Séamus Brennan (Dublin South, Fianna Fail)

I thank the Senators for their contributions. They will appreciate that the technicalities involved, the procedures with which the House must comply and the wording of the amendment are such that it is not possible for me to accept it as it stands. I am aware, however, that the amendments have been tabled in order to facilitate discussion and debate.

As stated on a number of occasions, I support measures for encouraging people to return to work and education. Good disregards are important in terms of making this happen. In that context, the first €146.50 of weekly earnings plus 50% of the balance to €293 is now disregarded in respect of one-parent family payments. In budget 2005 we provided for a transitional 50% payment for six months after the €293 weekly threshold has been exceeded. That disregard is substantially greater than those that exist in other areas. As regards unemployment assistance, 40% of the net earnings from part-time work is disregarded. On disability allowance, the first €120 of earnings from rehabilitative employment is disregarded.

Retention of the rent and mortgage interest supplement and other secondary benefits is mainly done on a tapered basis. This is designed to make it easier for people to come to terms with their new circumstances. For example, the rent and mortgage supplement can be retained on a tapered basis for up to four years as follows — 75% in the first year; 50% in the second year; and 25% in the third and fourth years. The back to work allowance and family income supplement are also disregarded in terms of assessing household income for the purposes of the €317 income limit.

I agree with the Senators in terms of their argument for a more tapered retention system. We have sought to build this in to the various schemes. It has been clearly designed to encourage people back to work and back to education. Moving gradually from social security payments and other benefits to education and to work is the way to organise this. In that way, incentives will be increased. All these initiatives are designed to ensure that the sudden loss of social security payments is no longer an issue. It is critical that all of our schemes avoid the sudden loss situation and that they are tailored and tapered to be gradual. By doing that, we can encourage people to take up jobs.

On that basis, I accept the spirit of the amendment. The amendment stipulates that I report to the House on the earliest disregard applicable to certain schemes. I have no difficulty discussing it in these Houses on a regular basis. There are many opportunities to do so, such as parliamentary questions, debates and legislation.