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Select Committee on Social Affairs debate -
Friday, 24 Mar 1995

Business of Select Committee.

A number of members expressed varying opinions as to how long we should deliberate on the Bill today. I will clarify the position for the convenience of members who wish to make arrangements about travelling home. Perhaps members could agree what time they wish to conclude today. The notice sent to members indicated that we conclude at 4 p.m., but a number of members expressed other opinions to me in the last day or two.

Is it necessary to complete Committee Stage today?

It is desirable that we do. Maybe the Minister has a view on that.

Is there any reason why we cannot continue on Tuesday morning?

We agreed the last day that if we do not conclude Committee Stage today, we will probably continue it on Tuesday afternoon because some members have to travel long distances. If we do not conclude today, we will have to resume on Tuesday afternoon.

Can we get agreement to conclude at 1.30 p.m. or 2 p.m. today?

If we were to continue until late in the afternoon, normally we would take an hour break for lunch. It would help if we continued straight through until 2 p.m. today and resumed on Tuesday afternoon when, I hope we would complete Committee Stage in a number of hours.

Would the Minister like to express a view on that?

Yes, I would like to work through today and conclude Committee Stage, but if members are anxious to finish at 2 p.m., I am agreeable. I understand we must conclude Committee Stage on Tuesday when the Bill will be passed to the Seanad.

Is it agreed that we work through until 2 p.m. and resume on Tuesday afternoon at 2.30 p.m.?

Could we agree to resume at 3 p.m. to facilitate our colleagues who will be travelling from the country.

Is it agreed that we will resume at 3 p.m. on Tuesday? Agreed. It will be necessary to complete Committee Stage on Tuesday evening.

Social Welfare Bill, 1995: Committee Stage.

The main purpose of the Social Welfare Bill, 1995, is to provide for the social welfare improvements announced in the budget.

Part I of the Bill contains the usual provisions for short title, construction and definitions.

Part II provides for the increases in the rates of social welfare payments. There is a general increase of 2.5 per cent in the weekly personal adult dependent rates of social assistance and social insurance payments, with effect from early to mid-June, 1995. The monthly rate of child benefit is being increased by £7 from September 1995 and child benefit is being extended to 18 year olds in full-time education.

Part III of the Bill provides for changes in the rates of social insurance contributions. From 6 April next, employees insured at Class A will not be liable for social insurance contributions in respect of the first £50 of weekly earnings and self-employed contributors will not be liable for contributions on the first £520 of annual income. The earnings ceiling up to which social insurance contributions are payable by employees and the self-employed is being increased from £20,900 to £21,500. The weekly earnings threshold below which the reduced rate employer's contribution of 9 per cent applies is being increased from £173 to £231. Part III also contains regulatory powers for the introduction of a new employer's PRSI exemption scheme which will operate on an ongoing basis.

Part IV provides for a number of other improvements in the social welfare code including: the introduction of a new adoptive benefit scheme for adopting parents who qualify for adoptive leave under the provisions of the Adoptive Leave Act, 1995; an extension of the carer's allowance scheme to include carers of incapicitated people aged 66 and over who are not in receipt of a social welfare payments; an extension of the definition of a qualified child under which child dependant increases will be payable to recipients of long term social welfare payments for 21 year olds in full-time education; regulatory powers for the introduction of a reduced rate increase in respect of an adult dependant which will be related to the level of income of the claimant's spouse or partner; and an increase from £10 to £25 in the minimum weekly rate of unemployment assistance payable to single people with means assessed solely on the basis of parental income.

Part V of the Bill provides for a number of amendments to the Health Contributions Act, 1979, and the Youth Employment Agency Act, 1981, relating to payment of health contributions and the employment and training levy.

In addition to the Minister's amendments, amendments have been tabled by Deputies Joe Walsh and Clohessy.

Sections 1 and 2 agreed to.

Amendment No. 1 is out of order.

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