John Kelly (Labour)

I will focus on what has gone wrong and what changes need to be made. While I do not propose to reduce our generous social welfare rates, it is unfortunate that a series of other bonuses have been introduced for those in receipt of social welfare payments. Free travel and electricity, rent allowance, mortgage subsidies, medical cards and so forth make it difficult for recipients of social welfare to take up employment. They are one of the reasons for the large number of people who are in long-term unemployment. If new charges, for example, water rates or property taxes, are introduced, social welfare recipients should not be automatically exempted from paying them as to do so would make it even more difficult for people on social welfare to take up a job.

Everyone in receipt of social welfare costs the State €21,000 per annum. By giving employers €10,000 for taking one person off the dole queue, we would create 100,000 jobs in the retail and tourism sectors. It should be mandatory for anyone offered such a place to accept it. Those who refuse to participate should have their payment reduced by 5% per annum until such time as they find work. The creation of 100,000 jobs would save €1.1 billion per annum.

Overpricing in the hotel sector, an issue I raised on the Order of Business last week, was referred to by two Senators this morning. I propose adopting the French model under which two star, three star, four star and five star hotels may only charge prices within a fixed price bracket. This would prevent hotels from charging ridiculous prices, such as the €499 per night charged by some establishments last weekend to coincide with a number of concerts in Dublin.

I also raised the issue of rates last week. I ask the Minister to outline the Government's proposals in respect of the rates charged to small businesses. If a business goes under and only one person joins the dole queue, the cost to the taxpayer will be €21,000 per annum. This does not make sense of the company's rates bill is €5,000 per annum. As I have noted previously, for every negative action there will be a reaction.

All of the issues I raise create costs for the Department of Social Protection. Only one small pot of money is available to this country. It is wrong to think of various Ministers having different budgets because we only have one budget. As such, we must formulate ways of ensuring we do not create costs for the taxpayer. Adopting my proposals would reduce the social welfare bill.