Any Bill relating to social welfare needs to be seen in the context of poverty in this country. I thought one of the most astonishing and distressing poverty-related statistics published in recent times was the information from the Society of St. Vincent de Paul that they would need an increase of approximately 40 per cent in their income for next year to provide service at the level they were accustomed to providing in the last 12 months. That is evidence from a dispassionate and unchallengeable source about what is happening in our society. The St. Vincent de Paul Society is beginning to find that some of its conferences are running out of money because poverty is becoming so extensive, particularly in the larger urban areas.
The increasing evidence of deepseated and endemic poverty particularly amongst large families on long-term unemployment assistance, suggests that the commitment made by the Government to maintain the standards of living of people on social welfare is not only not being met but is a mockery of the truth. What we are seeing is the sacrificing of the poor in our society in order to meet a set of what are not absolute economic objectives but are ideological imperatives imposed on this Government by what I described in an earlier debate as the Doheny-Nesbitt school of economics which is based far more on people's experiences outside this country — I am talking about the economists in this case — than on the experience of the people of this country.
I note too that in Cork the Simon Community, with whom I have some association, had to stop giving away food at the door of the night shelter because what had been one or two families a week became ten or 15 families a day and the very limited resources of the Simon Community could not sustain that sort of thing.
The St. Vincent de Paul Society said that children are going to school hungry. I have a number of friends who are national teachers and they said that it took them about six months to figure out why it was that some of the children in their classes were less than fully alert and involved. Then they realised it was hunger which was the problem and that the children were either having no breakfast or virtually none because there was no money in their homes to provide food. In the context of deterministic economic models of how this country must operate, this sort of human story cannot be allowed to be put on the back burner because the economists do not want to face them. I will talk about some more of them later on when I talk of some of the things that some of my colleagues spoke about. In the context of poverty in our society and its remedy, we should not allow ourselves to be persuaded that there is some sort of immutable ceiling of expenditure beyond which we cannot go without some sort of unquestionable consequence resulting from it.
It needs to be said here, in the light of the fact that we spent the last two or three hours on the Science and Technology Bill, that the economic models which have decided that we can only afford a certain level of social welfare are no more than the products of human imaginations. They are not scientific rules in which a particular sequence of events can produce an always predictable consequence. They are the assumptions of human beings about the way people live. Consequently, in terms of any analysis of social welfare expenditure it is not good enough to say that we cannot afford to pay any more. To make that assumption begs the question of a number of other more fundamental assumptions about taxation, about public opinion, about the perceptions of people in our society and the needs of the poor. Therefore, as I said at the beginning, in the context of a society where poverty is now endemic and increasing, a presumption that we cannot extend and increase levels of social welfare payments is both arguable in principle and also challengeable in so far as it is an extension of a particular economic ideology and one that I find both intellectually unacceptable and humanly revolting.
I am somewhat distressed that from what I heard of the debate — and if I am making a mistake I am happy to be corrected — but I did not hear a single speaker in the House, including the Minister, refer even once to the Commission on Social Welfare. I may have missed it and I am open to correction and the Minister is free to correct me. Just to put it on the record, there was a Commission on Social Welfare and it did produce a report. I am not in a position to dramatically wave the report because the copy I got from the Library is one of the early copies that were leaked in a most peculiar way in June 1986. Therefore, it is not something that I want to wave around.
Whatever the arguments about the pace of change on the issue of the report of the Commission on Social Welfare and its conclusions, whatever the argument about the recommendations themselves or whether they are realistic, or correct or proper, we should not allow the report of the Commission simply to slip off the political agenda. As long as I am in this House and Social Welfare Bills come through this House, I hope I will be allowed to attempt to restore it to where it should be which is at the centre of all of our debate on the social welfare system. It is a most comprehensive document. Like everybody, I could find aspects of it that I would disagree with but since it has not been referred to and since this Bill is about improving the social welfare system, I feel it imperative that somebody should refer at least in passing to the fundamental principles recommended or identified by that commission for reform of the social welfare system.
In my view the report is quite well written in the sense that it is relatively easy to identify the guiding principles which they say should motivate the social welfare system. They identify four guiding principles that ought to characterise a good social welfare system. The four are: adequacy, comprehensiveness, consistency and simplicity. Without delaying the House too long, on the question of adequacy there is one firm conclusion through the entirely of that report which I have not yet heard challenged by anybody and that is that the levels of payment are fundamentally inadequate. I do not believe any economist — whether he be from the far Right or the far Left, and there are very few on the far Left and far too many, in my view, on the far Right — has challenged that fundamental assumption.
