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Dáil Éireann debate -
Tuesday, 25 Feb 1986

Vol. 364 No. 1

Combat Poverty Agency Bill, 1985 [Seanad]: Second Stage.

I move: "That the Bill be now read a Second Time."

I am very pleased as Minister for Social Welfare to introduce in this House the Bill to establish the Combat Poverty Agency. As the House is aware, the Bill was introduced in Seanad Éireann by my predecessor and passed all Stages in that House after a detailed and thorough debate.

I am aware that there has been a lengthy debate going back over a number of years on the question of combating poverty in Ireland. I do not pretend to be fully au fait, as yet, with the background to that debate and therefore I will be listening with great interest to the contributions of Deputies during the discussion of this Bill. All of us have, from our experience as public representatives, our own views on the question of poverty and its extent and there are a number of Deputies who have had very direct involvement in previous initiatives in the area of poverty.

I might mention in particular in this context Deputy Frank Cluskey who, in his period as Parliamentary Secretary in the Department of Social Welfare from 1973 onwards, was instrumental in the setting up of the Combat Poverty Committee in Ireland and in the campaign leading up to the adoption of the first European poverty programme. A considerable amount of preparatory work in connection with the setting up of a permanent Combat Poverty Agency was also done by Deputy Mary Flaherty during her period in the Department of Social Welfare in 1981-82. In effect, we are now building on the work which was done during those years and re-establishing on a more formal basis the structures which previously existed and which were responsible for a very wide range of initiatives in the poverty field. Essentially it is experience gained in the operation of the first poverty programme and the recommendations made by the national committee in their final report that form the basis for the Government's decision to restore the combat poverty programme to its central place in Government policy.

As a prelude to setting up a new Combat Poverty Agency, the Interim Board of the Combat Poverty Organisation were established in March 1984 to submit recommendations with regard to the structure, membership, staffing etc. of such an agency and its detailed terms of reference, bearing in mind, inter alia, what role the agency should have with regard to drawing up in accordance with the Government's programme an anti-poverty plan within the context of national economic and social planning. The interim board submitted a report to the then Minister containing detailed recommendations for the new agency and the proposals now before the House are based essentially on the board's proposals.

One of the board's primary concerns was the need for anti-poverty policy to be an intergral part of national economic and social planning and they recommended that the new agency should have a direct involvement in the planning process so as to help in determining priorities for effective action in the fight against poverty.

This function of policy advice is one of the four main functions proposed for the new agency as outlined in section 4 (1) of the Bill now before the House, namely

advising and making recommendations to the Minister on all aspects of economic and social planning in the State.

It is sometimes said that in Government concerns and interests of social policy come second to economic policy. It is impossible, however, to draw a clear distinction between what is economic policy and what is social policy. For example, the biggest problem facing this country at present is the level of unemployment which is a major social and an economic problem. If we are to devise adequate policies to tackle poverty on an overall basis we must address all aspects of Government activity to see where Government policies and programmes impact on poor people and how these policies and programmes might be revised the more effectively to address the problem of poverty.

One of the main advantages in setting up the Combat Poverty Agency is that they will provide a forum for the examination of Government policies and the policies of other agencies and organisations and make available a co-ordinated input into the policy-making process. I believe that the legislation before the House will enable the new agency to carry out adequately their functions in this area and I, as the responsible Minister, will do whatever I can to see that the agency have an effective voice in the policy-making process.

Closely related to the task of policy advice which is given to the new agency is that of research into poverty. This could be said to be a necessary prerequisite to policy advice and accordingly another of the main functions of the agency is:

the examination of the nature, causes and extent of poverty in the State and for that purpose the promotion, commission and interpretation of research

This is in itself a difficult area and one in which it is often not possible to reach agreement on even the most basic concepts. For example, surveys have shown that a sizeable number of people believe that there is no real poverty in Ireland anymore. If poverty is defined in purely financial terms, there is no doubt that people on social welfare payments, for example, are receiving more money in real terms now than they were years ago. It is very difficult to say, however, what is a reasonable or acceptable level of income to aim at in our social welfare system.

I look forward to the views of the Commission on Social Welfare who have had to address this fundamental question in the context of their deliberations. There is no doubt, however, that while rates of payments have increased appreciably in real terms over the years, nevertheless many people find it difficult to cope with their commitments and there is an increasing amount of what might be called customer dissatisfaction with the system. I would be concerned about such dissatisfaction and that there should be adequate mechanisms for independent assessment of the effectiveness of the system, particularly as it affects people in the greatest need. I see the Combat Poverty Agency as having a central role here.

Poverty, of course, is not related to lack of income alone but also to low levels of education, poor health conditions, poor nutritional standards, insufficient housing, job insecurity, poor environment, social isolation and so on. Despite the advances that have been made in many areas of State policy we all know that there are many people in our society who are deprived in one way or another. We are all aware of this and of the concerns voiced by persons who are involved in this area — people representing voluntary organisations, the Churches, statutory bodies, academic institutions and so on. There is a need, however, for detailed research into the different aspects of poverty before any final conclusions can be drawn as to its causes.

I know that some people would say that there has been too much research into poverty and that what is needed now is action and not further research. When one looks at it, however, there is still a lack of basic information, of statistical data and of knowledge in general of many aspects of poverty. One of the primary functions of the new agency will be to increase public understanding of why people are poor and the consequences for individuals and for society as a whole. Without public understanding and support change will be difficult to achieve. The more the characteristics of the poor are identified, the more light can be thrown on the process by which people end up in poverty. This is not an easy task but in order to decide what we need to do to combat poverty we must first of all have adequate information on the causes, characteristics and extent of poverty and we must attempt to convince society in general of the need for the policies which we intend to pursue and that they will be effective. Therefore, we need a body of information which is clear, understandable and publicly acceptable.

The third main function of the new agency as set out in section 4 (1) of the Bill is what might be called the action role of the agency, namely:

the initiation of measures aimed at overcoming poverty in the State and the evaluation of such measures.

This was, perhaps, the main role carried out by the first poverty committee 1974-1980. What strikes one immediately looking back at that period is the very large number of projects and schemes which were undertaken by the national Committee on Pilot Schemes to Combat Poverty, as known. Some of these projects were very successful, some were not so successful and many ran into problems and difficulties. The final report of the national committee gives a very interesting resumé of the various activities which were undertaken and information can also be gleaned from other sources. The committee organised and operated a number of projects directly while others were contracted out to different organisations and that fact together with the large number of projects which were involved makes it difficult to draw overall conclusions from the projects as a whole. As far as the new agency are concerned, the interim board's view on this occasion was that they should, as far as possible, avoid becoming involved in directly running projects but should assist in the establishment of action projects by other appropriate groups. Any projects which the agency run should be in the nature of demonstration projects which would be experimental and which would be so structured as to enable the agency to withdraw from direct involvement after a certain period.

I agree with this general approach. Obviously the agency will have to draw up their priorities in terms of the amount of their overall resources which they can devote to initiating or assisting action projects. It is very important, however, that the agency should not become just another source of funds for local projects. The difficulty in many respects for local projects is the variety of possible funding sources which already exist and the addition of another one to the list would not serve any useful purpose in the long run. The agency are being viewed in this way in many quarters. The agency will have to be selective in regard to direct funding of action projects and not lose sight of their other functions in response to the pressure which will undoubtedly be put on them by groups and projects to provide immediate funding for their particular area of activity.

The interim board stressed that whatever actions are engaged in by the agency, and I take this to include activities of other groups which are funded by the agency as well as the agency's activities, arrangements should be made for the evaluation of these activities on an ongoing basis. I strongly support this, as only in this way will it be possible for the correct conclusions to be drawn from these activities to the benefit of similar activities and of policy in this area.

I see the agency, therefore, as having to be selective in regard to the sorts of projects in which they become involved and ensuring that the resources available for this purpose are channelled in the most effective way. Already there are a number of projects which will become the responsibility of the agency when they are established. These are the eight projects from this country which have been selected for participation in the second European Community Poverty Programme. The first European programme covered more or less the same period as the former national committee in this country — 1974 to 1980 — and indeed the Irish Government were instrumental in having that European programme adopted. It is gratifying to note that the Irish Government on this occasion also were instrumental in having the second programme adopted and that the council decision on the programme was taken during the Irish Presidency of the Council in December 1984.

I would like to say a few words about the European programme. The programme is backed by a Community budget of 25 million ECU, around £17.5 million, over four years, the bulk of which will be devoted to supporting actionresearch projects in favour of deprived groups or deprived areas. A total of 61 projects have been selected across the Community and some 18 million ECU, £12.5 million, has been earmarked for direct subventions to these projects. Community support is at the level of 50 per cent of the cost of projects in most cases, 55 per cent in exceptional cases.

The eight Irish projects included in the programme are being financed to the extent of 55 per cent by the Community, the remaining 45 per cent being met largely by the Government with, in some cases, a contribution by projects themselves. Over the four years of the programme the total amount of Community funding to the Irish projects will be approximately £1.3 million, while the Irish Government will provide approximately £1 million.

The programme is a relatively small one in financial terms but it has the potential to be of major significance in the impact which it will have on Government policies in the member states of Europe. Before being selected for inclusion in the EC programme, projects went through a rigorous selection process both at the national level and the European level. In this connection I would like to pay tribute to the work of the Interim Board of the Combat Poverty Organisation under their chairperson, Noreen Kearney, who performed the initial selection and did so very successfully. The fact that eight Irish projects were finally selected by the Commission is a tribute to the high quality of all the Irish projects and I am satisfied that we have eight excellent projects which will make a major contribution to the overall programme.

The Government are co-financing the projects with the Community and will be taking a very direct interest in the projects. It is very important that the results of the programme at an Irish level should be closely monitored so that whatever lessons can be drawn from the experience of the programme are made available in such a way that they can be absorbed into and become part of anti-poverty policy generally. The Combat Poverty Agency will have a central role in this area and pending the establishment of the agency the interim board will continue to have responsibility. The board have already done a considerable amount of work to ensure the smooth introduction of the programme and I am sure that over the next four years there will be an excellent working relationship between the projects and the agency and a relationship which will have major benefits for both sides.

