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Dáil Éireann debate -
Thursday, 14 Mar 1991

Vol. 406 No. 5

Social Welfare Bill, 1991: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time".

(Carlow-Kilkenny): Before the break I referred to PRSI and PAYE payments which had to be made every month and I made the point that some employers only make payments every couple of months. Indeed, one semi-State body are three months behind in their payments and a curt letter from the Department asking for a cheque by return of post does not do justice to a situation like that. However, I will not labour that point.

The proposed increased charges for local telephone calls will be deplorable in so far as the aged are concerned and they will be fought tooth and nail by everybody involved. There is no doubt that old people worry about telephone charges; a woman of 73 years of age came to me some time ago because she was worried about what would happen when the charges were increased. Even though I assured her that they had not yet been brought in — and that more than likely they would not come in — she told me that she would be afraid to contact people because of the bill. I am sure her bills would not be very high but it would certainly negative the 4 per cent increase granted to the elderly if they had to spend too much on telephone calls.

Television licences for black and white sets are free to many social welfare recipients. At this stage, very few people watch black and white television sets and while it would add an extra cost to the Exchequer, as a gesture of support to the aged, free colour television licences should be granted to them as it costs quite a bit to pay the difference.

There are also anomalies in relation to free travel; People in receipt of the disabled person's maintenance allowance may travel free but a companion cannot. I also raised the question of a person in residential care who was refused a free travel pass. I hope that has been dealt with on another level because, if somebody is severely handicapped and is in residential care, that person should get free travel.

That is a separate question, the residential care will be covered now except for the cases which the Deputy mentioned. That matter is being pursued further.

(Carlow-Kilkenny): The Minister should pursue that matter and I will pursue him. Community alert in rural areas has done quite a lot to reassure old people living alone; they have provided them with alarms and bleepers and they are worthy of support because many people give their time voluntarily. The length of time it takes social welfare officers to visit people — in the country at any rate — is unforgiveable. The length of time it takes to get a report back from Sligo in relation to an investigation is unbelievable. If there is understaffing in that area we should do something about it because people must get money and if they have to wait a minimum of six weeks before they are interviewed, it is very difficult for them. I do not know why there is such a delay but I worry that community welfare officers might end up the same way although, at present, they are effective, quick, deal with emergencies and quickly report back. I hope they will not end up like the social welfare officers as far as delays are concerned.

They are different, one deals with long term pensions and the other deals with an immediate, once-off payment.

(Carlow-Kilkenny): I do not mind as long as they are not equally bad in relation to delays. I am also concerned about the assessments on young people living at home. It is an unusual system in that one person's board and lodging may be calculated at £8, another calculated at £18 and, indeed, in one case, a girl was given £39. I do not know what one is supposed to do if one is unemployed. Is one supposed to take off like the birds into the bushes and chirp there all night? If someone has an income which appears to be high, one can take it for granted that they are fleeced by income tax and every other tax which is imposed. It is grossly unfair to the parents of these people.

The rate of pay for a home help is pre-Brian Boru at £1 per hour. If we had home helps looking after the elderly we would save hospital bills and the taking up of beds in hospitals. However, we cannot encourage people to get involved for that rate of pay.

The free beef scheme has caused quite a lot of problems because of those excluded and the number of people in one house who could get it. I suppose that, no matter how many people are let into a scheme, there will be as many more left out but the case was made to me that five people could benefit from one social welfare scheme by getting five helpings of meat while a widow might get none. A list contained in a document which came from the unemployed states that there is no beef for those on social employment schemes.

The old folk, who are so dear to the Deputy, did not get it; it only applies to the unemployed. The amount we get from Europe now is limited unfortunately.

