Seanad debates

Wednesday, 6 November 2002

Margaret Cox (Fianna Fail)
Link to this: Individually | In context

I move:

That Seanad Éireann, recognising

–the advances carried out by the Minister for Social and Family Affairs and the Department over the past five years,

–the improvements in social welfare payments, and

–the improvements in services and information from her Department to its clients,

in the light of the upcoming budget Estimates and the talks on social partnership calls on the Minister to maintain a strong role in the progressing of services and facilities for the disadvantaged and in social inclusion.

It gives me great pleasure to welcome the Minister to the House. If we look at the significant changes which have taken place in this area in recent years, we can see the reason the motion, which I hope the House will support, is important. It is necessary to maintain this strong role and continue to progress the services and facilities for the disadvantaged and to include those who were on the margins but are now becoming involved and included in society. I intend to focus on a number of the key initiatives and major improvements that have taken place in the area of social and family affairs.

Without a doubt, the first area on which the Fianna Fáil and Progressive Democrats Government acted in the last five years – hopefully in the next five – was child benefit. The universal payment made directly to families, in most cases to mothers, is the single most effective payment in recognising the contribution women make to the home and parenthood. It also represents a major move towards achieving the goal of ending child poverty. There is nothing worse than seeing our children go hungry or cold, or without money to engage in school or social activities.

Child benefit will never be enough. No Government could ever give enough money to enable mothers to do all that they might want for their children, but the increases in 2002 bring the investment in child benefit to €1.44 billion, three times the 1997 figure. We saw an increase in the two child benefit rate of over €79 and €98 respectively in recent years. Such a level of increase is record breaking and I appeal to the Minister, whom I hope we all support in her negotiations with the Department of Finance, to ensure the final third increase, as initiated by her predecessor, Deputy Dermot Ahern, is paid in the forthcoming budget. I also plead with her to stand her ground and ensure there is no taxation of this payment which goes to the heart of the family and has benefited both women and their families for years. Any derogation in its effectiveness is not something over which we could stand. I strongly believe we could not contemplate either a reduction in the expected increases or taxation of these payments.

I realise that we do not have much time, but I must mention one area where there were difficulties with the old Department, that is, communication and customer care. There have been significant improvements in how members of the public are dealt with. We have seen automated leaflet and application requests on line which recognises that 60% of the over 4 million telephone calls received by the Department are requests for leaflets or application forms. There are also lo-call telephone numbers for the maternity benefits section and the publication by Comhairle of the Department's document on the recent entitlements for the over 60s. I compliment the Minister on this wonderful publication which is clear and makes it easy to find what is available as well as outlining the means tests and payments.

I preface all my remarks by recognising that while many things have been done, not everything that could be done is done, in particular in relation to carers. The Government, like its predecessor, has long been committed to continuing to develop the services which recognise the caring ethos in this country and the practical assistance for those who devote their time to improving the quality of life of others, that is, carers of older people, those with a disability and in any circumstance where someone gives up time to provide care. This is also an area where women tend to predominate. It is often an older woman looking after a middle aged child with a disability at home, which relieves the burden on the residential care sector. We have made a significant impact in this area.

The annual respite grant of €635 with a double payment where the carer looks after more than one person is to be welcomed. The carers of children who receive domiciliary care allowance are now eligible to apply for carer's allowance. This makes a significant difference to those women at home looking after children with a disability as it means that they have additional money because often domiciliary care allowance goes directly to support the child to improve his or her quality of life. All carers who receive carer's allowance are now entitled to the free schemes, such as travel, which is a huge benefit. The income disregards have also been significantly increased, both for individuals and couples.

Members of the Opposition will say we should get rid of the means test, but the figures on the cost of abolishing it show that it is better to keep it while increasing the income disregards instead of giving carer's allowance to everyone whether they need it. The numbers receiving carer's allowance and benefit have more than doubled from 9,700 to over 19,000 in recent years while expenditure increased by 180%.

There has been an almost 50% increase in old age pensions in five years and a commitment to see the basic pension increase to at least €200 by 2007. It was raised to €127 by 2002. All old age pensioners recognise that this represents an increase of 24% above the rate of inflation, in addition to the increases and additional services that the over 70s receive, regardless of means tests, such as the medical card and other free schemes.

We can see some improvement in regard to communications to widows who, under the stress of having lost a loved one who was perhaps the breadwinner, often do not have the confidence to approach the Department for information. It is important to provide a leaflet designed for widows or those who have been bereaved. The needs of younger widows and widowers have not been forgotten by the Department. A special widowed parent grant has been enhanced to €2,500 to help bereaved families at this difficult time. This is a recognition of the work that has been done in this area.

I have a final request to make to the Minister in regard to free travel. A person of 65 years of age who has free travel can get a companion pass for a spouse. A person with a free pass because of disability is also entitled to a companion pass. However, a widow or widower cannot get a companion pass because he or she has not got a spouse. I ask the Minister to look at the extension of free travel so that widows or widowers can apply for a companion pass so that they will have the opportunity to take someone with them when travelling. As they get older they need a companion to give them the confidence to get out and avail of the free travel. This is something that would not cost a huge amount and should be kept in mind for the budget.

Photo of Cyprian BradyCyprian Brady (Fianna Fail)
Link to this: Individually | In context

I second the motion. This motion put so eloquently by Senator Cox recognises the advances and improvements implemented by the Department of Social and Family Affairs. There have been dramatic and far reaching changes over recent years.

As a former employee of the Department I have seen the effects its services on the day to day lives of people. I have seen at the coal face the efficient delivery of the amazing range of services for which the Department has responsibility. It deals with support schemes for areas such as adult literacy, schemes for younger and older people, pensioners, widows and widowers, the unemployed, people with disabilities, children and carers. I have seen the direct effect of these services on the lives of people across the board through direct income for daily living, support for both dual and single parent families, advice on money management and through support for men's and women's and senior citizens groups.

The Department has been progressive in the provision of services to its clients. In the early 1980s the Department was one of the first to grasp the nettle of computerisation. The staff and management made a huge effort to improve and streamline the service it provided. The result was the modernisation of the payment delivery system. Another indication of the Department's progressiveness is decentralisation of services to local offices around the country. This started in Dublin and Cork with the provision of local offices but has been further extended to regions such as Limerick, Longford, Louth, Leitrim and Galway. The decentralisation of the head office to Sligo was a huge success and provided a great impetus to that area.

Every day in my own constituency I come across some group or organisation which has benefited from some input from the Department. Last Monday I met a group from O'Deveney Gardens where a group of parents got together to set up a child care facility. There has been huge input from the Department in conjunction with the Department of Justice, Equality and Law Reform through the Garda and from the local authority. Today there is a thriving community facility which caters for the children of a socially deprived area and it is just one example of how the Department has built itself into a community resource over the years.

I do not doubt this Minister will continue the work done over the years by her predecessors and in the true tradition of previous Fianna Fáil Governments will further enhance the vast improvement in services and provisions for those dependent on social welfare, advancing the superb work that has been achieved in the area of social inclusion and support for the community.

Nowadays if people come to an advice centre it is easy to make contact with the Department through a direct phone connection and we can get information for them. The booklets produced by the Department are excellent and the information provided is helpful. It is much easier now for a public representative to provide information to those who require it.