The Irish projects which have been selected for the European programme all involve local communities and groups trying to address problems which they have identified in their own areas and doing something about these problems. There is a very significant community development component in these projects. Community development in the sense of a planned programme of activities whereby people combine with their fellow citizens to establish community needs and solve them through action is an aspect of anti-poverty policy which is identified in the interim board's report as being of major importance. The need for a significant and well planned community development component is given explicit recognition in the Bill, where it is envisaged that the new agency would be a resource centre for community development in relation to poverty. As such the agency would encourage facilities for training in community development, stimulate evaluation and research and promote initiatives and experiment in community work.

A resource agency of this kind could provide a worthwhile service to voluntary organisations and communities and also to central and local authorities and statutory bodies. The agency in any event will need to develop a close working relationship with local authorities, health boards and other relevant statutory bodies and ensure that the efforts of the agency, the statutory authorities and the local organisations were welded together to provide an integrated response to the needs of the poor.

The fourth main function of the Combat Poverty Agency as outlined in section 4 (a) of the Bill is "the promotion of greater public understanding of the nature, causes and extent of poverty in the State and the measures necessary to overcome such poverty."

I mentioned already the need for research into the causes and extent of poverty in Ireland and the need for the results of such research to be made available in an understandable way. The notion of poverty itself is, I feel, a somewhat vague one to many people and it will be important for the new agency to "operationalise" the concept and make it meaningful in concrete terms. It is important also that the facts in relation to poverty emerging from research etc. are got across in an effective way. There will be a need to make use of all the techniques which are now available in the communications field to ensure that the results of the anti-poverty programme are made available to the public.

These are the main thoughts which I want to express in introducing this debate. There will be an opportunity on Committee Stage to discuss in more detail the individual provisions of the Bill. The proposals in the Bill endeavour to take account of all that has happened in this area over the past decade. There have been different approaches reflected in different policies adopted by successive Governments. The approach now put forward seeks to draw on the most positive features of all of these different views and approaches. To be effective the new agency will have to have a wide degree of support in the community and I hope that it will be possible to achieve a wide measure of agreement in relation to the proposals now put forward. I look forward to the contributions to the debate from all sides and I have pleasure in recommending the Bill to the House.

I congratulate the Minister on her most recent appointment and I assure her of my full co-operation from this side of the House. I will do my best to keep her going in the right direction, as it were, without in any way obstructing her.

It is only fair to say that poverty as such is a subject which is discussed too infrequently in this House. Its existence in our midst is a reflection on all of us as public representatives. Unfortunately, it appears that it has been forgotten almost completely over the past number of years. The limited information available to us — unfortunately, there is a dearth of information on the subject — is an indication of the lack of interest in the problem which has been shown by various groups.

It is important to reflect on and refer back to the paper read by Séamus Ó Cinnéide to the famous Kilkenny conference in 1971. From analysis which he had carried out at that time, he concluded that one in every four people in this State experienced poverty in their daily lives. At that time more than a million people were severely deprived and quite clearly that figure has escalated since then. The increasing numbers availing of social welfare payments particularly over the last two or three years indicate clearly that many more families are now suffering from the effects of poverty. Between 1976 and 1980 an EC programme for the investigation of the extent of poverty in the various member states was undertaken and it is important for us to reflect on what assessments that EC programme produced.

As well as evaluating the degree of poverty there was also an evaluation into the causation and the effects it produced. The report showed quite distressing statistics. For example, taking a poverty line of 50 per cent of average net income in each country, the report disclosed that 23.1 per cent of households in Ireland were below the poverty line. This was by far the highest in the EC. It was followed by Italy with 21.8 per cent and France and Luxembourg both with 14 per cent. This was an evaluation of the relative poverty in each country and these figures confirmed clearly that not only was Ireland the poorest country in the EC then but the proportion of the population in Ireland who were poor in relative terms was the largest in the Community.

I welcome the Government's decision, belated as it is, to make some attempt to remedy the problem of poverty in our country, but I am afraid it is an indictment of this Government's performance that they have been in office now for over three years and, despite all their pious platitudes prior to the last election in their Programme for Government, it is only now that they are appearing to make a genuine gesture towards dealing with our problem of poverty. However, belated as this effort is, I assure the Minister that we will do everything we can to help to produce a Bill which will encompass all the capacities and abilities that can be provided to alleviate the problem.

I have gone through the Bill and one thing that concerns me is that an interminable length of time should not be spent in compiling reports and details, that the whole object of the Bill should not be just to have groups of researchers and consultants compiling reports with no action. I accept that, whilst one must have research, reports and advisers, it is important that their work is directed to a rapid solution of the problem and I hope the Minister will ensure that this takes place. I am slightly worried that there appears to be no definitive provision in the Bill for finances, but we can discuss that later. The members of my party, Fianna Fáil, have always been proud of their achievements in combating poverty, particularly in the area of social justice.

It is only right that we should remind the House of the total expenditure, outside social welfare payments, in which we involved ourselves in combating poverty. The Coalition Government committed themselves to a total expenditure of £2.7 million between the years 1974 and 1977. Out of this £880,000 was contributed by the EC so, effectively, the Government's contribution was £1.8 million. In 1982, when Fianna Fáil were in office for a relatively short time, they formed the National Development Corporation and £2 million was provided in the budget of that year for the work of that corporation. Also, in the past going back to 1967, Fianna Fáil introduced imaginative and innovative schemes in the social welfare and health areas. We introduced the free electricity and free travel schemes, retirement pensions, invalidity pensions, death grants, deserted wife's allowances and pay related insurance schemes. We improved and extended the fuel scheme to the entire country. We brought in the new maternity allowance scheme for women in employment which was particularly beneficial to women on lower incomes. In 1980, for the first time in the history of the State, we introduced a double payment at Christmas for those on long term social welfare payments.

In relation to health areas, we introduced the choice of doctor and general medical services scheme, the refund of drugs scheme, the constant care of the handicapped children scheme, the mobility allowance scheme. In terms of social welfare payments alone, in the years 1980 to 1982 when we had authority to do so, we granted a 25 per cent increase in social welfare payments from April in each of those years to social welfare recipients. This far exceeded the inflation figure of the day. Unfortunately, in the past three years the Government have resorted to a tactic about which I have spoken on many occasions in this House and which I have debated at length with the former Minister for Social Welfare. It is that the meagre payments and increases now being granted to social welfare recipients do not operate until the following July.

In 1983 the operative date was the first week in July; in 1984 it was the second week; and now it has gone to the third week in July. That means these increases, which supposedly are in line with inflation, in effect are not because of the delay in payment. Almost one quarter of the year elapses before they become operative, yet those who receive them have had to bear the increased cost of essential goods imposed as a result of indirect taxation. The unfortunate welfare recipients have been relatively worse off, having had less disposable money.

Poverty may be defined in absolute or in real terms. An absolute definition sees it primarily in terms of a lack of resources to meet some basic minimum level of physical need. A minimum income level necessary for subsistence on a poverty line is established. This is primarily based on research such as nutritional surveys, or on Government legislation on minimum income levels and any person or family having an income below the established poverty line is deemed to be in poverty. Relative definitions of poverty, on the other hand, define persons as poor in relation to others in society. The poor are therefore those whose incomes and opportunities are so far removed from the rest of societies that they cannot attain a standard of living which is deemed acceptable in society.

A relative approach focuses more on inequality. The EC has defined poverty in its social action programme as follows: "Individuals and families may be considered in general to be in poverty when they have a command of resources so deficient that they are excluded from ordinary living patterns, customs and activities of the member states in which they live." This is obviously a relative definition since it defines the poor as being those who are least well off in relation to the rest of society.

For many reasons poverty runs at a very high level in Ireland and there is no doubt, from that European report, that we are the poorest nation within the European Community. That may be because we came rather late into the Community to achieve the economic growth and development enjoyed by the rest of the Community. The historical fact that we were under British rule until 1922 also had a major effect in hindering our economic growth and development.

Our increasing population trends now tend to place a heavy demand on services and resources. Fortunately, during the past 20 years or so there has been a considerable State investment in social services and benefits. We have clearly attempted to follow the example of the United Kingdom welfare state system. To some extent this has been a positive and definite contributory factor in alleviating the problems in some sections of our community. At present, trends towards poverty development in Irish community life are due primarily to a number of different unrelated factors. We have our increasing population structure which places an increasing demand on services which are restricted by the limited resources available. Progressive health care programmes and the expansion and development of our health services have ensured that longevity is now clearly established as the normal pattern. Probably this trend will continue and, from all the evidence available to us, our older population will increase by a further 10 per cent over the next ten years. This is obviously an advantageous and welcome development and we all hope to reach a ripe old age.

Since we have an increasing population of older people, many of whom live alone, they have to live within the very limited resources of the State-supplied pension system. Despite the fact that commendable efforts were made by various Governments, particularly by the Fianna Fáil Governments in the years 1980, 1981 and 1982, where very substantial increases were given to old age pensioners, it is only right and fair to say that with modern high costings the present payments are inadequate. So future Governments must ensure not just that annual increases match the annual inflation rate but outreach inflation so that in real terms such increases provide old people with better standards of living. No one is more entitled to that than people who have given lives of hard work to the country.

Another serious problem affecting us is the scourge of increasing unemployment which has had a major impact on poverty development. The world recession was primarily to blame, and as in all small open economies it was only natural that Ireland would become seriously involved because of a fall-off in world demand for goods and services which severely eroded our industrial base and caused loss of employment opportunities. However, I do not think all the blame for our high unemployment then could be levelled at world recession. Government policies tended to have a contracting effect on industrial development and job creation. Particularly since this Government came to office there has been a total obsession with bookkeeping and getting the figures right, which has had a markedly damaging effect on industrial development and consequent job creation. Our system of taxation——

The Deputy may make only a passing reference to this.

Poverty and taxation are tied together.

We are dealing with the Combat Poverty Bill but the Deputy is making a budget statement.

I am talking about the creation of poverty, its causes. Our present tax system is causing major deprivation. Poverty does not fall from the sky into our laps: it must be created. I am not trying to be insulting or difficult. You seem to be misinterpreting what I am trying to say.

Let us get back to the Bill.

