Brian Hayes (Fine Gael)

Other speakers referred to the fact that, in a global context of expenditure of approximately €12 billion, to take €6 million from widows and widowers in a social welfare code is outrageous. There are more than 120,000 widows and widowers and until now they were entitled to obtain half rate benefit on unemployment benefit or disability benefit as well as the widows or widowers pension. I know that a principle of the Department of Social and Family Affairs is that one cannot claim two benefits, but the essence of a flexible system is to be able to respond to the needs of people.

Widows and widowers have paid into the social welfare fund, which my colleague informed the House is in the black by almost €500 million this year, and we have built up substantial reserves every year in the past ten years. Having been in a very difficult position ten years ago, the fund is now in a very favourable position. We want the Government to give way on what amounts to almost €6 million to ensure people can continue to claim half-rated benefit under unemployment or disability benefit. This is not asking too much. I was heartened to hear the contributions of the Fianna Fáil speakers this afternoon who urged the Government to perform a U-turn on this issue. A wise Minister for Social and Family Affairs would comply as there is no support for this measure in the country. It is a niggardly proposition and it will be completely opposed here and in the Dáil. I predict that come lunch time tomorrow the Minister will issue a statement indicating her intention to perform a U-turn. She realises, as do many others, that the cutback is utterly unfair and wrong.

I have two points to make on child benefit and one on child dependant allowance. I recognise that there have been significant improvements in child benefit in recent years largely as a result of two national wage agreements put in place by the Fianna Fáil-Progressive Democrats coalition. The issue five years ago was whether working people would be given a tax break on the cost of putting children into crèches or a child benefit payment. I accept the argument in favour of a general increase in child benefit for everyone rather than simply providing a tax deductible credit for those who have to pay a considerable proportion of their incomes to provide child care. Despite the resources we have, child benefit was increased by less than half the sum required simply to keep pace with the commitments made in Sustaining Progress. These were absolute guaranteed commitments the Government entered into for the life of the programme. This year alone we have not seen the increase in child benefit promised under Sustaining Progress. To make the increase next year, we will have to travel a considerable distance.

Looking at the rate for the first and second child, after which one takes inflation into account, the real increase is only €2.86 per month. In Senator Wilson's parlance, this equals 66 cent per week, or less than 10 cent per day.