Paschal Mooney (Fianna Fail)

The comment has been made that this is inherently an anti-rural budget, both specifically and generally. I want to focus particularly on community employment schemes. A colleague in County Meath, Councillor Nick Killian, has written to the Minister of State, Deputy Shane McEntee, and Deputy Halligan about a cut from €1,500 to €500 to the employee's allowance for training and maintenance. Councillor Killian's letter states: "For our child care CE participants who were studying level five FETAC certified child care courses, which is now obligatory, FÁS will not have sufficient funding to pay for these courses". He was also informed that FÁS had advised the manager of the scheme that further recruitment was banned until further notice. As someone with a long interest and who has had active involvement in child care and currently holds the post of chairman of the County Leitrim child care committee, I am very much aware of how the proposed cuts will impact. I am concerned that it is Government policy, as outlined by the Minister of State in the Department of Children and Youth Affairs, that staff working in child care should be suitably qualified. As regards implementation of this measure, it is particularly sad that those who undertake the level five FETAC certified child care course, in the main, find gainful employment. In the context of trying to create jobs, therefore, it seems this is one area in which the Minister is denying people employment opportunities.

So much material has come in during the past week from people who are telling their individual stories. In the overall context of budgetary analysis and economics, it is how it impacts on the citizen that resonates throughout the debate. A gentleman on a community employment scheme trained a class of 16 on the European Computer Driving Licence course funded by the Department of Social Protection. He is currently teaching two children how to use the Adobe suite for graphic design work. Three weeks before Christmas he has been left unsure if his centre will reopen in the new year. He is absolutely certain that the assistance for the IT tutor's training he is receiving will be cut.

Some 65% of the country's poorest children live in one parent families. A cut of an additional €6 is impacting adversely on them concerning rent supplement. A minority of one parent families with three or more children will suffer a loss of fuel allowance. New community employment scheme applicants will no longer be able to retain the one parent family payment and their salary from participating in such schemes.

Does the Minister have any observations to make on the ESRI report mentioned in this morning's newspapers which addresses the issue of one parent families? The conclusion seems to be that it is acting as a disincentive to returning to the workforce. That is a rather sensitive issue and, admittedly, it was a newspaper take on the report. I would like to have read the report in its entirety, but I am sure the Minister is up to speed on the matter and may have some comments to make in that regard.

There were question marks over people who were cohabiting who, under the civil partnership legislation passed by the Oireachtas last year, may find themselves in an anomalous position. They may be in dire financial straits as a result of being unaware that under the civil partnership legislation, cohabiting couples must go before the courts in order to share out their assets. By continuing to cohabit, if they come under the terms of the legislation, they may find themselves without redress to the courts. This morning's newspapers reported a new dimension on the matter which suggested cohabiting couples would need to address their own situation.

The Minister made great play of the VAT hike. Senator David Cullinane took umbrage at Sinn Féin being mentioned, yet again, in the House as regards its involvement in Northern Ireland. The Minister said: "The mother of the child from Dundalk will still be getting a lot more child benefit than the mother of the child in Newry, after this cut." I argue that the standard of living in Northern Ireland and the United Kingdom generally is much lower in relative terms than in this country. This is still one of the most expensive countries in Europe, especially in the context of the proposed hike in VAT from 21% to 23%. I know it is not within the Minister's purview, but the impact will be felt by the very people she is seeking to support. Some may feel, as the Minister for Finance, Deputy Michael Noonan, pointed out, it would not necessarily hit poor families. I presume, therefore, the Government believes poor families, or those who are economically challenged, do not buy toilet rolls, toothpaste, towels, soap, shampoo, detergents, pet food, children's toys, exam papers, cooking foil, fruit juices, spectacles, false teeth or even — I hate to say this — coffins. All these items will be affected by the VAT rise from 21% to 23%.

If the Minister was living in a Border area, as I am, she would know that retailers are shivering in their boots.