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Dáil Éireann díospóireacht -
Wednesday, 24 Mar 1976

Vol. 289 No. 2

Social Welfare Bill, 1976: Second Stage (Resumed).

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

When the debate was adjourned last evening I was making the point that it was very difficult to know what Fianna Fáil wanted with regard to social welfare. I might add that it was extremely difficult to know what they wanted with regard to most things in the last few years, but I find it baffling to know what precisely they want in the matter of social welfare in particular. The contradictions in their attitude towards this area justify anyone being confused.

During the course of this debate a number of Fianna Fáil speakers said that the increase of 10 per cent is inadequate and that it should be much more. On the other hand we must consider their obstructive opposition in the last three years to the introduction into our taxation code of measures with regard to wealth tax, capital acquisitions tax and other forms of taxation. We must also bear in mind their attitude towards the adjustment in the agreement with the mining companies. Their leading spokesmen have called for cutbacks in expenditure on social welfare; on some occasions the amount involved is £20 million and on other occasions it is as high as £30 million. Yet, they come to this House and claim that the 10 per cent increase provided under the terms of this Bill is not sufficient.

Fianna Fáil claim that monetary payments in the area of social welfare are inadequate. According to some Fianna Fáil Deputies, people in receipt of social welfare are less well off now than they were when Fianna Fáil were in Government.

One can understand any Opposition trying to make a case or pointing out various good things they were responsible for while in government. One can also understand them pointing out any weaknesses in the performance of the Government of the day. That is legitimate and acceptable but total distortion and total resistance to face up to the realities of the situation is not helpful. I do not mean that it is not helpful to the Government; it is not helpful to the Opposition because the public are not fools. Obviously, Fianna Fáil think the people are fools when they make statements to the effect that monetarily speaking people were better off under Fianna Fáil than they are under this Government as far as social welfare payments are concerned.

I have given the facts on many occasions but they do not appear to have penetrated to some of the Fianna Fáil Members. Since 1973 the cost of living has gone up approximately 52 per cent and the payments in social welfare have gone up, on the lowest percentage scale, by 96 per cent and on the upper scale by 120 per cent. Children's allowances have been increased by 360 per cent since this Government took office. They are the facts but a more significant fact and one which shows a true picture is in regard to the shift in emphasis from Fianna Fáil policy in relation to the percentage of our GNP that is now being spent in the area of social welfore. When Fianna Fáil left office the proportion of GNP spent on social welfare by them was 6¼ per cent. The percentage of GNP being spent on social welfare now is 11. That is the true reflection; it is the true yardstick and criterion by which one can judge and compare the commitment in this area of Fianna Fáil and that of this Government. That is redistribution in real terms.

Some Deputies were interested in this matter and showed a knowledge of, and concern for social welfare. I refer to Deputies Callanan, Faulkner and Andrews but, unfortunately, the same cannot be said of the other contributions that came from the Fianna Fáil benches. Deputy Faulkner, in a serious way, thought there was a failure to understand the exact nature of the work of the poverty committee. I do not know why there should be a failure to understand the work these people are engaged in because a booklet issued by them setting out precisely their aims and the progress they hope to achieve was given to every Member. I do not know how successful this committee will be in their work but I have confidence in them. They are engaged in four projects. A lot of preparatory work has gone into these projects at home and through the EEC. Due to Irish initiative in this field 25 projects are being undertaken in the nine member states under the auspices of the EEC.

I can assure Deputies that as far as the director and commitee are concerned they would welcome any interest shown by Members or any approach for information by Members. Like most Deputies, my reaction to poverty is a gut one. I see what it leads to. I see the end result but I am no expert in this field. I have no training in any of the disciplines necessary to evolve proper policies or implement procedures which will help in the eradication of this social evil from our society. However, the members of the poverty committee have great experience in this field. Over the years they stood out as individuals who were concerned and active in the campaign against poverty. They are now supported in their work by a properly trained staff who assist them in undertaking various projects. I have great hope for the work in which they are engaged and I can assure everybody that the committee would welcome any queries and engage in any discussion about this problem.

Deputy Callanan and other Deputies raised the question of the farmer's dole and the assessment of the farmer's dole. I personally think that this step to curtail the payment made under that scheme is one that was long overdue. It was done under the terms of this Bill in a way that will ensure that persons in the farming community who need this kind of financial support will continue to get that support and that persons who are not entitled to that support, by any stretch of the imagination, are debarred under the new method of assessment from getting it.

Deputy Callanan and, indeed, Deputy Martin Finn, who are both rural Deputies from the west of Ireland, said that under the scheme the method of assessment could lead to persons who are not entitled to it getting it in some cases and to persons who would be entitled to it not getting it. That is quite possible. This is the first time since 1966, since the introduction of the scheme, that any adjustment of the method of assessment has been made and it is quite possible that there may be flaws in its administration. This method of assessment, like any other scheme operated by the Department, will be kept under review. What we are determined to do is to ensure that persons who need this kind of help and who by virtue of their needs are entitled to it continue to get it. We are also concerned to ensure that persons who do not need it do not get it.

