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Dáil Éireann debate -
Wednesday, 20 Mar 1985

Vol. 357 No. 1

Social Welfare Bill, 1985: Committee Stage.

Question proposed: "That section 1 stand part of the Bill."

First, I wish to refer to a letter I received from you this morning informing me that my amendments, Nos. 1 to 8 inclusive and No. 10, are not being allowed on the grounds that they involve a potential charge on the Exchequer. I am not questioning your decision. I am sure it was arrived at after considering all the factors but I do not understand how the amendments could involve an extra charge on the Exchequer.

The increases were presented in a way that suggested they would be in line with inflation for the entire year but they will only come into effect as and from 11 July. Acceptance of my amendments would not involve any cost to the Exchequer if the increases had been more honestly presented and if the true rate of 4 per cent or 4½ per cent from April was set out.

Question put and agreed to.
SECTION 2.
Question proposed: "That section 2 stand part of the Bill."

Amendments Nos. 1, 2, 3 and 4 have been ruled out of order as they would impose a potential charge on the Revenue.

I was questioning why they had been ruled out of order.

It was under Standing Orders.

I accept that they have been ruled out of order because they would involve an increased charge on the Exchequer. If the increases had been presented in a more forthright fashion, showing the real increase of 4 per cent or 4½ per cent from April, at least the beneficiaries would know the true increases they will get.

Amendment Nos. 1 to 4 were put down by me and by Deputy Mac Giolla on the basis that the increases should apply from the beginning of the tax year. It has become the practice in recent years to postpone social welfare increases later and later into the year. On Second Stage I indicated there was a possibility that inflation rates were going to rise and that the increases provided for in the Bill would come nowhere near the actual increase in the cost of living for social welfare beneficiaries. Consequently, we put down the amendments seeking to restore the increases to April, the traditional time for such increases to apply. I note the amendments have been ruled out of order because their implementation would cost the State money. Nevertheless, the argument stands that the increases will not be sufficient to meet the increased cost of living in the coming year. Even if the increases were maintained at the rate of inflation, in many cases they are so low they will not allow people to maintain a normal standard of living.

Like Deputy De Rossa I should like to query why the increased benefits will only come into operation from July. Since I became a Member of the House benefits have generally applied from the beginning of the financial year and what is happening now appears to be a change in procedure. Is there any special reason for this? Perhaps the Minister will enlighten us on this point?

The pattern has been established that since 1983 the end of June or the beginning of July has become the standard time for the rates increases. The increase in 1984 fully matched inflation to the middle of 1985 and the increases this year are expected to do the same to mid-1986. Regarding the general point raised about a 1 per cent increase in the rates of social insurance, social assistance and occupational injuries benefit, the cost will be £90 million per year. In budgeting for the unemployed, for each 1,000 persons on the live register in a full year the cost will be £2.6 million.

The Minister has confirmed that this policy of postponing the date of implementation of the increases has become established since this Government came to office. In 1983 the increases were operative as from June, last year they were operative as from the first week in July and this year they will become operative in the second week in July. It is getting later all the time and if we continue with this trend it will be almost Christmas before increases are granted in the future.

In the meantime the unfortunate people who have the lowest standards of living, those on welfare payments, will suffer. Most of the people who are unemployed have no work through no fault of their own and many of them would give their eyes for a job. At the moment there are 234,000 people unemployed and they, with the sick and the old age pensioners, will have to bear the increased costs imposed as a result of the budgetary policies of the government. They will have to pay increased VAT on clothes from 8 per cent to 10 per cent, on fuel from 5 per cent to 10 per cent, and on footwear the VAT rate has gone from zero to 10 per cent.

Already these people have less disposable income than they had before the budget and this will get worse as time goes on. They are finding it almost impossible to put food on the table and they are being treated with scant disregard by the Government. They should have been cushioned from the effects of the increased VAT charges in the interim until they get their social welfare increases. It is quite amazing that increased charges which mean more revenue for the Exchequer are implemented immediately but anything that might cost the Exchequer money, such as increased social welfare payments, is postponed for as long as this Government can do that. This policy will ensure that there is increased poverty. I do not think anyone can deny that the numbers of people who are finding it impossible to provide basic needs are growing all the time.

The Minister mentioned the high cost involved in paying social welfare and unemployment benefits. Unfortunately the escalating costs arise from the failure of Government policies on unemployment. If this Government had given the right type of leadership and encouraged confidence, unemployment would not have escalated to the present level. Even the Minister will have to concede that their great document which was supposed to be the answer to unemployment is way out in its calculations. This document calculated that at the end of 1984 the unemployment register would include approximately 220,000 people. When this document was actually published they were approximately 13,000 people wrong in their calculations.

I appeal to the Minister to take account of what I have said in relation to the increased costs which social welfare recipients have to bear between now and July and I would ask the Minister to consider how they can maintain any reasonable standard of living until they get these increases. The Minister should consider giving the increases earlier.

Since this Government came to office and including the increases in this Bill, the short term payments have been increased by 25 per cent, long term payments by 28 per cent and the long term unemployed have received the highest increase of all, 33 per cent. The consumer price index in the same period from mid-1983 to mid-1986 is expected to increase by 20 per cent. There is a real increase in social welfare short term payments of 5 per cent, in long term payments of 8 per cent and in long term unemployment payments the increase is 13 per cent. These are compound increases, which is the only way to take them. The increase in net take home pay in the period mid-1983 to mid-1986 has gone up by 23 per cent, so social welfare, despite the appalling budgetary constraints on the Government, has matched inflation and in the case of a large number of recipients inflation has been more than matched. The argument that the Government are imposing a particularly punitive regime on social welfare recipients does not stand up. If we had given only an inflation increase from mid-1983 to mid-1984 the rate of old age pension would not be £38.60, it would be £37.50. In that budget, for the 12 months forward, there was a real increase of 2.9 per cent. Likewise, in last year's budget if we had stuck rigidly to an inflation increase for the year ahead the old age pension would have gone up to £40.52 instead of to £41.30 which was a real increase of 1.9 per cent. In this year's budget, looking ahead, taking the projected rate of inflation, if we had just given an increase to match inflation the long term non-contributory rate of old age pension would be £43.78 instead of which it will go up to £44 which is roughly a half per cent higher in real terms than the anticipated rate of inflation from July 1985 to July 1986.

The same applies in terms of unemployment assistance. If we had stuck rigidly to inflation in last year's budget the unemployment assistance long term rate would have been £31.48 but we brought in a rate of £32.80 last year which was 4.2 per cent higher than the rate of inflation. I do not suggest that it is a large amount of money, but that would have been the situation had we stuck rigidly to inflation. Likewise, this year we are bringing in a new rate from July 1985 to £34.95 and if we had stuck to inflation it would be £34.77. Despite the fact that every 1 per cent increase costs £19 million we have managed in the overall provision for social welfare, a quite exceptional figure.

I wonder how many Deputies recall that I said that in 1982 on unemployment-related expenditure we would spend £345 million. In 1983 we spent £452 million, in 1984 £518 million and this year the provision is for £578 million, an increase from £345 in 1982 to £578 million in 1985. The increase in unemployment-related expenditure is indeed quite low but the increase alone between 1982 and 1983 was 31 per cent from £345 million to £452 million. If we had an upturn in the economy and if we had fewer people unemployed we could release resources to be spent in other areas of social need and job creation, bearing in mind that 1,000 persons off the unemployment register releases £2.6 million to the Exchequer. This is the position we are in and my role is to ensure that there is enough money on a day-to-day basis in the Department of Social Welfare to pay out the unemployment-related expenditure and other major expenditures.

I would have thought that the Minister would have avoided giving these huge increases in the costings for unemployment benefits. The figures are an indictment of the Government's failure in their employment policies. The Minister should not boast about that figure, he should be ashamed to admit it. The projected figure for unemployment payments this year instead of giving any reassurance to the unfortunate people hoping for jobs casts further gloom on the position and highlights the fact that the Government do not have any policies in regard to job creation.

The Minister told us of the increases people received in payments last year. Quite honestly I think he is subtly trying to play acrobatics with the figures because the fact that the increases operated from 1 July meant that the 6 per cent and 7 per cent increases amounted to 5 per cent and 5½ per cent in real terms. That did not match inflation and the Minister should not try to pretend it did. The pittance of increases given by a Government who commenced their term of office with a so-called firm social policy will not help the less well off. The Government said they were committed to looking after the needy, those unfortunate enough not to have a job, the sick and the aged but they have not done that.

The Minister in introducing the Social Welfare Bill in 1983 expressed disappointment at the extent of the increases and a fervent hope that the following year the tide would turn and the Government would be able to give more realistic increases. The Minister must be more disappointed when he considers that after two years the Government have not made any attempt to grant realistic increases to compensate for increases in the cost of living. I would have thought that the Government would have abandoned their policy of postponing the date, which amounts to fiddling with the percentage figure. The Government are trying to pretend that they are giving a figure that they are not giving. An increase of 6 per cent or 6½ per cent over eight and a half months amounts to about 4 per cent or 4½ per cent in real terms and that figure does not match the increase in the rate of inflation.