There is an obsession with the theory that employers have a duty, an obligation to create jobs for the sake of providing jobs. That is fallacious. We must restructure our taxation codes to provide incentives for would-be employers and to provide hard working employees with more take home pay. There is now a new poor in Ireland, the large group of people in the lower middle class whose incomes place them just above eligibility for any State benefits, such as medical cards. That group are trying to provide the best educational standards they can for their children, which they probably have to pay for. Those people probably have mortgages on their houses and hire purchase payments due on their cars. They are taxed to death by Government policies. That group are growing in numbers. Most people do not realise they exist. Only they, in the privacy of their homes, know how badly off they are. The State must identify that group and deal with the awful uphill struggle the new poor have to try to cope with. The eligibility limits for the provision of basic health care should be extended as a primary consideration for Governments. Many of those people cannot afford to get sick and if they get sick they cannot afford to buy the medicines which would cure them. The medical card system is a major improvement on the old dispensary system, a relic of the poor laws, but it still needs improvement.

Poverty can be clearly identified among the elderly and the unemployed. In 1981 there were 369,000 elderly people in this State, those above 65 years of age. They represented 10.7 per cent of the population. In the decade between 1971 and 1981 the elderly population increased by 12 per cent. It is projected that in the next ten years there will be an increase of 10 per cent.

Those aged 75 years and over represent a 4 per cent of the entire population and 36 per cent of all elderly people in the population. There is a tendency for the elderly to be more heavily represented in rural Ireland than in urban areas. This tendency is quite marked in some western counties — Leitrim, Mayo and Roscommon. There are a number of differences between the housing circumstances of the elderly compared with the rest of the population. One might ask what housing has to do with poverty but it is part and parcel of a person's standard of living. The elderly are much more likely to be owner/occupiers and they are also likely to live in considerably older housing units. The older houses tend to be less well equipped with basic amenities than newer houses. Some years ago a group of medical practitioners carried out a medico-social survey of the elderly in an urban general practice. They concluded that in many cases housing was substandard and unsuitable. They found that 5 per cent of the elderly attending at a centre city medical practice had no indoor toilets or hot water. They also concluded that there were substantial indicators of deprivation among the elderly in terms of their standard of living and general life style. As politicians, we must have a positive commitment to help the elderly because we owe it to them for what they have contributed to this country.

In an article published by Brittan in 1981 he reckoned that the economic cost of unemployment to the individual was a halving of his disposable income without any reduction in the peer and advertising pressure to consume. One can only hypothesise about the effects of unemployment in general in terms of deprivation socially, in monetary terms and the psychology of being unemployed. All these factors have to be considered very seriously.

There is no doubt that there is a severe breach between the conditioned exceptions of the young and the social economic realities to which they must adapt if, after a full and comprehensive ecucation they are to find a job. This can be the basis for many problems. Frustration leads to aggressive behaviour of one kind or another and this disruptive behaviour often reflects itself through crime.

The plight of families particularly those on long term unemployment assistance is something we are inclined to undermine. The fact that these families are so deprived is evident but there is some confusion about their financial deprivation and this is sometimes ignored. Some people say that financially people are better off unemployed than employed. That is not true. The people who say this are always those who are better off and such ideas should not be bandied about. If anyone hears this said, he should contradict it because the facts are there for all to see.

It is impossible to maintain an ordinary standard of living if a family is in receipt of long term unemployment assistance only. Out of our 240,000 unemployed 166,000 are on unemployment assistance. This clearly indicates that all these families are suffering great stress and strain. There is no point expounding an enormous amount of rhetoric about this subject if the levels of unemployment assistance and unemployment benefit remain inadequate. I hope this Government and future Governments will take cognisance of this fact. All the research workers and all the consultants on poverty in the world will not alter the fact that these people are receiving inadequate incomes.

Among a certain section of the community there is a hostility towards the unemployed and a lack of sympathy for their needs and demands. Not too long ago a Fine Gael Member of the European Parliament suggested on a number of occasions that the unemployed should be conscripted, and this view was echoed by some of the wealthier members of society. All I can say about people who express these views is that for some reason they despise the unemployed and the poor. Obviously they know nothing about how these people live; they have never seen the inside of an employment exchange, or had to stand on a dole queue; they were never subjected to the humiliation of having no job and waking up each morning with nothing to do. Many thousands of our unemployed would give their eyes for a job.

A number of years ago Fianna Fáil introduced the supplementary welfare scheme as a replacement for home assistance contributions. This was a marked improvement. However, despite the fact that the supplementary welfare allowance scheme has improved the situation, there are still many inadequacies in it and there is room for great improvement in its administration. There should be more publicity about the benefits to be gained under this scheme. On the other hand, I believe there should be better accommodation and privacy for those who wish to obtain payments of this kind from community welfare officers. I believe the community welfare officers should be given greater flexibility so that they can take account of increasing demands at particular times and provide extra special payments when they are needed. I hope that those who are employed by the Combat Poverty Agency will take a look at this.

I would like to refer to a problem which is almost ignored throughout the country. I refer to the so called poverty trap. I have made various comments on this. The term "poverty trap" was introduced in the early seventies to describe the situation whereby people at work could find themselves unable to increase their income after tax, even if their gross earnings pre-tax increased. A person's take home pay after tax despite the fact that the particular person got an increase would actually be less than before that person got an increase. I believe this problem is caused by the way our taxation is imposed. The poverty trap really results from the lack of co-ordination of the way in which benefits are withdrawn and taxes are imposed. Anomalies can arise easily when things are run in a disjointed fashion. Poverty traps are much more likely to exist in Ireland than in the UK.

Our main means-tested schemes are spread around four Government Departments. Those Government Departments are involved in administering the income related taxes and benefits for families. The Department of Health regulate how eligibility limits for medical cards are decided. The Department of Social Welfare decide on child benefits and unemployment benefits. The Department of Finance and the Revenue Commissioners deal with income tax and pay-related insurance and the Department of the Environment deal with local authority dwelling rents. By contrast, in the UK medical services are universally available and local authority rents are linked to social security through the housing benefit scheme. It is quite clear from the way we have it spread around those four Departments that there is much more scope for anomalies and poor co-ordination than in the UK.

Another factor related to the poverty trap outside a diminution in the final income is that as a consequence of an increase in pay, which can ultimately end up as a reduced final income after tax, a loss of benefit in kind may also be involved. If a person is just on the borderline limit and is just barely under the eligibility limit for medical card eligibility, then if that person gets an apparent increase in income that will result in him being deemed ineligible for medical card eligibility he will lose his medical card. It is very hard to quantify that loss. It can only be quantified when a person becomes ill. Many of those people live in local authority dwellings and since they make their payments on a differential rent basis the differential rents also increase so that they can end up with quite substantial losses in terms of loss of income on the one hand and loss of benefits in kind, such as medical card eligibility, on the other hand, and having to pay increased rents. I hope the Minister and the Combat Poverty Agency will look very seriously at how this type of poverty trap can be eliminated. At a later stage I hope to give every co-operation to the Minister in helping her to produce an excellent Bill.

I welcome the Bill and wish it a speedy passage through the House so that it may come into operation without any undue delay because there is a great need for it. The Combat Poverty Agency should become a national forum whose central role should be to identify the causes and extent of poverty in this State and initiate measures to combat them. I hope the Government will give a commitment to put into effect the economic and social policies necessary to address the problems in a meaningful way once they are identified. I believe for the effective operation of this agency there must be harmony between the Minister and the committee, working in co-operation with each other in order to deliver the service they were appointed to deliver to those who need it.

We have been extremely fortunate in Ireland in always having a multiplicity of charitable voluntary organisations who work tirelessly to alleviate the worst effects of poverty on many of our people. I hope when the time comes to set up the committee that the Minister will keep in mind the vast reservoir of experience of the people in those organisations and that many of them will be included on the committee which will be appointed to deal with this service. If we neglect to incorporate that we will be cutting off a source of great wisdom and experience.

I will take the St. Vincent de Paul Society as an example, although there are many others, of the dedication of these organisations. In dealing with the relief of people suffering from the great effects of poverty the St. Vincent de Paul Society undertook a systematic study of the needs of those people and they produced a book entitled Old and Alone which gave their policy makers a valuable insight into the causes of deprivation and how they should go about tackling the problem. I believe the Combat Poverty Agency could have a very significant role to play in this area as an investigative body gathering and analysing data and bringing it to the attention of the Government. The effect of some Government policies, economic and social, can sometimes have opposite effect to that envisaged when they were created. This is why I think that body would have an important role to play, in that they would then be carrying out a duty that nobody at present in this State has the capacity to do, that is to analyse the effects of some of the legislation we pass through this House, which while meaning to do what is right, good and beneficial very often turns out to have an adverse effect on those we are trying to assist.

Anti-family taxation has been the policy of successive Governments since 1955 when the tax free allowance for a child was £100. Had that allowance kept pace with inflation the tax free allowance for a child today would be £1,200. Instead in the recent budget there was a total abolition of the tax free allowance for children of families based on marriage. Much of the poverty obtaining today has arisen through Government policies denying families their capability of taking care of children and the household. It is easy for people to smirk at this kind of thing — I have said it repeatedly — nevertheless it is a fact and the statistics are there to prove it. If we are to attempt to combat poverty we must first analyse its cause and the effect of legislation passed through this House.

While removing the tax free allowance from the breadwinner we gave unmarried persons with one child a £2,000 per annum tax free allowance — that included an increase of £100 in the 1986 budget — making up for the abolition of the ordinary child tax free allowance. This constitutes positive discrimination against families. It is an example of where I believe the Combat Poverty Agency could play a positive role, that is if the Government of the day are prepared to allow them do so and to publish their findings.

At present we are seeing the feminisation of poverty. For example, in 1985 there were 900 applicants on Dublin Corporation housing lists. They were single parents, mainly women with children; there are very few men single parents. That constitutes almost three-quarters of the entire applications for housing in Dublin Corporation. Therein I see the feminisation of poverty. While we may give such people units of accommodation they are continuing to live in stressful circumstances. This is an area that must be examined for several reasons. Because there is no alternative to putting such people into one area of our housing stock we are now creating other problems where there is already massive poverty and deprivation. As I said yesterday at a meeting of the city council, we have had to demolish the entire inner city. Because of all of those in need being put into the inner city at one stage, the inner city became a no-go area vis-á-vis the forces of law and order. There was no alternative to taking them from that area and rebuilding. We are recreating that position by placing so many of these young women in that kind of situation, all together in one identifiable area. That is poverty at its worst, they being identified as a deprived section of the community, when their's and their children's chances of ever taking a step up the rung of that ladder are remote. Those are the kinds of problems I would hope that Combat Poverty Agency would take account of.