Some of the achievements of the past few years reveal startling statistics. If the economic climate allowed this to continue the improvements would be dramatic. For example, in the area of pensions a couple, both over 66 years of age, get 54% more than five years ago. That is staggering. A special widowed parent grant to help bereaved parents with financial costs has been enhanced to €2,500. The personal rate of payment for most recipients of social welfare has increased by at least 37%, while the corresponding rate for a couple has increased by over 44%.

One of the simple things that makes a difference to the lives of people on social welfare payments is the Christmas bonus. The bonus paid out is now 100% and 792,000 recipients and an estimated 413 dependants will benefit from that. Old age, retirement, invalidity, one-parent family payments and employment support payments are areas which benefit from this bonus. Certain participants in FÁS and VTOS will also benefit.

The ESRI recently reported that consistent poverty in Ireland has been reduced by two thirds between 1994 and 2000. It fell 15.1% in 1994, 18.2% in 1998 and 6.2% in 2000. These are facts. I congratulate the Minister and wish her well. I am sure she will continue the excellent record of this and previous Governments in this area.

Photo of Maurice CumminsMaurice Cummins (Fine Gael)
Link to this: Individually | In context

I move amendment No. 1:

To delete all words after "Seanad Éireann" and substitute the following:

"recognises the fact that relative income poverty has increased by 50% in Ireland over the last six years and that the Minister for Finance has deliberately favoured higher income earners in successive budgets and calls on the Government to discriminate positively in favour of the poor, disadvantaged and those on low incomes in the forthcoming budget."

Never before has a Government had so much money and delivered so little to the poor, the disadvantaged and those living on the margins of society. Why did Fianna Fáil choose to table such a motion when homelessness remains at such an alarmingly high level, the carer's allowance is still means tested, people on the minimum wage are still in the tax net and do not qualify for a medical card, spending cuts, or adjustments as the Minister might prefer to call them, are targeted at people working with the disadvantaged and those with disabilities and local authority lists are at crisis levels? I could go on but I know it would not make a blind bit of difference to my colleagues on the Government side of the House who obviously believe poverty and disadvantage do not exist.

The question is often asked as to who is poor. The national anti-poverty strategy in 1997 and the NAPS review of this year stated:

People are living in poverty if their income and resources (material, cultural and social) are so inadequate as to preclude them from having a standard of living that is regarded as acceptable by Irish society generally. As a result of inadequate income and resources people may be excluded and marginalised from participating in activities that are considered the norm for other people in society.

Thousands of people throughout the country fit that description.

Despite a period of unprecedented prosperity, the scale of poverty has not been tackled effectively. Social welfare rates have not kept pace with improving standards of living and the gap between rich and poor has widened dramatically. This is a major scandal and a sad reflection on Government priorities in recent years.

The extent of poverty in Ireland has been highlighted by the United Nations human development report of 2001. Of 17 industrialised countries, Ireland ranked 16th in the poverty index. Only the United States of America had a higher percentage of its population living in poverty. All the major countries in Europe did better than Ireland where poverty was concerned.

There is no doubt that Ireland has become a much more prosperous place. However, the distribution of that prosperity has been such that the Celtic tiger dividend has been non-existent for a large number of citizens.

Last Monday I visited one of the most disadvantaged areas in Waterford city which is in my electoral area and where the rate of unemployment is more than 40%. Three years ago, there were 20 community employment workers in the area dealing with child care, youth work, the long-term unemployed and other areas of community development. This year, despite protestations from everyone involved, their allocation is ten community employment workers.

The services have had to be cut back drastically and that deprived community is suffering as a result. The services to the unemployed, such as preparing CVs, advice on interviews, job applications and so on, have been cut back to two days a week. Youth services especially are curtailed when they should be expanding. This is the type of commitment to disadvantaged communities over which the Government presides and we are being asked to allow for more of the same by supporting this Fianna Fáil motion.

Urgent action is required to tackle the social crisis which stems from the continued marginalisation of people with a disability. There should be no barriers to inclusion and it is a political and moral duty of the State to enable and encourage in every way possible independent living for everyone with a disability. At a minimum, the State should recognise the additional financial cost of a disability. A glaring injustice is where a carer is precluded from availing of the carer's allowance if he or she receives another State benefit. It beggars belief that the mother caring for her child with a disability is not entitled to the carer's allowance if she becomes a widow and receives a widow's pension.

The Government must acknowledge the harsh truth that people with disabilities and their families continue to experience high levels of poverty and social exclusion, a fact which has been verified by the Economic and Social Research Institute. We are told the Government must prioritise in the area of social inclusion and every other area because of the deteriorating state of the public finances. Why could it not have provided for and discriminated positively in favour of the disadvantaged when we had a budget surplus of more than €5 billion last year?

The previous Government failed miserably to address the many areas I have mentioned. The current Government has a chance to redress the balance. It said it is committed to tackling poverty and disadvantage. By its deeds we will judge it, not its promises.

Photo of Noel CoonanNoel Coonan (Fine Gael)
Link to this: Individually | In context

I second the amendment moved by Senator Cummins. The attitude of the Government is reflected by the Minister and the proposer of the motion who did not listen to what Senator Cummins had to say. I suppose in that case there is not much point in debating the issue.

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)
Link to this: Individually | In context

That is not correct.

Photo of Noel CoonanNoel Coonan (Fine Gael)
Link to this: Individually | In context

They were engaged in a serious conversation for seven minutes.

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)
Link to this: Individually | In context

If the Senator had paid attention to what was going on, he might have observed that the Minister could follow what was said. I am sure she had important business to which to attend.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

The Minister can hear everything and has notes of everything that was said.

Acting Chairman:

It is customary for the Minister to consult during the debate.

Photo of Noel CoonanNoel Coonan (Fine Gael)
Link to this: Individually | In context

For seven minutes?

Acting Chairman:

Yes.

Photo of Noel CoonanNoel Coonan (Fine Gael)
Link to this: Individually | In context

The two issues mentioned are important, namely, the carer's allowance and home help, and I would like to link them. The manner in which carers are treated is regrettable given the work they do in keeping patients in their community and the money they save the Government by caring for those people in their homes rather than their occupying valuable bed space in hospitals. We know what it costs to keep a person in hospital and the Minister will inform us of that later. It is a disgrace that a Government that was so flush with cash over the past five years made it so difficult for people to obtain the carer's allowance, and when they did, for the allowance to be paid.

The same can be said about home help. In addition, the remuneration they receive for the magnificent work they do is a scandal. That must be seen in the context of the amount of money they save the Government. Senator Wilson is laughing but in his heart he agrees with me because he has similar difficulties in his family.

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)
Link to this: Individually | In context

I am laughing at the pathetic state of Senator Coonan pontificating about nonsense.

Acting Chairman:

Senator Coonan is in possession.

Photo of Noel CoonanNoel Coonan (Fine Gael)
Link to this: Individually | In context

I know Senator Wilson will agree with me but he finds it difficult to do so in front of his colleagues.

The needs of the less well off in society are a serious matter because such people suffered the most and carried the brunt of cutbacks in bad times when the economy was in trouble. Yet, when the economy was booming, they were forgotten by the Government. They were not given the same benefit. What is the point in talking about percentage increases when 10% of nothing is still nothing?

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

It would be a quare old budget that gave nothing.

