Maurice Cummins (Fine Gael)

I welcome the Minister of State at the Department of Health and Children, Deputy O'Malley, and I look forward to hearing him try to defend the indefensible. The 16 cuts involved sound worse when they are read out compared to when one reads about them. In normal circumstances, there would be uproar if there were two or three such cuts. Obviously, by announcing all 16 together, the Minister wants to take the flak at the beginning. The Minister for Finance's statement prior to the election that there would be no cutbacks, hidden or otherwise, rings hollow in the context of the 16 cuts we are discussing. That is what the public will have in mind when they vote next year and, hopefully, in the next general election. They will be reminded of the Minister's statement. There were no cutbacks as regards the Punchestown development in the Minister's constituency. When those involved applied for €6.5 million, they were given it and they got another €6.5 million and more while sports clubs and communities all over the country applied for grants from the national lottery and had to wait for 50% or 60% grants for their projects. However, the centre in Punchestown received 100% financing and it is in this context that we must discuss the cuts.

A spokesman for the Society of St. Vincent de Paul described the proposed cuts as mean, petty and extremely discouraging. The organisation works on the ground with poor people, week in and week out. The spokesman also stated that the number of requests for help in the last year has increased dramatically. This is the Ireland of 2003 where fiscal rectitude is taking precedence over long-term social planning, which is on what the Government should be focused. These are not adjustments or reform of the social welfare system, as some Government spokespersons might like us to believe. They are savage cuts that will affect people who are trying to exist on meagre resources. They will hurt the most vulnerable sections of the community and, make no mistake, they are already hurting. One might say these cuts involve only a few euro, but for a single person on €124.80 per week or a married couple on €207 per week, every euro counts. The best financial planner would find it difficult to manage to provide for his or her family on such a low income. These cuts, when taken in conjunction with the wide array of stealth taxes, indicate that the poor and disadvantaged have suffered a great deal, mainly due to the policies of the Government.

I heard a Government spokesperson say recently that stealth or indirect taxes are the way forward, that they are a fairer system. It is not a fairer system because the poor must pay the same as the rich. The ESB's prices have increased by 13%, bus fares have increased by 9% and local authority charges have increased by more than 10%. VAT increases have added to the price of newspapers, fuel, hairdressers and food and drink. The poor must also pay these increases, which is the reason I said earlier that every euro counts. Cutting a few euro here and there from people on social welfare and low incomes can be devastating.

I will deal with some of the cuts that have been announced. I find it extraordinary that the supplement to the Money Advice and Budgeting Service has been discontinued. This is a critical level of assistance provided by community welfare officers to people who have fallen into debt and are in need of support. The MABS does a tremendous job in planning and rescheduling debts and the supplement was an important part of that system. The result of this cut will be to drive people back into the hands of unscrupulous moneylenders. These people are in dire circumstances and will be left with empty pockets and increasing debts.