Michael Mullins (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Perry to the House and I pay tribute to the Minister for Social Protection, Deputy Burton, for the work she is doing in her Department. Most Senators would agree that she is a reforming Minister and that she is trying very hard to streamline the dysfunctional system she inherited. That system certainly contributed to Fianna Fáil retaining power for two terms.

We all want to see a situation where the social welfare budget of ¤20.5 billion is targeted at the most disadvantaged in our society. We all know that there are very serious abuses within the social welfare system. Many of them have been tackled already but many have yet to be tackled. I hope that whatever savings are made in that regard will offset whatever reductions are necessary in the 2013 budget.

Senators have raised a number of important issues already but we must recognise the fantastic work that is being done within the community employment schemes.

The financial review of community employment schemes was a job well done. It proved the schemes worked and that there were opportunities for savings within the system. There are 23,500 places in the system, including 1,400 for supervisors. The schemes are providing fantastic services to local communities. They are supporting social inclusion and tackling educational disadvantage in communities.

There has been much debate on the issue of child benefit and whether we should retain the universal payment system or have targeted payments to the disadvantaged. We need further debate and discussion on that. Not everyone, particularly the very wealthy, should receive child benefit. The taxation system may be the way to address the issue.

The Minister made passing reference to the free travel pass. There is considerable abuse of this system throughout the country. The issue needs to be addressed. There should be a modest charge on the travel pass. Holders of the pass might, possibly, have to register every year to confirm their entitlement. There is anecdotal evidence that the system is being abused hand over fist, and we need to address this.

I met an employer last week who until a few weeks ago had been employing 18 people. The banks pulled the plug on his business because they would not lend him ¤150,000, despite the fact that he had orders worth ¤1 million to take him up to Christmas. He laid his staff off. They signed on and will receive redundancy payment. He and his fellow-director, however, have no income and are not entitled to any State benefit. That is not right and it must be addressed. I urge the Minister to look at this situation and to put in place a system whereby self-employed people can contribute and have something to fall back on if they go out of business.

I join with colleagues in appealing to the Minister not to carry out the proposal to place the burden of sick pay on small businesses that are already stretched. Many of them will go to the wall if we impose that additional cost on them.

I agree with Senator Hayden regarding rent supplement. It should not be cut further. I meet people in my clinics who are now living in substandard accommodation because the rent supplement has been cut. The sooner local authorities take responsibility for the rent supplement and the whole area of local authority housing is examined, the better.

The issue of fuel poverty has been raised. It is a particular problem for elderly people who are living on the old age pension. If we can make savings elsewhere the issue of fuel poverty should be addressed. Additional resources should be made available for the fuel scheme and it should be targeted at elderly people living alone.

I agree with Senator Byrne that the appeals procedure for disability and invalidity benefits takes too long. The Minister must examine the applications and appeals systems. It is not acceptable that people should have to wait six, nine or 12 months for a decision on their application for benefit.

I wish the Minister, Deputy Burton, well. She has a difficult task and a huge budget. We all support her in her efforts to put in place a system that targets the underprivileged and we want to see abuses of the system eliminated, as a matter of urgency.