Photo of Noel CoonanNoel Coonan (Fine Gael)
Link to this: Individually | In context

However, 10% of a large figure would make a big difference. An increase of 10% for people like the Minister, at the top of the ranking, will yield more than many poor people get in a lifetime. If a person on low pay gets 10%, the reality is they are getting very little. Let us consider the new poor in society, the farming community. Why is there so little uptake in the farm assist scheme? It is because of the level of bureaucracy, the difficulty farmers have in applying for it and the way their income is scrutinised in order to qualify.

Senators on the opposite side talk about the poor and clap themselves on the back for what they have done for them. Fair play, they have helped them out in good times, but not remotely to the extent they should have. Fr. Seán Healy of CORI can tell them the extent of poverty and homelessness. Why do they not tell us about the way social welfare is administered? I have seen social welfare officers telling people who depend on social welfare they are not entitled to it. They are then removed from the system and left in dire poverty for up to three months before it is sorted out. They have to go to the community welfare officer who will claim not to have anything to give them. Is that the sort of society we are advocating?

Photo of Martin ManserghMartin Mansergh (Fianna Fail)
Link to this: Individually | In context

I welcome and congratulate the Minister. I am delighted to see her in this role as another Minister with responsibility for social welfare from a Border county.

I am not an expert on social welfare policy, but I regard it as an important priority policy, perhaps the highest political priority of the next budget. Even in the last budget the social welfare package was considerably more than the tax package. That will certainly, definitely and indisputably be the case this time around. Undoubtedly, many things need to be done and although we are very proud of our record, I do not have a quarrel with the second part of the Fine Gael amendment which calls on the Government to discriminate positively in favour of the poor, disadvantaged and those on low incomes in the forthcoming budget. I am sure that is what the Minister will do with support from the Taoiseach and her other Government colleagues.

There is a very good record of improvement but there are also big problems. There were the free schemes in the 1960s, which were very imaginative and much credit is due to Charles Haughey when he was a Minister. There was a big improvement in the rates when we joined the EU, both under Frank Cluskey as Minister and again under Charles Haughey in the late 1970s. There were fantastic 25% increases in old age pensions in 1980, 1981 and 1982. In 1987 when the economic situation was dire, one decision made was that there would be no cutbacks in social welfare and the Government implemented the commission on social welfare report, which the previous Fine Gael and Labour coalition had said would cost too much.

On the doorsteps at the recent general election, there was a very positive response both to the fantastic increases in old age pensions and in child benefit. However, we should not be under any illusion that it is easy to live on a social welfare income and people should be given encouragement to make additional provision for themselves where they are able. In discussions at Government the Minister should stress the importance of protecting the pension fund. I do not want to see a debate develop here over the next ten or 20 years asking if we can afford our old people. Making provision now will make it less controversial in the future.

There is a certain analytical poverty in the way we discuss some of these issues. The model we keep hearing about focuses on the rich and the poor. There are rich people and there are certainly many poor people. However, the vast majority of people are in between and the rhetoric about rich and poor leaves that out of account. When an economy is growing fast there is a tendency for gaps to widen somewhat and that should be corrected as much as possible. I am very glad there is a Government commitment to get rid of absolute or consistent poverty. However, given a choice, it would be preferable for people to be absolutely better off, even though relatively poorer, than to be relatively better off and absolutely less well off. Sometimes people talk as if that is not really the case. I know Fr. Healy very well and while people like him are very well intentioned, some of the economics are very faulty. There is no point in implementing old-fashioned socialist economics, which only have the effect of reducing the resources available for everything, including caring.

If I were to make one plea to the Minister, it would be to pay special attention to the humane spirit of decision-making on social welfare issues. This is both humane in terms of individual cases and also in terms of trying to iron out the anomalies that create unfairness and injustice. That is very important.

There is a constant problem when social welfare payments are increased at a budget. The next day people get a note through the door advising that the differential rent is being increased at the same time. Even though a different authority is involved, there is too much giving with one hand and taking back with the other.

It is true to say the Celtic tiger did not reach all places, but it largely eliminated unemployment, which everybody agreed ten or 15 years ago was the key cause of poverty. I support the Minister and the Government and if the forthcoming budget is not to be distinguished for changes in taxation, it should nonetheless be distinguished by an enlightened social welfare package.

Mary Henry (Independent)
Link to this: Individually | In context

I very much welcome the Minister to the House and I am particularly glad she is in the Ministry she is in. In other forums, I have found her very sympathetic to the fact that the family is not just the nuclear unit we have been used to for a long time, but she takes a much broader view on the whole issue, which is extremely important.

The Government motion is a good one, because there have been dramatic improvements in social welfare payments in recent years. More spectacularly, there have been improvements in services and information from her Department and its clients. I have complimented the staff from that Department many times when they have come to this House about the dramatic improvement in acting as though the citizens of this country had rights rather than thinking they were giving them some sort of largesse, which was not their own money except for a small proportion from tax. I very much welcome the improved attitude regarding the treatment of those who have to come before people with social welfare problems. As a doctor, naturally I would be well aware of the very shabby way people were treated in the past, as though they barely had a right to ask for their dues at all. I welcome what the Minister and her predecessors in the Department have done.

I am sorry that the amendment is true. There has been a huge increase in relative poverty in the last six years and it seems to affect a hard core of people. Poverty levels are measured on different scales but there is a hard core of people whose lot we do not seem to have been able to improve, even though in some cases they perhaps could claim for more.

The Minister for Finance seems to have a terrible problem, though I do not know how it arose between May and now. Apparently there is a great shortage of money that was not evident before the general election in May. Now there are startling revelations and though they are not this Minister's fault she will have to bear with them as the Minister for Finance will have to do something to balance the budget. We have said tonight she has a dissatisfied group and she will have a dissatisfied group in the Seanad if some of what we ask for does not come to pass.

All strategies should be considered as to how they affect children, no matter what Department they come from. That is often tagged on at the end but if it is a priority then there is a really good start to the strategy. The Minister's plans five or six years ago gave a commitment to great increases in child benefit and there have been great increases, though there could be more. He made a commitment to bring child benefit to €31.60 per month and €38.10 per month at the higher end. Those were very good increases but if they were part of the expectations of poorer families it would be a good idea for them to get those increases now. Child dependency allowances should also be increased to a weekly rate of €25 per child.

Support for children by way of actual money is terribly important. Unfortunately we have not been doing anything about child care and many people working outside the home must spend some of this money paying up front for child care, so getting hard cash is terribly important. I urge the Minister to encourage the Minister for Finance to do this. We could integrate the family income supplement into the tax system and perhaps examine the introduction of a refundable child tax credit. The children's allowance people will have been on to the Minister with all these suggestions and I hope they have contacted other Senators also. Some of the suggestions could be implemented in the current budget.

Naturally I looked at child health care very carefully and the medical card situation is very bad. Our statistics are extremely odd regarding the number of medical cards actually available to the population – it is probably less than 30% of the population now; though the figures say 33% it is probably much less. The Minister may remember that last year when the Minister for Health and Children brought in eligibility for medical cards for the over 70s another third of people had to be added on – those who were not expected to be on the register at all. Colleagues in primary care tell me that less than 30% of the population are actually eligible, which affects children first and foremost. We have talked and talked about extending the eligibility of children and perhaps that could be done now – it is certainly one of the most important things in the health sector.

We are trying to do something about waiting lists for children and I hope that commitment is honoured. We also need to put a great deal of money into those initiatives that particularly affect children, initiatives dealing with drug dependency and, sadly, with alcohol dependency as well as substance abuse. We heard again today about the sad death of a 15 year old due to substance abuse. How much are we doing about these cases? This requires resources because it is not so much the treatment of the child when it happens as a matter of acting in the education system to do something about it.

