Seanad debates

Tuesday, 23 March 2004

Social Welfare (Miscellaneous Provisions) Bill 2004: Second Stage.

 

4:00 pm

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)

This year over €1 billion will be spent on child benefit. The number of people who qualify for carer's allowance has increased by almost 140% since the Government took office. The Bill also provides for amendments to Part VII of the Pensions Act 1990 which deals with the equal treatment of men and women in occupational pension schemes. The Fianna Fáil-Progressive Democrats Government promised to increase pensions to €100 per week when it came into office. We have exceeded that figure and we are on target to provide a pension of €200 per week by 2007. Taken together with the provisions of the Employment Equality Act 1998 and the Equal Status Act 2000, which prohibit discrimination in the areas of employment and access to goods and services, the amendment to Part VII of the Pensions Act ensures a coherent and consistent approach to equality across our legislation.

I am delighted the Minister has addressed concerns raised by Members of both Houses about the labour market and the enlargement of the EU. The Government has given a commitment that any EU citizen who wishes to come here to work after 1 May can do so freely. The economy is strong and we will welcome people who wish to come here to work. Last year, 47,000 work permits were issued to non-nationals to help Irish businesses to meet their labour supply requirements. I personally know of many businesses in my own area of Cavan which have employees from the four corners of the earth and pay them well. They are a great asset to the companies for which they work.

The Minister is correct to say that the Government cannot allow our social welfare system to become overburdened. The Government has a duty of care both to social welfare recipients and those who fund such payments — the taxpayers. The Minister has moved to protect our social welfare system as we approach the enlargement of the European Union on 1 May. The sensible, prudent, fair and reasonable measures the Minister proposes to introduce will ensure that our social welfare system is not overburdened.

I agree with Senator Cox that the situation concerning widows should be re-examined. Vulnerable widows and widowers are depending on payments they receive from the Department. It is neither fair nor reasonable to cut them off. I welcome the fact that the Minister is to meet representatives of the National Association of Widows in Ireland this evening. The issue needs to be re-appraised.

The facts are clear — the Fianna Fáil-PD Government increased spending on social welfare this year by 7%. For every €10 spent this year, €4 will be spent on social welfare. Never before in the history of the State has any Government put such an emphasis on the social agenda. This week and every week, approximately 970,000 people on average will claim a social welfare payment. The number of low-paid people removed from the tax net has increased. This year, one in three people will pay no tax at all. The Government is putting more money where it is most needed but the Minister cannot do so if there is abuse of social welfare schemes or if money is being wasted. The Minister has engaged in reform to copperfasten the gains already made in our social agenda and to ensure that we will continue to support those who are most disadvantaged and, therefore, most in need of help. Following the budget, the Minister instituted reforms so that taxpayers' money is spent on alleviating poverty and disadvantage. In budget 2004, the Minister introduced reforms but she was criticised for putting a cap on the multi-millions given to landlords in rent supplement grant payments. However, as a result of the reforms, rents stabilised or came down. The Opposition predicted dire consequences from the further reform of rent supplements, which are set to cost the taxpayer approximately €325 million this year, but those consequences have not yet materialised. That money goes straight into landlords' pockets and was never intended as a response to long-term housing needs. The Minister is working to reform the system, bring this problem to an end and achieve better housing for those in need of rent supplement.

I recall that in a previous contribution, Senator Cummins mentioned the lack of finance for housing. However, €1.9 billion is being invested in housing this year.

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