Seanad debates

Thursday, 23 June 2011

Social Welfare and Pensions Bill 2011: Second Stage

 

1:00 pm

Photo of Marie MoloneyMarie Moloney (Labour)

All Members are aware of the country's financial state and how much we are tied up with the EU-IMF deal. Job creation and getting people back to work is paramount for the Government. Our esteemed colleagues on the Opposition benches agree with this and will support many of the initiatives that we will introduce which will bring about job creation.

Social welfare deals mainly with the unemployed, people with illnesses and disabilities and State pensions. While a large percentage of its budget goes on providing for these areas, part of it goes towards creating employment, getting people back into the working environment and towards the retention of existing jobs. I welcome the lower 8.5% rate of employer PRSI contribution being halved to 4.25% from 2 July 2011 which will continue to apply until the end of 2013. Many employers are struggling to keep afloat at this time and every business has been affected one way or the other by the recession, except maybe undertakers. I hope that by the end of 2013 the Minister will be in a position to revisit this with a view to extending the reduction for a further period, provided as Senator Healy Eames said earlier, that the benefits of the reduction are monitored.

We must make being in employment incentive-driven rather than having a situation where people are happy to remain unemployed. It should never be the case that people can be better off being unemployed. Unfortunately, this appears to be the mindset adopted by some individuals at present. Many state that they are better off on social welfare because they can avail of secondary benefits such as medical cards, rent or mortgage supplement, reduced local authority rent and the back to school allowance. A distinction must be made between people who genuinely cannot work and those who quite simply do not want to work.

It would be desirable if measures were introduced whereby those in receipt of long-term unemployment could perhaps give something back to the community. Many of those who are unemployed have various levels of skills and they would be more than willing to put those skills to good use. They could, for example, work in their local communities for one day per week or per fortnight. What a difference this would make for local communities, Tidy Towns associations and elderly people who might have some odd jobs which need to be done in their homes but who are not physically capable of doing them. Some people detest being regarded as a statistic on the live register. They would feel a sense of purpose and would, for as long as they are unemployed, have a reason to get up each morning if they were given the opportunity to put their skills to use in the way I have outlined. Many of those who are unemployed take pride in their communities and would have no difficulty "mucking in".

I had hoped the Minister would have considered the possibility of reintroducing the back to work allowance. The back to work enterprise allowance is proving to be extremely successful and over 10,000 employers have availed of it to date. When the economy improves, perhaps the Minister might be in a position to consider reintroducing the back to work allowance.

I welcome the amendment which allows the universal social charge, USC, to be disregarded for the purpose of calculating the family income supplement, FIS. This will be a major help to families on low incomes.

It is good that legislative provision designed to solidify the position of those in civil partnerships is being made. This will give people the right to a pension on the death of their partners. In that context, I welcome the introduction of the surviving civil partners contributory pension scheme.

I am absolutely delighted the Minister has honoured the commitment we gave during the general election campaign to the effect that the National Minimum Wage Act 2000 would be amended to restore the national minimum wage to its previous level of €8.65 per hour from 1 July. This change will come into effect from next week.

I have no interest in engaging in the blame game. I refer to the tendency to blame the previous Government for everything that has happened. Everyone in the country knows what happened and the requisite punishment has been dished out. It is time to move on. However, there is one dastardly act for which I cannot forgive the previous Administration, namely, the reduction in the minimum wage. I accept that those involved will argue that this reduction was introduced to benefit employers and to assist job creation. However, did these individuals not stop to consider the effect what they were doing would have on the lives of people who are trying to survive on the minimum wage? I ask those opposite whose party was previously in power whether they could survive on €306 per week. Could they feed, clothe and educate their children, run a car and heat their homes on that amount? I would find it extremely difficult to do so. I commend the Minister on giving this matter priority and on restoring the minimum wage to its previous level. I thank Senator Mooney for agreeing that the previous Government made a mistake in respect of this matter. It is very honourable of him to admit that.

During the general election campaign I met large numbers of unemployed people, many of whom are graduates. These individuals often indicated that they would be willing to work for nothing. I refer to young solicitors who are willing to do anything, even work free of charge, in order to gain access to an internship.

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