I do not know how anybody, no matter how good an economist he or she may consider themselves, can predict accurately what the inflation rate will be from July onwards. We have sad recollections of inflation figures being wrong in the past and they may be wrong in the future. I should like to ask the House to compare the Government's increase of 6½ per cent long term and 6 per cent short term from 11 July this year, the 8 per cent long term and 7 per cent short term from 1 July last year and the 12 per cent long term and 10 per cent short term from June 1983 with the clear increases given to social welfare recipients by Fianna Fáil. In 1980 Fianna Fáil granted an increase of 25 per cent long term and 20 per cent short term while in 1981 a similar percentage increase was granted. In 1982 an increase of 25 per cent across the board was granted by Fianna Fáil. Those increases applied from 1 April and amounted to real increases. Fianna Fáil did not pretend about the extent of the increases. Those increases were not fractionalised by being paid late in the year. Will the Minister tell the House why the Government have decided to postpone the increases each year? In 1983 the increases were postponed to June while in 1984 they were put back further, to the first week in July. This year the Government have put back the operative date to the second week in July.

As the Deputy is aware, we took office late in December 1982 and the budget was introduced late in January. In order to put the budget framework together on the basis of its sticking for 12 months and not finishing up in the kind of mayhem that occurred in 1981-82——

Have we to listen to this again?

——with supplementary budgets and increases, the Government decided on an early July date of increase. We have stuck to that since then.

Why does the Minister not tell the truth, that he is saving money?

There was not any other reason for putting the date back to July. The thing I find most regrettable about increases of 6 per cent, 8 per cent or 12 per cent is that we keep harping back in our inflation preoccupation to increases granted of 20 per cent or 25 per cent although we are well aware that such increases were no more than paper increases. At that time inflation was of a similar order. I find it difficult to convince people that an increase of 8 per cent at a time when the annual rate of inflation is 6.7 per cent amounts to an increase in real terms. It is of considerable benefit. There is little point in granting an increase of 25 per cent if the rate of inflation is 22 per cent.

I appreciate some of the points made by the Minister but I must point out to him that he has not answered the question. The increased charges are effective from 1 April but the benefits are not effective until July. Why is there such a difference? If the charges apply from 1 April the benefits should apply from the same date, as happened in the past. The fact that the benefits apply from July effectively means that the benefits will be in operation for eight or nine months.

The reason for the change in PRSI is to coincide with the income tax changes. It has always been the case that tax changes occur on 5 April and changes in ceilings and rates of PRSI occur in that month also. I must make the broad point that I am probably the first Minister for Social Welfare in the past decade who in three consecutive budgets did not increase the rate of PRSI. It would have been easy to make a marginal change, to increase the rate from 5½ per cent to 6 per cent. The social insurance fund would be increased but the change would amount to additional taxation. I am not urging an increase in the rate of PRSI but I want to bring into the PRSI net over the next year or two as many self employed and members of the farming community as possible. I must point out to the House that while we are paying about £500 million in contributory pensions we are paying £300 million in non-contributory pensions towards which people do not make any contributions through PRSI. I must make the point also that I do not know of any other member state that manages to pay social welfare increases to the extent that we have been able to pay in the past three years. Other wealthier countries have cut social welfare benefits in real terms in the last two or three years. We have not done so in this country. We have matched inflation. We have gone marginally above it in a number of instances, but we have not reduced in relation to it. I would have thought that this was not possible. We have a high income tax level, a high PRSI level and a high level of social welfare.

The Minister is supposed not to have increased PRSI charges since he came into office. When we deal with that under section 6 I will let the House know my observations on it. In relation to the increases, it is appalling that this year the Minister and the Government have seen fit once again to penalise families. We are very well aware of the importance to most households of the children's allowance scheme.

We are on section 2. I appreciate your concern, but section 2 deals with social insurance benefits.

I have not deviated——

You are moving around.

The Minister strayed a little from one section to another on the last occasion, so I thought I might be allowed the same leeway.

You may make a passing reference and then come back to section 2.

As regards a passing reference, it is appalling that in the three years they have been in office this Government on only one occasion, last year from August, gave any increase in children's allowances and then it was a miserable 7 per cent operative from August which was effectively worth only about 4 per cent. Therefore, they have given a 4 per cent children's allowance increase in three years. This is very specific anti-family policy that has hurt households. As we are all aware, many mothers rely very much on the children's allowances to get the moneys necessary for emergencies and crises in the house.

That is much longer than a passing reference.

Perhaps the Minister will have a change of heart before the year is out and try to do something for those families.

is section 2 agreed?

They can always pay the women's £9.60 a week.

Is section 2 agreed?

Obviously we cannot disagree with the principle of increases even thought we think that effectively they should be much more, that they should be presented in a more courageous, realistic and honest fashion and made implementable from April. My amendment was ruled out of order when I sought to have it placed on the record of this House that the Members on this side would wish that these increases would be operative from April. That opportunity has not been afforded to me.

A footnote after the table at the top of page 3 of the explanatory memorandum states that an additional amount of £3.40 is payable to a person who has attained pensionable age and is living alone. Does that apply to all pensions, contributory pension, noncontributory pension and widow's pension.

Does that not apply to section 3?

I think it is section 2. It is at the bottom of the table.

The answer is in the affirmative.

Question put and agreed to.
SECTION 3.
Question proposed: "That section 3 stand part of the Bill."

Amendments Nos. 5, 6, 7 and 8 in the names of Deputies McCarthy, Mac Giolla and De Rossa have been ruled out of order.

I am afraid the saga continues. Any amendment I put down seems to be rejected. The arguments which I have offered already in relation to the long-term payments apply here and very much so. These unfortunate people again have to pay the increased cost. There is no point in our running away from the fact of the increased charges on VAT which they will have to pay and have been paying since the budget. July is a long time away and they are going to have far less disposable money in their pockets to meet these needs. I feel exactly the same about section 3 as I do about section 2.

As I missed the beginning of the debate, Sir, will you tell me the reason the amendments were ruled out of order?

They involve a potential charge on the Exchequer.

Yes, I know and I appreciate from your reply the results of that. We have a good many ridiculous rules in this House but that is the most ridiculous.

It is a Standing Order and it still stands.

I know that you are powerless to do anything about it, but the whole idea of amendment in relation to the Social Welfare Bill or the Finance Bill is rendered totally impotent by that Standing Order. Again, I am not criticising you for applying it.

Section 3 is related to social welfare assistance and our spokesman. Deputy McCarthy mentioned that VAT charges are in existence and that people going into the shops doling out their paltry sums of money must dole out more as a result of the added VAT. It is a pity that we could not have a debate on the amendments. I think we could convince the Minister that it would be only right, equitable and just to have these payments made from 1 April, but we cannot do that.

I want to refer to a few things about social assistance. Already in this House on occasion when the Minister was answering questions I raised the whole matter of the attitude of officials towards the recipients of social assistance. I got an assurance from the Minister in this House that he would see to it that his officials were instructed to treat the citizens who are in the unfortunate position of having to get social assistance with the dignity and respect that such citizens deserve and that there would not be a Mr. Bumble the Beadle attitude towards these people, a grudging, suspicious attitude and at times behaviour by officials in investigations which nobody, neither Minister nor Member of this House, could stand over. People in receipt of social assistance are not criminals and should not be treated as such by public officials investigating their means. As the House knows, the amount of social assistance received is determined by the income of the persons involved. It would be helpful if the Minister would issue a list of what is reckoned as means and of what could be discounted by way of expenditure or outlay. There does not seem to be any logic from one case to another. I appeal to the Minister to bring out a small leaflet giving that information.

The Minister said that unemployment assistance will be paid on 3 July, deserted wife's allowance, prisoner's wife's allowance and single women's allowance will be paid on 11 July; old age pension and blind pension will be paid on 12 July. There seems to be a progression and the most destitute are left for the day of the Orange parade, 12 July. Is there a hierarchy of values in the Minister's office which places unemployment first and blind pension, old age pension, widow's pension and orphan's pension second last? I cannot understand that. If it is for administrative purposes — that excuse has been used often enough in the House — I should like to know why that order was chosen. We have heard about the benefits of computers in public administration. We were told that the Department of Social Welfare was highly computerised. Is it fully computerised? Why the long delay? Why must it take a week to make payments to those who deserve them? If it is a matter of the workload in the Department, surely a computer could be used to enable the Minister to pay these social welfare benefits from 1 April?

I listened to the Minister talking about PRSI. He refrained from raising the amount. Employers are of the opinion that the present rate is a disincentive to employment. As regards non-contributory old age pension, the Minister spoke about the desirability of increasing the finances from PRSI and so on because there were many people drawing noncontributory old age pensions without, as he put it, having made any direct contribution. I do not think the Minister was being unjust or uncharitable in the exact form of words he used but there was an imputation that people who did not contribute were less deserving of a pension in their old age than those who did so. The House and the Minister's party would refute that.

