Mark Wall (Labour) | Oireachtas source

I welcome the Minister to the House this evening. The Labour Party welcomes the introduction of a pay-related benefit for jobseekers. It is after all a good workers' rights issue. As a party, we have long called for such a measure to be introduced and we anticipate strong support from various stakeholders, not least from those workers themselves.

As my colleague, Deputy Duncan Smith, did in the Dáil, I want to pay tribute to colleagues in the trade union movement who have really led the charge on getting this on the agenda. I particularly thank Dr. Laura Bambrick of the Irish Congress of Trade Unions, ICTU, for her work on this important matter. We believe in a welfare system that allows workers to move between jobs and be able to return from any short-term unemployment secure in the knowledge that the welfare system will adequately support them. That is why this Bill is so important and why we need to change the current system.

The current system offers very low level support and is essentially designed to get people back to work in the shortest possible time by offering them a minimum amount of support when they are out. It is a system that offers a below the poverty line level of support. It is designed to get people back to work as quickly as possible by giving them no more than the bare minimum. This is why we believe that a pay-related benefit is a more compassionate and much more sensible approach. It prevents workers from facing that cliff edge the Minister mentioned when they are made unemployed, and it provides a cushion for their household income when they might need it most. It also supports the local economy as those facing short-term unemployment can sustain a better standard of living than they may have previously through the lower payments that are currently available. This new approach sustains more stability, not just for the household but for the local economy.

There have been questions by many stakeholders previously and in particular by employment representative groups as to the unwelcome need for those who find themselves newly unemployed taking the first job that is available. People are thinking only of having to pay the mortgage, school or heating bills or that credit union loan, which the Minister mentioned, rather than being allowed to breathe a little bit and look at a job that suits their skill sets and will offer them a future in what will be a more sustainable job for them.

A pay-related benefit of some form is, of course, in practice in many of our neighbouring countries albeit it there are a number of variations. In this State, however, the flat rate of jobseeker's benefit following two years of PRSI contributions remains until now. That is why we welcome this Bill. It will bring us in line with many of our EU counterparts. It is something that is much more progressive and that actually protects and supports workers. There are concerns, however, which we highlighted in the Dáil and we want to mention once again. First, the two-tier system that is proposed in this Bill is unnecessarily restrictive when compared with the systems in place in other high income EU countries. As we previously said, it may have the unintended consequence of creating a discriminatory system that penalises women and young people in particular. For example, for workers in sectors with a higher than average turnover of staff, such as the retail or hospitality sectors, it may be more difficult to meet the five years of contributions qualification to receive the higher rate of benefit. The same applies for those working on temporary contracts. Women and those under the age of 25 are disproportionately represented in the retail and hospitality workforce, while those under the age of 30 make up the majority of workers employed on temporary contracts. That is something that needs to be addressed. This has the potential to be one of the most progressive pieces or workers' rights legislation we have seen in this country for some time. We do not want to see it undermined by discriminating against some of our most vulnerable workers. We all agree that there should be every incentive to return to work in the quickest possible time, which I have stated should only be when the right conditions and pay are available. However, we should not penalise workers either, especially when we see what other EU neighbours are offering. The Minister said she did not want to let perfection get in the way of the good but I do want to mention some issues she raised, which were raised in the Dáil as well. I echo the calls here to extend pay-related benefits, on the whole, to the entire social welfare support system. The Labour Party would like to see the extension of pay-related benefits to other short-term income supports, as the Minister has said, such as maternity and paternity benefits, parent's benefit, carer's allowance, illness benefit and so on. Ireland is one of only two countries in the EU that pay maternity benefit at a flat rate, leaving it to employers to make up the difference. There is a risk that this negatively affects hiring decisions. In fact, there is little doubt in my mind that it does.

We have discussed the means test on the carer's allowance at various committee meetings and it has been debated in this House. The Minister and I are aware of many individuals who need to take a break from their careers or reduce their hours in order to provide care for a loved one. This brings with it financial implications for those wishing to take such a brave but necessary move. They should not be concerned about the financial implications for themselves in doing so. As I have said previously, they are saving the State so much money. We need to look urgently at pay-related options for such carers rather than the flat rate carer's allowance that causes them so many problems at such a time. I agree with the Minister that this Bill is a start and we can look at that issue as we progress into the future.

I conclude by saying once again that the Labour Party welcomes this Bill. It is a very positive move by the Government to address a very serious workers' rights issue. I have highlighted some concerns we have with the Bill and I hope the Minister can address them. We need to allow workers the time to breathe when they get that bad news of the loss of a job. This Bill is an important step on that road. I look forward to debating it further with the Minister as it makes its way through this House.