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Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: I am simply setting the record straight because certain people in the House are trying to state it is something less than that. It was very important that we did that to give the type of leadership that the country needs and that is what we have attempted to show in this regard. Certain Members have criticised us for making these choices. It was not a case of trying to generate more in...

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: Revenue raising measures came to €8.5 billion from all income earners in the past two budgets. That was imposed on income earners in a very progressive way up to a high limit.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: We have seen our tax returns decrease. The health levy was doubled for higher income earners.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: Some €105 million less has come in and 4% of people will pay half of the income tax for next year.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: The pool of high income earners is becoming smaller and smaller because we rightly hit them in the last budget and the previous one. It is not true to say that one can concentrate on a tiny group of people and hope to save €4,000 million.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: Even if one did try to make it all from revenue one would cripple the economy and increase the cost of doing work in this country.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: That would impact on our competitiveness and there would be no jobs in future.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: What are we about here?

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: The choices had everything to do with cutting expenditure. It was about cutting the spending in each Department. Although it was very difficult, we have tried to minimise the impact of it.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: People, including outsiders, urged us not to cut the rates and to cut the extras. The extras would have imposed more hardship on more people. Let us consider the respite care grant. It has grown from €245 to €1,700 and a change to that would have had a greater financial impact on thousands more people than simply cutting the rate. As a Minister it would have been easier to stand and...

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: However, it would have had a far more serious impact and it would not have been the right thing to do. These were the types of choices we faced. It is very easy for Opposition parties to call on us to bring in more revenue.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: That is what the Labour Party stated. It was not simply about bringing in more revenue. It was about reducing expenditure. If we do not stabilise the finances of the country we will not have an economy.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: If there is not a proper, functioning economy there will not be jobs and, therefore, all the people depending on social welfare will be there for a very long time-----

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: -----but the State would not have the resources to support them. Certain Members may shout across at us that the Government does not have a heart or compassion, but we have heart.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: The Government has heart, compassion, understanding and sympathy. However, the Government does not have money.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: That is the difference. When one does not have money one must make difficult choices.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: Those difficult choices are short-term measures to restore long-term growth to the economy, to help people return to work and to afford the opportunities to some that the rest of us have had, rather than to condemn the next generation to a poor outlook or to bad prospects while the rest of us have seen benefits.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: The Deputy was not in the Chamber when I answered his point.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: It is €81 million.

Social Welfare and Pensions (No. 2) Bill 2009: Committee and Remaining Stages (11 Dec 2009)

Mary Hanafin: He is as entitled to speak as anybody.

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