Seanad debates

Tuesday, 15 December 2009

Social Welfare and Pensions (No. 2) Bill 2009: Second Stage

 

5:00 pm

Photo of Phil PrendergastPhil Prendergast (Labour)

I wonder if we are all talking about the same Bill. I welcome the Minister but I do not think she will like everything I have to say. This Bill is not just another piece of legislation; it is an affront to parenting, to the public service and to national solidarity. It is appropriate that this Bill is being guillotined because it is the blade that will slash through the fabric of society. It is a malevolent and merciless assault on social welfare recipients, especially young people, the disabled, the ill and the elderly. It exposes the outrageous hypocrisy of the Minister for Finance's call to patriotic duty. The wealthy feel no pain in this budget but young people do. The full jobseeker's benefit rate will now only be paid to those under 25 if they participate in an approved training or education course and in all cases, it will be slashed to €150 per week where job offers or new training measures have been refused. On the face of it, that seems reasonable until one looks at what is on offer. Anyone who has ever taken the time to look at some of the jobs on the FÁS work placement scheme will quickly see this scheme is more about providing free labour to employers than it is about providing worthwhile training and experience. It is no wonder that only about 6% of the 2,000 places offered have been taken up. This Bill provides that if an offer, no matter how ridiculous, is refused a person will be penalised to the tune of over €2,500 a year. If an offer is accepted the person will pay all transport and subsistence costs because the employer will not be paying a cent. It would not be unreasonable to assume that taking up unpaid work will therefore cost a person about €50 a week. This is a ridiculous scenario. One way or the other, not only will all young jobseekers be hit by a loss of over €400 a year, they will be losing out on around €2,500 a year unless they dodge a job or training offer. This will cause untold misery for many young people, particularly those from deprived backgrounds.

The Minister for Finance has a solution which is to force these people out of the country or to pour liquor down their throats because he reduced the price of beer, spirits and wine in the budget. There is an indisputable connection between crime and deprivation. The social cohort at the highest risk of criminal behaviour and drug use is young men. The recent "Prime Time" programme did not do anything to change my mind in this regard. This budget will increase street violence, domestic violence, assaults, thefts, robbery and burglary. In other words, this budget will have the same effect as flooding the market with ten tonnes of free cocaine such will be the frustration and rage on the streets of this country caused by these measures.

Children are also disadvantaged by this Bill, despite the creative spin being put on the benefit cuts by the Minister and her Cabinet colleagues. Children account for 40% of those in consistent poverty, at least 76,000 young people. Their parents are on low incomes or are welfare dependants. Even though the child benefit cut is not affecting them, the reduced means of their parents through other welfare cuts means there could be 100,000 children living in poverty by this time next year. It seems the bankers and builders were naughty but they got their presents in the budget, but for the nice children it is a case of orange peel and a piece of coal. That is happy Christmas from Santa Claus, the Minister for Finance.

Senator McDonald referred to mindset and culture. The mindset and the culture is within her own party. The Minister spoke repeatedly of this Government having been in power for 12 years, but it has only been in power for two years. It seems the Minister's party is ignoring its Green Party compatriots.

Another example of the cant coming from the Minister, Deputy Brian Lenihan, on budget day was his justification for the cuts in this Bill by referring to the fall in the cost of living which he claimed is 6.5%. He is wrong. Senator McDonald said it was 7%, but it is 5.7%. However, the Minister is using the consumer price index which includes interest rates and some big ticket items. These are not relevant to low income earners and welfare dependents.

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