Denis Naughten (Roscommon-South Leitrim, Independent)
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I thank the Ceann Comhairle for the opportunity to raise this important issue. One in ten primary school children and one in six secondary school children miss more than 20 days of school every year, one eighth of the secondary school year. Last year, almost 1,500 children left school and were not recorded as turning up in secondary school. We have a severe problem that is building serious social issues for the future.

A number of years ago Deputy Bruton proposed that children be paid to remain in school. We cannot afford to do that in the current economic circumstances, but we cannot afford to do nothing either. I propose the abolition of child benefit for school-age children and its replacement with a school attendance payment. This would take account of children who are ill or home-schooled, and would be paid in the same manner and at the same rate as child benefit. Not only would this keep children in school; it would also save the Exchequer between €100 million and €135 million annually. The administration system is already in place and I seek some joined-up thinking in the interest of children, families and the taxpayer. Annually, the control division of the Department of Social Protection brings in savings of between €75 million and €85 million under the child benefit scheme. In addition, €4 million to €5 million is sought from overpayments annually. Introducing such a payment system would also have a significant impact on child benefit fraud and over-claims, saving the taxpayer €10.5 million to €36 million per year.

To date the Department of Social Protection has opposed such a move on the basis that it would be illegal under EU law, as this would mean child benefit would no longer be paid to parents living in Ireland whose children reside in another EU country. However, this proposal would be a fraud prevention measure while also helping to address truancy and cutting down on bureaucracy, rather than focusing solely on stopping the €13.2 million that is paid annually in respect of children who live elsewhere in Europe. As a result, this would not only address the issues under EU law, but would also meet some of the criteria laid down by the European Central Bank and Ireland's EU targets for reducing red tape and streamlining government.

Disappointingly, the Minister for Social Protection, Deputy Burton, and her Department have failed even to put such a proposal forward at EU level. Disappointingly, the Department continues to issue 600,000 letters a year, enough to wallpaper Croke Park Stadium two and a half times, to try to save this money when a simple system could not only save the money but also ensure that children attend school. It is time we started to do things differently in Ireland and act in the interests of people by joining up government. We cannot continue to do things as we did them in the past, especially when it takes money out of the pockets of families.

Finally, I give the example of Jenny, who is six years of age. In December, her school principal contacted the National Education Welfare Board to say she had been absent for 65 days. The education welfare officer contacted the family, called to them, wrote to them and issued legal threats, and eventually the family ended up in court. The mother was fined €200 and the father €300. Since they went to court Jenny has attended school, but it should not have cost the taxpayer nearly €24,000 and Jenny a year of school before action was taken to bring that about. This initiative can work; it can ensure that young people attend school and save the taxpayer money.

Alex White (Dublin South, Labour)
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I am taking this matter on behalf of my colleague, the Minister for Social Protection, Deputy Burton, who is before the Oireachtas Joint Sub-Committee on Public Service Oversight and Petitions. I thank Deputy Naughten for raising the issue of child benefit and school attendance. Both child income support and school attendance are important social policy concerns of the Government.

Child benefit is a universal monthly payment that assists all families with the costs associated with raising children up to the age of 18 years and is especially important during a time of recession and unemployment. Child benefit is paid to approximately 606,000 families in respect of some 1.15 million children, with an estimated expenditure of approximately €1.9 billion. The Deputy should note that child benefit is classified as a family benefit under EU regulations. A key principle of the regulations is that persons moving to different member states are subject to the same obligations and enjoy the same benefits as the nationals of those member states. Therefore, EU nationals who come to work in Ireland and who pay Irish social insurance contributions are entitled to receive child benefit in respect of their children, even if the children reside in another EU member state.

The Department of Social Protection takes a proactive approach to ensuring child benefit is paid only to eligible families. It commenced issuing continuing eligibility certificates to parents in 2008 and has since devised enhanced and updated control measures. The total savings from child benefit control activity were €48.5 million in 2008, €89 million in 2009, €106 million in 2010, €85 million in 2011 and €83 million in 2012. The savings achieved so far in 2013 amount to just under €54 million.

School attendance is a statutory requirement for children up to the age of 16 years. The National Educational Welfare Board promotes and monitors school attendance up to the statutory school leaving age. Linking child benefit to school attendance is superfluous, as it is already a statutory requirement. The continuation of child benefit for children over 16 years and less than 18 years is dependent on children attending school for these two years. The Department of Social Protection issues a confirmation letter to parents with children aged 16 and 17, which must be signed by their school for each of these years. The requirement for school attendance for children in receipt of child benefit is already a strong feature of both education and social protection policy. In the absence of any evidence that the existing statutory arrangements are inadequate, a further measure to link child benefit and school attendance would be an unnecessary duplication and lead to significant administrative costs for schools and the Department of Social Protection.

Denis Naughten (Roscommon-South Leitrim, Independent)
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I thank the Minister for his response. I am talking about replacing the current social welfare system with a National Education Welfare Board system, so it is not a duplication but a reduction in bureaucracy. Children are not attending school today. One in six secondary school children misses more than 20 days of school, while one in ten primary school children misses more than 20 days of school. This has a huge impact on their young lives and leads to significant social consequences down the road. The Department of Social Protection is abdicating its responsibility because these children are not attending school. Why are we continuing to pay child benefit to them? Here is a proposal, bringing the Department of Education and Skills and the Department of Social Protection together, that can save a significant amount of money and give young people the opportunity of education. Surely Jenny, and every other Jenny in this country, has a right to a proper education.

Why should Jenny have to wait until her parents are prosecuted and why should she have to lose a full year at school before getting a proper education? We have a responsibility to ensure every Jenny in the country receives that education. Principals around the country can tell us that some parents are not prepared to get up in the morning to get their children out to school. However, if there was a financial impact in that regard, their attitudes would change. Jenny's case is just one example. When the fine was introduced, the family perked up and ensured she went to school. Let us make sure we send a clear message that there is a responsibility to attend school and that if children do not, we will hit the parents in the pocket, saving taxpayers' money and the lives of these young children.

Alex White (Dublin South, Labour)
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I am not sure there is a huge amount I can add to what the Minister indicated in his response. As I made clear, the social security rights of people living and working in the European Union are governed by EU regulations. The Deputy has raised a number of issues in his contribution, but the principal issue is the one on which he touched towards the end, namely, that depriving parents and families of child benefit or the new payment that may replace child benefit would be a good instrument to ensure school attendance. I note the suggestion the Deputy has made, but I am not sure it is one that would receive universal approval. It is worthy of debate, but his proposal would not be without controversy. I will stick to the response the Minister has given on the substantive issue raised by the Deputy.