It is also important to improve the community services which could prevent drug and alcohol addiction. There are too many people in urban areas in particular who have been trying for years to get resources for initiatives that would help communities and families but they have not been able to get them. Perhaps the Minister could urge that some funding be provided for them.

Children with disabilities form another important group and the domiciliary care allowance is not great – it does not come near to covering the cost of caring for a person. I regret the building of the children's prison; if money was put into the Minister's Department and community care there would be far less need for it.

We are also desperately short of child psychologists in many areas where they would be helpful – the Minister's Department, the Department of Health and Children and the Department of Education and Science. I urge the Minister for Health and Children to reverse the decision to cancel the courses in clinical psychology in both Trinity College and University College Dublin. Because of that cancellation we will not be producing one new clinical psychologist before 2005 and we are short 50% of our requirement now. Trying to recruit from abroad has not proved satisfactory.

I wish the Minister well in what she is trying to do. She should go in and really fight.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Go raibh maith agat and ar dtús báire ba mhaith liom a rá go bhfuilim ar ais arís mar Aire sinsir. Sé seo mo chéad ócáid mar Aire sinsir a bheith anseo. Bhí mé anseo cheana agus bhí go leor díospóireachta againne agus go díreach tugann sé deis dom cur in iúil don Seanad cad atá déanta againne le cúpla bhliain, cad tá déanta ag an Rialtas agus go mór mhór ócáid díospóireachta bheith againn chun rudaí tábhachta a shíleann na Seanadóirí atá a phlé againne, go cuireann sé ar feadh cúig bhliain.

As I said I am delighted to be here in the Seanad. We had great discussions and deliberations previously and I look forward to those challenges in the future. I have been encouraged to go and fight and I will certainly do that. I will kick the ball by saying it is quite disingenuous of Fine Gael and the Opposition to put down an amendment to my colleagues' motion. I am proud of what has been achieved over the last five years, as can my colleagues on this side of the House. It reflects on the inadequacies of the Opposition if this is their only way to get at the Government when we have achieved so much. Perhaps the Opposition should go back to the days when they were in Government and they will see the paltry increases given and the decisions made then.

Photo of Noel CoonanNoel Coonan (Fine Gael)
Link to this: Individually | In context

The Minister disagrees with Senator Mansergh.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

I will kick a ball but then I will leave, as Senator McHugh will know.

The period since 1997 has been one of extraordinary change in Ireland's economic fortunes. The growth in national income has been at a record rate for the longest period in the history of the State. This has allowed for growth in personal incomes, in employment and in the general standard of living. It has provided for the investment in our future that continues to be crucial for our economic and social development. Over that time, many of the traditional economic indicators changed out of all recognition. Employment grew rapidly and unemployment fell to record lows. Immigration halted and actually reversed as new opportunities were created in our economy for emigrants who had left during leaner times. National income per head grew to such an extent that we are now one of the wealthier countries in Europe instead of previous classification amongst the poorest.

The improvement in our economic fortunes has allowed many of the fundamental problems of Irish society to be addressed. The benefits of this economic growth were felt right across our society and economy. While we need to continue to address some of these at the same time as new challenges are being identified, the record from the past few years should give us confidence that we can rise to the challenge.

The fall in unemployment and in long-term unemployment has shown the most dramatic change in our fortunes. Unemployment fell from 10.25% in 1997 to 4.25% in the second quarter of this year. The level of long-term unemployment has fallen by 1.25% compared with a figure of over 5.5% in 1997. However, the Government has not simply relied on the fall in the level of unemployment to make an improvement in the well-being of those on lower incomes which we have combined with real improvements in social welfare spending and the delivery of social welfare services.

The development and implementation of the national anti-poverty strategy by the Government have allowed for a coherent and focused approach to poverty and social inclusion. There is clear evidence that this has provided tangible results in terms of the reduction in poverty and the improvement in the quality of life experienced by the most disadvantaged groups in society.

The NAPS seeks to provide for a consistent and coherent approach to Government policy across a range of policy measure and programmes to tackle the underlying causes of poverty and social exclusion in society. It does this by the development and implementation of programmes and policies which sustain economic growth and employment. It aims to provide levels of income support for those relying on social welfare sufficient to sustain dignity and avoid poverty while facilitating participation in employment and escape from welfare dependency. It seeks to provide high quality public services for all and address the needs of groups at high risk of poverty with specific needs.

The NAPS aims to tackle the causes of inter-generational transmission of poverty and support disadvantaged communities. It does this by identifying key targets in a number of areas that go to the heart of the underlying problems. As a global target, it uses the measure of consistent poverty developed by the ESRI from its expertise in the analysis of incomes and poverty to measure the progress made in addressing the issue of poverty in Ireland. The measure of consistent poverty uses income thresholds combined with deprivation indicators to measure the number of people or households in poverty. Recent years have seen significant reductions in the level of consistent poverty in Ireland, due, inter alia, to increases in employment and reductions in unemployment. This is what the Senator referred to in his analysis. At the end of the day, however, it is only an academic discussion. In 1994 the level of consistent poverty was 15.1% which was more than halved to 6% in 2000, the latest year for which figures are available.

The policies pursued by the Government in recent years in combating unemployment and reducing the level of consistent poverty have brought about a significant improvement in the situation of those on lower incomes. The NAPS strategy has ambitious targets across a number of areas which will further the Government's goal of creating a society where everyone has the opportunity and incentive to participate fully in the social and economic life of the country. In particular, it has a new target to reduce the numbers consistently poor to below 2% and, if possible, eliminate consistent poverty.

One of the key issues underlying the development of the NAPS strategy is the adequacy of social welfare rates, attention to which has been central to the development of social welfare policy in recent years, to which the previous Government committed considerable resources. Let me give just two examples. In 1997 the lower rate of child benefit was just over €38 per month. By 2002 it had been increased to €117.60 – an increase of over 200%. In 1997 old age contributory pension was only €99 per week. After budget 2002, it stood at €147.30 – an increase of almost 50% – well ahead of inflation and increases in average earnings.

The Government will seek to build on this progress and has made a range of commitments in relation to social welfare payments in our programme for Government. These include increasing the basic State pension to at least €200 by 2007, achieving a rate of €150 per week in 2002 terms for the lowest rates of social welfare to be met by 2007, and completing the announced programme of multi-annual increases in child benefit.

As the Taoiseach said recently at the launch of the talks on a new social partnership agreement, the Government programme sets out an agenda for all strategic areas of Government activity aimed at building a fair society of equality and opportunity and sustained prosperity for all. Through these commitments, the Government will seek to build upon the improvements in recent years and the progress made in the reduction of consistent poverty.

I will now speak about the issue of partnership and the series of national agreements which have made such a large contribution to the development of policy in relation to social welfare and economic and social development generally. Partnership has been key to this approach, not only in ensuring the development of policies, but also in their effective implementation. The inclusive approach has brought together the main actors in the economy and society with a view to coming to a common understanding about our problems and addressing them in a coherent and consistent manner.