Another matter in need of urgent attention is the overlap at health board level with regard to social welfare assistance. This has been the bane in the life of officers of the health boards endeavouring to deliver that service. Unfortunately the most recent figures I have in this respect refer to 1983. One can visualise the increases that would have taken place since then. According to the officers where such social welfare assistance was paid, within the Eastern Health Board region, there were 8,718 recipients. In addition 800 such people needed assistance in the payment of rent, 600 in regard to the payment of electricity and gas and 500 in regard to clothing, all very basic needs. Such people have to travel from Billy to Jack, adopting a begging bowl mentality, leading to a feeling of rejection.

I am happy that the Combat Poverty Agency have been established. I hope we will be able to request them to grapple with that problem, analyse it and establish what such families need in order to subsist without having to run around several different agencies begging for the bare necessities of life. Rather we should be able to co-ordinate our efforts in such a way that they would not have to do that. I am hoping the Minister will take account of that matter.

I heard the Minister refer to some grants available for projects from European sources. I hope one of those projects will be an analysis of the extent and depth of poverty in this State, establishing the totality of the problem and how best it can be coped with.

In yesterday's The Irish Times there was a headline to the effect that deserted wives and single parents were costing the State £60 million. I deal with the inner city. I know from my clinics, from my meetings with people, with the parents of some of these unfortunate unmarried mothers, that they do not thank us at all for what we are doing to them. I have been told that we are rendering it attractive for young girls to become unmarried mothers. I believe the reason for that is that young girls leaving school at 16 have no status at all in this State, they are non-persons, they do not qualify for anything. Many of them of whom I have knowledge come from homes in which there is already much unemployment. Therefore, having no source of income whatever, they are driven to desperation.

I visited a boy's school in the inner city just before Christmas. The principal of that school told me that he was aware of young men in that area being earmarked to become fathers of children of these young girls who were deliberately taking the decision they would have a child because it would set them up and give them a status. The problems for the State inherent in that concept, for the future of the family and stability of the State, are horrendous for those who take the trouble to analyse it. We are told there are 11,300 unmarried mothers and 9,000 deserted wives. The problem of the unmarried mother could be alleviated if we gave these young girls some kind of recognition some type of support, rather than leaving them penniless. Because the State, through its policies, has militated against the family, many families are now pretending desertion because that puts them on to a handy £80 or £90 a week. I know, and every other public representative in this House knows, that there is great fraud taking place in that area, that the so-called deserted wife is not entirely alone, though she may be for part of the day. Other Deputies must have the same knowledge as I have garnered from my clinics with regard to what is taking place in this respect.

It is true to say, as Deputy McCarthy already said, that ignorance is the poverty trap. That applies on a personal level, at community level and, indeed, because of legislation we have seen in the recent past at State level. If it is as simple as that, then the agency should not have much difficulty in coming to terms with it. They should approach it from the point of trying to educate.

There are a few things in the Bill which cause me some concern. I raise these because of the effects of the recent retention tax which was introduced in the last budget upon the voluntary agencies who have done such tremendous work over the years. We are setting up an agency to combat poverty. I should like the Minister to indicate what his intentions are regarding taxation. Will this agency be liable to income tax or corporation tax in respect of their income or resources? Will gifts to the agency be liable for capital gains tax? Could there be a tax benefit for a donor of funds to the agency? It is essential that these questions are answered during the course of the passage of this Bill through the House. From the volume of correspondence I have had, I am aware, that dire consequences will be the end result in the delivery of services from many worthy charitable organisations. So much of the resources on which they depend will now be denied them and they will be taken into the tax net. As I said at the outset, I wish the Bill a speedy passage through the House. I hope the Minister will take account of the role which I have outlined.

I had previously and still have a great interest in the area covered by this Bill, the Combat Poverty Agency Bill. In the first instance I criticised the Government and the Minister for the enormous delay in bringing this Bill into the House. One of the first steps taken by this Government when they assumed office was to abolish the National Community Development Agency. If we go through the two Bills we will find they are the same all the way through, line for line, with a few things jumbled up here and there. We have had to wait three and a half years to have a poverty agency Bill before the House. Obviously, before it is enacted another long time will have passed.

There is nothing new in this Bill. It has dropped the National Social Services Board. That has gone out on its own. The Government could have continued with the National Community Development Agency if they were genuinely interested in the work of the agency. One must ask the question: was it a genuine interest which the Government had in this area or was it a hypocritical exercise or a delaying tactic which denied the poor both the development agency and four years of funding at £2 million a year?

In 1982 £2 million was allocated by the then Fianna Fáil Government. As soon as this Government came into office they wiped out that £2 million and started to talk about agencies and alternatives. They brought back a small proportion in grants which they gave to voluntary agencies. The National Community Development Agency, now called the Combat Poverty Agency, lost four years of funding. The Government set aside £8 million. I do not know how keen the Minister for Social Welfare was on that proposition, but I do know that between himself, the Minister for Finance and the Cabinet as a whole, they set aside the funding that was available and continued to do so for four years. I accuse the Government of playing politics with poverty. That has been the case for the past three and a half years.

The Minister was very careful to mention the early days of the combat poverty pilot studies, up to the time Deputy Cluskey and Deputy Mary Flaherty were involved in them. Deputy Hussey now says she will build on the work done in that period. What happened in between? Was the Minister not aware that in the House on 1 June 1982, as the then Minister for Health and Social Welfare, I introduced the Second Stage of the National Community Development Agency Bill of which this Bill is almost an exact replica. That can be seen in more detail on Committee Stage. As reported in the Official Report, volume 335, column 653 I said:

The need for the Bill arises out of the Government's commitment to establish a National Community Development Agency on a statutory basis. The agency will have wide-ranging powers to promote and support community development, self-help and community activity.

In addition, as indicated by the Taoiseach in reply to a Parliamentary Question on 23 March last, the agency will carry out the work which was to have been performed by the "agency to combat poverty" proposed by the previous administration.

That agency to combat poverty existed in the period between two administrations. That very short-lived Government of 1981 got together the work that had been done previously by myself and my predecessors. They came up with the idea of the Combat Poverty Agency. It had not been approved at Cabinet level but was not far away from that stage. I then brought forward a comprehensive Bill. As reported in volume 335, column 654, of the Official Report of 1 June 1982, on second stage of the National Community Development Agency Bill, 1982, I said:

Our Government have already demonstrated their commitment to the success of the agency by making available a sum of £2 million to it in 1982.

Deputies are saying the same things now about the need for community development, about poverty in society, about poverty traps, poverty lines and so on. Let us be honest with the public. That is what is happening here today. That is the result of political parties playing politics with policy and not delivering the goods. We are back to the classical situation we have had over the past three and a half years in which a Government come into office with a high public relations profile and sell public relations but not do the work on the ground. This is an example of that. The people who lost out were the poor and presumably the Labour Party. The Labour Party would have regarded themselves as having a particular interest in this Bill.

That is Labour Party policy.

I accept that. Why did they not pursue it for the past four years?

Fianna Fáil were in power for 40 years and they did nothing about it.

We have gone through all this before and we are back here again with the same Bill. What did the Labour Party do over that period?

The Deputy must be whistling past a very long graveyard.

They were whistling past a very long graveyard. The public realise the reality of what is happening. I sympathise with the Labour Party. I realise that their colleagues in Government are fairly right wing in their approach. The Labour Party must have had difficulty in bringing back this legislation. They still have not succeeded in getting back to the level of funding that was available. What sort of funding is available this year? There is no £2 million even in 1986 for this agency. That is the reality. That is where it happens; that is what it is all about. Can you get the actual funding? That is being left aside. However, we are glad to see this Bill for the second time come through the House with minor amendments and being presented in a different way. The Minister spoke about the question of poverty — and I would be very worried about this myself or if I were a member of the Labour Party sharing in the Government — and she said:

For example, surveys have shown that a sizeable number of people believe that there is no real poverty in Ireland anymore.

We know how the Government believe in polls. If you mention a poll they will jump over a fence straightaway. They believe there is no real poverty in Ireland any more. If poverty is defined in purely financial terms — I am quoting what the Minister has stated this afternoon — there is no doubt that people on social welfare payments, for example, are receiving more money in real terms than they were years ago. Years ago? How many years ago are we talking about?

If you go back over this Coalition period of office and talk about real terms, they are receiving less, but if you take in what was given in the few years before that when there were real increases then, yes, you could say it is real compared to 1980. That is what the Taoiseach does. This sleight of hand, this deliberate misleading of people about what is actually happening, is what the Taoiseach and the Minister do. If you go back over the last three years — there is no question about this in my mind — the figures will show quite clearly that the poor have lost out. One trick which has been introduced is to use the next year's inflation rate rather than that of the previous one. The public at large do not realise what sleight of hand that is. That is sleight of hand, as anyone who is on the job knows, if you use the previous year's inflation, because the poor are only catching up with it. At least if this agency gets going they will stop that sleight of hand which this Government have engaged in and which everybody, particularly Members on the other side of the House, have been accepting.

Going back to the Minister's speech this afternoon she said that surveys have shown that a sizeable number of people believe there is no real poverty. Many of the unemployed, the elderly, widows and the disadvantaged do not believe that. Neither do their families. The 1.3 million who are on medical cards hardly believe it. Where is the Minister finding all these people? What surveys is the Minister carrying out? The Minister goes on to say:

There is no doubt, however, that while rates of payment have increased appreciably in real terms over the years, nevertheless many people find it difficult to cope with their commitments ...