(Carlow-Kilkenny): I accept that there is a limit but, at the same time, we must try to have equality in relation to it. The subject closest to my heart, after the care of the elderly, is medical referees. I have spoken a few times in this regard. It is incredible that a person can visit a specialist in Dublin, have all kinds of tests involving modern machinery, and then be called before a medical referee who decides, from looking at a document and across the table, that this person is fit for work. There is something grossly wrong with such a decision-making process. I could outline several cases where professors in Dublin hospitals deal with people and are indignant when their diagnosis is questioned. If a person has a letter from a hospital outlining his or her illness it should be sufficient. This position should no longer be tolerated.

There is a row at present between the dentists and the Department and it should be possible to fix it. We had one dentist in Carlow, he had a car accident and now we do not have anybody. It is all very well claiming that if one pays PRSI one is entitled to free dental care but if a dentist is not available it is not much use to that person. I am almost afraid to mention the word "orthodontics". There has been an improvement as a result of the appointment of a woman for two days but the shortage of orthodontists presents a problem right across the country. Apart from their scarcity, we must consider the payment they can get in private practice. I suggested when I was on the health board that there should be a different scale of fees for orthodontists if we are to encourage them to enter the system. There is no point in tying them to the existing level because they would be taking a massive drop in salary. We need them because young people growing up must get every chance of proper treatment. It is pathetic to find parents coming in with a child who, perhaps, has a tooth growing outside his normal set of teeth being told it is not a major medical problem, the child will be OK, it is cosmetic. I know that cosmetic orthodontic treatment may not be considered strictly necessary but, as in the case of the village schoolmaster, pride attends us still.

The Deputy should preserve some of his undoubted eloquence for health matters.

Orthodontics are health matters.

(Carlow-Kilkenny): That may be so, but it is ingrained in my mind and I cannot help referring to it. If the Minister is transferred to the Department of Health at some stage at least I will not have to remind him. I am keeping strictly within Standing Orders and anticipating anything that might happen. With those good wishes to the Minister I will leave it so.

Once again the Minister for Social Welfare is to be congratulated on introducing extensive social welfare legislation into this House. This Bill contains 64 sections and deals with a broad range of issues. Social welfare fraud is increasing alarmingly. In reply to a recent Dáil question I was shocked to learn that out of a total of 505 cases detected in the Cork area over the period 1988-90 only 22 cases were prosecuted. I am not satisfied that enough is being done to tackle fraud in our social welfare system. The only deterrent is the fear and certainty that if one steals from the State by defrauding it of social welfare payments, (1) one will be caught and (2) one will be prosecuted. On both these counts we have failed. The social investigation unit, the joint investigation unit, the external control unit and the fraud control unit are not able to cope with their job. They are understaffed and overworked.

I recognise that the opportunity for fraud exists in any system, be it social welfare, grants or subsidies to industry or agriculture, or taxation, and control measures are necessary especially where public funds are concerned. The control measures we have in place are not adequate. I am satisfied that fraud in our social welfare system now extends to every scheme from unemployment assistance to employers failing to deduct tax and PRSI contributions. Information on these types of fraud seems to be generally known locally, yet the Department of Social Welfare appear to take little or no action. Of the 505 cases detected only 22 prosecutions followed. I suggest to the Minister that signing on a daily or weekly basis at employment exchanges involves a huge amount of clerical work which has to be done manually. Reducing signing periods to monthly or quarterly would allow staff to be redeployed and retained to make more random checks to ensure that claimants are genuine and entitled to payment.

In recognising that control measures are necessary I am also concerned that the overwhelming majority of claimants whose entitlements are genuine be not stigmatised or subject to a regime which would infringe their dignity or sense of entitlement. I welcome the broad measures in Part V of this Bill, but they do not go far enough. Collusion between employer and employee is only part of the equation. The biggest offenders are those claimants who each week claim benefits they are not entitled to. I urge the Minister to give this matter his most urgent attention. It should go out clear to all who are abusing the system that they are depriving the most genuine social welfare cases. They continue so to deprive them, and it is little wonder that we come to the House asking the Minister to increase this or that service while people are out there defrauding the depriving such people of their entitlements.

