Martin Brady (Fianna Fail)

I welcome the Minister of State at the Department of Social and Family Affairs, Deputy Máire Hoctor, to the House and thank her for discussing the Bill in detail. I also commend the Minister for Social and Family Affairs, Deputy Martin Cullen, and the Minister for Finance, Deputy Brian Cowen, on the skills they used to frame this Bill.

It is important to acknowledge the various support agencies that exist because they played a huge part in the composition of this Bill. The Minister met 30 groups that made invaluable submissions and many of these influenced the framing of the Bill. As the last speaker mentioned, Fr. Sean Healy of CORI made a presentation to the Joint Committee on Social and Family Affairs last week. He made the point that he had some reservations about aspects of the Bill but, in general, was quite satisfied.

There are many other such organisations including Combat Poverty and the Money Advice and Budgeting Service, MABS, which plays a significant role in providing information and advice to social welfare recipients. In my area, Coolock, Colm Daly is in charge of free legal aid and we also have the Northside Centre for the Unemployed. All of these groups provide important services for the community and for social welfare recipients.

We may ask for evidence that the Government prioritises the less well-off in society. This Government has always given priority in budgets to social welfare recipients, especially the elderly. They built this great nation when times were bad and many of their children were forced to emigrate to America, Britain and elsewhere. They sent back money earned building tunnels and motorways in England to support those at home. Thankfully that situation no longer prevails and emigrants have returned to an Ireland that some argue is the second richest country in the world.

The Minister has shown skill in framing this Bill. It is great that we are in a position to provide increases for social welfare recipients. I recall a previous Government that reduced social welfare payments and another which granted an increase of only £1.75. I do not say this to make a political point but simply to make the comparison between then and now.

Social welfare expenditure has increased substantially from €5.7 billion in 1997 to €17 billion in 2008. Almost half of all additional current Government spending announced in the budget for 2008 will go to social welfare. Welfare payments directly benefit 1.5 million people weekly. There is a €14 increase in the contributory State pension and the carer's allowance, while all other personal rates are increased by €12 per week. Payments to qualified adults in respect of those in receipt of a contributory State pension are increased by up to €27 per week.

The level of the contributory State pension has increased by more than 50% since 2002, from €147.30 to €233.30. This is a significant and warranted increase. The real value of all payments has increased. Senator McFadden referred to the homeless. I congratulate the Homeless Agency on the tremendous work it has done since its establishment in greatly reducing the numbers of homeless. The Senator also referred to child poverty. There has been a €194 million increase in the provision for child income support services, including the early child care supplement. I pay tribute to Senator Mary White who, since becoming a Member of this House, has played a major role in drawing attention to this issue through her various submissions on child care. Her heart is in the right place on this issue and she continues to make a contribution.

The lower and higher rates of child benefit are increased to €166 and €203 per month, respectively, benefitting 1.2 million children. The 2008 budget provides improvements in schemes aimed at families with children, including increases in the threshold for family income supplement of €10 per week for each child, resulting in payments increasing by €6 per week per child. Improvements in the back to school clothing and footwear allowance are welcome, as is the enhanced funding for the school meals programme and the increase in the income threshold for entitlement to one-parent family benefit.

Tackling the poverty that unfortunately exists in some sections of society must be given priority. The level of increases provided in the 2008 budget, in conjunction with the increases provided in the period from 1997, demonstrates the Government's continuing commitment to safeguard and enhance the living standards of the most vulnerable in society. The Government is tackling poverty in a co-ordinated and joined-up way to ensure better results both for the people supported and in terms of the substantial resources allocated. The new national action plan for social inclusion incorporates a range of actions on employment, social welfare, education, health, housing and disability.

Personal income tax changes announced in the budget mean workers on the minimum wage pay no income tax, while those on the average industrial wage will pay no tax at the higher rate. The PRSI employee entry point is increased to €352 per week and the health levy threshold entry point is increased from €480 to €500 per week. Overall, the poorest one third of the population will receive an income boost of 1% to 1.5% from the 2008 budget as most welfare payment rates have increased slightly faster than the expected rate of wage growth.

I commend the Bill to the House. The Minister, Deputy Cullen, has informed me that he continually considers submissions on the various aspects of the social welfare system. He is a person, along with the Minister for Finance, who has his ear to the ground. It is important we have an ongoing interaction with all the agencies working with vulnerable members of society. A Minister who is connected to the issues in the manner the Minister, Deputy Brennan, has shown himself to be will be able to keep a good handle on the needs of those who are less well off than most of us.

I acknowledge the role played by the departmental officials in bringing forward this Bill. I do not say this from the perspective of a former civil servant but merely to emphasise the part they play in devising legislation and framing budgets.