God bless and help them. They have been given 4 per cent in the budget to come some time near the end of the year and they are supposed to cope with all the problems in between. Nevertheless, they find it difficult to cope with their commitments and there is an increasing amount of what might be called customer dissatisfaction. What kind of language is that and where did it come from? These people do not have the money to be customers. Would the members of the Labour Party please convey to the Minister that the people we are talking about here do not have the basic money to be customers or clients? There is not much need to do research at present although ongoing research would be very valuable. Any TD who has his or her nose to the ground will tell you where the poor are and who are most affected at present. However, customer dissatisfaction exists.

The Minister went on to say — this is the basic and fundamental point and the Labour Party should have a word with the Minister on this — that "poverty, of course, is not related to lack of income alone ..." That is a very dangerous phrase. I was Minister for Social Welfare for a period and that is the line you are repeatedly given by the right wing people. Do not get too tied up in money, it costs too much. Talk instead about the educational and general needs. Then turn around and say, "Is not everybody getting primary education anyway?" The poor kids who are dropping out do not have enough teachers to help them break the trap they are in. It will be a long time before they will come back and put money into that situation.

I would like to quote to the Minister the Oxford Dictionary, as I was annoyed when I saw the Minister putting this line into her speech at this point in time. To me, that is a danger signal which is not going to go out in the newspapers, the fancy programmes on television or with the people who are talking about these things and who are wrapped up in comfort in talking about poverty. I know, as I have seen the people who have been there. That is an indication right away. When the Minister for Social Welfare comes to the table at the end of the year do not look for hard cash, find your solution somewhere else.

Poverty is described in the Oxford Dictionary as a state of being poor. The Oxford Dictionary is not confused about it. What is poor? Poor is lacking adequate money or means to live comfortably. It is all about having the basic requirements to live and subsist. That is the basic level of poverty. What is the poverty line? The Oxford Dictionary tells us that the poverty line is the minimum income needed to secure the necessities of life. That is the reality. The Oxford Dictionary does not get confused over what poverty is about. We have poverty in Ireland on a massive scale. It goes on to the poverty trap, where increases in incomes brings loss of State benefits making real improvement impossible. I can see people in that situation. Last Saturday at one of my clinics two elderly people told me that they had £600 in a bank that they had declared and because of that they took away a miserable £10 a week non-contribution pension — £10 to the husband and £10 to the wife, the man was 84 and the woman 78. They cannot live from week to week. But what happened? They had this small amount of money which they were trying to save up as funeral money and which at the end of their lives is all they will have left. They are chasing every penny they have nowadays and trying to dig it out. They found this. So they lose £10 each. They are taken off the non-contributory pension and what did they lose as a consequence? They lose the ESB fuel vouchers and the other benefits they were getting. Therefore it is not just a question of the little difference. Even the Oxford Dictionary saw it all — the Minister cannot see it — and went so far as to spell it out, where increase in income brings loss of State benefits making real improvement impossible.

Perhaps the 35 per cent tax rate that the Government are bringing in on old age pensions and on children's allowance will reduce the benefit they are getting and we might be able to get them marginally back into a couple of pounds so that they can get back their fuel vouchers and ESB allowance. These are the kind of things poverty is about. We could go on for months talking about this as Deputies on both sides of the House know the practical examples that are there. If we want an agency, we want it to highlight these things and show the reality of this side of poverty. What I would like to say to the Minister is, give people in the first instance the basic money for the necessities. The Minister must do that and this body should try to establish what is the basic level.

We have tried every so often to establish on an ad hoc basis the basic subsistence level for a family with up to five children. Nowadays the Taoiseach and the Minister for Finance stop at two children. However, the poverty trap includes families with up to five children. The Government should give these families the support they are committed to giving under the Constitution.

In talking about poverty the Minister should set her sights straight. We all agree that health conditions, low levels of education, low levels of nutrition, job insecurity and so on are contributory factors, but the basic subsistence level relates to a family having enough money to buy essentials only. If we as a community cannot provide a basic subsistence level including a reasonably balanced diet for our disadvantaged citizens, we are going nowhere. There is a trend nowadays to follow right wing policies, but that trend will have adverse effects on those caught in the poverty trap because they will be told it is all their own fault, to go and get work and get on with the job and, in many cases, that is not possible given their circumstances.

The record of the Government is particularly bad in relation to poverty. Not alone did the Government do away with the National Community Development Agency but their record in other areas is bad. I invite anyone to compare the two Bills. They are practically similar, with a few changes in the wordings, and in the end the National Social Services Board is not subsumed into this body. The Government could have made the decision to leave the National Social Services Board separate within a few days of coming into office and, if that were the case, we would respect their decision. This was debated in the House before they came to office and they accepted our Bill but pointed to the reservation they felt that the National Social Services Board should remain separate. Why did the Government not give effect to that reservation on coming into office? On foot of the passage of the National Community Development Agency Bill, 1982, a body was set up to run it and funding was provided. It was disgraceful and shoddy politicking by the Minister and the Government to abolish that board which had a wide representation including very distinguished members of the Society of St. Vincent de Paul and various other organisations. Heading this board was Mr. Joe McGough, a man with enormous management experience. We felt that having this type of person on a body like this would bring a whole new dimension of management into this area of community development. I pay tribute to Mr. Joe McGough who was very keen to do this job. However, the Government wiped out the whole board and saved themselves £8 million for four years.

We set up a Council for the Aged under the chairmanship of the late Michael Killeen. This brought a new dimension to this area. While up to then a great amount of goodwill had been evident in voluntary agencies, there was a lack of professional management and we felt that professional management would be invaluable. We found that top class management in industry were prepared to put their backs to the wheel in this area. That has not been widely recognised. In this case the effort was made and it was set aside straight away by the incoming Government. This was a disgrace. Basically speaking the two Bills are the same. Because it was put through the Seanad first one is printed on a different coloured paper but that is probably the only real difference.

In keeping with their record in relation to poverty this Government brought about massive unprecedented unemployment which is now running at 240,000, and massive emigration. We are now seeing something which I thought we would never see again. We are getting emigration on a similar scale to what happened in the fifties when emigration was at an average of 40,000 per annum. Around the year 1955 it went to a peak of almost 60,000. Already Central Statistics Office figures show a difference of 30,000 in the movement in and out of the country. The Government claim the figure is less, but that is an argument that is always used. It is interesting that applications for visas to the US this year are up by 9,000. I know scores of young people who are going to America to work.

The US allow only about 1,200 legal immigrants per annum from Ireland under the various categories. However, many more than that are going on temporary visas. One of their difficulties is that they cannot come home to visit parents, friends and relations in Ireland because they might be caught and refused re-entry to America. Recently a number were caught over the Christmas period and were not allowed to return. All we can offer those people is poverty. Apart from those emigrating to America there are reports of large numbers of Irish people turning up in England. The Minister said that poverty is a question of social and economic policies. One does not need much research to know that the economic policies of the Government are resulting in massive unemployment and emigration. That was obvious from the time the Government set this target. They intended to let unemployment rise. Therefore, it was inevitable that emigration would rise also. We have massive unemploymnet, massive emigration and extensive poverty in the community.

We had recently the allocation in the budget of 4 per cent for the social welfare recipients and that is to come about the third week in July. Surely that is not a Labour Party measure. The Labour Party cannot be happy with that. I do not know how they have turned on their heads if they are happy with that, because I remember bringing in 25 per cent three years in succession and being criticised for that by Members who are now on that side of the House. It was not enough, and now they sit silent in the House while the social welfare recipients get 4 per cent and, for the first time in history, nothing for the children. If you have one child you get once nothing, if you have two children you get twice nothing, five children five times nothing, but you have five times the bill to pay with five children. As we all know from our early days in school, five times nothing is still nothing, so it is zero for five, seven or nine, depending on the family's size. We do not need much research to see that the Government at present are systematically reducing the position of those on social welfare benefits and when they like to try to show that it is not being reduced they want to go back to 1980 because they know that in going back to 1980 they will take in some of those 25 per cents and that will make the figures look all right. Usually the people they are talking to are not sufficiently aware of the facts to be able to point out right away, "Yes, but you are taking the figures back over a longer period."

The Taoiseach likes to make comparisons with the EC and to say that in the EC they are having only little percentage increases like these, but if you have a little percentage on a big income it is not so bad. When you have a little percentage on nothing it means nothing. Therefore, whenever someone puts matters in that way, as the Taoiseach did recently to the House, he insults the intelligence of the people, certainly on this side of the House. I do not know about that side and whether the people there have listened to so much of this that they are dumb struck and do not hear it any more, but I become very annoyed when I see the Taoiseach standing up in this House or on television and saying that. I feel inclined to get up and say "Liar, it is not true", but I know that that is unparliamentary and I would not do it, of course.

Deputy, thank you very much. I would like to develop a climate here where the word "lie" in all its shapes, forms and implications would be outlawed.

Let us say "misrepresentation".

That is more acceptable.

Thank you. It still boils down to the same thing: that the people are being led astray and the position is misrepresented. I boil up and I have to take a walk or a breath of fresh air or a drink of cold water or something because it is very aggravating when you go out on the street and see people who are really on subsistence level and then come in here and have to listen to this kind of rubbish, which is not related to reality, and when you see the money being clawed back. Even Deputies on that side of the House are pointing to the clawing back of the child allowance. A sum of £30 million has been clawed back by knocking out the £100 tax allowance. Goodness knows that allowance was small enough and should have been considerably more, but to wipe it out altogether was to claw back in a full year £30 million. They have clawed back £9 million on not giving the 4 per cent to the children. It is sizeable money when put together. That shows where the real poverty comes from. You are pulling back real transfers of money. The question for this House is whether we are going to transfer real money to people who are really in need. There is no difference between us on chasing the sponger, the scoundrel, the waster or whoever else. We are just as anxious as Members on that side of the House are to deal with that problem. We might have a more compassionate way of doing it than some of the right wing people who speak in the House from time to time have, nevertheless we do not differ on that. However, when we are talking about people who are genuinely disadvantaged, this House must be concerned about real transfers of money and that is when we talk about the millions of pounds that are transferred. Here is a real transfer, but it is away from families by knocking out that £100 tax allowance and taking £30 million as a result of that.

I know that I am leading with my chin for some of the right wing developments in this House recently when I talk about the three 25 per cents in a row that we gave. People say that is what is wrong with the country, that we are giving away too much money. But when you found that people were on a miserable old age pension, so low that they could not exist, the only way to get that up was with the three 25 per cents. It annoys me to see that being pulled back at present and those people being pulled back towards poverty as has been happening over the last three and a half years.