There has been considerable controversy about the relationship between unemployment and work incentives and I welcome the provisions of section 7 regarding the family income supplement. I do not believe there is evidence that any substantial part of the increase in unemployment which has occurred over a period of time is due to the so-called disincentive to work syndrome. The overwhelming majority of people who are unemployed at the moment want to work. Unemployment is a negative, destructive experience financially, socially and pyschologically. I do not accept that there is a great incentive to give up work for higher payments from the State.

The progress we have made with the family income supplement should be continued and I applaud any improvement in this respect. It should be advertised further to encourage the maximum take-up. The problem where it arises is not confined to the choice between working in the formal economy and drawing social welfare payments but is a choice of working in the black economy and being a recipient of social welfare payments. On grounds of efficiency a difference should be retained; on the grounds of equity the position of the low paid workers vis-à-vis social welfare recipients should be improved. The provisions of this Bill will go a long way towards achieving that.

A loophole in the law relating to the supplementary welfare allowance scheme arose because health boards could take into consideration only the means of the applicant or his spouse and as a result cohabiting couples could obtain more than married couples. Section 45 provides that for the purpose of a supplementary welfare allowance the needs and means of a couple cohabiting as man and wife will be aggregated as in the case of a married couple. Cohabiting couples will receive the same rate of payment as applies to married couples in the same circumstances. I believe health boards generally will welcome these provisions. However, I must sound a note of caution. It is extremely difficult to prove cohabitation in many cases. Social welfare recipients will enter into a relationship and it can be very difficult to prove that X and Y are living together as husband and wife. They may visit each other at weekends and even during the week when sexual relations will occur. The criteria set out in the supplementary benefit handbook in Britain and judically approved in a commission's decisions, reference RD3/81 and RSV/1781, should be taken into consideration.

I would urge the Minister and his officials to set out for field staff rules that must be complied with in order to establish a cohabitation relationship, for example, with reference to the existence of a common household, stability of relationship, financial support, sexual relationships, children and public acknowledgement of the relationship, and so on. If we do not do that now we will run into difficulties and the appeals system will be clogged up with claims and counter claims in relation to determining cohabitation relationships. The Minister should consider this.

Section 43 is welcome. I understand for the provisions of it that the funding of health boards in relation to supplementary welfare allowance will now be done on a gross basis rather than on a net basis and that the cumbersome procedures of transferring refunds from various branches of the Department of Social Welfare to health boards will now cease. This will relieve clerical staff in the health boards to engage in other work.

I welcome section 54 and its provisions in relation to budgeting and household management facilities which the Department of Social Welfare are planning in conjunction with An Post. The bulk of social welfare recipients are paid through the post office system and the budget management facility will give greater scope to people to plan and manage their financial affairs. The vast majority of social welfare recipients are in their local credit union so I would ask the Minister to allow social welfare recipients the choice of having this service provided by An Post or the credit union. The Lough Credit Union in my city of Cork has made tremendous progress in helping families on social welfare to manage money more prudently and they have also tackled the terrible scourge of money lenders, who have inflicted so much hardship on so many social welfare recipients. While there may be technical reasons for not implementing my suggestions at the moment I would ask the Minister to give it serious consideration.

The provisions of this Bill are broadly welcome. In 1990 the Bill introduced by the Minister had seven parts and 51 sections. It was the largest new Social Welfare Bill in almost 40 years apart from the 1981 Consolidation Act. the Minister has gone further on this occasion by introducing more substantial legislation here. Perhaps it is time the Minister thought about introducing a new Social Welfare (Consolidation) Act.