Some officials are attaching themselves like leeches to old people, quizzing them and sucking at them in order to find out if they have a few bob here or there. This has surfaced recently in regard to the raids on the elderly in rural districts. I will not deal with that but the point was made. When the Minister for Finance was asked where he would get certain moneys from I was perturbed to see on the leaflet which was issued that figuring prominently was a saving of £2 million on non-contributory old age pensions. I ask the Minister to see to it that this is not bounty for the Department of Finance gained by people going around and ferreting into the affairs of old people, literally scaring them out of their wits. I will give one example to the House regarding the prescribed relative allowance. An official arrived at a house and saw that the table was set for three people. There were only two people resident in the house; the pensioner and the person in whose interest the prescribed relative allowance was being paid. This snoop thought he had found three people in the house. The bean an tí was not entitled to prepare a meal for a visitor. That is the kind of behaviour I am talking about. I know the Minister would not have condoned that and I ask him to see to it that it is known throughout his Department that he will not stand over this kind of treatment.

As regards the list it would be no harm if a letter from the Minister's office stated: "your means are made up as follows, so much from this and so much from that. This is how we reached the figure. We deducted all this from what you would get if you had no means at all". If a letter along those lines was issued people would not be confused. It would save a great deal of letter writing and bureaucratic work. It would mean that the applicant would be able to challenge the assessment. For example, if someone on social assistance was assessed as spending £200 on transport and the person had spent £250 on it he would be able to produce evidence to the Department to that effect. However, the answer "your means were assessed at so much and this is above what you are entitled to earn" is no good to anyone. The person is not satisfied and the public representative has to go through the rigmarole of extracting information from the Department.

It we cannot have the payments made on 1 April, then can we have dealings with citizens carried out at a dignified level and can we have reasons given for the assessment of means? Will the Minister issue a leaflet outlining the general principles regarding that?

Like other speakers I should like to see the benefits introduced on 1 April. However, I accept what the Minister says. We have a dwindling number of workers who must maintain the system. The figures which the Minister has given are rather intimidating.

The system of assessing who is and who is not entitled to unemployment assistance must be called into question. There are several anomalies in the system. There is a distinction made between urban and rural living. I appreciate that when this system was first introduced in 1934 there was some justification for it. There was a significant difference between urban and rural living. A large percentage of our population were living off the land and enjoying certain benefits such as food, milk and things of that nature which the urban dweller did not have. This is long outdated. A commission are due to report at the end of the year and I hope one of the recommendations of the commission will be that we should abolish the system which differentiates between urban and rural living.

It is ridiculous that in some parts of the country people who live in an area which is designated as a rural area have to come into a town or a city to sign on at the local exchange. They have to travel greater distances than people living in urban areas. Yet they qualify for a reduced rate. That cannot be justified. I hope the Minister will take a serious look at it. A contribution is made by the local authority. Now that local government is to be restructured, this charge should be taken away from the local authority and funded by the Exchequer directly. The local authorities get a payment and they are then supposed to make a contribution towards unemployment assistance. This is creating frightful problems for them. I hope the commission will give some consideration to this problem which has existed for too long.

Another aspect which highlights the injustice of the system is that if you live in an urban or rural area and you are in receipt of benefit that does not matter, but if you are in receipt of assistance it does matter. When your contributions run out you go onto a reduced scale. You go two steps down rather than one. I do not think we can continue with this system for much longer. A figure of 7,000 people has been mentioned as qualifying for an urban rate. There are many satellite towns in the Cork area. In effect they are towns but they have not got urban status. This affects the payments of people living in those areas.

I should like to highlight another anomaly, that is, the difference between the short duration and the long duration entitlements. I do not know the rationale for that, but it is creating a problem. It is proving to be a disincentive to people who could get short term employment. If you are in receipt of long term assistance and you are offered a job on a building site for the summer months, when you revert to unemployment assistance you have a short duration entitlement. This is a definite disincentive to anybody who wants to work. This is happening right across the board. It is one of the great injustices. We are told it may be necessary for people to take short term employment, but there is no greater disincentive to people taking short term employment than this system. I should like the Minister to take a careful look at that.

I am concerned about the method by which single people living at home with their parents are assessed. If the father has a reasonably good income that weighs against the entitlement of his son or daughter. I know cases where boys and girls aged 19 or 20 years are in receipt of £7 a week. A father in receipt of £120 a week is not in a position to maintain them, to clothe them and give them pocket money and allow them to live as near normal an existence as possible on £7 a week. That is penal. The whole system should be reviewed.

A person who has reached the age of majority should have full entitlement. If we are to treat a person as an adult we have to give him an adult entitlement, regardless of whether he is living at home with his parents or living alone in a flat. This could attack the fabric of the family. No young man of 18 or 19 years wants to go to an unemployment exchange and receive £5, £6 or £7 per week. That is not a dignified way to treat young people. I ask the Minister to look at that problem.

I consider people in receipt of unemployment assistance and living alone to be the real poor in our society. Like other speakers I should like to see all benefits raised to the level of the full non-contributory old pension. That should be the Threshold. With the new increase it will be £44 a week. I appreciate that this would cost money, but there should be a gradual reduction in the difference between the various rates. A single person living alone is very vulnerable. Women under the age of 58 years may have worked in a factory and then found themselves redundant. They have no living alone allowance, no free electricity, nor free fuel, no free television licence. These have become accepted as the basic necessities and comforts of life. They are deprived of them. As the years go on the Minister should close the gap in each budget. An effort should be made in that area.

Deputy Wilson touched on something about which I have felt very strongly for a long time, that is, the prescribed relative allowance. There is one sure way of reducing the cost of hospital bills and the cost of maintaining medical services, and that is to widen the scope of the prescribed relative allowance. This would take many people out of hospital. I could cite cases of people who are forced to give up work. They endeavour to work and look after an elderly relative for a couple of hours. If they were offered a reasonable allowance under this heading, they could cater for the needs of the elder members of their families. That would be a very humane thing to do.

There is tremendous scope for reducing the cost of geriatric care in hospitals and bringing people home where they would not be disorientated as many of them are in hospitals and institutions. This could be of tremendous benefit to the community at large. As it stands, the allowance is too restrictive and too meagre to encourage anybody to give up employment and look after elderly relatives. I would support Deputy Wilson on any movement in that area.

Something has come home rather forcibly to the inhabitants of Cork city as a result of the recent closures of Ford, Dunlop, Lunham, Verolme Cork Dockyard and the Eagle Printing Company. A major problem has arisen regarding the method of assessment for unemployment assistance, because all redundancy payments are being taken into account in this assessment. I know that a scale applies and the Minister gave me details of this when I raised the matter with him, but, I ask him to consider, first, completely disregarding the means test in this case. I am not saying this is peculiar to Cork alone, but in that city we have several thousand people who will never work again. What we are saying to them, under the present system, is that while they have some money in the bank they are to draw on it and when they become penniless they will get their entitlement. There is no justification for that. This should be viewed in a very charitable way. We are not likely to provide jobs for most of these people, despite the best efforts of the IDA and other agencies. We will not get people over 50 years of age back to work again in significant numbers — that is the awful situation facing us.

Those who received redundancy payments are now being penalised. The money comes from two separate sources. First, there is the statutory entitlement and I suggest that it is quite illegal to take this into account. This compares with a person who makes a contribution towards the social welfare system under PRSI. These people have contributed and no one has the right to interfere with that, just as a person has a right under the contributory pension scheme. This is something which must be looked into. There is a case. Rather than go through a likely court procedure to determine whether the Government are within their rights in doing this, the Minister should take the initiative and I now ask him to do so. We have redundancy payments above the statutory entitlement which should be charitably considered.

Recent events are very annoying and disturbing. On the one hand, the Government come in to bail out the major financial institution of the country and on the other they take from those who receive a once-off payment for life — a sum of money that they will never handle again. I am concerned about the method by which some of these people are being assessed, although I would not go as far as Deputy Wilson on this point. They are being asked to produce receipts for every penny of redundancy money which they have received and spent. This is quite degrading and humiliating to people who have in many cases contributed to the system since 1935-36 without a break. I have seen men and women stripped of their dignity by the method of assessment at present in operation. I ask the Minister, as a colleague and friend, to take these points into consideration before this Bill goes to the Seanad and comes back to the Dáil for final approval.

Many of the points made by Deputy O'Sullivan are valid. I would propose only to refer to one or two of these. Specifically, I want to refer to the assessment of unemployment assistance for single men and women living at home. Deputy O'Sullivan mentioned young people who are left with £4 to £6 a week as a result of the method of assessment. It certainly is bad enough to have them depending on that kind of income, to clothe and feed themselves and pay for their keep. However, it is even more serious when older men and women, in their thirties and forties, who are single and living at home are also assessed for unemployment assistance and money deducted from the basic level of assistance because they are living at home.

In my contribution on Second Stage, I indicated one case where a 36 year old man is taking home £12 per week unemployment assistance while the eldest of his family, single and living at home and brothers and sisters younger than he are taking home six or seven times that amount because they are fortunate enough to have a job. I put down an amendment No. 9, to section 4 of the Bill, which has been ruled out of order. The intention of that amendment was to urge the Minister to look into the manner in which unemployment assistance is assessed for single men and women living at home. It adds nothing to their dignity when they have to sit at home week in week out, because they have not enough money to move outside the door. A visit once a week to a cinema would virtually wipe out the money that they are receiving on unemployment assistance.

The basic premise behind the deduction of money because a person is living at home is incorrect. It is no less expensive to be fed and clothed and do all the other things which one must do to have a decent standard of living while living in the parents' home than when living in a private or corporation flat. If the Minister has the statistics available, could he indicate to the House how many men and women are in this category and how much it would cost to give them the full rate of unemployment assistance? This amount is not great. For long term unemployed, it has been increased to £34 by £9.95 in this Bill. No one will be able to head off for the Bahamas on his or her holidays this year or next year as a result.

