Seanad debates

Wednesday, 5 March 2008

Social Welfare and Pensions Bill 2008: Second Stage

 

3:00 pm

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)

During the debate on this issue, there was a suggestion that this was a payment to landlords, but it is not. In some cases we make a direct payment to the landlord on behalf of a small number of individuals who request it. That helps the individuals who for different reasons may not be capable of managing the money themselves.

It is true to say it is a short-term support, but in recent years it has become a much longer-term support than was originally intended. Following discussions with the Department of the Environment, Heritage and Local Government about the rental accommodation scheme, the objective has been to move people from long-term supports to reduce that scheme to what it was intended to be, namely, a short-term benefit to individuals. We can get individuals onto local authority schemes and get them housed in a much better way. That process is under way but it will take time to move such a substantial number of people from the current system to the local authority scheme.

I also indicated I would review the rent allowance scheme, including payments, ceilings and so forth, by mid-2008. This review will indicate to the Department what measures should be taken in this area. This issue will be addressed in tomorrow's debate.

All speakers referred to lone parents and the cohabitation rules, which I am fully committed to abolishing. It is far better for children when both parents are involved in their upbringing. The archaic approach whereby one parent cannot become involved in the upbringing of children without the family losing income is wrong in a modern society. While views on how to change the current system differ among stakeholders, I am determined to arrive at a position by the end of the year, from which this issue will be addressed in legislative and policy terms. The best approach by far to removing the threat of poverty and getting people out of poverty is to get them into part-time or full-time employment.

It is evident from much of the research carried out in this area that many lone parents, particularly younger girls, left school with a poor level of education. For this reason, educational issues must be addressed before many lone parents can re-enter the workforce. Many of them need to engage in training to equip them to enter employment. As Senators noted, the management of child care to facilitate lone parents to return to work must also be addressed. FÁS and the various Departments and local agencies engaged in this area must come together to work out the methodology of addressing the issue of lone parents.

Many speakers referred to the pilot studies in Coolock and Kilkenny which take a holistic approach to facilitating lone parents in returning to work. One of the interesting facts to emerge from the studies, which are almost complete, is that parents who have voluntarily engaged with the system have found it to be non-threatening. The first thing to cross the minds of many people who are invited by the authorities to discuss their position is that they will lose benefits and come under pressure. This is not the approach being taken. We are concerned with the needs of lone parents and their children.

Notwithstanding the need to provide financial supports, facilitating lone parents to return to the workforce improves their sense of self-worth and the coherence and structure of their families. They then believe they have a much more positive role in the community than was the case when they were entirely dependent on State supports. The Department wants to pursue this approach. I intend to ensure the fundamental disagreements and different perspectives that have emerged among some of the stakeholders in areas such as child support and poverty traps are resolved.

Although Senators have raised a number of issues requiring further attention, the debate has been largely positive. I do not deny that improvements and further supports are always necessary to better the lives of individuals and families. I accept the points made by Senator Norris and note the letter he cited. As the Senator will accept, gender equality and equality for people in same sex relationships are important issues for the Government which are being worked through with my colleague, the Minister for Justice, Equality and Law Reform, Deputy Brian Lenihan, and a number of Oireachtas joint committees.

We cannot do everything overnight but any fair assessment of developments in the past decade would show that in parallel with the focus on our great economic achievements, we have also concentrated on socioeconomic issues and the less well-off. Irrespective of whether one is extremely wealthy, it is in the interests of all citizens to maintain the socioeconomic balance. If economic success produces a disjointed outcome and widens income gaps, everyone loses — not only those at the lower end — because society becomes less coherent and less able to work in a harmonious and successful manner. For this reason, my predecessors and I and officials in the Department have worked hard to ensure substantial increases in the resources available to address this issue.

Fifteen or 20 years ago the work of the Department was focused on unemployment. This year, less than 9% of the Department's budget, which stands at €17 billion, is allocated to measures in the area of unemployment. This demonstrates substantial policy development in the Department and Government recognition of the fundamental need to substantially increase the resources available to the less well-off. Developments in the area of pensions are perhaps the best case in point. Some years ago, when the Government undertook to increase the old age pension payment to €200 per week, doubts were expressed about whether we would achieve this commitment. We have surpassed this target within the timeframe we set. The current target of raising pensions to €300 per week is fundamental and will be achieved. The targeting of resources to children has also delivered clear benefits.

This has been a positive and interesting debate in which all sides have shown general support for developments in the area of social welfare. The Government intends to target and maximise resources to benefit the less well-off who need support to be able to fully participate in society and enhance their lives and those of their children. This legislation will make a positive contribution towards Government objectives. I look forward to the debate on Committee Stage tomorrow.

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