I want to refer to section 209 of the Social Welfare (Consolidation) Act in so far as it applies to persons paying local authority grants. The Minister in his speech said that the Commission on Social Welfare report indicated that almost half of those on unemployment payments have no rent or mortgage commitment. This may be true. However, at the end of 1989 there was a total of 715,540 recipients of various types of benefit from the Department. If 50 per cent of those had no rent or mortgage commitment it is logical to assume that 50 per cent had. Many of those reside in local authority accommodation and are not allowed by health boards to claim a rent subsidy under the provisions of section 209 of the Social Welfare (Consolidation) Act. In the Cork Corporation area there are 10,000 people in local authority accommodation paying rents at a minimum of £8 up to a maximum of £11. If the total number of social welfare recipients represent 20 per cent of the population it is safe to assume that there must be at least 2,000 of them on social welfare payments who are not receiving a supplementary welfare allowance and a rent allowance.

I wrote to the Minister on 21 February 1991 about this matter and the Minister replied to a Dáil question on 5 March 1991. The reply was not to my satisfaction. The Minister is aware that the differential rent system determines the maximum amount of rent payable by a tenant to a local authority. The formula which relates to rent takes into consideration the family income, the size of the family and the composition of the family. Until August 1986 the formula for assessing differential rent was uniform among local authorities but after that the scheme was devolved to individual local authorities. The potential overlap between supplementary welfare allowance and local authority differential rents was small up to 1986 but since then the position has changed dramatically. Local authorities have considerably increased their rents in order to cope with public finance problems. Many families on social welfare are now paying local authority rents which amount to £15 or £20. This is certainly the case in Cork County Council. These families are being denied the basic right of a rent allowance under the provisions of the 1981 Consolidation Act. It is questionable as to whether health boards are really entitled to refuse people in local authority houses rent supplement. By excluding them under the provisions of section 209 the Minister is acting ultra vires the spirit of the Bill.

I would ask the Minister to seriously consider this aspect of the supplementary welfare allowance. If a person on a mortgage can no longer pay the local authority can they subsidise the payment? Where there is hardship in relation to a local authority family home this is not available irrespective of the hardship. Since the health boards operate the supplementary welfare allowance scheme under the control of the Minister for Social Welfare, I call on the Minister to instruct the health boards to give rent subsidies to families so that they get their basic legal entitlements which will help them to eliminate poverty and hardship.

There is no point in giving me the standard reply to this question. I am constantly being told that health boards do not normally pay rent supplements to persons paying differential rents and that it is open to local authorities to invoke hardship clauses under the differential rent scheme so as to reduce the rent charge. That does not happen. County managers never exercise their right to reduce rents in cases of hardship. Indeed, they rarely reduce the amount of rent in arrears even when it comes to evicting families. I would be failing in my duties as a public representative if I did not make every effort to highlight this issue. I hope the Minister agrees with me on the question of rent subsidies to local authority tenants and that his officials will examine the matter and make every effort to rectify this wrong as an injustice is being done.

I congratulate the Minister for introducing yet another major Bill which will reform the social welfare system and improve the lot of social welfare recipients. My party agree that this Bill should pass through the House. Even though I can at times be critical of certain aspects of the social welfare system, I want to say that the Minister has done more for social welfare recipients than any other Minister since I became a Member of this House. I believe that he is a man who keeps in touch with the grassroots and is fully aware of the problems facing the less fortunate in our community. Long may this continue.

In my contribution I would like to deal with the questions of poverty and social deprivation. My party's Front Bench spokesperson, Deputy Connaughton, dealt with the provisions of the Bill in great detail and at length and I apologise if I repeat some of the points he made.

Poverty is becoming more deep-rooted in this country every day and it is clear that the Government have failed miserably to take the problems of poverty, social deprivation and division seriously. The question of how to eliminate poverty is nowhere near the top of the Government's agenda and the Social Welfare Bill before us illustrates this. The Government seem to be determined to ensure that a great many of our people remain dependent on the State. While handouts and payments are vital in dealing with the symptoms of poverty and social deprivation, they are of no use in tackling the root causes.

I said last year in the House that the gap between the poor and the better off was widening by the day. It is sad that one year later I have to say that the gap between the very rich and the very poor has widened even further. While the Minister has made some attempt to tackle some of the issues he has made no attempt to deal with the root causes.