The other point which I would put to the Minister is on the question of appeals against disallowance of unemployment assistance, and, indeed, in some cases unemployment benefit. It has been my experience that a person with a fairly high level of education is better able to cope with unemployment assistance appeals procedures. Apart from having such education, that person will not be intimidated by the whole process or by officialdom. He or she will be able to cope and, more often than not, will succeed in their appeals. I have come across quite a number of people who are intimidated by officialdom, whether or not that is intended. The amount of information provided for people who are being disallowed benefit is minimal. I have come across many people who, having been disallowed benefit, simply go home and do nothing further about it because they were unaware that they could take any steps to restore their benefit.

There is need for a series of simply written information leaflets. I stress "simply written" basic information leaflets on what are individuals rights in relation to the various benefits available. I know there are information leaflets available but they are certainly not simply written; one would need a degree from a third level college to understand most of them. There are not many working class people with that kind of third level education who by and large are those dependent on such benefits. Indeed I have come across some fairly well educated people who could not decipher some of the information leaflets available.

There are two things the Minister should do. First, he should look immediately at the question of allowing single people living at home unemployment assistance at the full rate and, second, set about providing basic information to people on their rights regarding the benefits available, ensuring that such information is readily available at labour exchanges, health boards, clinics and so on, where people are most in need of it. Were the Minister to do both of those it would constitute a marked improvement in the whole of the social welfare system.

A number of amendments in the name of Deputy McCarthy have been ruled out of order. They dealt with section 3, in which he asked that payments of social assistance be made from April rather than from July. They were ruled out on the basis that they involved a potential charge on revenue. While I accept that the payment of 6 per cent from the beginning of April for the full year would constitute a charge on revenue, if the Minister were to come into the House and say he was giving 4½ per cent from April for a year that would not constitute an extra charge on the Exchequer.

A potential charge—

Yes, potential, but if the Minister were to come in and tell people exactly what he was giving them, which is a 4½ per cent increase in social welfare assistance for the full year rather than telling them he was giving them 6 per cent — which is not in accordance with facts because he is giving them a 6 per cent increase for nine months of the year only — that would be more honest. It is important that people realise they are receiving only 4½ per cent. There are justifiable reasons that such payments be made from 1 April, indeed why payments of 6 per cent or more should become effective on 1 April, this year more than any other. It is extraordinary that the Minister is reducing the rate of increase in successive years. This year we are down to a 6 per cent increase for short term recipients and 6½ per cent for long term recipients. We are now talking about the worst off sectors of our community, the elderly, widows, deserted wives and particularly the unemployed, the majority of whom are unemployed through no fault of theirs who suddenly find a very sharp drop in their level of income. After their right to unemployment benefit has been exhausted they must then depend on unemployment assistance. The longer these people are on unemployment assistance naturally the more difficult it becomes for them to manage on the money available to them.

There are many reasons this year why a larger increase would have been necessary merely to ensure that such people had an adequate standard of living. For example, during last year the Government removed half the food subsidies, putting up the price of food, and there has been no compensation to social welfare recipients therefor. As a result of pressure from Deputies in this House the Minister introduced the family income supplement two months earlier, following the removal of half the food subsidies; but that was of no benefit to the people about whom we are speaking here in section 3 — for example, those in receipt of unemployment assistance. Irrespective of how low their income was they were excluded from the receipt of the family income supplement.

There have been increases in value-added tax with no extra allowance to those on social assistance on account thereof. Indeed, those on short-term assistance have been excluded by direction of the Minister from participating in the national free fuel scheme, which is most extraordinary. That scheme allowed discretion to the local community welfare officer and the relevant health boards as to who should and should not receive free fuel vouchers. In the two years since the Minister came to office the circular to health boards has been exactly similar to that of his predecessor except for the insertion of one paragraph excluding recipients of unemployment assistance and disability benefit from participation in the national free fuel scheme which imposes an intolerable burden on many of them, particularly those with families. As I said on Second Stage to the Minister in the case of a family, where the husband, wife and four children had £84 a week, they could afford only one bag of coal a week, which lasted three days, leaving them without any form of heating for the remaining four days of the week throughout the winter. They were excluded from participation in this scheme.

There is provision also for an increase in the supplementary welfare allowances. I would ask the Minister to examine the whole administration of the supplementary welfare allowance. For example, it is difficult to understand why in County Cavan there are only 55 recipients of social welfare allowance, the lowest in the country, which is practically half the figure two years ago before this recession really hit hard.

There is an area warranting examination. It is not sufficient merely to increase the amount such people may receive. We need to ensure that people entitled to such assistance do receive it. The delays in the processing of claims should also be examined by the Minister. All of this is relevant to the delivery of the whole of the social welfare scheme. It is disappointing that there are no innovations evident for those dependent on social welfare assistance similar to those in the past, particularly when the leader of our party as Minister for Health introduced the free telephone rental scheme. Everybody knows its benefits now with these brutal, vicious attacks on the elderly in rural areas. The Government should be capable of introducing some particular benefit in kind, as happened in the past, to ensure that these people have an adequate standard of living. I ask the Minister to reconsider the whole question of providing sufficient benefits for old age pensioners, widows, deserted wives, blind pensioners and those on unemployment assistance. They should be able to enjoy a normal standard of living.

I should like to deal with a number of points raised. Deputy Wilson and I have an occupational disease in that we tend to let our tongues run away with us now and again. He indulged in regrettable rhetoric when he said that social welfare officers tended to behave in a leech-like manner when they assessed people for assistance schemes. There are 3,500 people employed in the Department of Social Welfare and very many of them live in the same areas as the people they assess. To my knowledge they do not behave in an irresponsible way and do not bring excessive pressures to bear on people when it comes to assessing income. Irish people have an enormous propensity for not disclosing their income and, even when they are entitled to benefits, they are reluctant to do so. Giving information to an official is regarded as a social sin and the attitude frequently is that officials are not entitled to this information. In a social democracy, where we try to redistribute resources to those in greatest need, there has to be some way of assessing incomes.

I assure the House that the Secretary of my Department and the Assistant Secretary, who is responsible for personnel, would not in any circumstances tolerate discourtesy by any officer of the Department towards anyone in the discharge of his duties. I can count on my fingers the number of cases where Deputies or individual citizens have complained about an official behaving in an outrageous manner. All complaints are thoroughly investigated on the spot in the Department. The officials are interviewed, statements are taken and, when there is cause for censure or reprimand, disciplinary action is taken immediately. However, I stress that such occasions are rare and I frequently have to defend officials who are abused in employment exchanges. They are subjected to enormous pressures when they seek information and have grounds for doing so. On occasions they are physically threatened and, in Border counties, their lives have been threatened. I want to stand up for officials who have manfully defended themselves in situations of that kind. There are enormous pressures on the staff of the Department of Social Welfare, especially with the growth in the numbers claiming who are entitled to benefits and whose claims have to be processed as expeditiously as possible.

Nearly every Minister for Social Welfare dreams up a new scheme and there is a multiplicity of these at present. There is no need for information to be unavailable regarding the means test as the Department have a wide range of leaflets which give details of the means test and other schemes. A special booklet was produced last year to explain how the means test operates in the case of unemployment assistance. It shows how capital, cash income and income from farming are assessed. The booklet was widely distributed to Members of the House of the Oireachtas and I will make copies available to any Deputy in any reasonable numbers which they require to distribute to their constituents.

There are one million people dependent on various forms of social welfare and we have the highest degree of servicing our social welfare system compared to any other country in Europe. We have over 200 Members of Parliament, the highest ratio in Europe for any electorate. There are about 900 councillors who daily serve their constituents and impart all kinds of information. We have a multiplicity of public servants from health boards to social welfare offices servicing the electorate; and no other country in Europe has a backup in Parliament of about 300 people with electric typewriters despatching letters day and night to various State agencies.

That is the only way we can get information.

The whole political system, regrettably to some extent, is based on this, because in many cases when an official tells someone what his or her entitlement is a politician has to confirm it with seven or eight letters. When a Deputy receives an inquiry about unemployment assistance he writes to a county manager, the chief executive officer of the health board, the Minister of State and to me. Some of them even write to the Ceann Comhairle. I often receive ten letters about one person.

I know that considerable latitude has been allowed——

I could draw a graph of where the letters go and I could show——

The Chair is trying to point out that he appreciates that very considerable latitude has been given in this debate.

I am replying to points which were raised.

I appreciate that, but we are dealing with section 3 which involves dates for commencement of certain allowances or benefits and all sides of the House have wandered away from this.

I appreciate the point you are making. In dealing with the question of social assistance payments, I wish to make the point that anyone in the country can almost instantaneously find out their precise entitlements under the social assistance scheme and, if the Deputies have any difficulty in getting the information, I will do my best to help in that regard.

Deputy O'Sullivan raised the question of the urban-rural unemployment assistance difference. This problem is recognised. It is being considered by the Commission on Social Welfare. The supplementary welfare allowances rates are linked to the rural unemployment assistance rates and any change in the unemployment assistance scheme would have a knock-on effect so it would be better to await the overall review from the commission rather than to make ad hoc changes in respect of the urban-rural differences. I expect to have the report of the commission shortly.

