Seanad debates

Wednesday, 6 November 2013

Social Welfare and Pensions Bill 2013: Committee Stage

 

2:55 pm

Photo of Jillian van TurnhoutJillian van Turnhout (Independent) | Oireachtas source

I echo and agree with everything Senator Power said. I spoke about this on Second Stage yesterday so I will not repeat myself but I am concerned because I know part of the narrative is that the payment is going up for some people while it is going down for others. The payment is going down for 95% while it is going up for 5%.

Ms Orla O'Connor of the National Women's Council said a reduction of maternity benefit will force many women to go back to work earlier than they wish to. This is not in the best interests of women, their children or society as a whole. Senator Power has clearly outlined that some employers pay a top-up payment to women on maternity leave. In this case the employer may take a financial hit but some will not choose to take such a hit. We may see that significant classes and types of job will be directly cut by this reduction. Ms Tanya Ward of the Children's Rights Alliance has stated that Ireland is currently in the middle of a baby boom and to reduce maternity benefit at this time is economically counterproductive, counter-intuitive and will discourage women from having babies.

The difficulty is that the taxation measure came into effect from 1 July 2013, so it is beginning to hit now. That figure of €3,500 combined with this cut and the taxation measure sends out a damaging signal to women. I would like to see Ireland move to a combined system of maternity and paternity leave. In that way we could bring about greater gender equality because employers would regard men and women in the same way. However, it is a regressive step to reduce the amount.

It is not just NGOs who are warning about this. IBEC has also warned that some companies may have to review their maternity benefits as a result. Top-up payments to bring salaries up to normal levels during maternity leave are standard practice in most companies. For example, IBEC's head of HR development, Ms Mary Connaughton, said the change could cost the typical large employer with 12 employees on maternity leave an extra €10,000 a year. That is something they would have to consider. That is why I have tabled an amendment to oppose these cuts.

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