In recent years the Government has more than fulfilled its commitments on social inclusion made under the Programme for Prosperity and Fairness. Significant progress has been made toward the core objective of bringing about a fairer and inclusive society. I know that the negotiations which have just started in relation to a successor agreement will raise a considerable number of difficult issues. However, I am confident that the spirit of partnership will allow these to be addressed in a spirit of mutual co-operation and in the belief that the gains at national level of the period since partnership began can once again be secured.

There is no doubt that the circumstances around which the forthcoming budget will be drawn up are significantly less promising that those of earlier years. However, the Government has committed itself to ensure social progress continues to be made side by side with economic progress. In the context of the difficult decisions that will have to be made, my parliamentary party and I will certainly ensure those most vulnerable in society will not be the ones to bear it. We have outlined commitments and priorities with regard to widows, the household budget package and in the context of carers. I am very much aware that carers and carer's allowance and benefit are issues which all Senators deal with in their clinics. The figures show the huge number of new persons now contributing as carers because of the introduction of the new scheme of carer's benefit. Increased numbers are participating in the carer's allowance scheme as a consequence of the disregard. I know that in a perfect society it would be fantastic to be able to stand up and say I could abandon the means test for carer's allowance. I cannot do so at present, but will support carers in society. I agree that there is no argument when one compares the cost of institutional care against that of a carer.

I have not been long in the Department but the 4,500 who work in it are caring and considerate and more than helpful. I appreciate that little blips often appear in the system, but they can be dealt with at a local level. I support all those civil servants who provide information and support networks for those in difficulty and who have been more than flexible in the context of particular and personal difficulties. I hope there will be an enlightened social welfare package and the Minister for Finance is listening to this debate. We have achieved much in the context of social welfare packages. The supports now provided cannot be judged in monetary terms. The Department has expanded its role in the support of the less well-off and the most vulnerable.

I hope I will have the opportunity during my tenure to look at expanding the role of the family side of my Department along with the family support unit. The targeting of resources, the elimination of child poverty and supporting the less well off will be the hallmark of this Government over the next five years.

Guím gach rath ar Sheanadóirí ocáid a thabhairt dom a chur in iúl caidé tá déanta ag an Rialtas cheana agus caidé tá le déanamh. Gabhaim buíochas leo siúd a ghlac páirt sa díospóireacht.

I always listen to what is being said. Like the Senator, I can hear three conversations at the same time and can jump into any one of them. I welcome the opportunity to debate this matter and to hear the priorities of this House in the context of social welfare and the elimination of poverty. Regardless of what political side we are on, everyone in their heart of hearts believes the elimination of poverty should be a goal in any just society.

Photo of Brendan RyanBrendan Ryan (Labour)
Link to this: Individually | In context

Cuirim fáilte roimh an Aire. Tá aithne againn ar ár gcéile le níos mó blianta ná a theastódh leis an Aire go luafaí iad ach tá sí níos óige ná mise agus mar sin is féidir trácht a dhéanamh orthu.

Performance in any area, particularly in an area where change is taking place, can only be measured against the potential and not against some fixed reference. For instance, if the Leas-Chathaoirleach or I ran in a marathon, we would not measure our performance against that of a professional athlete because we would not be starting from the same position. When one adjudicates on or looks at the performance of the previous Government and the philosophy which underpins the present Government, one does not look at it in terms of numbers but in terms of what was possible. In terms of what was possible, little was done. I do not deny that there was a spectacular change in child benefit but let us remember that was not driven by a passion to eliminate poverty but by the need to facilitate the expansion of the labour force in times when there was a constraint on it and because IBEC and others wanted large-scale improvements in child benefit. We would be still waiting for those changes if they were not driven by the scandal of the fact we have the worst child care provision in western Europe.

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
Link to this: Individually | In context

That is the Senator's warped interpretation.

Photo of Brendan RyanBrendan Ryan (Labour)
Link to this: Individually | In context

Warped it may be but I have been called worse, so I will live with that. The driving force behind this was the profound reluctance of the previous Government to provide proper child care facilities.

Let us look at the numbers. The level of what the Irish establishment, epitomised by the present Government, believes to be an adequate income is the sort of figure which, in most of our newspaper reviews, would be regarded as a reasonable price for a meal in some of Dublin's best restaurants – in fact, it would be regarded as a cheap price for a meal in perhaps the nearest restaurant to this House across the road in Merrion Street. We are talking about entirely different worlds. What this and the previous Government singularly failed to do was to do anything about inequality.

I suppose the poor should be grateful because we now know consistent poverty has been reduced. An indicator of the reduction in consistent poverty is that the number of people who said they could only buy second-hand clothes rather than new ones has declined from 10% to 3%. Hallelujah. Only 3% of our population must now buy second-hand clothes. I would not boast about that.

Margaret Cox (Fianna Fail)
Link to this: Individually | In context

The Senator would if it was 10% reduced to 3%.

Photo of Brendan RyanBrendan Ryan (Labour)
Link to this: Individually | In context

I would not boast about that since that happened because more people were at work. Of course we welcome that fact. The impetus for the growth in employment started before the previous Government came into office. Given the práiseach it made of the public finances over the last year, I suspect that impetus will grind to a halt quite rapidly because of its inability to realise that society and the economy are not the same thing. That is the fundamental problem this Government has had for the past six years, that is, that it cannot understand that there is a difference between social development and economic growth. It has put all its eggs in the basket of economic growth and has consistently set itself the task of redistributing wealth upwards in the direction of those who are most well off in our society.

In the last budget, according to the Combat Poverty Agency, 60% of the cash transfers between tax and social welfare went to the top 30% of income earners. Therefore, it comes as no surprise to discover that relative income poverty, the proportion of our population who have incomes below 60% of the average income, has not changed significantly in spite of the fact we have gone from being perhaps the eighteenth richest country in the world to perhaps the second or third richest. If one comes from the technocratic school of economics, then that does not matter. One may well have a flicker of a tear in the corner of one's eye for the 3% who must buy second-hand clothes but one does not really care about inequality.

Let us remember what inequality means. Inequality means that one cannot afford to pay for a proper health service and one must depend on the State health service. What the State has decreed is that if one is single and has an income in excess of €122 per week, one is deemed to be rich enough to be able to pay for one's own health care. Somebody on €123 per week is deemed to be able to afford to pay €65 per month for prescription medicine. They do not have to buy second-hand clothes nor do they fall into the other indicators of consistent poverty, and I am glad for their sake that they do not. However, a society which decides that a single person on €125 per week can afford to pay €65 per month for prescription medicine and €40 or €50 every time they visit an out-patient department in a hospital may well be doing something about consistent poverty but it is doing nothing about inequality in society.

The trouble is that while the increases in welfare payments were welcome, the previous Government was inept in a host of other areas. It spent a fortune on the health services and after spending the money, it produced a strategy. Most reasonable people would have done the reverse. Most people on average incomes have given up on the dream of owning a house. Local authority housing is unavailable to most people unless they are waiting for two years. Those factors mean that the otherwise welcome increases in the income of the poorest will make no contribution to eliminating inequality and injustice in our society because this Government, like the previous one, does not understand the difference between inequality and poverty. We can eliminate consistent poverty – I hope we will do so – but if we continue to put together a society which is the most profoundly unequal in the western world with the exception of the United States, we will never be able to produce the sort of housing that will get our people out of poverty. We will never be able to produce the quality of life that our people expect. While social welfare increases are to be welcomed, this motion represents such a limited vision of the future, of equality and of what poverty should really be about that it is not worthy of support.