The Irish are a very generous people. One can give many examples of the way they have responded to major problems on the world stage. I have no doubt that if they were encouraged and given incentives to help out in their communities they would do so, because they do not want a two-tier society. They are anxious to help but their goodwill has not been tapped. The Government have instead decided to continue their policy of handouts and are determined to ensure that the statutory bodies retain control. I am aware from my experience as a member of a health board that the statutory bodies are unable to tackle the social problems in our communities in an effective or efficient way. I have no doubt that voluntary groups could do this if given the necessary encouragement and resources, but I regret to say that the heavy hand of bureaucracy has not been lifted. I have also no doubt that the efforts of voluntary groups, particularly when it comes to care for the elderly, are resented.

I hope the Government do not believe their own hype and are not blinded by the glare of television cameras at press conferences when attempting to project that the economy is on the uplift and that everything is coming right. While some people are reaping the benefits of this, unfortunately the poor are being bypassed. In stating that everything will be OK and that the economy is on the uplift one is ignoring factory closures and the increase in unemployment. The figures speak for themselves. For example, the figures indicate — I sought to raise this matter on the Adjournment tonight — that there has been a 5 per cent increase in the number of people drawing unemployment benefit and assistance in February 1991 in Cork city alone as compared with the figure for February 1990.

I would argue that the rich and influential are doing very well but the poor are being buried and forgotten. For varying reasons I have spent a fair bit of time in the cities of Central and South America. The poverty in some of our cities — I am not overstating this — reminds me of what I have seen in some of the cities there. I have seen housing units being neglected and abandoned as people could no longer continue to live in them. People in our cities — I am not familiar with problems of rural areas — are not being allowed to live out their lives with dignity or make the most of their opportunities. Whole generations of families never get the opportunity to gain meaningful employment and are condemned to poverty and despair.

Even though 200,000 people in our cities are awaiting housing, including the homeless, those living in overcrowded conditions, in slums or with their families, the reaction of the so-called caring Government has been to allow my own local authority in the year before last to build one house. We got a better response last year when we were allowed to build between 16 to 18 houses. I hope there will be a slight increase in this number in 1991.

Health depends on the thickness of one's wallet. The attempt by the Minister to hoodwink the public into believing that everybody will have free health care is just so much hype. Another 200,000 people will be coming into the health service which is already over-stretched and cannot provide people with the attention they deserve. It is all part of the poverty that exists in our community. Poverty is not concerned with social welfare cheating; it is about people trying to lead a decent life and having the right of access to the social services.

How can children achieve high standards in education if they do not have a decent meal before going to school? Evictions and suicides are on the increase because of the pressures of poverty. People are opting out and giving up. We must attempt to deal with the elimination of poverty, not the continuation of the dependency mentality. I am not saying this Minister is the culprit. Indeed, I have a certain admiration for him. Successive Governments must bear the blame.

This Bill was published some months after the Programme for Economic and Social Progress. That programme set out supposed commitments in the area of social welfare. Many of these are meaningless because the targets would have been reached anyway by 1992. The figures make a mockery of the promises the Government put forward to deal with the problems of poverty. There must be a realistic commitment to a minimum payment of £62 or £63 a week, as recommended by the Commission on Social Welfare.

I welcome the new qualifying rules for old age pensions for people who had mixed insurance and I acknowledge progress in relation to the family income supplement. Many of the benefits set out in the Bill will not be implemented until July. Shortly after the announcement of the budget the moderate increase of 4 per cent was offset by increases in local authority rents. People in my area received a demand for a 50 per cent increase in local authority rents. Most of these people are old age pensioners or are unemployed. The former were asked to pay an extra £1.50 per week. Increases in gas and electricity charges have also been announced and there is a threatened increase in telephone charges. The Government are giving with one hand and taking with the other. They have control over these increases. Bord Gáis are making huge profits due to the resources off our shores but they have been allowed to pass on VAT increases to the consumer. Many of their customers in urban areas are poor and elderly. The allowance which is given to them will not cover the combined increases in electricity and gas charges. Basically there is no real benefit for the poor. Ireland is a country where more and more people are becoming marginalised and forgotten.

