Hildegarde Naughton (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Humphreys, to the House. Before discussing the positive measures in the proposed legislation, I imagine the Minister of State, along with all of us, welcomes the news of the discussions involving the former staff members of Waterford Crystal which have been successfully concluded. Amendments to relevant legislation were passed as part of discussion on the matter in the Lower House. There is no need for me to go over that issue again, save to say that it is to be welcomed.

It is a welcome change to be discussing a social welfare Bill that is increasing the level of supports the State provides to people. The people have stood with us, sometimes with gritted teeth, during all the harsh but necessary measures that the Government has had to introduce during the past four years. At every turn the Opposition has behaved as if no cuts in any services were warranted and every taxation measure was an outrage. It is easy to be in opposition in such circumstances. I did not envy the Minister or her Cabinet colleagues the job of making the books balance especially when we were locked out of the international financial markets. I commend the Minister on staying the course and helping to turn our country's finances around. I have no doubt that the actions of the Minister and her colleagues as well as the wider Fine Gael and Labour Party membership will be seen in future as having saved our country from utter chaos. I do not say as much lightly.

Our economic recovery is gathering pace. Our unemployment rate which is currently at 10.7% is below the European average and falling. The Exchequer returns are impressive. Our growth rate is the highest in Europe. Given that the State was three months from running out of cash when this Government came to power that is a remarkable achievement. However, it is important to note that many people have not yet experienced these benefits. To that end the major provisions of this year's social welfare Bill are welcome. We are starting to give back to people what was taken from them by the financial mismanagement of the previous Administration. Allowing families to retain the full qualified child increase of €29.80 per week per child for 12 months after a return to work and to retain 50% of the payment in the second year is a positive development.

I commend the Minister on committing an additional €2 million to the school meals scheme. A presentation by the Vincentian Partnership for Social Justice of examples of social welfare-dependent households and their food spend suggests that a one-parent family with children aged ten and 15 years would spend an average of €123.24 on food or 38.1% of the income. In the circumstances such an increase in the school meals system is welcome and should help levels of food poverty.

The reduction in the children's allowance payment in previous years was a tough call and I am pleased that the Minister has partially reversed that decision in this year's budget as well as making a commitment to restore it if the public finances allow. This year's increase of €5 per child will affect almost 613,000 families throughout the country. Additionally, the increase to €9 per week in the living alone allowance is a positive step and will assist in a small way those experiencing isolation. Given the part of the country where I am from I urge the Minister of keep this under review. Much of our recovery is bypassing rural Ireland. The partial restoration of the Christmas social welfare bonus with a commitment to further increases over time is also a welcome development not only for those in receipt of it but also, as the Minister of State said, for the economy. This is because the extra payment will be spent in local shops and supermarkets throughout the country. Much of the recovery to date is macro rather than micro and we need to bring everyone along the way to recovery rather than leaving anyone behind, as happened during the so-called Celtic tiger. This part of our recovery should be about rebuilding a society rather than simply rebuilding an economy. This budget is the start of that process and I know the Minister shares my view in this regard.