Let us remember who the members were. Apart from the obvious trade unionists and other people there was Eugene McCarthy from the Federated Union of Employers and Frank Masterson who is now a member of the Progressive Democrats and was a candidate in the last election who represented the Irish Farmers Association. So, a consensus did emerge among people with very different political and economic ideologies or philosophies, depending on how you want to describe them, that the levels of social welfare payments in our society are of themselves inadequate to meet any sort of a minimalist definition of what is an adequate standard of living. What we actually are saying is that we recognise that people on social welfare are poor and apparently, given the oblivion to which this report is now being consigned, we propose to perpetuate that poverty in the interests of some ideology or other which is only beginning to emerge in the present new Right economic consensus.
Let us again have it on the record that the commission recommended a payment of between £55 and £60 a week as a basic level for a single adult. Just to keep the record straight because there has been considerable talk in recent times about levels of payment and one would have the impression that people were living in a glorious world of high living on social welfare, I repeat the basic rate of unemployment assistance for a single person is £35.40 a week. We are talking about levels of payment which are 60 per cent of what the social welfare commission regard as the appropriate level.
That, of course, is the most fundamental reform that is needed in our social welfare system. There is far too much woolly-headed fuzziness about welfare which says that poverty is not all about money, it is about environment and a whole lot of things. Of course it is true it is about a lot of things other than money but it is also true that without a proper money income you can do all you like but people will still stay poor. I want to put that on the record.
Even more inadequate are the rates of payment for child dependants. I think that in a society that has made such a fuss out of its commitment to the family — though the evidence in terms of legislation and expenditure is not there to support that fuss — and in a society which touts its Christianity as something that is supposed to distinguish it from what are described as the pagan states of Europe, it is extraordinary that we have the most inadequate levels of child support payments in the developed world. The recommendation of the Commission on Social Welfare that the levels of child benefit that should be available to a family on social welfare should be sufficient to guarantee an adequate standard of living for the children is one that we have not even begun to address.
The OECD proposal on the taxation of social welfare would be a far more reasonable consideration if levels of welfare were at what could be described as adequate levels of payment. In other words, if people on social welfare were approaching the sort of levels of income that we would regard as the minimum acceptable in a civilised society, then one could say that the question of taxation could begin to be addressed.
The other three criteria the commission used were comprehensiveness, consistency and simplicity. They identified major gaps in the coverage of our society, particularly in terms of social insurance. Some steps have been made in that direction under the national Programme for Economic Recovery and I welcome them. I am very glad that PRSI has been extended. My own view is that everybody in our society ought to pay the same rate of social insurance on their incomes irrespective of whether they are in the public service, in the private sector or self-employed. I also think that their incomes ought to be assessable in a way which ensures that my income for taxation purposes is similar to that of a farmer, or indeed — at the risk of incurring Senator Farrell's wrath yet again — a self-employed person. I do not think anybody in our society believes that all sectors in our society are evenly or fairly or adequately taxed. We may have made some progress there.
I could not find the reference to consistency but I know the commission somewhere identified a vast number of different levels of payment of child benefit. The commission were not able to find any single reason to justify the vast range of payments made for adult social welfare recipients, why it should be one level, for instance, on supplementary welfare of £34 per week; on urban unemployment assistance, £35.10; on non-urban unemployment assistance, £34; on the widows' non-contributory pension, £46.20 for a beneficiary under 66 years of age. There is a whole panoply of different rates of payment.
I would still like to hear from some Minister or some Government what is the rationale behind that huge set of variations in rates of payment. Nobody has yet been able to explain them. Senator Cregan mentioned that it was possible, for instance, that an old age pensioner could have less demands for expenditure than a single, unemployed person and, indeed, that argument could be made. If there is a philosophical basis to these variations let us hear it; if there is not, let us at least hear a set of policy objectives set before us even if the timescale is ten years for eliminating all these inconsistencies and all this confusion.
Finally, the commission chose to evaluate the social welfare systems in terms of its simplicity. The one thing that I can say, that the Minister, I am sure, can say, and that every Member of this House who has to do clinics can say — something that I do not and am fortunate not to have to do; although I suppose it would be a useful and worthwhile learning experience — is that the social welfare system is not simple. It is, in fact, quite the opposite of simple; it is daunting in its complexity. I do not accept any more that that is entirely accidental because there are policy decisions being stated and implemented which all seem to push us in one direction, that is, to make social welfare less accessible and more difficult for people (a) to know what they are entitled to and (b) to gain access to it.
Therefore, in any discussion on any Bill to deal with or change the social welfare system, the commission's report ought to be stitched into the record. While I do not propose to take the remainder of the night to read the whole of the report of the Commission on Social Welfare into the record, although I may yet be compelled to do it if nobody else is prepared to talk about it, some of what I would regard — and it is a selective list — as the more important recommendations of the commission ought to be put on the record.