The Government are out of touch with reality. The Minister for the Environment said at a press conference some weeks ago that he intended to set up self-help projects in the housing area. The statistics show that 70-80 per cent of those on local authority housing lists are social welfare recipients.

The much hackneyed phrase regarding the gap between the haves and the have nots must be repeated because the gap is widening. I wish to refer to problems in my city which probably occur in most urban areas. There has been a 5 per cent increase in the number of people in my area drawing unemployment benefit or assistance. This is a scandalous statistic, behind which lies a litany of human misery, suffering and deprivation. This has spread from local authority areas to areas which were traditionally regarded as better off or well-heeled. The hidden poverty in so-called middle class areas where people are under pressure due to unemployment and other factors is increasing. Deprivation is affecting both young and old.

Children in my city are coming to school each morning but finding it impossible to concentrate because of hunger. But for the generosity, commitment and dedication of the teaching staff who provide hot food, soup and sandwiches, they would leave school hungry and return to homes without food or proper heating. Deprivation is so deep in some urban areas that teachers provide food and clothing for the children attending their schools. Some of these children have never spent a day at the seaside and in order to redress that terrible deprivation teachers and voluntary organisations have arranged for them to spend a day or two away. I pay tribute to those teachers and voluntary organisations. They do not get the recognition they deserve for services in deprived areas. I know of families in the most disadvantaged areas who have switched their children to schools which provide food each day. That is a sad comment on a Christian and so-called caring society as we approach the 21st century. Many of our legislators are so distanced from the reality of deprivation that they do not appreciate that this is happening and they have not the commitment to deal with these basic social problems.

The deprivation being experienced by young people is very serious. It means that our young people are not getting the start in life they deserve. The deprivation and poverty spreads right through our urban and rural areas and these people experience a sense of alienation and shame. Some people are ashamed of their situation because they are made to feel guilty by comments, such as those with regard to social welfare cheats, that we have heard this evening. People are made to feel ashamed of being poor.

There is unemployment of 70 per cent and 80 per cent in parts of our cities. The long term unemployed feel they are the forgotten people. The much heralded European development funds and the programmes set up for the development of our infrastructure seem to have bypassed the underprivileged in our society and the areas that most need the injection of funds. They do not seem to have had the benefical impact they should have had on areas of widespread unemployment. This has led to a feeling of despair and total neglect. We are spending these moneys on roads and bridges, improving our infrastructure admittedly but there is no real spin off for the poor. The development programme seems to pass by the unemployed.

High unemployment brings about a disimprovement in an area and then becomes unattractive for industrial investment because investors will not invest in an area that is run down. A run down area is not attractive to investors and unemployment continues. It is a vicious circle. Moneys from the development funds will have to be invested to improve these areas and give the people encouragement thus making the area more attractive to investors who are still investing in our country. That is not being done. I think there is a blind spot in our development policy.

A campaign is in progress at present — I do not know if it is a campaign by the Department or just by individuals — to harass social welfare recipients. A good friend of mine, a Deputy from Cork, made a passing reference a few moments ago to social welfare cheats. There are cheats, but people who are unemployed and victims of our society should not be made feel ashamed to be poor. I am not sure if there is a campaign by the Department to justify the harassment of social welfare recipients. I am told every day of the week that people are being questioned and then being cut off disability benefit or they are told they are not making any effort to get work. It is possible that a campaign of harassment is being forced on the Department by the return of emigrants and by the increase in our unemployment figures. In other words, there is a greater number to share the cake and there must be an attempt to cut down on the numbers to offset the influx into the social welfare system.