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)
Link to this: Individually | In context

I was delighted to see the Minister for Social and Family Affairs here this evening. As a fellow Ulster person I am delighted to see her being made responsible for such a major Department. I also welcome the Minister of State, Deputy Noel Ahern. If I had not been here to witness it myself, I would not have believed that a Labour Party Senator could have said he looks forward to the unemployment rates going up again.

The Minister, Deputy Mary Coughlan, is responsible for the family as well as social affairs, and it is with the family that I would like to begin. This Government is committed to adopting a "families first" approach by putting the family at the centre of all our policies. As a republican party, a party which seeks to develop an egalitarian society, Fianna Fáil has always believed that we must put families first. Our approach recognises the dynamism and diversity of family life today. It also places a very strong emphasis on protecting the interests of children.

We have a very clear vision of the type of family we want to build in today's Ireland. We cannot, and should not, go back to the old style authoritarian family where children know their place. However, we certainly do not want to see the excessive individualism that can be seen in some countries, where it is all "me, me, me" and where family life does not get a look in. Our challenge is to blend the love and support which existed in traditional families with the recognition that all family members – men, women and children – have rights.

In relation to family-friendly policies, we are committed as a Government to supporting parents in taking up work where they want to do so, but we are also committed to supporting parents who choose to care in the home. That is why, in recent budgets, we decided to invest massively in child benefit. The Government is supporting the choices parents themselves are making in caring for their children. That is why we increased the pension payable to women in the home to the full old age non-contributory pension rate.

The latest child benefit increases form part of the largest ever series of increases in child benefit in the history of the State. After only five years, the basic rate has been trebled and a family with three children will receive €257 more per month than in 1997. In 1997 – and I know Senator McHugh will be interested in this – Deputies Michael Noonan and Ruairi Quinn gave a family with three children a monthly increase of a paltry £7 per month. Fianna Fáil in Government, with our partners the Progressive Democrats, has given that same family €101.60 extra per month in each of the last two years. To combat child poverty, we have made the largest increases in child benefit in the history of the State.

For the future, Fianna Fáil pledges to raise the old age pension to €200 per week. We will also introduce a homemaker's pension for pensioner spouses currently in receipt of the qualified adult allowance, set at the level of a full non-contributory pension. People in receipt of old age pensions are very appreciative and conscious of the major improvement in the rates of payment over recent years. The Fianna Fáil Party made a decision in 1997 that on election to office a special effort would be made to improve the lot of our pensioners.

There have been major improvements in the rates of payments and the free schemes have been improved and extended. The eligibility criteria to avail of these schemes have been improved and this has enabled the numbers availing of these schemes to increase considerably.

We are all conscious of the importance of the carer's allowance scheme, which has been mentioned by most speakers. This scheme has enabled thousands of people to be cared for at home who would otherwise have to be hospitalised or cared for in nursing homes. The conditions to avail of the carer's allowance scheme have been eased in recent years, but I am sure the Minister for Social and Family Affairs will agree that further improvements are necessary. We all know of applications that narrowly fail to meet all the criteria, and I hope that the Minister, during her term of office, will be able to improve further the income limits and rates of payment and further relax the residency requirements.

Photo of Joe McHughJoe McHugh (Fine Gael)
Link to this: Individually | In context

I welcome the Minister, Deputy Mary Coughlan, to her new position and congratulate her as a fellow Donegal person. I wish her well and hope she will have some form of inspiration that will help her through the difficult task ahead of her. I also welcome the other two Ministers of State who are here this evening. On a point of clarification, Deputy Michael Noonan, the former leader of Fine Gael, was not the Minister for Finance in 1997—

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)
Link to this: Individually | In context

I did not say he was.

Photo of Joe McHughJoe McHugh (Fine Gael)
Link to this: Individually | In context

We have to look at social inclusion from a holistic point of view. We cannot debate social inclusion in the House by bringing in any one Minister or any one Department. We must look at the Tánaiste's Department and at Departments which are in charge of training, budgeting and education. Rather than talking about this broad issue generally, I would like to home in on a couple of areas.

Economics is about booms and troughs. An economy cannot continue indefinitely on an upward curve. Fianna Fáil and the Progressive Democrats, while they were in Government, enjoyed a boom period. Where do these economic booms emanate from? There are various contributory factors, such as our education levels, our talented population, our industrialists and membership of the European Union. There is no single indicator. These two parties happened to be in Government during an economic boom. When you are in Government and are enjoying the fruits of a boom, there will be money in the kitty to distribute. We, as a society, did not capitalise during that boom period in terms of social inclusion and sustaining social inclusion.

I wish to refer to community employment schemes, a matter not within the remit of the Minister's Department. Community employment schemes were an idea set up through FÁS to bring people off the live register, to train them in different skills and to give them confidence in re-entering the market. The last Government contributed towards these schemes when it had the money and the supervisors were dotted around the country.

People who came off the live register joined the schemes, gained the confidence and learnt the skills, and the vast majority of these people are employed today. However, the Minister, Deputy Mary Coughlan, is now faced with the problem that there was no thought or foresight put into how to sustain community employment schemes. I have a meeting with supervisors in Donegal next week to discuss cut-backs in these schemes. It is acceptable to talk about what was done but the sustainability of these schemes has not been addressed. Supervisors who have mortgages no longer have jobs. People on the live register – and the number is increasing – will not now have the opportunity for training on smaller schemes. This crucial issue was not considered during the economic boom of the last four or five years.

Every housing estate, local authority owned or otherwise, in urban areas had a vibrant, hard working voluntary sector which helped communities by taking underage football, helping pensioners and so on. These committees and voluntary groups existed before the boom and were an asset to the country. However, as a result of the boom we have problems with our voluntary sector because during the previous Government's term in office jobs were given to the paid sector – to youth workers and co-ordinators of community development projects. These were great jobs, some of them worth €40,000 or €50,000 a year but the paid workers went into the communities and the voluntary sector began to fall apart. Volunteers questioned why they should work for nothing when others were being paid. No thinking went into the sustainability of voluntary communities in urban estates. When cutbacks begin, the first people to lose their jobs will be the paid workers in these estates so we will have not only lost the voluntary sector but the paid sector too. This is due to the lack of foresight in relation to sustainability.

Anyone who studies the basics of economics knows that it is about booms and troughs rather than what party is in power – be it Fine Gael or Fianna Fáil. Fianna Fáil and the Progressive Democrats happened to be in Government when pensions were increased. This is hardly surprising given the economic boom. Of course Fine Gael was not in a position to hand out as much as the last Government because when that party was in Government we were in a trough. We need to be honest as political parties and stop attacking one another about the events of 15 years ago or two months ago. We need to get to grips with the realities of economics, to talk about social inclusion in holistic terms and work with all Departments in harmony – Education and Science, Health and Children and Social and Family Affairs – to examine how we can make a sustainably more equal society and look to the long term rather than to this election or the next.

I thank the Minster of State for coming to the House to listen and if there is anything we, on this side of the House, can offer in terms of advice or contribution, we will be more than willing.

Photo of Brendan KenneallyBrendan Kenneally (Fianna Fail)
Link to this: Individually | In context

I welcome the opportunity to contribute to this debate. I welcome Deputy de Valera, Minister of State at the Department of Education and Science, to the House. I am glad my good friend the Minister for Social and Family Affairs, Deputy Coughlan, could be here earlier. I congratulate her on her appointment to the Cabinet. She is a good person, a popular choice by the Taoiseach and one of the better nominations he made.

