Feargal Quinn (Independent) | Oireachtas source

I want to see this country on its feet again but to do that we will need tough love.  The Minister spoke about how we have managed to rebuild confidence in the economy.  I pointed out on the Order of Business that ¤8.5 billion was invested in this country last year because outside investors have confidence in us.  Social cohesion allowed us to build that confidence.

Over the past several days much has been made in the media of the ability of this House to change legislation and delay the Social Welfare Bill. I hope we will be able to make positive changes to the Bill but social welfare reform is regarded across Europe as essential. Even Germany, which is Europe's strongest economy, cannot afford to continue paying many forms of welfare. The Sunday Times stated that any country which spends more than ¤20 billion per year on social welfare at a time when its tax take is just ¤36 billion is clearly dysfunctional. We have to make tough decisions and the Minister and the Government are making them. How can we sustain the State when the weekly social welfare payment of ¤188 is more than twice the amount paid in the UK or Germany? I am proud that we look after every citizen in the country but I tell foreigners about the amount of social welfare we pay in this country I am told I must not be speaking the truth. In Italy and other EU countries people do not receive unemployment benefit if they have not worked. The principle of unemployment benefit should be that one gets benefits if one has worked. While this may be an unpopular view the editorial in last Saturday's Irish Independent got it right in noting:

far from being concerned at the huge amounts being spent on social welfare, politicians of all parties compete with one another to express their 'social concern'...It's time for some tough love on social welfare. Benefits have to be cut and fraud eradicated.

All areas of the ¤53 billion currently spent by the State must be examined. The economist, Jim Power, recently argued that the people who are opposed to any examination of social protection expenditure should recognise that it is financed by those who work and pay taxes. The latter should be allowed to comment on how their hard earned money is spent. The resources needed to provide a safety net to the less well off can only be generated through job creation. This point is often forgotten, however. We have to consider where the money spent on social welfare is being found.

The right kind of reform of social welfare can spur growth in the economy. I cannot understand why it is so difficult to means test benefits. By taxing child benefit and other benefits, the Government could raise revenue and help deprived children directly. Ireland currently pays the fourth highest rate of child benefit in the European Union, behind Denmark, Germany and Luxembourg. We must run the country as a business and we cannot afford to pay this anymore. We can learn from other countries in this regard. I believe the Minister has done that on this occasion and I will be supporting the Government on the Bill. I hope, however, the Minister will consider some of the changes that have been proposed.