There is no such campaign in the Department.

There is evidence of people being harassed on an ongoing basis. They are investigated by the Department, and told they are not making an effort to get work when there is evidence they have made valid efforts to get work. This worries me. Newspaper headlines, whether inspired by sources within Departments, worry me also. We had a recent headline on social welfare cheats. While there are cheats, everybody on social welfare is not a cheat. The pressure on the social welfare budget as a result of an increasing number of returning emigrants and the increase in unemployment has made the decision makers in the Department more determined to cut back on the number of social welfare payments, to try to balance those coming in with those being cut off. The Minister will probably give us figures to show there has been an increase, but with the number of people returning and the increase in the level of unemployment, the Minister would need to introduce a Supplementary Estimate.

Some social welfare cheats are being caught under this campaign but many innocent people are suffering losses in payments. The unemployed feel they are being harassed and branded as potential cheats. The crack down on social welfare cheats could be a front for a programme of cutbacks in the Department of Social Welfare. The newspaper article stated that social welfare cheats had been getting off lightly but in the massive new crackdown many moonlighting practices in the black economy were coming under regular examination. A social welfare official is quoted as saying "you will be caught". Imagine the impact that has on the individual who, through no fault of his own, is unemployed. He is put in a position of distrust straightaway. Health and social welfare chiefs have been quoted as saying that official figures for social welfare fraud are just the tip of the iceberg; a figure of £40 million for social welfare fraud a year is being bandied around by officials. A social welfare official is quoted as saying "I am issuing a public warning that anyone in receipt of an allowance, or medical card through a fraudulent claim will be caught." The article also said that a Government Deputy — it was repeated here today — called for a greater level of prosecution. There should be a greater level of prosecution of cheats but all social welfare recipients should not be under suspicion. What makes me sick is that the amount involved is small compared to the practices in other areas, the white collar banditry, which no Government seem to have the will to bring under control — the types of incidents we have had in the past 12 months, which involved the recall of the Dáil. We seem to accept these things but the unfortunate man or woman who is a victim of our economic failure is made to feel a lesser being. I appeal for more sensitivity. If there is a campaign to weed out the greedy, let us not make the needy feel they are part of that fraud. This is just a cruel front for the harassment of people in need, and I ask that it be discontinued.

Will the Minister bear in mind — I am sure I do not have to lecture him — that poverty and deprivation are not just about social welfare benefits but the issue of greater investment in education in our socially deprived areas. A greater emphasis on industrial development is necessary to raise the spirits of those living in deprived areas. That is not happening. There is too much emphasis on the hand out. These are needed for the symptoms, but they create dependency and there is a political return on those. If people feel dependent they will pay back the Government appropriately. I do not like that system.

Deputy Allen identified certain areas which concerns us all. I was interested in his comments about closures in our cities. There were a number of closures in our own city that will be remembered for a long time. I refer to the closure of Dunlops, Fords and the dockyards. These closures took place at a time when Deputy Allen and his colleagues were on this side of the House and in a position to do something about it. While I have to acknowledge that there may have been a limit to what could have been done, it was said at the time in relation to one of these companies by a senior politician, a Minister at the time, that that company would not be allowed to walk away from Cork. People in Cork say today that they were allowed to walk away. I acknowledge that only a certain amount can be done by any Government, but I want to put it on the record that I cannot accept people on the Opposition pointing the finger in one direction.

I have always tried to carry out my role as a public representative in a responsible manner, bearing in mind the effects these things have on people. I have paid very close attention to the whole area of social welfare. I live in the heart of my constituency, where there is high unemployment, marital breakdown, where there are single parents and many more problems. I pay close attention to these areas and I must pay tribute to Deputy Woods, the Minister for Social Welfare. It has been a pleasure to work with him, to discuss matters with him. Coming himself from a constituency similar to my own, he is very much aware of people's problems. We are fortunate that he has been in the Department and responsible for those affairs for the last number of years. The major improvements, the changes for the betterment of the people, particularly the less well off, are the result of his foresight, his interest, his awareness and concern. These changes are the result of his approach, which is to listen to people. That is why so much has been achieved in this area.

