Joan Burton (Dublin West, Labour) | Oireachtas source

Under European legislation, we are required to provide 14 weeks, but we provide 26 paid weeks. In the Netherlands and France, for example, only 16 weeks of maternity benefit is paid. This shows how good Ireland is. Sometimes, we undersell the strength of our agreed framework of social protection among all parties and none. As a country, we can be proud of it.

These savings are important. The people in receipt of the lowest levels of maternity benefit comprise a relatively small group, but they were identified as being in particular need of support, for example, people without full insurance cover or with relatively few hours of work or atypical arrangements and, therefore, who do not qualify. Their rate is being increased from €217 to €230.

I have some details on other countries. The rate in France is 16 weeks, comprising six weeks before confinement and ten weeks after. This is what France's public social insurance covers, although many of its employers pay in full. In France, the social insurance system is set up in an independent way. In Germany, the period is 14 weeks at €13 per day from social insurance, amounting to a payment of approximately €90 per week. Contrast this with our rate of €230.

Sufficient credit has not been given in this discussion to all of those employers who pay full wages to staff on maternity leave. Employers in Ireland have a good record in this respect. It is important that this be recognised. It can be more of a burden for smaller employers, but we have employers with a strong sense of responsibility. Our public sector probably has the most generous regime of maternity leave and support for parents of any country in Europe. This is done at significant cost, but we try to be family friendly through our social insurance system.

In the UK, including north of the Border, people receive €136 per week. Forgive me for comparing rates, as our situation is the most important issue, but we are a small, competitive economy that is maintaining comparatively positive rates of social protection in the teeth of difficulties imposed on the fund by an historic financial crisis.

Senator Bradford asked about this year's savings. They are in the order of €30 million, or €36 million in a full year. I hope that this information is helpful to Senators. Many of our employers strongly support their staff who are on maternity leave. I am happy to say that this is one of the best supportive situations for employees. Our payment amounts to €230 per week.

Senator Cullinane and others referred to a tax situation. In many cases, the principle adopted in the reform of social welfare is that social welfare payments should be subject to taxation in the same way that payment from employment is subject to taxation. One pays tax if one's income gives rise to a taxable income tax charge. Under the reform, all flows of income, including social welfare payments, are treated the same way for tax purposes. In fact, our system had an anomaly. Some people on maternity leave were being fully paid by their employers while also receiving maternity benefit payments, which were not subject to tax. They had an advantage over people in work who paid tax on all of their earnings. During the time of the previous Government, the Commission on Taxation recommended that this anomaly be rectified.

As the House knows, we are under the gaze of all sorts of interlocutors who want us to adopt the reforms recommended internally, for example, by the commission in approximately 2009. The Minister for Finance put this provision in place last year. I assure Senator Cullinane that its impact on low-income people is very limited, as many of our employers top up their employees' maternity entitlements to or nearly to their full salary rates. This is a particular feature of the Irish system.

We pay maternity benefit for 26 weeks whereas countries such as France and the Netherlands only pay for 16 weeks and the EU requirement is 14 weeks. I am happy to say that we have maintained the number of weeks. It should also be borne in mind that expenditure in this regard has increased from €132 million in 2005 to €303 million in 2012. From these figures, Senators can see the expenditure pressure on the Department.