries in terms of equality of economic opportunities for women and has one of the highest penalties in pay reduction associated with motherhood and that 13% of Irish people are early school leavers with an employment rate of 18% and 63% for Traveller children. Only one third of those entitled to the family income supplement apply for it whereas a similar payment in New Zealand has a 92% take up.

Will the Minister not agree that this report is an indictment of Government policy to date and that its policy has failed on many fronts? Can he name one action he will take to follow any of the recommendations in this report to address these matters?

Séamus Brennan (Dublin South, Fianna Fail)
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I have begun to implement the report's recommendations by substantially increasing the family income supplement payment——

David Stanton (Cork East, Fine Gael)
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They are not taking it up.

Séamus Brennan (Dublin South, Fianna Fail)
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——in the recent budget. I will announce within the next weeks a major media campaign on radio and television and in the newspapers to promote the family income supplement. I have recently agreed a departmental budget to promote the family income supplement which provides quite an assistance top-up to family income. It is aimed at those on low incomes and I acknowledge the take-up is not satisfactory. For that reason I have requested that everybody on low income be communicated with directly by the Department to bring the scheme to their attention.

I do not agree with the concept of there being less equality of opportunity. I agree that society is more unequal.

David Stanton (Cork East, Fine Gael)
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The rich are getting richer and the poor are getting poorer.

Séamus Brennan (Dublin South, Fianna Fail)
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There is a plethora of BMWs and mercs floating around this town and in the country generally because people are well-off. There is new wealth which can get in one's face and be fairly gaudy and a bit flash at times. It is one of the by-products of a society that is becoming wealthier.

I find the comment that there is less equality of opportunity a little harder to handle. Apart from any empirical evidence, there is evidence all around of the massive opportunities, including for people who find themselves in vulnerable positions. They can avail of back to work and back to education allowances, FÁS training schemes, family income supplements and more than 36 different schemes over eight Departments with €1 billion targeted to help people get back to work. The statistics show this has been quite successful. We have managed to activate thousands into work and back to education. I therefore take issue with that section of the report.

David Stanton (Cork East, Fine Gael)
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Will the Minister agree with the point made in the report that poverty traps are the main problem and that they are being created by the too-rapid withdrawal of a person's secondary benefits when taking up employment? This has been exacerbated by the growing complexity of the means tested benefit system and lack of indexation of household means tested income disregards before secondary benefits are lost. Has the Minister any intention of examining these issues and taking action as a result of his examination?

Séamus Brennan (Dublin South, Fianna Fail)
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This is being undertaken. We are fully committed to tapering as opposed to immediate withdrawal of any allowance. Tapering was introduced in the recent budget in a dramatic way and I will continue the practice. The Deputy would not be very enthusiastic about indexation if he considered it further. If welfare benefits were to be indexed to inflation or even to wages, the recipients would be worse off. For example, child benefit has doubled in approximately four years and no indexation would have increased it to that extent. I know it is a neat argument for discussion but I think they are doing better without formal indexation.