Seanad debates

Wednesday, 3 July 2019

Social Welfare Bill 2019: Second Stage

 

10:30 am

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael) | Oireachtas source

At the outset I welcome the Minister for Employment Affairs and Social Protection, Deputy Regina Doherty to the House. I salute her as a reforming Minister across a range of areas, whether it is the recognition of home workers, those unfortunate staff who were abused when their tips were taken and used as part of their wages or now the recognition of the rights of self-employed. The Minister is humane and brings a breath of fresh air to the Department. I salute that and I am very proud to do so. I do not think there is anybody who would challenge me on that proposition.

During the recession I became very emotionally involved with an individual. This young man had a business that failed. As a consequence of his business failing, he could get no social welfare. The barrier to him getting any form of social welfare was that he had a small plot of land and a house that had a large mortgage as an investment rental property, which he could not get out of it.He had a wife and children, and it was a pitiful sight. I was so emotionally involved with him at the time and I met him on many occasions because I thought the situation was dreadful. Such was his trauma arising from this that he let his business fold, almost involuntarily, and went on to become an employee in an area that does not challenge him. There is nothing wrong with his employment or his employer, but he works in an area where he is not challenged, accepts a much lower income than he is capable of earning and is, I suspect, frustrated. My point is he developed a fear of being self-employed and of anything entrepreneurial. His family felt the same and told their dad that they did not want him to be self-employed anymore. My involvement with him brought the social welfare situation home to me in a big way.

It would be wrong of me not to say that I am here representing my colleague, the party spokesperson on social protection, Senator Ray Butler. It would not be necessary to mention that were it not for the fact that he has been a pioneer and advocate in this field and a champion of the self-employed since the day he entered politics. It is his mantra, whether at our parliamentary party meetings or in this Chamber. He needs salutation and the work he has done to bring about this day merits public recognition. I am sure he is proud and happy that it is being brought forward by his county colleague.

A few other issues merit a mention. It is important that we do not lose entrepreneurs or make people afraid. This cushion will give people the courage to go into business and not be afraid for themselves and their family; it is crucial that that fear be removed. That is a very important point. I reference again the fact that they will also be supported in job activation. The Minister said that ways to support the self-employed in job activation are being looked at, which is important because they have so much potential and ability. As is recognised in America in a way that it is not here, when people fail in business, it is a significant learning experience and that learning can be brought to another business; that is why they should get the support to once again make the leap. Similar to the person who starts to drive again having been in a car accident, they need courage, personal development and to be unafraid to get into the driving seat once more and get going.

I am delighted that this is a continued recognition of the self-employed, to the extent that treatment benefits and the invalidity pension are now available to them. That is great, and this is a further progression of that. We cannot make Cinderellas of the people who, as the Minister said, sustain our small rural economies that cannot attract multinationals. It is good that the self-employed will have the same rate of €203 per week. Why should it be otherwise? The provisions take account also of the fact that, for PRSI, certain people pay a lump sum at the end of the year.

To go back to my original point, I am very keen on activation. I am a teacher by background and think that, from day one, there should be support, encouragement and learning to help people make the great leap and go back into business, bringing their brilliance, knowledge and experience to another business to further more job creation.

The Minister makes the point that, because of low incomes and the nature of their circumstances, 7,000 people will get jobseeker's allowance. That is how it should be and there is nothing to challenge that. It is reassuring that both Class A and Class S contributions are recognised, for obvious reasons, which is an important dimension.

No matter what way we look at this, it creates fairness and opportunity, supports enterprise and provides a bridge, safety net and soft landing for those in the self-employed sector. My friend who I knew during the recession was only one of many; I just happened to become involved with that case and there was something very pitiful about it. He must have felt a shocking level of alienation, unfairness and injustice. Why was he different? Why was he scapegoated for having initiative, when he could not possibly but fail in the role he was in?

This is a good day's work, one of many from the Minister, and I laud it. She said that it will begin in November, but this cannot happen quickly enough. I would love to know that we will have a good activation programme and will continue to support people who create jobs at a local level.

Finally, we talk about sustaining rural Ireland. We can do that only by keeping those who run our small businesses and who create jobs and infrastructure in those areas. A large pharmaceutical industry cannot be attracted to an isolated rural parish if there is no infrastructure. Let us keep the people who can keep those communities going.

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