It is important that the provisions under which people lose social welfare entitlements because of benefit in kind resulting from board and lodgings should be dealt with and disposed of. In the summary of the commission's report they recommend that the means assessment for adults over 25 years should not include any assessment of general household living standards; for example, benefit and privilege should be excluded from the means test. It is a minimal requirement that the dignity of an adult over 25 years of age should not be taken away from him or her by endeavouring to pretend that he or she is a dependant of the people with whom they happen to share a home. That is clearly a pressure on people to leave the home they live in, to move into independent accommodation and, in my view, quite likely to move one step closer to homelessness. Nobody can argue that on present rates of social welfare assistance or social welfare benefit anybody could adequately pay for private rented accommodation and we do not have a lot of public accommodation available to single people. That problem should be addressed and should be addressed quickly. I would like to hear people address the realities of Irish economics instead of telling us we simply cannot afford to pay because I do not believe that.
I do not propose to read all the recommendations on the issue of the payment structure onto the record of the House. Suffice it to say that in the summary alone there are 15 recommendations on the payment structure, not all of which, incidentally, are enormously costly. Many of them have to do with reorganisation as much as with the scale of payments. There are other areas where the commission makes recommendations which would not necessarily cost anything but could, if they were implemented, transform the experience of people who are compelled to depend on the social welfare system. In particular, the simplification or the standardisation of the whole area of social assistance would make a considerable contribution.
In our society, given the values we espouse, the most promising, the most challenging and the most important recommendations of the Commission on Social Welfare are on the whole issue of child income support. I am not by any means academically qualified in the area of studies on poverty, but there seems to be an increasing international consensus that the single most effective income support to ameliorate poverty is in the area of child income support, of child benefit at the maximum possible level paid directly to whichever spouse is responsible for bringing up the children. We cannot justify in our society measures that are being threatened, not just to not increase that but to actually cut back on the level of child benefit. There is an increasing hypocrisy in Irish politics between the touting of our values as a family-orientated society and the continuous grinding down of families by inadequate payments and humiliating processes of evaluation.
There is much in this report on the treatment of the unemployed. I think it will not be too long before we will require people who are unemployed to wear a white star on their coats to segregate them from the rest of society. Our society seems to be, and seems to be encouraged to be a society which is more and more making it obligatory on unemployed people to prove that they are entitled to something and to justify it in an increasingly rigorous way in the interests of dealing with what we are told is widespread abuse — and I will return to that later on. The process of treating unemployed people as it is presently organised — I have to say this — seems to be deliberately degrading and deliberately intended to keep them under control. As Michael Smurfit said in Galway "the level of social assistance we must have is the one which prevents the risk of social disorder".
That is what we are at: it is an instrument of control. The way people are treated in a labour exchange is indicative of that control philosophy. People are regulated and controlled. The fact that people in our society, with 250,000 unemployed, have to humiliate themselves by knocking on the doors of employers they know have no jobs and have had no jobs, for two years just to prove that they are actually looking for work, is a systematic exercise in human degradation and should be ended.
That is not a justification for any abuse; it is a justification of the right of any citizen in our society to have his or her dignity not just preserved but advanced. The fact that one is dependent on welfare excuses no reduction in one's rights or dignity. The whole process of the labour exchange is degrading and humiliating. The new — what I would call — Woods rangers, who are being set up to hound, analyse, programme, query and challenge the unemployed is a further burden on the backs of people who are already humiliated by the process of signing on and what has to go with it.
I am not blaming the officials of the Department of Social Welfare who work in labour exchanges. They must have the most appalling job that anybody in our society now has, given the numbers of people involved, the complexity of the system, the pressures on them to prevent this "large scale abuse". I am always fascinated that the greater the constraints on Government expenditure, the greater the level of abuse that suddenly becomes apparent. Abuse is one of the great excuses for frightening people off welfare. If in the process people who have no reason to be frightened are lost, it is just too bad because it reduces the expenditure.
The commission have much to say on the delivery process. On the issue of the delivery of social welfare payments there is ample room for radical reform without much in the line of increased expenditure. Is it too much to expect that claimants, as in recommendation 55 of the summary, should be given a choice of having their payments made by means of electronic fund transfer to a named account at a bank, post office or other financial institution? Is it too much to expect that that should be done comprehensively, not on a small pilot scheme but universally? Is it too much to expect that the premises should as far as possible be upgraded and that standards of amenity and privacy should be on a par with those in other service premises?
Is it too much to expect that anybody who is going to be asked intimate questions about family circumstances should be guaranteed privacy? I do not think it is too much to expect but given the present dominant right-wing ideology we will not make much progress on it because the economists would not approve. They have convinced our society that most of the unemployed are chancers and dossers who will rip off the system if they are not firmly tied down and controlled.
