Seanad debates

Tuesday, 6 July 2010

Social Welfare (Miscellaneous Provisions) Bill 2010: Second Stage

 

2:00 pm

Photo of Fiona O'MalleyFiona O'Malley (Independent)

It is important when criticising a Government to be clear on what one is offering as an alternative. I found Senator Boyle's contribution inspiring. Clearly the Green Party has thought carefully about what needs to be done. Unlike Senator McDonald, I found the decision to change the name of the Department of Social and Family Affairs to the Department of Social Protection inspiring. It indicates an intention to return to the original purpose of the Department, namely, protecting those most in need.

It is often lamented that we blew the benefits of the boom and that we have nothing to show for it. I was tempted to raise a point with Senator Buttimer on the Order of Business but declined to do so. However, I will do so now. This morning the Senator and I spoke about our good road infrastructure. This is one example of how we did not blow the benefits of the boom. As the Senator informed me, one can now travel swiftly between our large urban centres.

We also tend to forget the significant increases in social welfare benefits. As the Minister noted, in the past 12 years pension rates, unemployment benefit and child benefit increased by 120%, 130% and more than 330%, respectively. The list continues. We also tend to overlook the fact that, while Anglo Irish Bank received €22 billion, the social welfare budget for 2010 is €20.9 billion.

The Minister referred to the obligation to use taxpayers' money in the most efficient manner possible. This is brave legislation because it is unpopular to reduce allowances. As Senator Boyle noted, it marks the beginning of real social change. I hope the Minister will continue in this vein in the new Department by transforming the way in which social welfare payments are made and the purpose for which they are given.

It used to depress me to hear a certain individual from CORI constantly lament that the year-on-year increases granted in the budget were not insufficient. I always thought the person in question did not care about people's souls. Why should someone on social welfare be allowed to believe he or she is entitled to receive payments indefinitely? More is required of those in receipt of payments. The reason I applaud the Bill is it recognises that people need to be prepared for a lifetime of independent living. Many recipients of social welfare payments, particularly lone parent families, remain in poverty indefinitely. The changes in the Bill ask why this should be the case. We must ask the reason people remain in poverty, despite the comparatively generous supports offered. It is not simply a matter of money but also one of lifestyle, education and expectations. Nothing could be more depressing than preparing people to remain on social welfare indefinitely.

A work ethic can be instilled in young people before they become dependent on social welfare. Under this legislation, young people will be encouraged to go to work and taught the value of a euro. As everyone knows, one does not appreciate what one receives for free. When I first started to work, one knew how long it took to earn £1 and one was loth to spend or give it away. One valued what one earned, whereas people do not value what is given to them for free. I welcome the steps being taken to transform our social protection measures.

We need to be courageous. The working poor are the most overlooked group in society. These are people who are struggling to raise families on low incomes and do not receive any of the benefits afforded to those on the dole or in receipt of other social welfare payments. It takes a person of strong character with a good work ethic to choose not to enter the social welfare system. As Senator Quinn noted, many of those on low pay will eventually move into higher paid employment. However, many of them will conclude that, having paid for meals and transport to work, they are not much better off than neighbours in receipt of social welfare. We need to be honest about this because if we continue to incentivise people not to work, we will not get the best out of them.

This legislation is a step in the right direction. I hope we will all work together on this issue because it is in everyone's interest to get the best value from our social welfare system. For this reason, we need to integrate the taxation and social welfare systems to ensure all income is taxed. This would be a fair way to expand the tax base at a time when it is necessary to raise money. Those in genuine need of supports will continue to receive them.

I am pleased an earlier speaker referred to the ease with which people could fly in and out of the country to collect social welfare payments. This was highlighted at the time of the volcanic ash cloud over Europe when the number of claims declined. We must examine this issue to ensure the money available is targeted at the vulnerable and those most in need.

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