The Deputy might be interested to know what his constituents have to say about him. Many of them are not very happy with him.
However, a series of excellent and responsible administrations from 1987 to 1994 reversed the slide into economic and social disaster which was provoked by gross government shortcomings during the period 1983-7. From a situation of escalating national debt, public spending and high interest rates, order was restored to the State's finances by a number of sensible, skilfully crafted and courageous budgets and supplementary corrective measures.
The enormous achievements of the 1987-94 period required a major joint effort on the part of the people at central administration. Each and every sector of society played its part in this process of recovery. Perhaps the single most important development during this crucial time was the acceptance of the vital need for social partnership if any substantial improvement was to be achieved in the face of enormous odds. The fact that such a partnership was created and built upon as a vital core of trust developed between the partners is perhaps the single most encouraging example of the potential of our society to overcome appalling problems such as unemployment and social divisions. As a result of the successes of this period, it became clear that Irish industry can and does achieve world class industrial performance given a sympathetic and positive operational environment.
Thus, coming to power over two years ago, the rainbow Coalition was presented with an unprecedented and sustained level of industrial growth, a balance of payments surplus to the State's finances and, of vital importance, extremely low interest rates. There were also, of course, a number of problems to be addressed, in particular an unacceptably high level of unemployment and the persistence of social deprivation and poverty for many Irish families. The needs of the homeless, victims of domestic violence and abuse, and the travelling community, immediately come to mind in this regard.
Having studied the rainbow Coalition's third budget in an excellent economic climate, it is almost impossible to believe that it has made so little use of these unique opportunities to reduce the gap between poor and rich.
What overall impact has the Coalition Government had on society? Has it given quality leadership and provided encouragement to those with the most serious social and economic problems in our community? What specific groups have significantly benefited from its policies?
I make no apology for continuing to stress the need to assess the impact of this Government's policies on those most in need in our society. These include the elderly, the unemployed, lone parents, widows and those suffering from persistent illness and disability. We must never forget that the overall cohesion of society is particularly dependent on the quantity and scope of the social welfare system. The need for a clear indication of support for social welfare recipients has never been as profound, given the climate of growth and expansion in our economy. How has the rainbow Coalition responded to this challenge? In particular how has the Minister for Finance performed in his three budgets?
I accept that the budget includes positive features. While they may be small in real financial terms, the above inflation increases in certain personal welfare payments are welcome. Similarly, relatively small but useful changes have been made in the family income supplement, the carer's allowance, eligibility for the adult dependent allowance, and treatment, maternity and adoptive benefits. Proposed changes in the qualifying conditions for free electricity and the free telephone rental allowance are a move in the right direction. It must be an ongoing priority of all Governments to improve the administration and operation of all schemes in the public sector. This applies not only to the Department of Social Welfare, but to all other Departments and State agencies.
The back-to-work allowance scheme facilitates the transfer of unemployed people into the active labour force. While the Minister has provided for an increase in the number of participants in this scheme and has reserved some of the extra places for those receiving disability allowance, his overall level of commitment to this key scheme is extremely disappointing.
I welcome increases in the level of child benefit payments since it involves an explicit acknowledgement by the State of the individual importance and rights of each person from birth. Furthermore, the direct payment of such allowances to mothers guarantees at least a certain level of income each month irrespective of other financial and social factors affecting individual families.
While it must be acknowledged that the increase in child benefit has been significant over the lifetime of this Government, it is also important to note that the child benefit scheme is one of the few State programmes which is totally neutral in terms of targeting poverty. Its impact is spread across all income levels. While any real improvement in the level of payments represents a welcome gesture of support to mothers and children, its impact on narrowing the gap between the poor and the affluent is minimal.
Indeed, it brings to mind perhaps the most substantial educational policy of this Government, namely the abolition of third level fees. While this is an important and welcome step for middle income families, its ultimate effect is to further shift educational expenditure from families who are most in need and who, unfortunately, have the lowest participation rates in third level education. This problem is highlighted in research findings, which point out the strong association between educational level and the likelihood of obtaining full-time employment.