With regard to the appeals system, the commission are excessively gentle. They make certain recommendations. They would not cost a lot of money and they would, in my view, remedy what is a substantial defect in the area of social welfare appeals. We had, after some huffing and puffing, an interesting debate in the dying days of the last Seanad on the whole issue of social welfare appeals.
I found it extraordinarily interesting how extensive was the consensus in this House that there was something wrong with the social welfare appeals system. I introduced a Bill on the subject and every Member of this House who spoke on it agreed that the appeals system needed root and branch reform. They did not necessarily, and understandably, agree with the proposals I had made but they did believe there was a need for a fundamental restructuring and reorganising of the appeals system.
I know the Minister has announced that something like this will be coming but one can only comment with a certain degree of scepticism that the reforms which involve reductions or withdrawals or impositions or coercions or investigations seem to be able to be introduced quickly. Those that might involve improving the lot of social welfare recipients, those that might involve enhancing their dignity, seem to require an awful lot more consideration and seem to take an awful lot more time to be implemented.
On the issue of the commission, I would remind the House again of the priority recommendations of the commission. The first was that the basic payments should be increased. No amount of talk and no amount of posturing can get away from the fact that that is what the commission identified as the first priority of reform in the social welfare system — a fundamental and dramatic increase in the levels of basic payments. The second one and I quote:
Our recommendation for improved child income support should be included in the first steps towards the reformed social welfare system.
The third is the broadening of the social insurance base. On that immediate action has been taken, but it is dishonest to pretend that an extension of the social insurance base exclusively to raise more revenue, which is done without the implementation of the other priority recommendations is anything other than a sham. The four priorities should be implemented together.
The fourth is the delivery of the service and they recommend the accelerated development of computerisation. I am pleased that we seem to be making considerable progress in that regard. One hopes that the day when people in Cork are told they cannot be given information because their file is in Dublin is rapidly coming to an end and that the administrative procedures and the legislative base on which social welfare is operated will be consistent with the possibilities that exist with computerisation. It would be most regrettable if we could not make full use of computerisation simply because of old-fashioned regulations or old-fashioned procedures.
There are, of course, things that have happened in social welfare in recent times which do not augur well for the implementation of the report of the Commission on Social Welfare. The rather extraordinary shift in thinking that has masqueraded as a reform of the fuel scheme is one that needs to be commented on. The extraordinary phrase used by the Minister's press officer — in this case I am attributing responsibility to the Minister, I do not want to get involved in criticising officials — when she said they had managed to reduce the heating season forced me into a rather ironic reply. I accept that we are in a remarkably mild December week but I do not accept that the Department of Social Welfare had anything to do with it.
The idea that you can reduce the heating season and not leave people cold for part of the year when they would otherwise have had heating is nothing other than a redistribution of misery between the poor. You reduce the misery of some by increasing the misery of others: that is not what I call redistribution in our society. It is not what I would identify as the sort of redistribution we should be dealing with. May I say that I have very good legal advice to suggest that this scheme will also be disposed of by the Supreme Court and may I also say that I have been informed that the Supreme Court have shown an increased willingness to award damages to people who are the victims of improper use of social welfare legislation.
Perhaps the Minister ought to be careful that he does not walk the whole of the Department of Social Welfare into something far bigger than he intends. I have no doubt but that these regulations will be challenged in the courts. I have no doubt that they will be disposed of by the courts in the way that previous attempts to restrict access to free fuel were disposed of. I found, in particular, the reference in the circular to the exclusion of persons of no fixed abode living in shelters or hostels a particularly mean-minded bit of penny pinching at the expense of some of the most vulnerable in our society.
Going on the issue of what the commission recommended and what we are actually seeing and watching the fundamental contradictions that are beginning to develop, we have a number of decisions by the Government which fly in the face of everything the commission wished for. The penny pinching, meanminded way in which the budget of the Combat Poverty Agency has been cut back, cut back and cut back. Those who might encourage poor people to speak for themselves, those who might encourage them to demand proper delivery of services, those who might encourage them to know and to fight back and to answer back have been so hamstrung that they will not be able to engage in any extra work next year. Even the miserable £40,000 that was taken from them towards the end of this year is a disgrace and the Minister ought to be ashamed of himself for that sort of a concerted attack on what is one of the most worth while initiatives in the area of combating poverty this society has seen. It is a disgrace and he ought to be ashamed of himself. In my view a man with any concern for the poor would have resigned rather than allow himself to do something like that. He cannot claim any justification or any right to speak as a defender of the poor when he allows that sort of concerted assault on the poor and those who defend them to be carried out in his name.