Michael Mullins (Fine Gael)

I welcome the Minister of State, Deputy Perry, and compliment the Minister, Deputy Burton, on a very fine job in a difficult time for the country. Deputy Burton is a reforming Minister and I know she is very determined to reform many aspects of the social welfare system and protect the most vulnerable in our society. She is managing significant spending in her Department of more than €20 billion per annum. Not only did this Government inherit a bankrupt country a little over 12 months ago but we also inherited a scenario where the previous two elections were cynically bought using the social welfare budget to attract electoral support. We all remember the famous €1,000 early childhood payment which had to be discontinued pretty quickly because it was not sustainable.

To the credit of the Minister, she has protected the basic rates of social welfare and pensions and is determined to target resources where they are most needed. Like other speakers I very much welcome the attempt to tackle social welfare fraud, which is a major challenge. There is anecdotal evidence of significant social welfare abuses in some areas, and the efforts to tackle claims by people outside the country though additional social welfare inspectors at ports and airports is to be welcomed. The Minister's decision to appoint additional inspectors to examine rent supplement abuses is also to be welcomed. I have reason to believe there are abuses in this area, with some people unfortunately finding themselves in very poor accommodation because they are afraid to highlight problems in case they lose their rent supplement.

Our scarce resources must be protected for the most vulnerable in our society, as well as the new poor. There are very many people dependent on social welfare who never claimed for anything before in their lives. For these people it is their first time to sign on and they are in a difficult position. They are anxious that social welfare is only a temporary arrangement. The Government needs to examine the black economy. Many people on social welfare are also self-employed and put legitimate businesses under severe pressure because they can undercut legitimate operators. They are claiming social welfare and carrying on a cash business on the side. The Government must tackle this.

I hope the Minister for Social Protection and the Government make it easier to transition from social welfare to work and from work to social welfare. There is no incentive for people to take up part-time or seasonal employment. I met a contractor at a briefing across the road by the Professional Agricultural Contractors Association of Ireland. He told me he had 20 short-term jobs for a major contract that he could not fill. People would not take up the jobs because, if they did, they would lose their medical cards and other social welfare benefits. We must make it easier for people to make the transition to part-time work. If someone takes up short-term work, it takes far too long to receive benefits. Given the IT systems in the Department, people should be able to sign off and sign on quickly.

There has been much debate about one-parent family benefits and the proposal to reduce the age limit to seven years over a period. I agree with Senator Quinn that we should look at this in a different way so that it is means tested. The structure of the payment is a disincentive to stable relationships and marriage. Many children would benefit from more stable relationships if this payment was structured in a way that did not provide a disincentive to people entering long-term, stable relationships.

The recent report by the Oireachtas Joint Committee on Jobs, Social Protection and Education highlighted reservations about the Department's proposal. With some adjustments, it would be a move in the right direction. Someone in receipt of a disability payment will lose the payment when he or she takes part in a community employment scheme. People with disabilities should be able to keep a small portion of the payment because of additional costs in travelling to work as a result of the disability.

I stress the importance of continuing community employment schemes. They are doing valuable work in our communities and provide people with an opportunity to play a part in communities. They are involved in tidy towns, sporting organisations, social services and care of the elderly. Resources must be provided to these schemes.

Members of the Lower House referred to the exceptional needs payments. There are abuses in that area and we must examine it.