I welcome the debate on the important National Economic and Social Development Office Bill 2002, particularly given that we are at a crossroads in terms of our economic and social development. We seem to be taking the wrong road on strategies to develop our economy, society and the country as a whole.
I listened carefully to the contributions of other Deputies and learned much about rural and economic disadvantage; many people seem to focus on urban disadvantage. Ireland is predicted to be the most expensive country in the euro zone by the year's end. One need only consider the rate of inflation. Our ESB bills have increased by €72 and motor tax by 12%. An extra charge of €69.50 has been imposed in respect of ATM and laser cards, €40 has been added to our gas bills and there has been an approved increase of 18% in VHI premia. This is the reality and I hope this debate will generate new ideas to deal with it.
We need measures to curb consumer price increases. People do not mind paying reasonable prices for quality services. However, they are sick to the teeth of being ripped off each day while the fat cats seem to be laughing all the way to the bank. We need consumer rights and, above all, fairness in prices.
We must face the reality that we have a major crisis in the area of training and development, and we need new resources for community initiatives. There are fewer places on community employment schemes, budget cuts in FÁS training programmes, the great RAPID programme seems to be under threat and the back-to-work allowance is restricted. The new national economic and social development office will have to take a radical and creative look at these issues and come up with a detailed response based on helping the most needy.
The purpose of this Bill is as follows: To make provision for the establishment of a body to be known as the national economic and social development office comprising three bodies to be known as the National Economic and Social Council, the National Economic and Social Forum, the National Centre for Partnership and Performance and such other bodies as the Taoiseach may, by order, establish and to define their functions; to dissolve the National Economic and Social Council, the National Economic and Social Forum and the National Centre for Partnership and Performance; and to provide for related matters.
Section 7 deals with the establishment of other bodies within the office and the powers which the Taoiseach has in this regard. We seem to have consensus on this section but we also need decisive leadership. The Taoiseach needs to organise the Cabinet quickly and to set a clear direction on social and economic issues. We need to develop radical strategies to do something about economic and social development.
Section 8 of the Bill sets out the function of the office regarding the role on advising the Taoiseach on strategic matters relevant to economic and social development in the State and how it shall perform these functions. Here we are basically talking about job creation. We need to tap into and see, understand and target resources at the areas of most need. I talk particularly of areas in my own constituency that need investment. Parts of Coolock in Dublin North-Central urgently need investment and new job creation policies.
As regards strategic matters and social development in the State, the Government should not only listen to the different partners but also pay particular attention to the disability sector? It should hear it and listen to its radical and new ideas, and implement its proposals. For example, let us listen to groups like NAMHI which should be part of this national economic and social development debate. We should listen to its demands for the publication of a rights-based disability Bill. We should agree funding to meet the shortfalls in intellectual disability services this year. We should prioritise funding for disability services with multi-annual budgeting and we should support its demand for the publication of the national intellectual disability database reports immediately. Finally, we should also agree to eliminate waiting lists for services over the next three years.
These are issues which should be linked to this debate. When looking for funding we should not be afraid to consider serious options. Yesterday I put down a question to the Minister for Finance asking how much revenue would be collected in one year if 50 cent was put on a packet of cigarettes. His answer was €130 million. Yesterday we had protests, and more today, from the disability sector which is seeking a budget in the region of €35 million. We could obtain revenue of €130 million by putting 50 cent on a packet of cigarettes. This kind of idea should be looked at and, in the interest of people who need services, we should not run away from making tough decisions.
Section 16 sets out the composition of the centre and the bodies who can nominate the ordinary members of the centre. Let us have more trade union people, more women and a strong community sector involvement. Many people working in the community sector have progressive and creative ideas in regard to social and economic development. As Deputy Eamon Ryan commented earlier, the Government seems only to listen to major groups like IBEC and to exclude other groups. We should listen to all the groups and particularly people on the ground.
Section 17 sets out the conditions of membership of the various bodies including term of office, designation of chairperson, expenses and reasons a member of a body should be disqualified from being such a member. We need accountability and transparency. Therefore, this is an important section because the question of expenses, etc., must come before taxpayers. This section also states that, in so far as is practicable, the Taoiseach shall ensure an equitable balance between men and women in the composition of a body.
Section 18 states that a body shall hold as many meetings as may be necessary for the performance of its functions. I add a word of caution. This should not end up as another talking shop where we have meeting after meeting and talks about talks. We need efficiency and new ideas to develop those which will come from the council.
Section 17 is an opportunity to develop and show we are serious about the equality issue. I have concerns about the phrase "as far as practicable". The Taoiseach must be decisive and show leadership on this issue. Equality between men and women is no longer an aspiration but a reality and we need to be proactive on this issue.
Section 20 outlines the right of the bodies to establish committees and to advise them regarding the performance of any of their functions. Section 22 relates to a prohibition on the disclosure of information save as otherwise provided by law. This states that a person shall not, without the consent of the relevant body, disclose any confidential information obtained by him or her while performing, or as a result of having performed, duties as a member of the body. I stress the importance of confidentiality and respect which are essential to this section. Also, as I mentioned earlier, we must have the quality of professionalism. We need good quality public services but must also have professionalism at all times in dealing with these issues.
Section 23 relates to the appointment of an officer to be known as the chief officer of the office, and the roles and the duties which this person shall carry out. This is an important position and we need the right calibre of person for it. We have many talented people in the country with the ability to carry out the functions regarding section 23.
Section 25 refers to the appointment of office staff. The office may, in consultation with the bodies concerned, appoint such a number of persons to be members of the staff of the office as it may determine with the consent of the Taoiseach and the Minister for Finance. Again I stress the need to be cautious as the record of the Minister of Finance seems at times to stop our economic and social development.