The social assistance schemes in general, including the differences in the rates between old age pensions and the other payments as well as the question of a possible wider role for the prescribed relative allowance are being examined also by the commission. I will be urging them to expedite their report on these matters.

Deputy De Rossa raised the question of the assessment for assistance of single persons living at home. In calculating the means of such applicants, account must be taken by some way or other of benefit accruing to the claimant by reason of his residing at home. The legislation does not specify the method by which the means should be calculated. Each case is decided on its merits having regard to the standard of living of the household in question and the circumstances of the applicant. Therefore, there are administrative arrangements for setting standards in this respect so as to ensure that the level of assistance arrived at takes account of the standard of living enjoyed by the applicant by reason of his residing at home.

The purpose is to endeavour to achieve some degree of equity between applicants whose parents are in relatively comfortable circumstances and those whose parents are in very poor circumstances. This may not be the most satisfactory way of determining the amounts that ought to be paid but without some such criterion young people living in relatively affluent circumstances would be entitled automatically to the same level of assistance as those whose circumstances are relatively poor. In the case of wage earning families, the method of calculation is to arrive at the net income of the parents, that is, the gross income less income tax and PRSI contributions, an amount to provide for rent or mortgage repayments and a set parental allowance and to divide what is left among the non-earning members of the family, including the applicant. The sum to be paid takes into account the value of the board and lodgings. Generally, the amount is about 12½ per cent of net income and that can be considered a reasonable assessment.

If we were to abolish that means of assessment I do not know how many would automatically have their names entered on the live register overnight. The last investigation in this area that I can recall was in 1980 when the Department of Finance with the Department of Social Welfare undertook that type of investigation. It revealed that approximately an additional 20,000 people would automatically be entitled to unemployment assistance if there was to be no question of taking into account benefit derived by way of board and lodgings. The estimated cost of such a change at that time was £21,500,000. Perhaps we would be talking about double that amount now and of course the numbers would be very much higher. The whole question of this means of assessment is being examined also by the Commission on Social Welfare. Deputies will be aware that the commission are reporting this year.

On that aspect of assessment, the same would apply in terms of farming families. It is not possible to give unemployment assistance to the son of a farmer in the absence of some assessment of yearly income from the farm. As in the other case, that sum is divided between the parents and the dependent members of the household and on that basis an assessment is made in respect of the applicant. That point must be stressed.

I have spoken at length about assistance schemes but equally I make the point, one that I have made here repeatedly, that our pension provisions on the contributory side, and on the non-contributory side too, are in many instances as good as, and in some cases substantially better, than the rates in Northern Ireland or in the UK in cash terms.

On the contributory side, 200,000 persons are not affected in any way in their entitlement by reason of savings. So far as the non-contributory side is concerned there are 140,000 pensioners who are in receipt of their pensions as a result of means testing but complaints from those people are few and far between, despite the impression that one might get from time to time. Savings are taken into account in calculating the amount of a non-contributory pension but people can have quite large amounts by way of savings and still qualify for pensions. For example, a single person could qualify for a full old age non-contributory pension even if he has up to £2,987.50 in the bank but has no other means. A married man can qualify for the full non-contributory old age pension while having up to £5,975 in the bank and he would be drawing interest on that, too. I would not mind having that much in the bank myself. Therefore, the means test scheme is generous in that regard. A person who is single and living alone may qualify for a minimum non-contributory old age pension even if he has up to £22,747.50 in the bank but has no other means. A couple can have £45,495 and still qualify for a pension. These amounts will be increased from next July as a result of the increased rates provided for in this Bill.

Deputy O'Sullivan raised the question of redundancy payments assessments. This matter is being reviewed and I have been asked to prepare a general report for the Government on it. I have had views about redundancy payments for many years. I have been involved in many negotiations in the trade union movement and I was one of the advocates of the introduction of redundancy payments. The assessment of redundancy payments in calculating means for unemployment assistance is a contentious issue and is very difficult. It is linked directly with the calculation of means for pensions and for other forms of social welfare entitlement. Therefore, it has to be reviewed on a broad basis and not solely in respect of a lump sum payment to an individual with regard to assessment for unemployment assistance. It would be difficult to ignore totally the question of capital in that regard. Capital sums in terms of non-contributory old age pensions would be affected and there would be enormous implications for the Exchequer right across the board if redundancy payments were not included. However, the matter is under review and I have had discussions about it with the trade unions in the recent past.

During the debate the free fuel scheme was mentioned but the Minister did not refer to it in his reply. If a person is living in Dublin city and is drawing assistance or benefit he or she will qualify for the scheme but that does not apply when the person concerned is living in the county. I am sure the Minister will agree there is an anomaly here and I should like some information on this.

I share the frustration of many Deputies with regard to that point and also with regard to the two existing separate fuel schemes. However, there is a serious problem, namely that a large number of people by virtue of their status alone qualify automatically for free fuel and if there is to be rationalisation of the scheme that aspect must be included. No Minister for Social Welfare so far has succeeded in convincing the Government of the day of the way that rationalisation should take place. In my view such rationalisation should be introduced but in regard to people who currently have automatic entitlement because of their status their case would have to be reconsidered. At the moment no matter where such people live, or with whom they live or what may be their income, they are entitled to free fuel. That would have to be changed if the scheme were rationalised on a national basis. Naturally, the first people to kick up about that would be those who would lose while those who would gain would be pleased but would not necessarily say much about it.

I am sure the Minister will agree that income from assistance should have some bearing on the matter. I know of a former employee of Clondalkin Paper Mills who is drawing about £60 per week in assistance to support himself, his wife and his unemployed son but he is not entitled to free fuel because he is living in County Dublin. I am sure the Minister will accept there is no justice in that.

I throw the question back to the Deputy. Let us take the case of a widow who has a contributory widow's pension, who is living at home in comfortable circumstances in Dublin city, who has a full time job and who qualifies automatically for free fuel. The Deputy has spoken about a person with a low income who is living on unemployment assistance in the County Dublin area and who does not have automatic entitlement to free fuel. Will he not agree that, relatively speaking, one person is given quite exceptionally favourable treatment as against the other person? When the question is raised the answer is given that everyone should be entitled to free fuel. I do not have before me a figure giving the cost of the free fuel scheme but it is running at well over £20 million. If that scheme were extended on a universal basis one would have to find another £15 million or £20 million and there is no way one could justify such a scheme on a national basis without some kind of assessment of means. I share the concern of the Deputy. The matter has been considered on a number of occasions by former Ministers for Social Welfare, including Fianna Fáil Ministers who considered the matter on three or four occasions. However, on each occasion the various Governments have shied away from taking what should be a fair decision.

If I write to the Minister in relation to this case perhaps he will have it examined? I am sure he will agree that the point made by him in relation to the person who is obtaining a contributory widow's pension does not solve the problem of the person to whom I referred. There should be some flexibility in relation to this scheme. The man I mentioned was employed for more than 30 years and he paid social welfare contributions during that time. He became unemployed not through his own fault but because the industry in question closed down. Yet, what benefits does he get? I will write to the Minister about this matter. I may have asked a parliamentary question already about it but I will send him all the information I have. I ask the Minister to examine the matter sympathetically. If a person drawing a contributory widow's pension and who is also in employment can get free fuel, surely the person to whom I have referred should be entitled to it also?

I will put the question in reverse. Would it be fair and reaonable that one should not continue to give free fuel to the contributory widow and give it to the other person instead?

At no stage have I said that one should be knocked off in order to give it to the other. I am referring to the system.

That is the problem.

Yes, but the Minister advanced the case about the person drawing the contributory widow's pension and I said that it did not help my problem.

The amounts of money involved are very substantial. Increasing the fuel voucher from £4 to £5 costs an extra £5 million a year. There are 168,000 people receiving fuel vouchers. One could recast the system more fairly with the same amount of money, but some Opposition politicians might have my neck in a noose if I attempted to do so.

Taking the system as it stands, there are a fair few people who might have the Minister's neck at present.

I do not mind that; it is the Opposition having my neck that I find rather painful.

I am not making the point as a member of the Opposition but in fairness to the person deprived of the free fuel voucher.

I would not disagree with the Minister that in the social welfare system means must be tested and that that is not an easy thing to do. I disagree with the Minister as to the volume of complaints and the dissatisfaction at the delays in processing applications. If the Minister is not directly aware of the frustrations caused he must know about it from the volume of Parliamentary Questions and representations relating to these matters.

I compliment the staff of the Department who are courteous and efficient and who are doing their best given the resources available to them. It is not all the fault of the deciding officers and the people assessing the means. Because of the number of schemes, the volume of appeals and the large number of applicants there is an understandable delay in making decisions and this creates a huge amount of dissatisfaction. I would remind some of the officials of the Department that it is their job to assist people with their claims and not to harass them. There is widespread anxiety at the manner in which a minority of officials are dealing with cases. Perhaps these officials are frustrated in their work due to staff shortages. There are various schemes necessitating different methods of assessment and it is not easy for them to come to a fair decision. If we succeed in making the Minister aware of the problems and of the widespread dissatisfaction and if we succeed in bringing home to him the need to remedy the situation we will have been successful in this limited debate. It is time that there was decentralisation of the decision-making process in the Department. There should be a decision making process at local level. This would cut down on delays and alleviate much of the hardship. It would certainly minimise the correspondence and the pressure on public representatives, county councils and on the Ombudsman.

