Seanad debates

Tuesday, 15 December 2009

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

 

7:00 pm

Photo of Cecilia KeaveneyCecilia Keaveney (Fianna Fail)

I thank the Cathaoirleach for giving me time to speak on the Bill. I also thank the Minister and the Government for providing a new decentralised social welfare office in Buncrana. Unfortunately, the Garda station has only been open for about ten days and the first major event is the loss of one of its members. I again extend my sympathy to the family of Garda Gary McLoughlin, his girlfriend and the extended community who were very distraught when we were in Buncrana yesterday. I also extend best wishes to Garda Bernard McLoughlin who is out of hospital and doing well. The Garda station is located right beside the social welfare office. The development cost €27 million and provides a strong boost for the community, which is welcome. When we proposed having a social welfare office decentralised to my area, people thought it would be a white elephant. I assure anyone who is listening or who will read the Official Report that it is far from a white elephant. While we were carrying out difficult work and displaying empathy, in the social welfare office staff were engaged in the work they were tasked to do. Those living in the area appreciate the office. As there are three social welfare officers in County Donegal, those working in the Civil Service can be promoted within the county. That is important for those who want to pursue a career in the service.

None of us wants to stand over cuts in any payment. We can use statistics and point to different benefits following the 4.1% reduction provided for in the Bill. The Minister stated: "While it has been necessary to reduce the value of the weekly income support payments to carers aged under 66 in this budget, the weekly rate of payment for the disability allowance and carer's allowance in 2010 will still be almost 20% higher than in 2006." That is my argument but we must acknowledge that when people receive something, it becomes part of their budget, what they have in their pockets and what they perceive they will have in the future. No matter what reduction is made, even if it is less than the reduction in the cost of living, people will feel aggrieved.

I must consider the other end of the scale also. We must consider those who could be in employment, even though it is difficult to find it. That there is a difference between being on social welfare and being in a low paid job is very important. It is one of the messages I receive from home. Those who are offering jobs cannot get people to work. If people lose permanent employment or are put on a three-day week, the reality or the perception is that being on the dole with a medical card and all the associated benefits means they are better off than in work. That is why unemployment assistance and jobseeker's allowance scheme must ensure there is an incentive to work. I have anecdotal evidence that people are looking for workers but candidates have the problem that if they come off the dole for two weeks work, it will take them 11 weeks to get through the system again. If we are to continue this trend of encouraging people to return to work where it is available, we must find a way of fast-tracking those who were in the system to get back into it. If they are placed in an 11 week queue, they will not take up the offer of two weeks' work. Anecdotally, I hear they suggest payment in cash. They do not need the hassle of coming off the dole just to go back on it again. It is not a lack of interest in working legitimately but the system is set up in such a way that it does not pay them to come off and go back on it again.

We must advocate the use of family income supplement which has been increased in the budget, which is welcome. I was pleasantly surprised when I considered the facts and figures. One can earn a substantial amount of money, relatively speaking, particularly if one has three or four children, and still qualify. If one has more than four children, family income supplement is absolutely ideal. Through local media, I have asked people to visit the departmental website and use the ready reckoner provides, which indicates whether one qualifies. I was at the dentist recently and the person beside me referred to earning €480 and how he would be better off on the dole. I could not understand this. He should have been in receipt of family income supplement. There must be greater advocacy of the system, as I am not confident all of those entitled to receive it avail of it. I remember the Minister, Deputy Dermot Ahern asking us to promote the pharmacy scheme more. There is help available, of which people are not aware. Perhaps they believe they will not be able to avail of it because they earn €500 a week. The Department should take the opportunity to highlight the scheme at every opportunity. Perhaps notices could be placed in GP clinics or where two or three people gather. Leaflets could be placed in churches. The Minister has stated 57,380 children are expected to benefit. I would like to think all children benefit.

We have encouraged people because if they do not seek training or retraining, dole payments will be cut. It may be politically incorrect to say this is important. The Minister stated:

The new reduced jobseeker's allowance rate for 20 and 21 year olds amounts to €5,200 per annum, more than twice the amount of third level grant payable to young people from the poorest families whose family home is near their college. The reduced rate for 22 to 24 year olds amounts to €7,800 per annum, more than is payable to such young people if they attend college away from home.

It is a worthy goal to have people who are better educated and more employable. We must know the skills for which we are looking and must try to direct people towards the skills that will help them to find employment rather than having many qualified for a career that will take them nowhere. I wonder what work takes place between the Department of Social and Family Affairs, the Department of Education and Science and Forfás to ensure training is linked with the needs identified in some Forfás reports. People in my area have asked me whether a FÁS centre for training and retraining could be located on the Inishowen Peninsula, which has a population of 32,000. I will not refer to it as a "FÁS training college", as that makes it sound like we want buildings. Perhaps it could be based in Carndonagh, with a smaller outlet in Moville. Many people who want to get involved in courses are unable to avail of suitable public transport facilities. Single parents and people with dependent families face problems as they try to juggle their lives. If the Bill before the House is saying that people will lose much of their incomes if they do not get involved in training or retraining, we must make sure the retraining and training programmes are physically accessible and that the type of courses being offered will actually lead on to something. A great deal of retraining has been offered in County Donegal since the closure of Fruit of the Loom, but not many factories have been opened. There are many good news stories of entrepreneurship and innovation in the Donegal area. Many people have started their own businesses from the ashes of their former careers.

I do not believe in creating buildings for the sake of it. There are plenty of buildings in County Donegal. We should focus our training clearly and concisely on identified needs. The many schools in the area should be used to provide after-hours opportunities to parents. As some of them have spare capacity as a result of declining numbers in certain areas, it may be possible to offer adult classes during school time. Carndonagh community school, for example, was built to cater for between 1,500 and 1,700 pupils, but it has lost 500 pupils since the opening of the school in Moville. A little rejigging is needed to make use of the opportunities afforded by spare capacity in individual situations. I am not asking for training to be provided in a new purpose-built building in Carndonagh. I do not want that. I would be totally opposed to it.

I congratulate and commend those who have saved the Exchequer tens of millions of euro through their work against cross-Border fraud. I listened to a discussion on a certain radio programme yesterday about the killing of a stag at a deer hunt. It was mentioned that two inspectors and a vet are paid to be on site and ensure each hunt is in order. That is happening at a time when there continues to be a great deal of fraud, as well as a large number of people in great need, in this country. Social welfare needs to be targeted at those in greatest need, rather than those who want to cheat the system.

I conclude by reiterating my first point. If it takes 11 weeks for those who leave the system to get back into it, we should put as much effort as we can into speeding up the system, reducing waiting times and minimising fraud. That will ensure the funds that are available are targeted at those who need them and, hopefully, the €4.1 billion reduction in this budget will not have to be repeated next year. While this budget has been difficult, I hope people will come to appreciate that it was necessary.

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