I congratulate the Government on its achievements in recent years in the area of social welfare reform and I commend the previous Minister, Deputy Dermot Ahern, on what he achieved. As a Government Senator, it is easy for me to support the motion and to defend our record of recent years. We need only compare the Government's record to that of the rainbow Government. One example which jumps out immediately is old age pensions. In the five years of the previous Government, we increased old age pensions by 24% above inflation whereas the rainbow Government only succeeded in increasing it by 4% above inflation, so it is no wonder that when the general election was held, elderly people supported the Government parties. Indeed, they almost always have done because Fianna Fáil has always looked after the elderly throughout its history.

We made a commitment in 1997 – which some people thought was mad – to achieve a rate of payment of £100 on the old age pension. People said it could not be done but we did it comfortably and well ahead of time. We set a new target of €200 by 2007 and we will achieve that comfortably and ahead of time too.

Massive strides have also been made in child benefit. On a per child basis, there have been increases of €25, €30 and €35 and, this year, an increase of 25% alone on what was paid out last year. Prior to that there were increases of €5, €6 and €7. We diverted money towards an area of need. We all know that money, being given for various reasons to different families, was often not being spent properly. By and large, it is mothers who receive the child benefit payments and they are now getting a meaningful amount of money each month which is, in the main, being used properly. That was often not the case previously.

One of the reasons the Government has been able to do all this is that it has not cut back on the amount of money that is being spent on social welfare. Rather, it has consistently increased it in a global context because it has managed the economy so well. We were able to divert huge amounts of money away from unemployment assistance and unemployment benefit. I cannot understand what some commentators have been writing in recent days with regard to the economy – some of it bordering on hysteria. One would think we were in the depths of despair and that the entire country was about to collapse around us. That is not the case. Tax revenue is not as plentiful as anticipated – perhaps due to the success of some of the schemes that were put in place or miscalculations – but that is not to say that the economy is not fundamentally strong. I disagree with Senator McHugh's point that unemployment was on an upward spiral. Perhaps he did not see the figures that were released earlier this week which showed that the number on the live register has actually gone down.

Photo of Joe McHughJoe McHugh (Fine Gael)
Link to this: Individually | In context

I was referring to Donegal.

Photo of Brendan KenneallyBrendan Kenneally (Fianna Fail)
Link to this: Individually | In context

The Senator spoke about unemployment in general. The figures released earlier this month show unemployment fell in October. The current unemployment rate is around 162,000. Of that, approximately half are long-term unemployed and includes people who were on short-term contracts and other categories. It should be remembered that not too long ago 300,000 people were unemployed. We are going through a trough, but at least when we come out of it, we will be in a position to grow the economy again. We were not in a position to ride out the storm in the past, but because the economy has been so sound, we will be able to do so in the future. I do not envisage expending huge sums of money on unemployment benefit which can be used in other social welfare areas.

An area in which I would like to see more money being spent is the carer's allowance. I listened on the monitor in my office to some of the contributions of Fine Gael speakers and agreed with a number of the points they made about this area. The Minister's contribution was so similar to my own notes on the subject they could have been written by her. We have made great strides in this area. I was a Member of the other House when carer's allowance was first introduced by the then Minister for Social Welfare, Deputy Michael Woods. There had not been any calls for the introduction of such a payment, but we went ahead and introduced it. It was seen as a very innovative measure.

If memory serves me correctly, the budget for carer's allowance in the first year was £8 million. Everybody said it was a marvellous scheme, but within months, the very people who had not called for its introduction were attacking it and saying it did not go far enough and not enough money was being made available. Huge strides have been made since. I do not know what the current budget is, but it will have increased close to hundredfold since, particularly in recent years. The means test has been changed considerably and the impact on people lessened. More people now qualify for carer's allowance than in the past.

I agree with the Minister that there is a case to be made for abolishing the means test because it does not make economic sense and puts pressure on geriatric hospitals. If we got the proper supports, we could look after our elderly relatives at home. The Minister agrees with this. I hope we can support her in that regard. Perhaps then it will get through to the powers that be to bring about the necessary change.

Photo of Brian HayesBrian Hayes (Fine Gael)
Link to this: Individually | In context

I am grateful for the opportunity of contributing to this debate. I welcome the Minister of State, Deputy de Valera, to the House and wish her well in her new brief. I also record my congratulations to the new Minister for Social and Family Affairs, Deputy Mary Coughlan, who will bring a great sense of passion to the Department.

For the past three years I was my party's spokesperson on social welfare in the other House. As other spokespersons and various Ministers will testify, it is a very complicated Department because of the various schemes introduced since the 1960s. It is a case of one scheme built upon the next. The problem with social welfare policy is that it is incremental. We go into a budget process every year at the end of which we see small increases in various schemes, but we are not seeing a significant difference in the real lives of those who are marginalised, an issue about which we speak in our amendment to the motion.

It is a fact that consistent poverty has been reduced enormously over the past ten years by all Governments, but the major problem is that with the rise in incomes in recent years, we have seen a dramatic increase in relative income poverty. This cannot be changed through social welfare policy but through taxation and social welfare policies together. I have long argued, as have others, for harmonisation of the tax and social welfare codes. Too many people remain outside schemes because their income levels are beyond a certain limitation and, consequently, they cannot get support. We need to integrate the tax and social welfare codes. One of the ways we can do this is through the tax credits system introduced by the Tánaiste some years ago. While it was an excellent idea, we have not developed a sophisticated model in social welfare policy to direct real support to those who need it as against those who may not need it from time to time. That is a major challenge.

The problem is one of relative income poverty and I hold the view that this is an instrument of policy that the Government has got wholly wrong in the past five years. The number experiencing relative income poverty over the past six years has increased by half the number in that category. This has been brought about, not by the changes in social welfare, but by the changes in the taxation code which have greatly benefited those at the top end of the income code. It is a detrimental policy for which we will pay heavily in the years ahead.

I ask the Minister to consider a number of priorities in advance of her final preparations for the budget. First, on the issue of carer's allowance, Senator Kenneally is right. Four years ago 9,000 people were receiving the allowance. That figure is now 22,000, but the problem, according to the Carers Association and the health boards, is that 110,000 are eligible for the allowance. As Senator Kenneally rightly said, we need to abolish the means test. I encourage the Minister, who is a very fair-minded person, to make this a key policy priority for carers because she will not be able to do everything over the next four years as the budgetary situation deteriorates.

Second, one of the ways we can help people's nutritional health in disadvantaged communities, some of which are in my own constituency as well as my former constituency, is through the free meals scheme. Other European Union countries have managed to put in place excellent schemes to ensure children get at least one square meal a day. The reports of the Combat Poverty Agency and various religious orders here in Dublin and other cities highlight the fact that children in some disadvantaged communities are not getting the basic nutritional value from their food. A Government sponsored free meals scheme, which needs to be amended at this stage, would help to reduce poverty in absolute terms.

A particular bugbear of mine is the issue of heat. A total of 50,000 local authority homes do not have central heating.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

A young man like the Deputy should not feel the cold.

Photo of Brian HayesBrian Hayes (Fine Gael)
Link to this: Individually | In context

I am not feeling the cold, but, as the Minister knows well, 50,000 homes currently do not have central heating. That is a scandal in 2002. We could reduce the number for an amount €2.5 billion, which I realise is a great deal of money. A real priority for the Government should be to say that between now and 2005, every local authority house will have central heating. That is achievable and the kind of measure we should introduce to eliminate poverty.