Nineteen eighty-five is the end of the Decade for Women, and one major inhibiting factor in regard to Ireland's signing the UN declaration on the elimination of discrimination against women is our social security system. Because of the differing rates of payments and the special conditions applying to women, particularly married women, in relation to qualification for unemployment assistance and a variety of other discriminations in the social assistance area there is an urgent need to tackle and resolve this problem so that we can eliminate this impediment to our being a party to the UN declaration.

The Minister would make a major contribution to the social welfare code if he tackled this area of discrimination against women. Nineteen eighty-five is an opportune time, the end of the Decade for Women, to tackle this issue.

Recently a review has taken place in relation to the prescribed relative allowance and the allowance has been cancelled for many pensioners. I am aware of a substantial number of cases where this allowance has been discontinued even though it had been granted for the past two or three years after a thorough examination. Because of expenditure saving techniques employed in the Department a large number of pensioners have been refused the allowance, even though their conditions have not altered upwards or in some cases the conditions, if anything, have deteriorated. I would ask the Minister to take the necessary steps immediately to curtail the activities of officials in his Department who are reinvestigating claims which had already been favourably decided. This is an area where there has been argument as to whether or not officials at local level should have discretion in making the decision to pay the allowance. The system is clear-cut, the conditions are printed in the social welfare booklets, but many pensioners who were in receipt of that allowance have had it discontinued for no apparent reason other than that it was a cost-saving device initiated by an official in the Department. I appeal to the Minister to stop that immediately and have decisions announced on all appeals before the Department. The allowances should be restored because the appeals adjudicated upon were upheld. In many cases the same official was involved. The position is most unsatisfactory.

I am anxious to highlight the fact that the means testing system is in total disarray. Urgent action is needed to deal with this before people are driven to the point of frustration and annoyance. The Minister should try to decentralise the decision making process in some way. If he does that, many of the problems that arise can be rectified locally and people will not have to go through the massive bureaucracy which is stifling the system and causing severe hardship for many old and handicapped people.

I should like to deal with two points referred to by the Minister. The Minister indicated that a lot of information was available to social welfare applicants and that it could be made available to Members. I am sure the Minister would prefer if Deputies were not involved in the whole process of writing letters to this and that Department trying to sort out the entitlements of applicants or recipients or trying to deal with appeals. It would be better where a person who is in receipt of unemployment assistance is disallowed if he is advised fully of his rights in regard to appealing the decision. People should be made aware of the basis of their appeal, what they should do and what they are entitled to claim. It would be better if a person on unemployment assistance or disability benefit was advised fully of their rights rather than being told that they can appeal. At present that is almost all the information they are given apart from being given an address to which they should send their appeal.

It is as a result of that lack of information that Deputies and councillors get involved in this treadmill of writing letters, making phone calls and doing work which they should not be directly involved in. Obviously, there will be cases where Deputies and councillors should be involved. For instance, a Deputy or councillor should make representations to ensure that the correct benefit is paid and that the correct procedures are pursued. However, a lot of the time wasting and time consuming letter writing referred to by the Minister could be avoided if recipients were given information where they need it most, at the labour exchanges or when they are notified that a disability benefit has been disallowed. Like the Minister I would like to see an end to this clientist process we are all so heavily involved in.

In many cases success depends on whether one is literate or pushy enough to go after an appeal in the correct way. That is unfair. I am sure the Minister is aware that there is a fair degree of illiteracy among the population in regard to such matters and that not everybody is prepared to get annoyed or up on their high horses when told abruptly that they are no longer entitled to a benefit. Many people go home and assume they are not entitled to the benefit. There should be a process of ensuring that people get what they are entitled to.

I should like to deal with the question of assessment of means for unemployment assistance for single people living at home. I go along with the argument that where a person is in receipt of cash income there are few grounds for ignoring that income. Obviously, there is a case to be made in regard to redundancy benefits, tax rebates and so on. I must argue strongly in favour of the single person who is living at home and is forced to depend on the charity of a brother, sister, father or mother in order to lead any kind of half decent existence. It is not reasonable or humane to expect an adult man or woman in their mid-thirties or forties to live on £12 per week cash.

I am not arguing that there should be a total overnight transfer on to benefit for everybody over 18 but that we devise a system to provide at least a basic minimum income for adults. The £34 or £35 which single people receive if they are not living at home is a bare basic minimum income. The Minister should improve on that amount. I realise that the commission will be reporting this year but, given the speed with which such matters are dealt with, it is highly unlikely that legal changes or a new social welfare system will be introduced by the time the next Social Welfare Bill comes before the House. The Minister should ensure that single adult men and women depending on unemployment assistance are given a basic income so that they can survive.

Deputy Daly raised the question of the prescribed relative allowance. People who apply for that allowance are subject to a means test such as small farmers living with their elderly parents. I am aware of a small farmer whose application for the allowance was turned down. I felt strongly about that decision and I made representations to the Minister. The matter was investigated, but unfortunately the Minister in his reply said he could not pay the allowance because the individual was not giving full time care and attention to his parents. I can assure the House that the individual concerned was giving full time care and attention to his father and mother as well as looking after his small farm. People who care for their parents are entitled to the few pounds under the prescribed relative allowance scheme. As well as that they are keeping their fathers and mothers out of institutions and looking after them. In rural Ireland with the number of robberies of elderly people at the moment, it is wonderful to see the sons and daughters living with their fathers and mothers. I feel very strongly about this. The Minister should examine it again to make sure that these bachelors or spinsters as the case may be are entitled to the prescribed relative allowance. Deputy Daly raised this and I want to follow it up.

Another question is that of wives who were working, are now at home and have drawn maternity allowance. When they go back to work there is no job for them. When they sign for unemployment benefit they must get letters from the National Manpower Service and from employers stating that the job is no longer there, and they are not qualified for the unemployment benefit for which they apply.

Those are two points I wanted to make and I hope that the Minister will reconsider in particular the prescribed relative allowance for the dependants of elderly people who are living alone at the moment.

When I spoke on this section earlier I referred to the single person living at home and I said that the real poor are such people. They need special consideration. I have already expressed the concerned that I share with Deputy De Rossa for single people living at home, but at least they have the benefit of family support. The real poor in our society are single people who must live alone and who do not qualify for social welfare benefits that other pensioners enjoy such as free fuel and electricity allowance. I ask the Minister if a special case could be made for them. To expect somebody who is on short duration unemployment assistance to survive on £32.75 a week is not realistic. I suggest that we increase the amount to the level of the non-contributory old age pension of £44 per week. I would like the Minister to go back to the Cabinet with proposals for the care of this section who are the most vulnerable in our community today. I accept that we must cater for the elderly to ensure that they end their days in dignity, but we should not let people stand and wait until they reach the age of 66 years before they can achieve any level of dignity, and that is what this system is doing at the moment. Again I ask the Minister sincerely to make a special case for single people, men and women under the age of 50. Women at 58 years enjoy a slightly improved benefit but it is not sufficient. These people have no fuel, electricity, television or telephone allowance and many people under the qualifying age need a telephone because they live in isolated areas. I hope immediate action will be taken on their behalf.

The Minister said that he would make a submission to the Cabinet regarding the assessment of redundancy payments, and I welcome that. I would like him to accept my suggestion regarding the method of assessment, that the Revenue Commissioners take into account lump sum payments of this nature. Up to £6,000 is ignored for this purpose and I suggest that that be increased to £10,000 if there is repayment from pension contributions. Following the first year of unemployment there is a further clawback, a matter of top slicing in the second year of unemployment. We cannot, on the one hand, say that the Revenue Commissioners will accept this and, on the other hand, the Department of Social Welfare will not accept it. There is a contradiction there. I would like that to be taken into account in the submission to the Cabinet.

I have spoken about the prescribed relative allowance, in support of Deputy Wilson. Here is another anomaly in that the allowance is paid to the pensioner. First and foremost, the allowance is not adequate, as I have pointed out. Here is tremendous scope to reduce our hospital bills in the area of geriatric care, but the small allowance paid is creating real social problems at the moment and the elderly person is not inclined to hand it over to the person caring for him or her. If the allowance is to be given it should be to the person who is providing the care rather than to the pensioner. Conflict arises from time to time regarding this. The sum is minute but all this should be taken into consideration.

I assure you, Sir, that I will not delay the House very long. I am resisting all the invitations that might arise from the multiplicity of cases that I deal with throughout the year. Rather I will concentrate very briefly on one. I state unashamedly that when last I brought this case before the House I expressed to the Minister here and outside my disappointment that he had not as a socialist — a man who has a reputation for appealing for people; even if he has not, arising from the office he holds he should have it — a feeling for particular cases.

