Fiona O'Malley (Progressive Democrats)

I welcome the Minister to the House. It is amusing to listen to Senator Buttimer's single transferable speech. At the end of it all he realised he had no time left to make the points he genuinely wanted to make about the Bill because of this rant about whether we were being real and whether the Minister had any idea of the challenges of families and people who are forced to exist on social welfare. The Minister knows the challenges these people and families face. I was amused listening to Senator Buttimer calling for more in social welfare benefits and then asking if the Government was for real while he quoted this morning's ESRI report. Is Senator Buttimer for real? Does he have any idea what it is like to run a country on a limited budget? Time and again he comes into the Chamber demanding that more moneys be spent on this, that and the other but with no real debate on what needs to be prioritised. I perish the thought of Senator Buttimer finding himself in government - it would be an awful peril. He would then find out that government means prioritising and taking unpalatable decisions when economic times are hard.

I commend the Social Welfare and Pensions Bill for those reasons. The Minister did not have it easy in deciding to make certain cuts but she achieved fairness and a balance. She made an important choice in not cutting social welfare rates. Had she done so, she would have been deafened by the howls from the Opposition. She, instead, made the savings through cutting the Christmas bonus, the fairest choice because not every welfare recipient receives it. The Minister has indicated that if economic circumstances allow in the future, she will seek to have it restored.

Hopefully, economic circumstances will change. The reality, however, is the Minister must manage her budget in the face of the shocking growth in the unemployment rate and the predictions of this morning's ESRI report. On the child care supplement changes, she stated we need to achieve better results with fewer resources. These changes are to be welcomed. As Senator McDonald pointed out, the supplement was available to parents facing challenges at a time when we had the money to do so. However, with the replacement scheme investing in a child's education will yield much more. It is also an investment in the schools infrastructure and teachers, a wise decision by the Minister. While no one likes to have money taken from them, parents of young children in receipt of the scheme have told me this is a much better investment.

The Minister's priority when framing the Bill was to protect the vulnerable while avoiding the creation of a welfare dependency, a task she has achieved. Naturally, we all wish more money were available to support those who face the challenges of living on social welfare but one must operate within a budget.

Experience of the recession in the 1980s is reflected in the Bill. I welcome the refocus on the back to work scheme which will encourage people to become self-employed. Opening up access to funds sooner rather than later is also a good development. Senator Boyle eloquently spoke of his personal experience of unemployment. Thankfully, I have never been unemployed so I have no idea of the personal trauma that it causes. The Minister has recognised how unemployed people must keep themselves upskilled. I welcome this change in the terms of various welfare allowances to include this.

Regarding rent supplements, some Members are not living in the real world if they believe rents are not going down. I welcome the changes to rent supplement which reflect this reality. The Minister is the protector of these precious resources of the State which are becoming ever more precious as the amounts of moneys coming into the coffers decrease while the numbers on social welfare and dependent on the State rise. We must ensure these resources are allocated appropriately and to the people who need them most. That is why I welcome the changes in the qualification for rent supplement. It is never easy to make it more difficult for people to qualify for a supplement but the criteria must be made appropriate.

The pensions area is a complex and difficult issue. The circumstances in this area have changed so much over the past five years that it has become a challenge to encourage people to invest in their own pensions. Support is needed for those who spent a lifetime working and supporting a pension scheme only to discover it may be insolvent. I am glad a framework scheme to deal with this critical area will be launched soon. Yesterday the Opposition was annoyed about how quickly this scheme will be introduced. However, it is necessary for many companies that are becoming insolvent. I wish the Minister well in tackling this complex situation.

The Minister has a challenging brief which will become even more so. I welcome the fairness and flexibility with which she has framed the social welfare budget. I look forward to the Bill's passage in the House.