Ann Ormonde (Fianna Fail)

I welcome the Minister to the House. This is the first time I have spoken on this subject in which I have never taken a major interest. I have, however, taken an interest in this Bill because more than €13 billion of taxpayers' money is being invested in social welfare reform and pensions. It is necessary, therefore, to think clearly about how this money is being spent. I congratulate the Minister on changing the Title of the Bill to make it more interesting. This change alone enticed me to start thinking about the issues because previously I regarded social welfare, at least in some areas, as being about handouts.

The Minister outlined reforms to the social welfare code and pension schemes. The Bill will modernise welfare and pension provisions for vulnerable and needy people, improve the lot of lone parents and provide for child care and benefits. It introduces measures which will improve the quality of life for people who want an opportunity to make a contribution. From my experience of education, I have learned that many young people would have great potential if they could access training and education but are caught in a poverty trap. The Bill represents a golden opportunity to target these groups and remove them from that trap. I complement the Minister on the thought he has given to the matter, which I will not discuss in great detail because it is quite difficult to grasp.

I am not one for reading from notes because I do not get my message across when I do so, therefore, I will not read a speech but will discuss the problem areas I encountered when I did my homework. The Minister and I have discussed the reorganisation of pension rights on many occasions, particularly with regard to those aged 66 and above. He often noted that the people who are not on pension schemes also have to be looked after and I welcome the measures he has proposed in this area.

In light of the fact that we should be giving the fruits of the Celtic tiger economy to the most vulnerable in our society, I have taken a special interest in lone parents, who can now earn as much as €185 per week of which they can retain up to €146 if they work or access education or training. However, I find that a clumsy provision. The Minister is bringing forward proposals on lone parents and cohabitation in the context of accessing training and education. Perhaps we should not have brought this aspect of the Bill forward, given that we may introduce changes at a later stage. Will it be possible to introduce such changes without disturbing the provisions under discussion today? I am confused about this and wonder how the proposals brought by the Minister will impact on this aspect of the legislation.

Many bright 16 to 18 year olds become caught in the trap of being a lone parent, although they do not do badly because they earn the qualified lone parent allowance in addition to child benefits, which have been increased to €150 for the first two children and €185 for third and subsequent children. They also have access to employment and training or education. The provision becomes unstuck in this area but there is a significant potential for FÁS, which I condemn for not taking the opportunity to become more involved. Some of the courses it provides are no longer relevant to the Celtic tiger era and should be geared towards helping young people to access training and education. That represents a golden opportunity for them to retain their allowances, up to a certain level, while accessing the training and education needed to escape the traps that hold them.

The early child care supplement, a payment of €1,000 per annum for all children under six years of age, will make a difference to young people who find themselves in vulnerable situations. In addition, a child minding relief provides for tax free earnings of up €10,000. I congratulate the Minister on introducing a measure to require that people make PRSI contributions, which is important because it helps them to provide for their security.

With regard to pensions, it seems that anybody over the age of 66 can earn up to €100 while also retaining their non-contributory State pensions. That is to be welcomed because many people above the age of 66 do not consider themselves old. In this day and age, one should not consider the use of terms like "old age". I have talked to people in that category and found them pleased with the provision.

This is a worthwhile and modernising Bill which makes me feel part of the system for the first time. Previously, I did not understand these allowances and schemes. While I welcome the reform of State pensions, I would like to see an emphasis placed on access to training and education by lone parents. We have the opportunity to lure them into the fine courses provided by FÁS and the education system. If we provide properly for those aged 16 and above, we will have done a great day's work in helping them enter employment.