Briefly, the case is that of two people, more especially one, the lady, a young lady in my constituency who married a chap who is in a wheelchair. When she married him he was in receipt of two allowances, an invalidity allowance of £40 per week and a mobility allowance of £6 odd per week, giving him a total income of £46 per week, a certain sense of independence and what this House would regard as the minimum financial allowance a young man who has been sentenced to spend the rest of his life in a wheelchair should get. He had what I would regard as the good fortune to meet with a young lady who fell in love with him and was happy to marry him. She was and is working in not very attractive employment which requires her to get up at 5.30 a.m. and carry out whatever duties are necessary so that she can report to the local bakery where she works until 3 p.m. each day. Living with the chap in the wheelchair before he married was his invalid father.

I had the opportunity to co-operate with them and Dublin Corporation in providing a special extension to the house that would help Terry in the matter of his disability. Terry and his father are now living in the house with Terry's wife Margaret. After he married, Terry was full of the joys of being a married man. Unfortunately he reported that he was married. Arising from that the two allowances which he received were taken from him. I let the House ponder on that. Anyone I mentioned that to said it could not happen and that there must have been a mistake. There was no mistake. The Minister confirmed that this was as it had to be. This great State and a Minister who boasts of the finances he handles and the staff who work for him can justify removing from a chap in a wheelchair the only independence he had which amounted to £40 odd per week. I criticise the Minister and in so doing hope that he might exercise the powers he has at this stage.

As a junior Minister there were times when my civil servants reminded me, and indeed threatened me, that I could not create a precedent. There were several occasions when I was able to identify a special case and was only creating a precedent for anything similar that might occur. If the Minister says a shoal of these cases will arise I could understand how that could make a demand on his resources. However, there are not too many cases of a young lady marrying a chap in a wheelchair and he being deprived of his allowances. She works in a local bakery. I should not like to predict ill health for anyone but if this situation continues she will be on unemployment benefit before long.

What annoyed me was, having raised the case here, the Minister in defence of the appalling situation reminded me that Terry and Margaret were living with his father and so they should be thankful because, he presumed, they had no great rent demands made on them. Within a month of my raising it here — I do not say it was the Minister or his Department who sent out word — a Dublin Corporation inspector visited Terry, his wife and invalid father and said that when Terry and his father lived alone they were on a minimum rent of £1.60 but now because Margaret was working and received a gross pay of £90 odd she was now the major income earner in the house. He said that under the differential rent system the rent must be increased to £16.50. I hope it was not as a result of my raising this case here that people got on the blower and asked Dublin Corporation to examine the new position in the Boland household at 1 Casement Green, Finglas.

What is the point in us speaking about our regard for people? Each Deputy would regard his or her case as being the most important one. However, I ask Deputies listening to me, the Chair and the Minister if they have ever come across a similar case. Apart from the material and financial side of it take the social and psychological side. This is a newly married couple setting up their home and straight away the State indicates its acknowledgment of this new union by saying to Terry that his penalty for getting married is that he loses his two allowances. The State tells Terry Boland senior that at present he is paying £1.60 rent but because he has admitted Margaret to his house to look after Terry and be his companion the rent will be £16.50. There is no need to make a meal out of a case like that.

I still have faith in the Minister. Perhaps when he replies my residue of faith will disappear but he will not lose any sleep over that and neither shall I. I ask him to indicate to the House the inhibitions which he has in respect of the restoration of £40 per week to Terry Boland. He can tell me that the regulations are there and add sauce to it by saying they were in existence under my leader, Deputy Haughey, when he was Minister for Health. He can give me that historical treatment in an attempt to exonerate himself from the blame I attach to any Minister who would tolerate this situation.

The facts are precisely as I have indicated to the House. There are other facts which are not material to this discussion. I will not bring them into consideration or use them for any purpose.

They are somewhat relevant as to why the unfortunate man ended up in a wheelchair.

Apparently the Minister is inviting me to tell the House that this man of 29 years of age finds himself in the position he is in because of the fact that he was in an accident in a car that was not properly licensed or insured and which was not his own. I give the Minister all that and let him savour it all anyway he likes. It now makes the Minister less entitled to have that position——

The Deputy has his facts wrong.

I conceded to the Minister the one fact that I was leaving out.

I am going on memory but as far as I am aware the person concerned was on disability person's maintenance allowance and not invalidity pension as the Deputy stated. The Deputy's facts are not correct.

Was he on a mobility allowance?

Yes, as far as I recall. The Deputy raised this matter on the adjournment. He was not on an invalidity pension but on DPMA.

They are two different issues. The person concerned was involved in a car accident. He was driving the car illegally.

Yes, nine years ago.

As a consequence, he tragically received a very severe disability which confines him to a wheelchair for life. He was not insured. He received no compensation and had no means.

That is right.

I do not propose to judge anyone who drives without insurance. These are the realities of life. He applied for a DPMA on the basis of a nil means assessment. He received it in accordance with the regulations which have been in existence since the inception of this scheme. I say that because it was strongly put to me in the House that I had changed the arrangements in relation to this matter affecting the Deputy's constituent. He was also in receipt of a small mobility allowance which is £300 a year or £6 a week.

Dublin Corporation out of their own resources at the request of the family — I put it on record that I am going on memory — built an extension to the house especially for him, spent public funds in so doing and gave him every possible assistance. He married. The DPMA system is an income related payment to persons who are disabled. His wife had a gross income in the region of £100, or £105 or £108 per week. She was in the bakery and confectionery trade. Her net take home pay was around £96 per week.

I had nothing whatever to do with the revision of rent. I have no function in that matter. The case received so much publicity here and in the national newspapers that it would have to be an unusual rent officer who would not see a specially built extension. Possibly the couple have medical cards. I do not know the exact amount, but rent would be taken into account. I understand that when he was in receipt of DPMA there was no rent involved on his part. The rent was paid by his parents. There was no discrimination against him. There is no discrimination against any other person in a wheelchair.

Is the Minister indicating to me, as he inferred the other night, that because of the nature of the complaint and because of the manner in which this appalling accident occurred, he feels less committed to this unfortunate man than to somebody else?

It would not apply in another case because the person would have got £50,000 compensation. I do not know why the Minister mentioned it.

If an insured person was driving an insured car he would probably have received substantial motor vehicle compensation and would be deemed to have a substantial income and would be ineligible for DPMA. By virtue of the fact that he was uninsured and driving a car illegally — I understand the car was not his own — he had no income and he automatically qualified for DPMA. That is relevant to the assessment of means.

Will the Minister give way to me? The Minister has made my case. He has told me that, if this young man had been injured while driving his own car, under the law he would have obtained a substantial amount of money presumably to help him to live for the rest of his life. The Minister is now telling me that because the accident happened in the fashion it did happen that young man is not entitled to any consideration. I thank the Minister for having made my case even better than I could make it myself. He would have got £80,000, £90,000 or £100,000. Irrespective of whether he married that would have been the amount he would have got to help him to live as normal a life as possible. The Minister is now saying he gets nothing.

The Deputy has not got the point. There is a family income involved. He is married and his spouse has an income. Under the regulations, which were brought in by the Deputy's own party and are of long standing, the family income is taken into account, the income of himself and his spouse. If he were not married and had no income, he would automatically qualify for either the full rate of DPMA or the reduced rate, depending on his income. Does the Deputy want to bring in a system under which anybody with a disability is automatically entitled to a payment irrespective of means? The Deputy is free to advocate that, but there is a problem. I would have to find about £500 million because automatically every non-contributory old age pensioner on reduced rate would have to get the full rate, every widow on reduced rate would automatically have to get the full rate, and everybody on reduced rate of unemployment assistance would have to get the full rate.

The Minister said Fianna Fáil introduced this scheme. There are times when we are told from the other side of the House that what was good enough for Fianna Fáil is not good enough for them. Would the Minister consider introducing a new regulation? A boy in a wheelchair and a girl may marry and not have a nest egg available to them. I do not think there would be more than half a dozen such cases. It would help the Minister's reputation if he would introduce a provision that where a boy confined to a wheelchair and with no income marries, that regulation will not apply. Would it cost all that much money if the Minister were to make that amendment?

It is not possible to change that regulation. That would mean that everybody would have an automatic entitlement to a similar payment on a non-means test basis. Admittedly, I have not the full facts in front of me, but the man concerned would appear to be entitled to a medical card, to all wheelchair needs, medical, drug and other disability needs. In the event of his wife ceasing to be employed and thus having no income, she would be entitled to a dependency payment for him on her insurance when equal treatment comes into operation, as it will in due course this year. Her husband would be regarded as a full dependant of hers on a reciprocal basis and payment would be made. That is one good reason for bringing in equality legislation. The Deputy cannot argue that this family are in any way discriminated against. They are not.

I thank the Chair and our spokesman for allowing me to monopolise the debate.

I shall try to be as brief as possible and just touch on one of the many anomalies which exist under the present structure of the social welfare system. Any Member looking back on discussions which usually follow the budget will find the same questions being asked about the means test. How often have Deputy O'Sullivan's questions been asked in the matter of redundancy payments? The people involved here have been contributing all their lives to the social welfare system and when they receive redundancy payments they are means-tested. The Minister has had ample opportunity to create a new social welfare structure, more modern in its concept. The present scheme is open to all kinds of abuse and is riddled with anomalies. Yet, continually we come into this House and ask the same questions about why a certain person is not entitled to this or that benefit. I appeal to the Minister, as a Labour Party member, to create a new and more positive structure.

