John Kelly (Labour)

He rightly acknowledged that tough decisions needed to be made to clean up the mess of previous Governments. Since he struggles to use up his eight minutes, he uses three of them to crack jokes and make jibes at the Government side of the House.

The Senator referred to the difference in the cost of living in the North compared with the South as a result of the 2% VAT rate increase. Last week, a radio report told of a survey of the Northern and Southern prices of groceries and clothing following the rate increase. The survey proved that shopping south of the Border was cheaper.

I thank the Minister for taking on board all of my pre-budget remarks to her regarding the carer's allowance and the half-rate carer's allowance. No financial gain would have accrued from cutting them.

I am concerned about redundancy payments, an issue to which other Senators referred. Last week, I received a call from an employer of 93 people in my area who believes he may need to press the eject button before Christmas to avail of the current redundancy package. He has been hanging on by a thread for a long time in the hope that the situation will improve, but he has the threat of the new arrangements hanging over his head.

I have referred to the proposed cuts to the disability allowance. I have always had a problem with someone going to second level and college, getting a qualification and gaining employment while in receipt of a social welfare payment that suggests he or she will never work a day. This matter needs to be examined. I acknowledge the sizable difference between severe and mild disabilities, but some people with mild depression are in receipt of disability allowance and their spouses are in receipt of carer's allowance for taking care of them despite the fact that they are working nixers on the side. Senator Mary Ann O'Brien referred to an epileptic man who is working whereas many other epilepsy sufferers are in receipt of the disability allowance. There is every possibility that people with disabilities are able to work.

I agree with other Senators about it being time to consider instituting a cap over which people cannot receive child benefit payments without those payments being brought into the tax net. Senator Healy Eames was right, in that the first child costs the most. I welcome the measures that the Minister has introduced in this regard. Every Senator would agree that buggies and so forth must be bought for the first child. In recent years, the mentality was that all one needed to do was to visit a community welfare officer to get a buggy and, if one moved to Dublin in three years time, one could leave the buggy in County Roscommon and get another from the community welfare officer in Dublin. All of these issues must be examined.

I am concerned about the proposed increase in the number of stamps that widows must pay to qualify for a widow's pension. The Minister is probably trying to address situations in which people have multiple pensions. However, the 156-week contribution by a lady who is only in receipt of the widow's pension should remain unchanged. The Minister should examine situations in which, for example, teachers receive pensions as well as contributory widow's pensions.

I have raised the issue of the self-employed numerous times. It is time for them to be treated in the same way as the ordinary taxpayer. They should be allowed to pay voluntary contributions so that, in their time of need, they can get something in return from the State.

In recent years I have raised another matter, both in the Seanad and at our party meetings. It costs an average of €21,000 per year to keep someone on social welfare. If the Department of Social Protection was to offer employers €10,000 per year to take people off social welfare, employing 100,000 people in this way would save the State €1.1 billion and additional income taxes would accrue. Those people would be worth the guts of €2 billion to the economy.

The community employment, CE, schemes pose a significant issue. The Minister has offered them some hope, but they remain concerned. They do great work, particularly in rural Ireland. In some small villages, the only employment activity is that engaged in by CE workers. I attended a meeting last night. The cuts will devastate the CE schemes of which I am aware and many others. They cannot afford a reduction in their material grants from €1,500 to €500. The €500 is supposed to be a loan for training purposes and the €1,000 is supposed to be for materials and other supports. They want to know what the Minister will do for them. They had no idea at my meeting last night. Every year, they must draw up and submit business plans to FÁS, SOLAS or whatever. If they submit a business plan in future, will they receive the funding they require? It is not a great deal of money, but it has a large return for rural Ireland, as evidenced by the good work done by tidy town committees. As a result of CE scheme involvement, each committee's marks rise every year. We must consider the bigger picture, in that we are trying to sell the country as a tourism product. Tourists will visit south Kerry, Roscommon and so on if local involvement portrays those areas in a good light. I ask the Minister to consider this matter.