How are we to fairly judge the performance of the Minister for Finance over the past three years? Any assessment of the Minister and his colleagues since they took up their duties must take on board three crucial factors. By 1994 the State finances had been rescued from the disaster of the early 1980s, 1983 to 1987. Furthermore, the economy had been prudently built up to record growth levels while interest rates had been dramatically reduced.
The remaining major social and economic problems facing the Government were obvious. Principally, it was critical to make significant progress in terms of net job creation with the needs of the long-term unemployed of particular urgency. Equally, a major attack was urgently required on the level of poverty which remained in our society despite substantial overall economic growth. Clearly, the rising tide was not lifting all boats equally.
It cannot be forgotten that two of the three Government parties — Labour and Democratic Left — had a long record of verbal commitment to those most in need. Since these two parties controlled key ministries such as Finance, Social Welfare, Health and Education, the Government had every opportunity to provide clear-cut evidence of its commitment to the poor and socially deprived.
What has happened during the past three years of a Labour and Democratic Left dominated Government? Any fair assessment can only conclude that this Government has recklessly and selfishly wasted the massive potential for improvement in the State's finances. Instead of the rising tide being used to benefit those most in need, the Government has indulged in what is the most profound and prolonged example of widespread mismanagement and self-serving policy-making in the history of the State. As Ministers have been overcome by difficulties of one type or another, the vital business of Government has become almost irrelevant in a frightening atmosphere of self-preservation at all costs. Unfortunately, the unbelievable sequence of self-inflicted disasters which have become the only notable feature of the Rainbow Coalition have been disastrous for the country.
As we try to identify the positive impact, if any, of the three budgets of the Minister for Finance, we see that a tremendous chance to change society in a positive way has been thrown away for short-term, narrow and unworthy political gain. The only coherent strategy behind various Government policies seems to be an ill-fated attempt to regain power at the forthcoming general election at all costs.
For a Minister of Deputy Quinn's ability, it is extremely disappointing to see that the only clear plan in his three budgets has been based on electoral considerations. To maximise the give-away nature of the 1997 election budget, pathetic increases were provided in 1995 and 1996.
The level of manipulation of the State's finances, particularly in the social welfare area, is only now obvious. The most deserving social welfare recipients have been cynically deprived of increases, which the State could afford, for more than two years simply to satisfy the electoral interests of the Rainbow Coalition parties. This can only be termed a gross abuse of the most vulnerable sectors of our society and does not sit easily with the many expressions of social concern and care which up to now have been the public face of the Labour Party and Democratic Left, in particular.
The extent of the inadequacy of Government policy towards social welfare recipients was evident when the Minister boasted that "an elderly person will be £7 a week better off from the increases of almost 10 per cent in the old age contributory pension in my three budgets". If the Minister even matched the approximate £11 per week increase in the child benefit from a much lower base, there might be some shred of credibility to his claim.
One can only bitterly regret the lack of caring and effective policy-making which has become the trademark of this appalling Government. The potential of this country is too great and the needs of the people too important to be left in the hands of such a weak Administration. While it is little consolation to many people who have been let down over the past three years, it is perhaps understandable that a Government made up of parties of the far Left, Centre and far Right cannot be expected to arrive at anything approaching effective and caring policies.
In the current era, it is extremely important that our democratic institutions work effectively, otherwise the sense of public cynicism regarding the professionalism and integrity of our democratic structures will grow. Such a trend is extremely negative and unhelpful for society and must be reversed as a matter of urgency. The only meaningful way in which this can be achieved is through a dynamic and clearly evident process of policy reform and implementation throughout our political system. Obviously, the Government of the day must lead the way in this regard.
The disastrous failure of this Government to use the record level of economic growth to achieve a breakthrough in terms of tackling profound social deprivation must not discourage us from ensuring that profound change takes place in society for the benefit of all. If that message emerges in the aftermath of this budget, some good will have come from what has been an extremely cynical and shallow exercise.
Our future well-being requires a combination of cohesive policy-making and the provision of caring and targeted State supports. We must ensure all State programmes are fully audited with related ongoing feedback. The economy must be managed prudently and all possible steps must be taken to encourage the widespread development of indigenous industry. In Government, Fianna Fáil will ensure that such measures are in place to protect the well-being of the nation's citizens as we approach the 21st century.
