Katherine Zappone (Independent)

While I agree we should proceed, I want to make some brief comments. I welcome the Minister and acknowledge her systematic and diligent approach to the reform of the social protection system. I am aware it is grounded in her extensive experience of the varied and complex schemes that are part of the system. I acknowledge her protection of a substantial sum of the safety net that was not cut from budget 2012. That is a serious achievement. However, I agree with my colleagues in opposing a number of sections of the Bill. Senator Jillian Van Turnhout and I will oppose sections 8 and 11, in particular, on which we will comment, but I, first, wish to make two general observations.

Of the top 20 budget hits of 2012, the No. 1 hit is the increase in the VAT rate which will bring an estimated saving of €670 million, about which we spoke in our statements on the budget. Changes made to the one-parent family payment rules in respect of children over seven years of age and the earnings disregard effectively constitute the sixth biggest hit in terms of savings which will amount to €112 million. I realise that we are only discussing one aspect of the earnings disregard, but, as the Minister is aware and I am aware from representations made to my office by OPEN and other organisations, the overall impact of the changes in payments for children is being felt by parents now.

I note that the independent think tank, TASC, on the basis of well worked-out evidence, has judged that the budget will disproportionately affect the poorest income groups in society, of which one-parent families are one. I will save my additional remarks for later.