I go along with Deputy O'Sullivan in his remarks about the means test. The gap should be narrowed between non-contributory and contributory pensions. On the other hand, the contributors may say that they have contributed all their lives to the social welfare system and how is somebody who has never contributed on the same income as they? Here again we are talking about the anomaly created by the means test in the present structure. We cannot cope with this problem because we have mass unemployment. The Ford worker after 15 months will be means tested and likewise the Dunlop worker. Any worker in any part of the country comes under the means test 15 months after his contributions end. Every year more people come in under the means test and we talk about the complaints. Of course, there are complaints because there is not additional staff to meet the challenge of the demand made by the applicants.

Cork city is the worst area with regard to unemployment and how many additional assessment officers were recruited to meet that demand? Deputy O'Sullivan and many others have often tried to establish why a person is waiting three or four months for a decision on his or her case. Yet those are people who have contributed all their lives to social welfare and there must be positive records of that in the Department. Why are Government officials haring down to their locality, knocking on their doors and asking so many questions, when everything is on file in the Department?

There is some confusion about the next matter to which I will refer, and I hope for some clarification. A boy and girl in receipt of unemployment assistance may become frustrated and bored at having to queue at a labour exchange and may decide for the following two years, since they have no hope of getting employment, to continue to advance their education. They return to school, to some evening classes, but immediately their unemployment assistance is withdrawn. When they inquire about it they are told that they are not available for work. Young people that I know of had informed the local officer that they were returning to school and that if employment became available they would take it up.

I mentioned this matter last year to the Minister and he received it, I thought, sympathetically. We are not talking here about people actively employed in community work. If they have a letter from, or a form filled in by, the community welfare officer they are still entitled to unemployment assistance. We are talking here about young people who are advancing their education, many preparing for the leaving certificate. Could the Minister comment on this, because it is vitally important? This is keeping our young people off the streets and having them doing something worth-while for themselves in promoting their education. They should be encouraged to do this. I ask the Minister the exact position because there is some confusion among the different branches dealing with social welfare payments.

I again appeal to the Minister to have additional staff recruited for the Cork area to meet the huge backlog of applications for unemployment assistance.

Having listened to the Minister some time ago, when in response to a suggestion of ours he pointed out the enormous cost, it appears he has become afflicted by a very heavy dose of fiscal rectitude. The Minister for Finance appears to have passed it on to him, he appears to have been a receptive subject, his antibodies are not resisting the disease.

The point the Minister made about representations of elected Members here and elsewhere unfortunately reflects the breakdown in the system, how it has failed to answer effectively and with any degree of speed whether a person is eligible for whatever social welfare payment they are claiming. As I said on Second Stage, to a large extent the system has broken down. As a consequence many applicants must wait interminable periods of time to have established whether or not they are eligible for the benefits for which they apply. While many are indeed eligible, they must still await many weeks for, say, disability benefit, unemployment benefit or old age pension payments; and many are not aware that in the interim they could claim supplementary welfare allowance, that is if they are eligible and have no other income. Therefore many, while awaiting the processing of their claims, bite into whatever meagre saving they have.

It should be advantageous for such people to be more clearly informed that while awaiting the processing of their claims, they could claim supplementary welfare. This matter has necessitated people approaching politicians of all shades. I am sure the Minister will agree with me that the backbenchers on his side of the House write to him as much as do Members on this side of the House, that it is not one-way traffic. All one need do is note the number of questions for written reply to the Department of Social Welfare on any one day.

I have endeavoured very often to have problems resolved through the straightforward political channels, making telephone calls to the relevant Departments. I have never bothered the Minister very much by letter, because when I wrote to him he never replied — obviously he did not think too highly of my representations. Since then I have elicited information by way of telephone call or direct contact with the Department involved, particularly in regard to disability benefits. Despite such representations applicants' claims were not being processed and they were experiencing interminable delays.

How often were payments not made because the Department thought that Johnny So-and-So or Mary So-and-So had an inadequate number of contributions? But when Deputies have had enough of that and submit questions for written reply, suddenly payments are made much more rapidly, suddenly the Department are able to establish that Johnny So-and-So or Mary So-and-So satisfied their requirements. I make that point because I should like to eliminate the task of submitting unnecessary questions for written reply and I know many of my colleagues feel similarly. That is an area the Minister and his Department might examine.

The Minister stated earlier that there were 3,500 people working in the Department of Social Welfare. That was mentioned in regard to some comments of Members regarding the investigating of entitlements which were means tested, the implication being that there was some degree of harassment taking place in some cases. In general the Minister did not agree with that view and said that many such investigating officers lived locally, the implication being that they would not harass their neighbours. I am not suggesting that this happens on a large scale or that many personnel of the Minister's Department are involved in an unusual style of investigation or that many of them are excessively aggressive. But there is a very small minority of investigating officers who are excessively aggressive, who do ask extremely personal questions of applicants.

I know the Minister has said that Irish people have a remarkable propensity for not disclosing information relating to their means. Perhaps that is so; I will not dispute that fact with him. Traditionally we have rebelled against intrusion into our privacy in whatever area that may take place, whether it be in an endeavour to ascertain how much money we have or whatever else. I accept that the Department must have reasonable details of one's means. But some questions being asked of simple, ordinary and in many cases old people with regard to their lifestyle and habits — how many bottles of whiskey they drink a week, how any pints of beer they drink a week, whether they go to the races, how often they buy new suits — are being posed by a small percentage of investigating officers. That style of interrogation should be terminated.

There was reference to the prescribed relative allowance by a number of Deputies. I agree with those who said that such allowance should be withdrawn very slowly. There are figures available to us, from the reply to a question I asked last week, showing that the number of prescribed relative allowances being paid now are just 2,500 as against 2,850 in 1981. A number of these have been withdrawn.

As many Deputies said, this is an important payment. It is saving the State money because many of these unfortunate people would otherwise have to be hospitalised at the expense of the State. The Minister and the Department should proceed very carefully in withdrawing that allowance from anyone. I agree with Deputy O'Sullivan in regard to whom that payment is made. He rightly said it is made payable to the pensioner rather than to the person providing the care, and very often the person providing care does not get any payment. Perhaps there is a good reason for this and, if so, I should be pleased to hear it.

With regard to means testing for old age pensions, the Minister endeavoured to reassure us, as he did in his Second Stage speech, that people claiming the non-contributory old age pension could have considerable means before they are deemed ineligible. I accept his figures. But, unfortunately, many old people, especially those on the western seaboard, are still hiding their money in roofs, under the thatch, under beds and carpets, in boots and wellingtons, because they are not aware of their entitlements. It would be of great benefit, and would perhaps save serious injury or even loss of life, if the Department would issue a circular telling people what the Minister has told us. He should reassure them in that regard and I am sure they would then invest their money in safer places like the banks, although I wonder whether I should say that at present. What is a safe investment for money nowadays?

I am also worried about disability benefits. I know that the Minister's Department have acquired more medical referees. There are now 18 referees as against 15 in March 1981, although three extra will not set the country on fire. It is important that the Department should have sufficient referees. I concede that examinations by medical referees are important, because in many cases a family doctor may find himself in a difficult position in regard to a patient or family he has known for many years. It is often hard to get them off national health certificates and in such cases it is important that there should be an assessment by an independent medical referee.

In answer to a query, I was informed that 26 per cent of those examined in 1984 were deemed to be capable of work as against 21 per cent in 1981 or, in numerical terms, 8,446 people were deemed capable of work in 1981 as against 13,372 people in 1984. That is a considerable rise and I am worried about some decisions taken by medical referees in recent times. I am not suggesting that there is a deliberate attempt by his Department to ensure that people are taken off disability benefits. It is a difficult area because there is often a conflict of medical opinion and evidence. However, I know of cases in which appaling decisions have been made by medical referees. People have had major operations, substantiated by consultant medical opinion and confirmed by the patients' own doctors, and yet medical referees have seen fit to deem these people capable of work.

When that happens they are in a very difficult position. I know of a case concerning a man working in a factory who had an operation on his spinal cord. His personal doctor was also attached to the factory and he wrote national health certificates for him on a weekly basis certifying that he was eligible for disability benefit. At the same time he provided certificates to the factory stating that his patient was unfit for work. One of the Department's medical referees decided that this gentleman was fit for work and he was then in the unfortunate position of having his disability pension cut off. His own doctor decided, because he had been informed by the Department that he was capable of work, that he would not write any more certificates to the Department, although he still provided them for the factory, stating that he was unfit for work. This unfortunate man was not eligible for disability benefit because the medical referee had cut him off, his own doctor would not allow him to work in the factory because he was unfit for work because of illness and, therefore, he was also ineligible for unemployment benefit or assistance. He was in a social welfare cul-de-sac. These anomalies should be corrected. If there is substantive, consultant medical opinion on a case it should be generally accepted.

I tried to elicit information from the Department about how long appeals take. The Minister was not able to furnish me with that information but we know that a considerable length of time elapses before an appeal is determined. It has been suggested that much of the delay has been due to the absence, for reasons of illness, of some appeals officers. If that is the case I suggest that additional staff be employed so as to expedite these cases because it is not fair that people have to wait indefinitely before being informed whether their appeals are being upheld.

Progress reported; Committee to sit again.
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