Of course, an unprecedented number of people are on medical cards now. Criteria for medical cards have been tightened up, there is very strict control on them and many people have had the medical card taken away from them. The medical card each year is adjusted in line with the figure given for inflation, so we are talking again about the 4 per cent. The band to cover the financial circumstances is extremely narrow and there is very little improvement widening of it. That in the first instance, plus a tightening of the criteria, would lead one to expect to see a drop in the number of medical cards; but in fact the number of people holding medical cards has increased to 1.3 million. If you qualify for a medical card you are on subsistence level and probably under it. There is no question about that with the criteria that apply. Of course, that is excepting cases where people might misrepresent their case, defraud or whatever. That is a different situation. But the vast number of people on medical cards are under subsistence level of income and that is an index of how much poverty there is today. In addition to that on this coming Saturday 2 per cent will go on to the supermarket trolley because this coming Saturday is 1 March. That will push up from 23 per cent to 25 per cent the VAT charged for the vast bulk of items purchased at the weekend to maintain the family and keep them in basic food. We know that will happen this coming weekend. At the same time we know that food subsidies are being halved and that the child benefit scheme is not coming due to administrative difficulties.

Perhaps the Deputy's speech would be more appropriate on the budget.

I am dealing only with aspects of the budget which relate to poverty. I take it that the purpose of this agency is to find poverty, measure it, establish where it exists and propose measures to deal with it. Only in that respect, am I mentioning it. For instance, of the schemes which this body would examine ——

The Deputy should not go into that in depth. A passing reference is all right.

The child benefit scheme is one that could come from this body and they will now probably have to examine how it will work or how it might work. The Government promised the child benefit scheme and subsequently discovered that administratively as far as they were concerned it will not work and they could not introduce it. The allowance of approximately £30, as mentioned in Building on Reality, should now be £30 plus, instead of which it is only going from £12 to £15, which is a 25 per cent increase. There was no increase last year, only 7 per cent increase the year before and no increase the year before that again and this latest increase will not improve the situation. Also, the 35 per cent retention tax referred to earlier will be a blow to old age pensioners and have a disastrous effect on those living on, or just above or below the poverty line. I hope that attention will be paid to this and an indication given as to how the position might be dealt with. When the Finance Bill comes into the House it will fall to us to make proposals in that regard.

The voluntary agencies play a very important role — we visualise it as a central role — in combating poverty, which is the purpose of this Bill. However, their role will be diminished by this 35 per cent retention tax which will reduce the funds at their disposal. The supplementary welfare criteria should be looked at by this agency. People have been severely hit in recent times and instructions have been given to officers working in the health boards to exclude particular allowances and thereby exclude particular people. This is the reality of what is happening as regards Government support in combating poverty.

There are those who are very close to subsistence level, working but with very low incomes and trying to cater for a family. Increased direct and indirect taxes have hit these particularly severely. People talk about increasing indirect tax rates as a means of reducing direct taxes, but we must take care that those on low incomes who are paying taxes and PRSI contributions will not be further disadvantaged. At the moment they are particularly badly hit and this matter should be the subject of research on the part of this agency.

There is the second group who have been referred to as the new poor — those in the middle income group. They could now be referred to as "the new poorer" because they are poorer than they ever were before. They are being badly hit by taxation and their income increases have been held down. This is particularly hard when they have families to support. Whatever benefits they had accumulated through their industry have been taken away from them.

The position of the family in society must be urgently looked into. The effect of Government measures, particularly in the last three and a half years, or following the last four successive budgets, has been felt by families because in these cases four, five or six individuals are being supported usually on the one income. Alternative measures must be proposed to support the family in line with the requirement in the Constitution.

Another area very much in need of research is that of the elderly, especially those on non-contributory old age pensions. Because of the means test, their position is one which should be examined and highlighted. Very small changes in their means can result in their losing, not just a pro rata benefit, but a whole series of benefits. That surely is not something which the Government would intend, but that is what is happening at present. It is incumbent on the new agency to research this problem and come up with suggestions for solving it.

In my time in the Department of Social Welfare before the budget we would bring a long list of amendments to the Cabinet and bargain for them. We would always meet with fair success and one would be happy having got 13 or 15 adjustments. These might cost £1 million, £½ million, or £3 million or £4 million, but they were important adjustments for those concerned and saved people from falling into the poverty trap as the Oxford Dictionary has defined it. That did not happen this year or, if the Minister brought such amendments forward, he did not succeed in bringing them through the Cabinet. That feature of budgets has been lost sight of and it was a very important feature because one would learn from groups like the St. Vincent de Paul Society, the representatives of the rural community bodies, those representing the disabled and so on and the voluntary agencies what measures were required. These could have an important effect on groups of people like the elderly, widows or the disabled. In terms of the total budget they did not cost very much, but they gave much relief. We are finding that more elderly people are being dropped into the poverty trap.

I was talking to some people last week about the proposals of the Government in regard to money in the bank. They took their money out. They had £1,800, and decided to do a number of things. They put in natural gas heating because they were so elderly they had become afraid of ordinary fires. That cost £800 to install, leaving them with £1,000.

That came in for assessment, and as a result they lost their non-contributory pensions. In turn, they lost their fuel vouchers. Now they have a gas heating system but they cannot use it. That is the poverty trap. If this Bill is not about that sort of thing, we are wasting our time here. These are the problems that matter.

The long term unemployed deserve attention from the new agency. Their position is becoming particularly desperate because of their long accumulation of debt and their loss of friends and credit. We must also consider the relationship between poverty and crime, and I hope the agency will look at that. As we know from prison statistics, many of the prison population are drawn from the lower income group, and there is a major connection between unemployment and hardship. It would never be our intention to use our prisons or our criminal law generally in a repressive way, so the agency should look carefully at the connection between crime and poverty.

The body to be set up should also consider the itinerant community. There are examples of where positive work has been done in this direction, but more can be done and the agency could help.

We have many community schemes such as meals on wheels, public health nursing, home help. These things must be kept in mind. They are basically part of local community effort. We called one such body the National Community Development Agency and emphasised the need for community based services like those I have been speaking about. The important thing about community services is that they should be provided where there is genuine need.

The cost of administration of welfare services and the provision of ways in which the administration can be simplified and brought down to local level are matters which the new agency can look at. We must look at the local effects of factories being closed, left, right and centre, with people becoming unemployed with consequent hardship on members of local communities, resulting sometimes in the breakdown of those communities.

There is much work to be done here and we must get our priorities right so that the transfer of moneys will be to the people most in need. There is an onus on the Opposition as well as on the Government to support measures which will deal with those who are defrauding or abusing the system, but that does not mean we should take our minds away from the essential purpose of welfare services which is to help those in need. Our most important job is to see that there are transfers of real money in a socially balanced way.

Fianna Fáil's record is quite clear. We can list the many improvements we brought about during our period in office, starting with the double week's benefit at Christmas, free travel and a proper means test. At one time for every £1 income a non-contributory pensioner had he lost £1.40 in benefit. That was savage and unfair and it cost substantially to reverse it. Eventually we brought it down to £1.20, £1.10 and ultimately to £1 per £1. That was a very big step forward though it does not look so big. Of course it does not provide a great topic at a conference.

Our main aim should be to give old people reasonable amounts in pensions, particularly widows and old age pensioners. As Deputy McCarthy has said, we will support any measure aimed at that. We supported the combat poverty pilot schemes and when the final reports came through we put in a great deal of effort. I was Minister for Health when the EC Social Affairs Council were about to close off those pilot schemes. That is a matter of record in the Department of Social Welfare and in the EC Social Affairs Council. Of course members of this Government do not speak about it very often.

The EC Social Affairs Council were very anxious to do away with the combat poverty schemes. As a result of representations I made, with the support of the officials from the Department of Social Welfare, the Council agreed to prepare a report bringing together the most positive moves which had occurred in the combat poverty programme. There was a lot of argument at this particular meeting. It was pointed out that some moves were good and others were bad, but the bad things were highlighted and the good ones forgotten. We pointed to the valuable work which had been done and the positive results which had emerged. The Council agreed to put all the good points in a report and said that at a subsequent meeting they would look at a reduced but continuing programme. What we said was right. In each country positive results had emerged and they had to be recognised. As I said, the Council then decided to continue with the scheme. Having kept the door open, it would be possible to promote the work to combat poverty in EC countries in the coming years. Some of the EC countries were in favour of stopping EC funding for the schemes but we won out on the day. This means that EC contributions are now available.

The Minister referred to some of the grants that are available. She said that the programme was backed by a Community budget of 25 million ECUs, around £17.5 million over four years, the bulk of which would be devoted to supporting action research projects in favour of deprived groups or deprived areas. Various projects were selected across the Community and eight Irish projects are being financed, 55 per cent by the EC and the remaining 45 per cent by the Government.

I have to listen to people making remarks about the Fianna Fáil Party and trying to suggest that we were not committed to this area, but our record speaks for itself. It shows the massive transfers we made in this area and will continue to make in line with our policy of social balance. We have always believed in sponsoring enterprise, private and public, while at the same time maintaining a social balance. What is done to help those who are genuinely poor shows a party's real commitment to social balance. Fianna Fáil have always had, and still have, such a commitment and we are very proud of that fact.

The meeting to which I referred earlier was the key meeting and some of the projects caused a great deal of argument and comment, but it was our objective to seek what was positive and good in the pilot studies and to build on that. Virtually the same thing was happening in other EC countries and those who did not want money committed to this area pressed very hard to ensure that the scheme would not be permanent. I was Minister at the time and we proposed that reports be prepared. This led to the scheme getting under way once again, albeit on a reduced basis. This meant that the present Minister, with advice from her Department, can go to future meetings of the EC Social Affairs Council and develop a positive and constructive programme to combat poverty. She will have our support, notwithstanding the jibes that have been thrown at us from time to time.