Like everybody else, I acknowledge that there is much more to be done. What has been achieved in the last three years, and which has been acknowledged on all sides of the House — though hesitantly at times — is a credit to the Minister.

Fianna Fáil have always shown a special concern for our older citizens, for the widows, the unemployed, the disadvantaged and the deprived. Most of the modern developments in our social welfare system were created by Fianna Fáil.

Under the Programme for National Recovery, the Government started a process of systematically giving special increases in social welfare to bring those on the lowest payments up to the priority levels mentioned by the Social Welfare Commission. In the early eighties the same Minister for Social Welfare, Deputy Michael Woods gave very substantial increases in social welfare to the elderly. The major progress made in the early eighties was recognised by the poverty study carried out under the Combat Poverty Agency in 1986 and 1987.

Their report noted that the elderly were no longer a high risk category. Thanks for that is due to the Minister. Over the past four budgets he has given substantial, real improvements in the level of payments to those who were most at risk. It should be remembered by the various pressure groups who continue to call for the implementation of the recommendations of various reports, that Fianna Fáil were delivering and continue to deliver on social welfare.

While the Combat Poverty Agency funded study is very useful and contains a wealth of valuable information, the Minister had already identified the unemployed and lone parents as the groups most in need of extra resources in the late eighties and early nineties just as he had done with the elderly in the early eighties.

Under the new Programme for Economic and Social Progress our social welfare services will continue to be systematically improved and refined with special concentrations on those who need it most. We in Fianna Fáil continue to be committed to ensuring that those who must rely on social welfare, especially large families, will share in the benefits to be gained from economic growth. This Bill concentrates on those on social welfare payments, but we are also helping people at work on low incomes with improvements in the family income supplement scheme and our special approach to tax exemptions for people at work.

This Bill continues to give effect to our caring philosophy. The substantial improvements that have taken place have been made against a background of severe economic difficulty. Over the past few years the Government have concentrated successfully on restoring order to the public finances. This has meant a substantial curb on the level of expenditure by the Government. Despite these tight controls and the need to reduce the level of borrowing, expenditure on social welfare has increased to the extent that we are now spending £3,000 million a year on social welfare payments.

There is a perception among those who criticise the Government for the amount they spend on social welfare or who criticise our system of social welfare, that these payments are in the main going to the unemployed. The reality is different. The single largest area of expenditure relates to the elderly, who account for a third of total expenditure. The expenditure on payments to widows and lone parents is similar to that for unemployment payments, each accounting for about 25 per cent of the total expenditure. Illness accounts for about 12 per cent, while the balance is spent on miscellaneous benefits and allowances and on administration.

Ireland has the lowest inflation rate in the EC at 2.7 per cent and the budget introduced last January is designed to keep inflation down to about 3 per cent. Against that background this Bill provides for a general increase in all rates of 4 per cent. This means that the value of social welfare payments will be more than maintained in real terms. The increase exceeds the rate of inflation. The cost of this increase, which is more than enough to meet the Government's commitment in the Programme for Economic and Social Progress is £104 million.

On top of this, special increases are again being provided, for the fourth year in a row, for those on the lowest payments. The personal rates of unemployment assistance (short term) are being increased by over 11 per cent this year. The special increases for people on unemployment benefit and disability benefit means that all long term social welfare payments now reach or exceed the priority rate of the Social Welfare Commission at 1991 levels.

I want to emphasise again that there has been an increase of 45 per cent in the level of unemployment payments since Fianna Fáil returned to Government in 1987. The real value of that increase can be understood by realising that this huge percentage increase was achieved at a time when inflation was reduced to low single figure inflation for each of those years, having been reduced to less than 3 per cent last year and this year.

Debate adjourned.
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