Seanad debates

Monday, 1 February 2021

Response to Covid-19 (Social Protection): Statements

 

11:00 am

Photo of Rónán MullenRónán Mullen (Independent) | Oireachtas source

I would also like to be associated with the congratulations offered to the Minister on this happy event in the lives of her family, the arrival of her grandson Arthur. It is hard to think of a politician becoming a grandmother without recalling Margaret Thatcher's famous announcement when she said, "We have become a grandmother", and used the pluralis majestatis. The Minister would never do such a thing, although a greater fluidity in pronouns is allowed, and even encouraged, nowadays, so she would probably get away with it.

Turning to the business at hand, I join others in commending the staff of the Department of Social Protection, Intreo and other agencies. They have had to deal with an incredible administrative burden in the past year, but in the vast majority of cases the PUP and other income supports have been well administered. To a greater or lesser extent, we all see correspondence regarding the Department from and on behalf of our constituents, and we know the person-centred approach that is taken. That is all the more commendable given the difficult circumstances in which we find ourselves.

I will raise three issues today, two of which are directly connected with the Minister's brief. I note what she said about the fuel season having been extended in 2020 by four weeks at an extra cost of €37 million. Regarding fuel costs, people are spending much more time at home this winter, particularly older people. Although this winter has not been especially cold so far, that may change. I wonder if something more can be done to assist people with fuel costs.

I understand, for example, that there is a 15-month rule for qualification for the winter fuel allowance. Is it the case that people who lost their jobs in November or December, because of the new restrictions, would be ineligible for the allowance until early 2021 or 2022? That would not be much good to them. This scenario could be made worse for anybody losing their jobs this year, since fuel costs are due to be increased next year by the higher rate of carbon tax that will disproportionately cost the poorest and the elderly more than others.Could the Minister consider ways to assist people further in respect of fuel costs?

As regards the pandemic unemployment payment and other supports, people should be given significant notice of the end of the schemes, whenever that might occur. I note from the Minister's speech that she has secured Government approval for the PUP to remain in place at the current rates of payment until 31 March next. I understand the very difficult situation in which the Government finds itself, but there appears to have been too much chopping and changing about when schemes will end, in much the same way as there has been so much flux with the Covid restrictions. There should be an attempt to give people significant notice of the end of these schemes. We would all agree that people need certainty so they can plan financially.

One aspect of this situation is the puzzling row about whether pandemic unemployment payments should be taxed. I do not believe that the populist politicians who have called for the payments not to be taxed have made their case adequately. Are we seriously saying, or even thinking, that a low-paid worker or somebody who had his or her hours reduced due to Covid and who earns €350 a week should pay tax on that income while a person who was not working and was in receipt of the payment should pay no tax on the same amount of income? That appears to be totally unfair and, indeed, irrational. We do not want to incentivise people not to work and we should not send a message to people working in retail and restaurants or to low-paid staff in hospitals that the State values their work less than no work at all. Another problem we have is that our tax net is still very narrow, even after the crash. Over 1 million people, almost 30% of the working population, pay no income tax or universal social charge, USC, at all. Of course, many wealthy people pay far too little, as we know. Meanwhile, those earning average and above average salaries, between €35,000 and €60,000 per annum, seem to be hammered for tax on everything they do. The last thing we should do is make this problem worse by exempting another large category of people from income tax. If the pandemic unemployment payment brings people into the overall PAYE tax net of €16,500 for the year, it should be counted as regular income for tax.

Another problem relating to the PUP was reported to me after the restaurant, pub and retail sectors reopened fully last summer and again last December. Many staff would not return to work because, in financial terms and due to their circumstances with childminding and so forth, it made more sense for them to remain on the PUP. Nobody would judge a person for making such a decision, as people must do what is best for them and their families. However, again we have to be careful not to provide incentives for people to remain on social welfare or to disincentivise people from leaving social welfare. I would appreciate if the Minister would outline any steps her Department might be taking to prevent any such unforeseen or undesired outcome.

The last issue I wish to raise is not directly within the Minister's remit, but it relates to social protection because it concerns the financial and emotional well-being of individuals and families. I have spoken in the House many times about gambling and how the one local business that thrives through boom or bust, rain, hail or shine, is the local betting shop. For much of last year, when we were at level 4 restrictions and below, we had the absurd situation where pubs were closed but the betting shops next door were open. The shop could have had the same number of people in it as a pub might ordinarily have. Online gambling is now a much greater problem than betting shops, with many operators giving promotional offers such as free €10 bets for new subscribers. If breweries started offering a free six-pack to new drinkers or if tobacco companies offered a pack of 20 cigarettes to new smokers, the political class would be convulsed with outrage and such practices would be banned immediately. In fact, I imagine such practices are already illegal in these cases. However, there is not a peep when it comes to what gambling companies do.We should never stop asking why. The College of Psychiatrists of Ireland recently called the gambling problem over the past year a "hidden epidemic" and termed it a public health crisis. The college has called for public education, new legislation, advertising controls, treatment services and research into problem gambling. We should be taking action and I would appreciate the Minister's response, although I acknowledge that it is not directly within her remit. That said, how this is connected with the business of social protection is visible from outer space. What is going on is an affront to human dignity and it must be tackled head on.

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