Dáil debates

Wednesday, 12 December 2012

Topical Issue Debate

Rural Social Scheme

3:00 pm

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I am very disappointed the relevant Minister has not bothered to come to the House to take the issue.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I am first sub.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The arrangement when Topical Issues were introduced was that Ministers were to come to the House. The Minister for Social Protection is obviously around the House today because she has a Bill in the House. However, as a rural Deputy, I am sure the Minister present will understand my concern in regard to the issue I raise.

The rural social scheme was introduced in 2004. The idea was that, rather than paying farm assist to farmers, we would give an opportunity to farmers to supplement their farming income by working on a scheme. To be eligible for the rural social scheme, one had to be qualified by being in receipt of a means tested qualifying payment, in most cases the farm assist payment. This was a mechanism by which we could bring the income of low income farmers up to an adequate level so they would be able to sustain a reasonable livelihood.

The idea of the scheme was to be flexible and to operate around the requirements of a farmer to farm while, on the other hand, using the talents of farmers, which are many, to make a contribution to community services. There was, therefore, a huge double win in the scheme, namely, the win for the farm family in terms of income and also in terms of income certainty in that they got a fixed amount of income which was €20 more than the basic farm assist rate and was the exact same as that paid under the community employment schemes.

Farmers who went on the scheme have time and again told me there are two major benefits for them. The first was the obvious one in regard to income and the second was in regard to social contact. One of the big changes in farming is that the meitheal has gone - the idea of people gathering to save the hay or doing all the jobs that would have been done 20, 30, 40 or 50 years ago by a group of people but which are now often done by one person working on their own. Therefore, many farmers said to me that the socialisation of working was of equal importance to the income gained.

I know from evidence produced to me when I was in the Department of Social Protection that the negative effects of under-employment on people's health are clearly measurable. From the community's point of view, farmers were not unemployed. We were not talking about unemployed people but under-employed people who, because of mechanisation, did not need to put 40 hours a week into their farms. These people brought a huge wealth of can-do and experience to the job. Any community that had a rural social scheme in operation will testify to the huge amount of work that has been done.

We set up the scheme to function in a streamlined and cost efficient way. It is administered by the Leader partnership companies which come within the Minister's remit. Unlike the community employment scheme, therefore, the number of companies operating under the rural social scheme corresponds exactly with the number of Leader partnership companies which I understand is fewer than 40. This ensured the administration was slim-line, as was the insurance.

The benefits of the scheme are clear, but I am concerned by persistent reports in various newspapers that the Department of Social Protection, instead of expanding the scheme to cover every farmer in receipt of a farm assist payment, is instead considering its cessation. It makes no sense that the Department would choose, rather than paying people to make a contribution to the community by providing enhanced services, to pay them for doing nothing. Will the Minister give a clear statement that there is no such intention within the Department, that the scheme will remain as a fundamental part of the infrastructure provided and, furthermore, that it will be expanded to include every person in receipt of a farm assist payment.

3:10 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Deputy clearly does not realise we are in a bailout programme if he imagines that we can give money willy-nilly to everybody in the country under every possible scheme. The rural social scheme provides income support for farmers and fishermen who were in receipt of certain social protection payments. In return, those participating in the scheme are engaged in supporting the provision of a broad range of services of benefit to rural communities. The scheme is delivered and managed at a local level through 35 local development companies and by Údarás na Gaeltachta in Gaeltacht areas. The funding provision enables 2,600 participants to work for 19.5 hours per week, supported and monitored by 130 supervisor positions.

I am pleased to inform the Deputy that it is not anticipated that any change in the scheme's operation will be made in 2013. Once again, his concerns are unwarranted. In fact, the Department of Social Protection has provisionally provided €45 million to meet the costs arising next year. As with all areas of expenditure, the Department will seek to deliver the scheme for better value and proposals to this end will be made to the local development companies and Údarás na Gaeltachta in the coming weeks. Participants in the scheme are contracted annually to work their hours in a manner that meets their farming or fishing requirements. Continued participation is limited to those who maintain an entitlement to the underlying social protection payments and meet other criteria in respect of farming or fishing. While it is not intended that each participant will remain on the scheme indefinitely, there is no time limit for participation once the underlying eligibility for social protection payments remains. Eligibility for the scheme is limited to those in receipt of farm or fish assist or a range of other specified social protection payments. All participants must be actively engaged in farming or fishing and spousal swaps are permitted in the case of an eligible person not wishing to participate. Given the nature of the underlying qualifying criteria, participants are required to confirm that they continue to be eligible.

The scheme has been an important catalyst, as the Deputy observed, in the development and underpinning of a range of services in rural areas. In particular, services to older people which are widely available in urban areas could not otherwise be delivered in rural communities. Significant improvements to the rural environment are also being made through the maintenance of the built heritage, improvements to and maintenance of community amenities and support for a range of community activities which build on existing social and community infrastructure. Nearly 3 million hours of work are delivered annually by participants. While the benefits to communities are key outcomes of the scheme, the benefits to participants are wroth noting. Although the financial benefits can be relatively small in individual cases, they are nevertheless important. Equally important are the related benefits of participation for individuals who may, due to changes in social, farming practices and rural demography, be socially isolated.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I thank the Minister for giving a good summary of the scheme I set up. I compliment him on his accuracy.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Unlike the Deputy, I am always willing to acknowledge the worth of initiatives introduced by other Governments.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Has a review of the scheme been carried out either by the Department of Social Protection or on its direction or by the Department of Public Expenditure and Reform or on its direction? If such a review has been initiated, is it completed? If completed, did it recommend the continuation or cessation of the scheme? Will it be possible to obtain a copy of any report prepared and the recommendations made? Can the Minister give an undertaking that the scheme will continue in operation after 2013?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Deputy is moving the goalposts.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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If it were to be discontinued in 2013, that decision would have been announced in the budget and there would be no budgetary provision. I accept that such a provision has been made. In the aftermath of the budget, however, newspapers began reporting that the Department of Public Expenditure and Reform had recommended closure of the scheme following a review. That Department has not taken the opportunity to deny the rumours. I ask the Minister to address these very specific questions.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Deputy is on his usual hobby horse of scaremongering people into believing a spending programme is to be abolished. I am pleased to confirm, on behalf of the Department of Social Protection, that this scheme will not be abolished.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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It will not be abolished in 2013.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Every scheme is under review in every budget. The Deputy was in government long enough to know how these matters work. Moreover, he knows why we are where we are in terms of the country's financial position. The Minister for Social Protection deserves great credit for ensuring, notwithstanding the difficult financial position for her Department, the same level of participation will be available to eligible applicants under the scheme in 2013. I hope she will be in a position to retain the provision in 2014, pending an examination of the financial position at the time of next year's budgetary process. Nobody can give a greater commitment than this at this time, no more than the Deputy, as Minister, was in a position to do so in respect of any scheme. He should refrain from seeking to reinvent the rules. This is a good news story. The Deputy should be glad that the scheme he introduced for good reason will be maintained in 2013. I am sure he will welcome the Minister's achievement in this regard.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Minister did not indicate whether a review was being or had been conducted.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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That completes the Topical Issue debate for today.