Seanad debates

Wednesday, 16 December 2009

Social Welfare and Pensions (No. 2) Bill: Committee Stage (Resumed)

 

4:00 pm

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael)

The problem one has at this stage of the debate is that one tends to repeat earlier arguments. However, against that, the arguments are of such seriousness and validity that they merit repeating. The big point about child benefit is that it is a universal payment, available across the board. It is a payment particular to children who are not in a position to generate their own income or determine their own destiny. This is something passed on to them directly by society. Any reduction in this is wrong for the very reason that it is a direct attack on the guaranteed income of children.

Child benefit is a very important payment for women and children. We all prefer to talk about ideal homes and families where the situation is wonderful and idyllic. Tragically, that is not the reality for many families. There are still women in our society who, although we deplore it, are the victims of abuse to the extent that adequate money is not passed on to them for the wrong reasons, which include that they have negligent partners and sometimes partners with substance abuse and addiction problems. For those women and the children in their care, child benefit is their lifeline and of enormous importance. For that reason, we strongly oppose this cut. We discussed the matter at meetings of our parliamentary party over a number of weeks before the budget and the point was always argued that child benefit should remain untouched. We costed this proposal and provided alternatives. It is important to vulnerable children.

The cumulative effect on people on low incomes must be looked at. Those earning less than €30,000 in the public service will now be the victims of this decrease, plus 5% of their salary, the pension levy and the income levy. Adding this cut will aggravate the situation.

In County Cavan small farmers have seen their incomes devastated. CSO figures confirm this, as do Teagasc figures for 2008, showing incomes of €8,500. All available data confirm small and mixed farmers face a real decline in income in the region of 41% in the last two years. Those farmers throughout County Cavan have families for whom the cut in child benefit will have a colossal impact.

Many people in County Cavan worked in construction. Those who have been dislocated from the industry will be in a vulnerable position with the reduction in child benefit. I ask the Minister to reflect on this and consider changing the legislation, even at this late stage.

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