I welcome this Bill but I would prefer a different title. I believe the National Community Development Agency Bill, 1982, was a better title because it specified very clearly that the first objective was to combat poverty. Unless we bring community development into play, it will be very difficult to remove the trap into which so many people have fallen, or have been forced into, in recent times. As I said, I welcome this Bill because the bulk of it is exactly the same as the Bill I had the privilege of presenting here nearly four years ago, but my only regret is that this agency were not allowed to continue and get on with this work. If the incoming Government wished to take away the National Social Services Board and leave it on its own, that was their choice, but they did not do that. Instead they did not implement the legislation; they abolished the board. That was very regrettable because it meant the board lost four years development.

I will naturally be very interested in all the details because I went into detail before in the House in relation to all the sections. That is a matter for the Committee Stage of the Bill. With those reservations I have pleasure in welcoming the Bill, although I regret that the agency and the money which went with it of £2 million per year for four years, £8 million altogether, were denied over that period. It has all happened before and is on the record of the House. We are repeating the scene of 1 June 1982. People reading about this in later years will be very confused because they will see the same things being said now about what in effect is the same Bill, although they might not notice that the National Social Services Board is being dropped out of this one. That is the only real difference in the Bill. If they look deeply into it they will find that a total of £8 million has been taken out of it.

While we are here pontificating on poverty and the need to eliminate poverty in our society, could we bring ourselves to a more immediate situation where poverty is? We are now going through the coldest winter since 1947 and under the free fuel scheme the people involved are allowed one bag of coal or whatever the equivalent of £5 of fuel is per week. Is there any possibility that the Government might introduce some quick temporary expedient to help in this very cold weather, such as double vouchers? The scheme runs from October to April. Sometimes in April the weather is not so cold, but certainly the weather at the moment is very bad. I mentioned a fortnight ago that I know of people I grew up with who are now queueing up for fuel and are ashamed to be seen doing this. Would the Minister consider while we still have this cold weather, which is likely to be with us for the next ten days, doing something to help eliminate the immediate effects of the cold weather on the most deprived people in our society, the very old and the sick living alone?

I was very interested in what Deputy Woods had to say and I could not help but reflect on what Ralph Waldo Emerson said on one occasion in America when he was speaking about somebody there as only he could. He said about this gentleman that "the louder he spoke of his honour the faster I counted the spoons." I could not help feeling like that as I was listening to Deputy Woods regaling us with Fianna Fáil's record of what they did for the poor. Cecil Woodham Smith in her book The Great Hunger, in which she described the Famine in 1847, recounts one occasion when the tenants of Lord Sligo presented themselves at the castle in Sligo and were due to ask Lord Sligo if he would remit the rents due for that year if they paid on the double the following year when the crops were good and the situation improved. Before they could speak to Lord Sligo, however, the gombeen of the agent went out on the steps and obliged the 2,000 tenants to kneel down on the ground before Lord Sligo came out to address them. That was done for their own politically expedient reasons at the time. I could not help but reflect, as a member of the Labour Party, that that basically, although in a more refined form, is what Fianna Fáil have been doing over approximately 40 years in office. Let us be fair about it. When they were a popular party they introduced measures. We must give them credit for that. The cynical observer might be forgiven for thinking that this was done more for the advantage of Fianna Fáil than it was for the poor. It is interesting to go back and examine at what periods in history these particular gimmicks were introduced, however welcome they were to the poor.

I take pride in the fact that this Government are introducing this Bill. I do so as a member of the Labour Party, which was founded by the poor for the poor. We are the only political party in the country who have our roots in the underprivileged and deprived section of society. It is very important to remember at the moment, when there seems to be a new swing in Irish society, that we are mushrooms, we grew up from those conditions, we are not parachutists, like a lot of the Johnny-come-latelys who are dying to drop into the trade union movement and take it over or take over the political arena for reasons that have very little to do with the poor of the country.

I am very glad to quote from page 36 of the book One Million Poor? edited by Sister Stanislaus Kennedy, in which no less a person than one of our most eminent sociologists, Dr. Liam Ryan, says:

Connolly's philosophy has been reechoed in more recent times in a 1973 report prepared by the Labour Party entitled Poverty in Ireland. This report, which is significant in being the only policy document on poverty issued by any of the major political parties, concludes: “Poverty is an indictment of our nation because we as a people have placed our trust in a social system which is inherently divisive and unjust. No amount of quantitative growth in the capitalist system will eradicate poverty. Fifteen years of steady economic development since 1958 have not reduced the numbers of unemployed nor, indeed, increased the total number at work. Capitalism — and its political proponents have failed the Irish people and the poor most of all. The Labour Party asserts that political action can and, with the support of the people, will eradicate poverty by fundamental and total reform of the socio-economic system. Policies for people must replace policies for profit and property.”

There is no doubt about the basic and fundamental truth of that particular Labour Party philosophy because we see the same thing not alone in Ireland, where poverty is directly attributable to structural injustices, but in countries throughout the Third World and even in America, the richest nation in the history of mankind, where millions of people are going to bed every night on the street because they cannot sleep in their homes. You see the distinction between the northern and southern hemispheres, the top and bottom half of the world, in spite of the fact that man has the capacity to produce more wealth than he ever had.

I was a bit confused by the Fianna Fáil spokesman on Justice accusing the Government of playing politics with poverty because it is one of the major contradictions of our recent history that the poor are not a political constituency at all. Their problem throughout the world is that they cannot gather themselves into a political system. If they could there would have been a revolution before now. The first law of science is that everything has a cause and an effect. If we are to do away with the effects of poverty we must study the causes and eliminate them.

Somebody once said that the ancients were very mean, that they stole all our best ideas. If one goes back and listens to the political commentators of 2,000 years ago, one finds that Julius Caesar said that all the people want is bread and circuses. One might contend that in the minds of some people the latter day equivalent is TV and the dole. When I was going around canvassing last May in the local elections it was very interesting to note the huge number of people in working class housing estates who were sitting down watching TV programmes and videos. That has a huge sociological import for us if we are serious about redistributing wealth in our society and eliminating poverty. I believe — and more competent commentators than I would say — that it was the cinema which prevented social revolution in Europe and America in the 1930s at the time of the great depression, because it diverted people's minds away from the position then obtaining.

We need a proper educational system. There is a distinct correlation between poverty and a lack of fair access to educational opportunities. I might quote from this book, One Million Poor?, on how poverty is seen in this country:

In a survey on poverty carried out by the EEC only 19 per cent of those interviewed in Ireland felt that poverty was due to injustice within the society, whereas 30 per cent felt that it was due to laziness while a further 25 per cent believed that it was due to misfortune. Although these views were expressed by a small random sample of the population, one thousand persons, they do represent the current views of Irish people. They pose a serious challenge for anyone attempting to find long term solutions to the problem of poverty.

I listened to Deputy Woods speak on behalf of the Fianna Fáil Party. I believe we should all stop playing politics, on however minimal a scale we have done to date. There are issues in this country — unemployment, taxation and poverty — which are so big they should not be the subject of inter-party rivalry and bickering. We need a special ad hoc Oireachtas committee on poverty to come up with suggestions, to undertake a close, worthwhile study of the causes of poverty in all its manifestations in this country and establish whether something can be done about it.

I might quote Tony Brown, the Labour Party sociologist and economist, who contributed a chapter to this book, One Million Poor?, called “Poverty, Politics and Policies”. Naturally — because what he has to say reflects Labour Party policy — it must constitute the most perfect commentary. He says:

The existence of poverty on a considerable scale is a fact here in Ireland and in all of the countries of Western Europe. A study published early in 1980 pointed to the existence of relative poverty at a level of 20 to 25 per cent of the population in Italy, Belgium and Ireland, 16 per cent in France, up to 10 per cent in the UK and between 3 and 5 per cent in Germany, Norway and Sweden. These percentages add up to a total of many millions of men, women and children. Yet, poverty has not been regarded as a central political issue in any of the countries mentioned. It has largely been left to committed pressure groups together with a few politicians to fight the battle of the poor.

Quite simply, the poor have not become an issue because they do not constitute a recognisable and organised political constituency. People afflicted by poverty are in the minority and they are not a homogenous group within society. Séamus Ó Cinnéide, in his 1971 study, divided the poor in Ireland into five main categories: old people, widows; small farmers; certain groups of the self-employed, and low paid employees. To these may be added such groups as single-parent families, prisioners' dependants, isolated individuals and groups, and the long term unemployed and disabled. Of these, only the unemployed — and even then to a very limited extent — have any real political muscle. One hundred times as many marchers turned out.

— I was a party to both of these marches, a Leas-Cheann Comhairle. Listen to this for a statistic which he quotes —

for the 1980 PAYE protest as for the unemployment protest in the same year — and both marches were organised by the same trade union body.

Is that not a terrible reflection on the lack of political awareness of the people? There is an even more horrifying statistic of something that happened this year of which I am aware, that in one of the buses hired to attend the marches on unemployment and taxation — a joint effort — one bus contained 12 people only and of those 12 one was a married woman with three children. That is some reflection on the lack of awareness or lack of perception by the poor and the unemployed on the need to raise this to a political level in order to do something effective about their position. What this needs is politics, policies and planning.

I should now like to quote something Deputy Frank Cluskey said when Minister of State at the Department of Social Welfare:

The mere pursuit of goals spelled out in terms of economic advance — growth deficits, balance of payments, even employment or unemployment levels — simply cannot be looked to as the basis for the concerned national effort that is essential. The very process of economic growth can be a selfdefeating exercise if it is in itself such as to maintain and reinforce injustice. There must be a clear commitment to the achievement of a balance between what is necessary to meet acceptable economic criteria and what relates specifically to the creation of a more just and equal society.

Again in that book entitled, One Million Poor? Tony Brown quotes Titmuss as having pointed out that social planning is the real answer to the problems we face in the context of this discussion. Titmuss pointed out:

Planning, if it means anything at all in relation to the social and economic needs of the particular groups in society, means the making of decisions about the allocation of resources and claims on resources in the future as well as the present. If we are to plan for the aged to have a larger share of the national income then we are, in effect, planning for others to have less.

That is a very true representation. I would suggest it is more than opportune that all these sectors be involved in a massive campaign to eradicate poverty from our society. It is a frightening statistic that over 700,000 people, or approximately one in four of the people of this country, are in receipt of social welfare benefits of one kind or another. In regard to the cost of social welfare alone — I accept fully that there are anomalies within that system, that somebody is tricking the system here and there — we are talking of a rounded up figure of two and a half billion.