Section 27 states that the office, at the request of a body, may from time to time engage consultants and advisers as it may consider necessary for the performance of its functions. We should not get carried away by the words "advisers" and "consultants". Many people now seem to feel that we must have a consultant and adviser. It is essential that we use the talents we have here which do not necessarily have to come at a high price. Consultancy seems to be the new buzzword regarding economic and social development but let us not get carried away on the issue. Let us have common sense but at the same time let us target quality people and bring them into the public service.
Section 32 outlines the fact that the office should prepare and submit to the Taoiseach for approval, a strategic plan not later than six months after the establishment day of the office and every three years from the submission date of the first statement. The Taoiseach shall, as soon as is practicable after a strategic plan under this section has been approved by him or her, cause a copy of the plan to be laid before each House of the Oireachtas. I welcome this section which shows respect for democracy and the Houses of the Oireachtas.
Section 33 relates to the requirement of the office to make a report to the Taoiseach at the end of each financial year on its activities during the year and the Taoiseach shall cause copies of the report to be laid before each House of the Oireachtas. Each report shall contain information on the activities of the other bodies in the office. The office shall also furnish to the Taoiseach such information regarding income and expenditure in such a form as he or she may from time to time require.
Section 34 allows that the Taoiseach may dissolve the council, the forum or the centre or any body established under section 7, after consultation with the office and any Minister of the Government who has representation on the body. It is important that the Taoiseach discusses these decisions with the relevant Ministers because in regard to social and economic development, it is important that we have the best people, the people directly involved and the Minister directly concerned. This is covered in section 31.
Section 41 refers to the transfer of staff and sets out that every person who, on the day immediately before the establishment day, is a member of the staff of a dissolved body shall, on that day, be transferred to and become a member of the staff of the office and in particular, be appointed to serve in the body where previously assigned, unless otherwise agreed. We must have respect for staff and ensure that the right people are put in the right place.
We need to examine carefully the issue of social partnership because we have taken our eye off the ball in regard to some parts of the community and voluntary sector. There has been much talk about social inclusion but the reality for many has been social exclusion. Despite the fact that there was a major recent debate on disadvantage, there are still many disadvantaged pupils in the inner cities and other parts of the country who feel totally excluded. It is up to us to ensure they get all necessary support. The Government should take such views on board.
While we are a great nation for talking – an Irish gift – we must return to the idea of doing and being actively involved, particularly in regard to the debate on disadvantage. I have seen recent cases of wonderful breakfast clubs in very disadvantaged areas on the north side of Dublin. However, due to problems relating to the threatened community employment schemes, the good quality people looking after and feeding the children concerned are to be moved out of the projects on 30 June, which will ruin the flow of the service. I urge the Government to consider such situations when discussing social and economic development.
Wonderful programmes such as Early Start, Giving Children an Even Break and others are ongoing in our primary schools. If we intend to continue the economic development of the country, we must develop such programmes. We must also address the massive level of drop-outs at second level. Young people, many very talented, are dropping out and are not being allowed to develop their full potential and make a contribution to our society. I wish to praise many of those who work in this area, particularly resource teachers who work with children at risk and in disadvantaged areas. As I mentioned during a recent Adjournment debate, we should pay such people well and look after them because they are performing a magnificent public service. This must be taken on board in the planning of our economy and society.
Overall, we must face up to these realities because some in this society appear to be less equal than others. It really sticks in my gut when I hear the phrase "it's the economy, stupid", because most of the major political parties in this House have gone down that road. We seem to get carried away with that American phrase. It is not the economy, stupid; it is society, stupid – it is people. That is what running a country is about and is the way forward in this debate. When people refer to Ireland, they are not talking about an economy but a society. When one talks about social partnership, it is more than a pay deal or Senator Joe O'Toole's agreement, as many people would feel. It must include economic and social development for the most disadvantaged in our society.
In our discussion on the Bill, we have taken our eye off the ball in regard to poverty and a more detailed analysis must be carried out of the disability factor. The one thing that all people with disabilities in Ireland have in common is the considerable risk that they will experience a high level of poverty. For example, 54.4% of all households headed by an ill or disabled person are living at or below the 60% poverty line. The national rate of unemployment is 4.6%, yet it is estimated that at least 70% of people with a disability are unemployed, an unacceptable situa tion. The extra costs of having a disability are met by people with disabilities themselves.
Poverty and disability remain linked in Ireland. Tackling this will involve improving the income supports available to people with disabilities. The disability allowance is currently €124.80 per week, while the average industrial wage is €524.92 per week. To make matters more difficult for people with disabilities, inflation was 5% in the first quarter of this year, although I welcome today's figures recording a drop in inflation.
I call for the disability allowance to become 50% of the average national industrial wage. As a first step towards this goal, disability allowance should be brought into line with the contributory old age pension. Budget 2003 increased the risk of people with disabilities living in poverty. It resulted in a €10 increase to the contributory old age pension and just €6 extra to the disability allowance. As with budget 2002, disability allowance has slipped further away from the old age pension.
The Government anticipates the annual inflation rate for 2003 to be 4.8%. This will consume €5.70 of the €6 increase, leaving just 30 cent to the person dependent upon disability allowance. However, this 30 cent will be easily consumed by the 1% increase in VAT which will result in an increase in electricity, oil and gas costs. There is no evidence that the budget was either disability or poverty proofed. Budget 2003 strengthened the relationship between disability and poverty.
When discussing this Bill, we should reflect on the use of our resources. If there is a downturn in the economy, as appears to be the case, we must target our resources to the most needy in our society. The debate on this legislation gives us the opportunity to present radical new ideas to look after the weaker sections of Irish society.