I ask the Minister to reform the child dependant allowance. As she is aware, there are three rates applicable. If a person is unemployed, one rate is applicable for their child while another rate applies if the person is a widow. The allowance should be reformed. I ask the Minister to examine this issue as we move forward in terms of reforming the social welfare code.

Photo of Paddy BurkePaddy Burke (Fine Gael)
Link to this: Individually | In context

Like other speakers, I welcome the Minister to the House. I listened with great interest to a number of speakers in the debate and I am delighted to make a contribution also.

I support what other speakers said in relation to carers. The Minister said she cannot abandon the means test but, as Senator Kenneally said, it does not make economic sense. Carers provide a magnificent service. The Minister should look at this issue immediately. At a time when every hospital bed throughout the country is occupied, the facility of caring for people in their own homes should be utilised.

An excellent service is also provided by MABS centres of which, I believe, there are 52 in total, including one in Ballina and one in Castlebar. I have been approached recently about the need for a third such centre in County Mayo to complete the coverage of this large county. There is a great need for that service because of the large number of very poor people who find it difficult to manage their limited household budgets. The demand for an additional centre is indicative of the fact that the existing centres are overworked. Undoubtedly, the experience in this regard in County Mayo is similar to that in other counties.

Senator Ryan referred to housing. An increasing number of people are finding it impossible to provide housing for themselves without assistance. I urge the Minister to contact the Minister for the Environment and Local Government immediately in relation to the housing strategies which had been put in place by local authorities, acting on the advice of the previous Minister in that Department. Clearly, those strategies are not working. Fewer houses are being built, not alone in the local authority sector but also in the private sector. Coming in the immediate aftermath of an economic boom, that is disastrous. Builders and developers have no hesitation in attributing blame to the strategies which local authorities have implemented on the advice of the then Minister for the Environment and Local Government. I again ask the Minister for Social and Family Affairs to contact the present Minister for the Environment and Local Government with a view to having this issue addressed. If that is not done, the situation will escalate and the Minister will be inundated with requests in relation to housing problems.

The motion before the House relates to what has been done over the last five years. It is not always easy to identify specific achievements of individual Ministers during their terms of office. However, going back quite a number of years, I recall the work of a former Minister for Lands, the late Joe Blowick, in laying the foundations for forestry development. A former Taoiseach, Mr. Charles Haughey, introduced free transport for pensioners. A former Minister for Education, the late Donogh O'Malley, introduced free education. In the rainbow Government of recent years, the then Minister for Social Welfare, the former Deputy De Rossa, changed the pensions structure with particular reference to partial pensions. That was a major benefit for people who did not have the full requirement in contributions over their working lifetimes and were enabled to qualify for a partial pension. The former Ministers whom I have mentioned made a significant contribution to the poorer sections of society and they deserve recognition for that.

Margaret Cox (Fianna Fail)
Link to this: Individually | In context

I thank all Senators who contributed to this debate and I thank the Minister for Social and Family Affairs for her attendance. Many comments referred to the carer's allowance. While I would also like to see the means test abolished, I have to point out that the carer's allowance will cost €132.8 million in 2002 and that figure would increase significantly if the means test was abolished. The Government has considered various possibilities, such as increasing the disregard, changing the respite grants, introducing free schemes for people in receipt of carer's allowance and introducing carer's allowance to people in receipt of domiciliary care allowance. At present – and perhaps until we return to the boom times to which Senator McHugh referred – the Government's present approach represents the best use of available funds. Abolition of the means test now would result in diverting funds from other areas where they are badly needed. We have to help as many people as we can in present circumstances. While we would like to abolish the means test for carer's allowance, that is something for consideration at another time, not in the immediate future.

Senator Ryan referred to the income limit of €121 for eligibility for a medical card. With the introduction of the minimum wage, people's earnings are not as low as that. The reduction in the number of people on medical cards is due to the fact that there are more people at work. The best way towards eliminating poverty and creating greater social inclusion is through the creation of sustainable employment rather than having people depending on social welfare payments.

Senator Ryan also referred to MABS and to issues which he said we should not be happy with. Inequality has been reduced. The proportion of people below 60% of the average income has fallen from 15% in 1994 to 6% in 2000. That is a significant improvement and further targets have been set for the anti poverty strategy, including a reduction in consistent poverty. Senator Mansergh posed the question as to whether it is better to be absolutely better off but relatively poorer as opposed to being relatively better off but absolutely poorer. I believe most people would agree it is better to absolutely better off. It is somewhat simplistic to speak, as we sometimes do, in terms of the rich getting richer and the poor getting poorer. That will continue to happen—

Photo of Brian HayesBrian Hayes (Fine Gael)
Link to this: Individually | In context

The tax system will see to that.

Margaret Cox (Fianna Fail)
Link to this: Individually | In context

—unless we ensure that the position of the less well off in society is constantly being improved through appropriate support mechanisms. In relation to MABS, I agree with Senator Burke that it is a very useful service. However, many of those who use this service are not the very poor. In some cases, those who are very poor are better at managing their money than those who have difficulties in their homes, such as alcoholism, drug abuse or gambling. Those are the people who have difficulty managing their incomes. They often benefit from that type of service. I would like to see it expanded where possible because it does great work.

It is ridiculous to suggest that the driving force for the increases in child benefit was the release of women to the workforce, driven by IBEC. That is the greatest load of rubbish that I have heard in the House for many years and I am disappointed that Senator Ryan said it. It is not the reason for child benefit, which is a family payment to children. It is non-means tested, untaxed and goes straight to combating child poverty. It ensures, as Senator Wilson said, that people have a choice. It recognises that some may stay at home and look after their children, while others choose to join the workforce.

I also reject the statement that the Government has done nothing about child care. We have significantly increased child care places over the past five years. We have invested in standards, training and continued improvement of child care. This is something to be proud of but there is more to be done. I welcome the progress which has been made in this area.

When I listened to Senator McHugh I started to think that the booms and troughs had a life of their own and there was no point in having a Government because everything was decided by the current boom or trough —

Photo of Brian HayesBrian Hayes (Fine Gael)
Link to this: Individually | In context

We will be busy with that.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

He would not mind being in the Government.

Photo of Brian HayesBrian Hayes (Fine Gael)
Link to this: Individually | In context

Is there a vacancy?

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

He just lost his way.

Margaret Cox (Fianna Fail)
Link to this: Individually | In context

If there is not prudent fiscal management there will not be a boom. The point was made about the streamlining of community employment jobs and schemes. I am not sure that this is the reason for the reduction in voluntary work. It is too simple.

Photo of Joe McHughJoe McHugh (Fine Gael)
Link to this: Individually | In context

On a point of information, the two points are not related.

Margaret Cox (Fianna Fail)
Link to this: Individually | In context

I do not think that we can take points of information. I thank the Minister for coming to the House and the Senators for taking part in the debate.

Amendment put.

Tá

Tellers: Tá, Senators Bannon and Cummins; Níl, Senators Minihan and Moylan.

Amendment declared lost.

Motion put and declared carried.

Rory Kiely (Fianna Fail)
Link to this: Individually | In context

When is it proposed to sit again?

John Dardis (Progressive Democrats)
Link to this: Individually | In context

At 10.30 a.m. tomorrow.