Dáil debates

Thursday, 17 October 2013

Ceisteanna - Questions - Priority Questions

Budget 2014

4:45 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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2. To ask the Minister for Social Protection if she has conducted research assessing the capacity of those targeted by Budget 2014 to absorb the changes affecting them; her views on the impact the changes to social transfers will have on poverty and employment; and if she will make a statement on the matter. [43513/13]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Deputies will be aware that the expenditure report of 2013 published by the Department of Public Expenditure and Reform last December provided for additional new expenditure reduction measures of €440 million to be achieved in 2014 in the Department of Social Protection budget. Again this year I sought to minimise the impact of the necessary adjustments to my Department’s welfare expenditure and to protect as far as possible key income supports. This week my colleague the Minister for Public Expenditure and Reform, Deputy Howlin, announced that the Government had been able to lower the sum of €440 million to €226 million. An additional €30 million in savings will be made through additional fraud and control measures in 2014, while €34 million will be saved through increased efficiencies and lower-than-expected demand on some schemes, bringing the Department’s cumulative adjustment on social protection expenditure to €290 million.

Budget 2014 continues the process of repairing the public finances while protecting the welfare safety net and providing a pathway back to work for jobseekers. I am all too aware that reductions of €226 million will still have an impact on, and cause difficulties for, some social welfare recipients. However, the lower adjustment means I have protected the State pension, carer’s allowance, disability allowance and all other weekly social welfare payments upon which people depend.

I have also protected crucial supplementary supports for pensioners, carers and people with disabilities such as the fuel allowance, the electricity-gas allowance, free travel, the half-rate carer's allowance and the respite care grant. Child benefit rates have also been protected in this budget and will remain a vital universal support for all families and children.

Additional information not given on the floor of the House

This budget will help more people back to work, reduce the overall welfare spend as part of the sustained effort to repair the public finances and ensure the safety net remains firmly in place for those who need it most.

As part of the budgetary deliberative process, my Department has analysed, in so far as possible, the distributive and poverty impact of possible welfare changes to all welfare recipients, including different family types, including those with children. My Department is preparing an analysis of the budget 2014 tax and welfare packages. This social impact assessment will include an analysis of the distributive and poverty impacts of these changes on different family types, as well as the impact on at risk of poverty levels. Social impact assessment is an evidence-based methodology which uses a tax-welfare simulation model developed by the Economic and Social Research Institute to estimate the likely distributive effects of budgetary measures on income and social inequalities. I will be examining the analysis when it is finalised and will publish it in due course.

4:55 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister obviously did not answer one part of the question tabled. No assessment has been properly carried out that poverty-proofs or equality-proofs the Minister's 2014 budget measures. Otherwise, she might have answered the question.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I did not get to that point in the reply.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister cannot seriously claim that young jobseekers have the capacity to absorb a €44 cut in their core weekly welfare rate. What poverty-proofing was undertaken of this measure, instead of allowing the Minister to heap hardship on young people and their families? Is she aware that the consequences of her actions will be increased homelessness for young people and emigration? The saving in respect of the cut in jobseeker’s allowance amounts to €32 million which will affect 14,000 people, yet funding under the youth guarantee will only be a measly €14 million. How does this add up? Will the Minister give me a bankable commitment, not one of those wishy-washy ones she gave earlier on child care, that she will provide an additional 14,000 places in education and training for the young jobseekers in question as a response to this cut in their social welfare rates?

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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There is no cut for anyone under 25 years who is on a payment. These measures will take effect for new people entering the relevant age groups. I am sure the Deputy accepts this.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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It is a cut.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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This measure was introduced in 2009 and was one I supported at the time. My philosophy is to get young people into education and training-----

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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It is not the Minister's party's philosophy.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Signing on at 18 years of age is not the best for a young person. In Northern Ireland Sinn Féin, in power, has done nothing to tackle the equivalent youth unemployment rate there which is almost one third higher when compared relatively. We are going to spend €46 million on additional measures for young people. We will spend significantly more on training them, JobsPlus and other programmes than what will be saved on the measures in question.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Unfortunately, there will not be time for a reply to the Deputy's question..

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Does the Minister agree with SIPTU's assessment that this measure will drive young people into working for no pay or leaving the country? Does she agree with the ICTU's evidence that there are not enough jobs to go round for young people?

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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By 30 June more than 33,800 more people were at work in Ireland, a significant achievement. For the 21,000 young people who took part in a JobBridge internship scheme, over 60% have gone on to find further work, another significant achievement. We have fantastic young people who have studied and sought to become financially independent. It is my intention as Minister for Social Protection that, rather than paying young people to remain on social welfare, to incentivise them to become involved in education, training and employment. I make no apologies for this.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Work fair.