Seanad debates

Tuesday, 29 November 2016

Social Welfare Bill 2016: Second Stage

 

11:30 am

Photo of Victor BoyhanVictor Boyhan (Independent) | Oireachtas source

I welcome the Minister to the House to debate the Social Welfare Bill 2016. For me, the main issue that jumps off the page is that of restoration of cuts. In fairness, it was honest of the Minister to admit that it was the previous Administration, of which he was a member, that brought about the cuts, including in respect of the telephone allowance. The majority of the e-mails I have received since I became a Member of this House are related to the cuts. The impact of the cut of the telephone allowance is an issue in respect of which I am sure all politicians have received representations. We often talk about rural isolation and the importance of ensuring people can remain connected with families and friends. Many people have had their home telephones disconnected and are now using mobile phones. The cut of the telephone allowance was a cruel and mean one. I know there was a cost factor involved. Perhaps the Minister will share with us the savings accruing from the cuts in respect of the telephone and fuel allowances, the impact in that regard and when these cuts might be restored. Senator Reilly, chairman of Fine Gael, said in this House prior to the announcement of the budget on budget day that restoration of this cut was an issue that he was pursuing within the party. In that regard he said he would be extremely disappointed if the Minister for Finance did not deliver in relation to the telephone allowance. I met him later that day and he put his hands up and admitted it was one of those issues that had not made it over the line. I would like the Minister to share his views on the issue and on his plans in this area.

The next issue I would like to touch on is the class K and S contributions in respect of county councillors. It needs to be stated time and again that county councillors are paid €16,500 gross per annum, which is not a huge amount. These are people who work seven days a week. This is a huge issue outside this House but it is not one that surfaces in this House very often. One might well ask why I am raising it today. I do so because I represent these people. They are my constituents and I do not apologise for representing them. As I said, this is an issue that is continually being raised. We know that these people do not have any occupational pension rights. I acknowledge that the Minister has taken a positive step forward. However, I would like to know when the new provision will come into effect because that is not stated in the Bill. What is the timeframe within which it will come into effect? I know that the Minister is committed to this issue. I am not disputing that. As I understand it, county councillors will continue to pay 4% on €16,500 per annum. The Minister might share with us when this provision will come into effect.

In regard to the county councillors who have paid this contribution since 2000, in respect of which they received no benefit, will they receive a refund? Will those who paid €600 per annum from 2000 be given a refund? Will they receive any benefits for those payments? How are we going to make amends for this?It was grossly unfair for people to pay the class K rate but receive no benefits. County councillors want to hear how the matter will be addressed. I accept that people over 66 years will no longer pay the class K rate as it will no longer exist. Can the Minister confirm that all councillors can opt to move from class K to class S? Is it an opt-in or opt-out clause? Can he confirm that a person aged less than 66 will automatically go into the class S? Can he deal with the issue of retrospection? Can he make a case for or consider positively a reimbursement or benefit for the people who have paid up to now but did not receive a benefit?

I welcome the restoration of the farm assist scheme that was cut by the previous Government of which the Minister was part. I acknowledge that he has proposed the restoration of this important measure. The scheme is prudent and reasonable.

I am reasonably supportive of the Bill as I think it is fair. The bonus scheme is now at 85% but we should make that 100%. The Minister has clearly set out the cost involved, which must be a consideration for everyone. I know that he wants to give a little something to everyone. The Government originally had the objective of restoring the bonus 100% for people in receipt of welfare benefit. This year the bonus has been 85% restored. Surely we can make a strong case and clearly indicate that the Government will work towards restoring the bonus to 100% for 2017. I thank the Minister for his time.

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