Seanad debates

Thursday, 20 December 2012

Social Welfare Bill 2012: Report Stage

 

12:25 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

Tá an Bille seo an-tábhachtach ar fad do gach éinne agus do gach réigiún sa tír, go mórmhór os rud é go mbeidh níos mó ná ¤20 billiún á chaitheamh ar choimirce sóisialta sa bhliain 2013. Tá áthas orm go mbeidh 10,000 suíomh breise ar fáil dóibh siúd atá ag iarraidh filleadh ar an gcóras oideachais nó an áit oibre. That is a considerable achievement in the Bill. Senator Trevor Ó Clochartaigh only sees the negatives, but there are many positives. I have mentioned the 10,000 extra places we are providing. We are also providing 6,000 extra after-school and child care places. These issues were of some significance to Members on all sides of the House last year.

We are trying to take the positives out of this process. I notice that a number of Senators spoke about the positives. I repeat that I intend to publish the Mangan report which relates to proposals for significant and important changes to the child benefit system by the end of January. That will present very difficult choices to Senators of all parties and none. We will have to decide where the balance lies, taking account of the current state of the economy. Some of these choices will relate to people on middle incomes. I remind the House that from early next year anyone in the United Kingdom or the North of Ireland who earns over £60,000 will receive no child benefit. It is going to be withdrawn entirely on the basis of the principle that it should be targeted. We have to bear in mind, in social terms, that a generation of people in their 30s and 40s, many of whom have two or three children or more, are heavily indebted in relation to their mortgages. Many of them regard the direct child benefit payment in cash as being of importance to them.

I hope I will be invited to return to discuss the Mangan report some time in February, after Senators have had an opportunity to examine it. On that occasion, if we were to get an indication from parties and individuals of how agreement might be reached on certain difficult choices and the administrative implementation of these choices, it would be a breakthrough in the country's budget tradition. If the Seanad were prepared to assist in the process of reaching agreement, it would represent a strong endorsement of the case for the retention of the Seanad and the type of debate that takes place in this House.

A Sinn Féin speaker made a comment about taking things off people. I do not know how closely Senator David Cullinane looked at Sinn Féin's proposal to mandatorily increase the distribution from approved retirement funds without any lower limit, but I can tell him I had a good look at it.

With regard to the many women on low and middle incomes in saving for pensions, I advise Senator David Cullinane that if he consults some actuaries, he will find that the current distribution regime which has been supported by all parties is deemed to be severe enough for many people. Sinn Féin's proposal would increase the mandatory distribution rate by about 50%. I know it did not receive much attention, but it would penalise highly those with very low pensions who may not be public servants and who may not have other sources of savings. Sinn Féin's proposal does not provide for a free ride either. When we are discussing the nuances of the positives and the negatives of the proposals of different parties, if we are entering a period of honesty, let us be honest about all the proposals made because they are not free. If one asks an actuary to examine them, one will find that for people on low incomes, particularly women, about whom the Senator has spoken, his proposals deserve a great deal of careful consideration.

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