I cannot help but go back and think, again in Cecil Woodham's book The Great Hunger, of what the Home Secretary, Sir John Trevelyan, said in 1847. He was speaking in the middle of the Famine and said that the Irish, as a people, if they ever learn that they can get something for nothing will provide a stampede such as the world has never witnessed. I do not know of any nation in the world, whether stricken by famine or other disaster, which would not stampede for something for nothing if they got it; I think all of us would do that. Trevelyan was outlining the views of the British Liberal Government toward the Irish mentality and character. There is much residual outlook of that type among some sectors of our society today under which they ascribe the misfortunes of the poor to laziness, dishonesty and that kind of thing.

While we can be cynical and take account of what these shortsighted and bigoted people would say about the poor and the unemployed. Tony Brown sums up what should be our attitude when he says that there is a long and unhappy history of declarations of political concern for the commitment to the poor. In many countries these declarations have been accompanied by misleading statistical claims about the numbers of those in need, the dimensions of the problem and so on. What has been singularly absent in almost every case has been any deep political analysis of the causes of poverty and any clearly articulated long term policy to deal with those causes. Unless there is a change in this essential area of political decision there can be no real progress in the fight against poverty.

In the context of the broad subject of social policy against poverty the only way forward towards one or any of the long term goals of our society is through comprehensive and balanced economic and social planning. This is especially so in respect of poverty which is a complex problem involving, in every instance, a mixture of economic and social elements and circumstances. Since true planning relates to the definition and statement of objectives and the consequent evolution of policies and actions designed to achieve them, it is basic to any planned approach to poverty that the right objectives should be set and fully understood. If political leaders are not prepared to face up to the fact that poverty, as an evil in society which must be removed, can be tackled only by the application of policies which are necessarily radical and costly, then there can be no hope. It would be better to stop the pretence of tackling the problem altogether than to continue with the charade. To argue for generous alleviation is an honest policy approach. To claim that this does anything to remove poverty from society without the addition of appropriate long term policies is totally dishonest. That is a reflection of the Labour Party policy by our leading proponent on the whole question of justice and poverty. Mr. Tony Brown. I will quote another Labour Party economist and sociologist, Councillor Eithne FitzGerald, who is identified in the public mind as one of the leading Labour Party spokespersons and somebody greatly motivated by a high sense of justice. She says:

The challenge of poverty in Ireland today is still substantial. The latest comprehensive data suggests that more than one in four in Ireland experiences poverty in their daily lives. The elderly, the unemployed, and the larger families, are those most likely to be poor. The most up-to-date information highlights the continued persistence of the problem of poverty among urban workers supporting a family, in depressed farming areas, among pensioners, and those out of work. Nearly a million people receive a social welfare payment each week.

About 700,000 — about 20 per cent of the population — depend on social welfare for their principal long term source of income. One in six of all children is in a family which so depends on social welfare. Many families lack amenities we now regard as basic. Three out of every five people living alone lack the basic water amenities of hot water, flush toilet and bath or shower. Poverty shows its face in bad housing and in educational deprivation, as well as low income. The problems faced by one-parent families, by travellers, by people living in long-stay institutions, all illustrate the different dimensions of poverty. We are often complacent about poverty in our midst. The argument is frequently put that with general growth and development in Western economies the rising tide will lift all boats. The continued prevalence and persistence of poverty in Irish society illustrates that this is not the case. We need a commitment to tackle not just its symptoms, but the fundamental causes. We need a real commitment to redistribution of resources in Irish society.

I do not think anybody would disagree with her statement. In spite of all the professed technological advances and our greater capacity than ever before to produce wealth, it is manifestly true that the rich are getting richer and the poor are getting poorer. I said this ten years ago when the national wage agreement became a concept, where one sector of the workforce would not be a party to any national wage agreements or arrangements unless increases in salary were based on a percentage of their salaries. Facts exist to show what that principle has done. We are closing hospitals and educational institutions and cutting back on recruitment of teachers, nurses and gardaí. I have discussed this with economists and accountants. It is that principle which is the Exocet in Irish society.

If I never agreed with Deputy O'Malley in anything else he said, what he said this morning is manifestly true. A ten year old child would agree with that. If we continue the present system this country will be bankrupt in a few years. I am not saying this in a gloomy or pessimistic way. I am the very opposite by nature; I would be regarded as an optimist. The factual record of what has happened in the last 12 years will prove that what I am saying is true. I gave evidence here and I got the figures from officials in the Government that the secretary of a Department under that principle, between January 1973 and January 1984, got an increase in salary under the mechanism of applying a percentage increase, of £27,800. That figure can be up-dated now. This problem is contributing to the poverty situation. I hope the trade union movement and others will wake up to what is happening. That official is highly productive in economics and the science of economics, where the word "productive" means to fulfil a want. Like many other people they fulfil the want but they do not generate much extra disposable income which keeps hospitals open, which keeps educational institutions open and which allows for the recruitment of extra people. Money pays wages. If there are four people living in a virgin economy on an island in the Pacific and they have only one pint of milk, they either get a quarter of a pint each or two take half a pint and the other two do without. It is simple, basic, factual scientific arithmetic.

Economics is not an exact science. I have long ago dismissed economists. I saw four of them on television, all graduates of the London School of Economics, who could not agree among themselves on what caused inflation. The situation will be worse next year if we carry on as we are. The person who receives the huge percentage increase, for example, somebody on £20,000 a year of whom there are many, is over-generously compensated for the increase in the cost of living index. The cost of living index is measured scientifically four times a year in February, May, August and November. It is based on a fairly scientific system, on a family with a husband, wife and four children, what it costs to clothe, feed, educate, shelter and give them a holiday.

What is wrong with the Taoiseach or anybody else going on television and stating that the cost of living over the last year has gone up by X pounds, not percentage? The person who gets the £2,000 a year increase as against what the lowest person on the scale might get, say £300, is not paying anything extra for a pint of milk, a loaf of bread or a pound of sugar. Because of the crazy system we have at present and the cost push effect on inflation by paying the higher paid person over-generously, we are making it more difficult for the person at the bottom of the heap. We are widening the gap and the lower paid worker is being done to death by this system. The quicker we as a society stand up and tackle these issues on a broad basis the better. We owe it to ourselves to analyse where the fault lies in Irish society.

In certain areas at present farmers are being compensated for the bad summer they had last year. I know of cases where, on the one hand, they get vouchers to compensate for the loss of hay that could have been saved and, on the other hand, they were actually selling bales of hay for £4 a bale. That is an injustice and in itself is a contribution to the poverty we are all trying to eradicate. We could write 40 books on the injustices that are prevalent in our society. It is too big a problem for one party. I suggested to Dr. Martin O'Donoghue when he was a Minister in 1978 that it should be dealt with by an all-party committee who would not play politics with such a supremely important issue but would make recommendations for the ultimate good of this nation. We would have an equal and fair distribution and a proportionate redistribution of wealth to those who need it most.

I will conclude by quoting Tony Brown, the Labour Party spokesman on the international committees dealing with poverty and injustice, who quoted from the book by Sr. Stanislaus Kennedy, page 162:

Finding the lasting solutions to poverty, which are necessary for the social cohesion of Irish society and for the peace of the world, must be seen as a political task. An appropriate mixture of principle, detailed analysis and leadership is what is required. To wait for the emergence of a consensus on the issue would be to wait forever. No great change, no great social or political advances ever grew out of a consensus. Change must be brought about by courageous political leadership allied to hard and patient political and technical work. Above all it must be brought about by harmonising the skills and insights of people themselves especially of poor and deprived people. Policies for people, rather than policies for administrators and institutions, must be developed. For us in Ireland, such policies — and such politics — will demand a break from all that has gone before. But then, what has gone before has made our society what it is.

As a member of the Labour Party who are under attack at present I want to say that our sole commitment is to the poor, the underprivileged and the deprived in our society. There is no shame in that. It was J. L. Garvan, editor of The Observer, who said that opinions are feee, but facts are sacred. I was very disturbed to hear Deputy Woods. I understand he has to do his job as an Opposition spokesman. The first act of somebody who is not a gentleman is to distort the truth. The facts are there to prove that this Government alone of all the Governments in the EC have ensured that the poor and the social welfare recipients in this country stayed ahead of the cost of living increase. Barry Desmond who is often much maligned ——

Thank you, a Leas-Cheann Comhairle, Minister Desmond, our mutual colleague and friend. Whatever else may be said of him, nobody can ever say he is not factual and truthful when it comes to statistics. He has shown us — you have seen them, a Leas-Cheann Comhairle, the tables which prove the truth of what I am saying. I am right in saying that this attempt by the Government to introduce the Combat Proverty Agency is part of our input into the Joint Programme for Government. We make no apologies for that. In fact, we take legitimate pride in it. For that reason I commend the Bill to the House and support it fully.

I hope that this will be what is called a sunset committee and that it will not be put into limbo of forgotten things. I have not read through the terms of the Bill fully, but let me put it to the Minister that we should agreee on a definite date, say, not longer than six months. I know that is a very hefty job to be done within a period like that. I am anxious that before they leave office this Government will have shown their commitment. I think of Declan Costello and people like him in Fine Gael, the authors of the just society. Much as I would like to corner all the market on virtue and concern for the Labour Party, people in Fine Gael were motivated in the past and still are with concern for the poor. This agency will be set up for the sake of the poor and not for the sake of politics. It should not be set up as a political expedient or gimmick but because there is genuine and wholehearted concern on the part of those of us represented in Government. That is not meant to reflect on any of the other parties where people are highly motivated on issues of social justice. If we are to do something, let us do it quickly and let us do something that will show results in the fairly immediate future. Molaim an Bille don Teach.

Deputy De Rossa has one minute.

I am tempted to say I was hoping the last speaker would wind up quickly in order to allow me to get in and start to give my view on this Bill. There is an old saying that money is the root of all evil but it is my firm belief that insufficient money is the root of all evil. Insufficient income and insufficient means are the root of poverty. There is no doubt that factors other than money are contributing to poverty.

Debate adjourned.
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