If there are persons who are affected by the change, if there are small farmers from whom something has been taken because of their valuations under the operation of the scheme there is nothing to debar them from making application for assessment, as happens in the case of any other recipient, and there is provision which will allow the Minister for Social Welfare in conjunction with the Minister for Agriculture and Fisheries to exercise powers which exist under the 1965 Act to enable a factual assessment to be made in these cases. So, there is no danger of any small farmer who feels that he has been unjustly affected by the introduction of this new assessment being left without a remedy.

The number that has been affected is very small—5,000—but 18,000 small farmers are still being paid and not only are they being paid but they will enjoy the increases provided for under the terms of this Bill. In addition to those 18,000, there is a number in the region of 7,000 who qualify under a factual assessment.

A number of Deputies raised the question of the stamping of cards by employers and also the question of general abuses under the social welfare code. I said before and I maintain that the number of abuses, whether it is by employers failing to stamp cards or by persons claiming benefits to which they are not legally entitled, is relatively small and if you take the expenditure of £430 million this year on social welfare the amount of money that goes astray in this way is also relatively small. That does not make abuses any less serious or any more acceptable. I cannot think of any graver form of anti-social behaviour than that engaged in either by employers who refuse to live up to their obligation to stamp cards, in respect of which, incidentally, they have collected the money from the employee, or by persons claiming and getting benefits to which they are not legally entitled. The seriousness of it is more in the resistance that this type of behaviour builds up among the general public to proper progress being made in the field of social welfare and we have a long way to go in this area as yet.

Although the number of persons who engage in this type of activity is relatively small, when an abuse is discovered the media build it up as big as they can. It makes good reading. It is spoken about and built up out of all proportion and a type of resentment and resistance among the general public can be and to some extent has been built up by the highlighting of these isolated cases. That is where I see the dangers of the anti-social behaviour that these persons engage in and within a very short period of time a Bill will be introduced for consideration by the House that will increase very substantially the penalties for persons who engage in this kind of activity and are found by the courts to have engaged in this kind of activity.

Hear, hear. We would welcome it. The Parliamentary Secretary will get our support on it, anyway.

I thank the Deputy. I hope, not that persons will be caught under the provisions of this new Bill, but that the fact that the Bill comes into law will be a deterrent to those participating in this kind of activity. I said a moment ago it is possible to build up a case of employers not stamping cards though the cases are actually fairly isolated. The media are inclined to generalise about people drawing "the labour" and working at the same time. It is unfortunate the media do not give the same publicity to the prosecutions in respect of such offences. Last year alone there were round about 500 prosecutions against people drawing social welfare illegally. Very little publicity was given to those cases.

How many of the prosecutions succeeded?

I have not got those figures but approximately 500 cases were initiated. The maximum penalties under existing law were drawn up at a time when the level of social welfare benefit was much lower and when the cost of the stamp was much lower and it would now appear that there is an increasing tendency towards believing that the game is worth the candle and, if one can "do" the social welfare people, it is worth while financially. Under the provisions of a Bill we will be introducing shortly that kind of thinking will go out of fashion.

One of the things I was happy to hear from a number of Deputies— Deputy Callanan, Deputy Andrews, Deputy Faulkner, Deputy O'Connell and some others—was that, as a result of their contact with their constituents through their political clinics, they had no doubt in the world but that the vast majority of those who were unemployed were not only prepared but anxious to resume work. It is extremely important that politicians who know the facts should avail of every opportunity to get that important truth home to the public because there is a tendency among a certain section to regard the unemployed man as a layabout and as an enemy of society instead of recognising that he is actually a victim of society and not an enemy of it. Deputy Faulkner told us about one particular case in his constituency where a man, with small children, after years of gainful employment found himself unemployed and for five weeks that man left his home at the same time each morning to create the impression among his children that he was still employed. He went out looking for work and he returned at what would be the normal time for his return from work in the evening. He wanted to hide from his children the fact that he was unemployed. Think of all the implications behind that story as told by Deputy Faulkner. This man had a feeling of shame or a feeling of guilt because he was unemployed and he wanted to hide that shame and guilt from his children. It is a marvellous insight into the effect of forced unemployment on a man. It demonstrates the psychological effect forced unemployment can have on a man. There are thousands like this man with a sense of failure. As I said, this man was not guilty. He was the victim of our society and he should be recognised as a victim and treated as such.

One of the greatest social evils— God knows, we still have a great many in our society—is unemployment and anything we can do to create a society with full employment should be done. We have an obligation to ensure that anything that can be done to create full employment must be done.

Unemployment, which I regard as the greatest social evil in our society, was not discovered by this Coalition Government and I find it a little hard to take when I hear Fianna Fáil speakers talk about unemployment and unemployment figures as if people had never before heard or experienced unemployment.

The first and second Coalition.

We have gone through this before.

And the Parliamentary Secretary will go through it again. The unemployment figures have never been so great.

I will go through it again because it has obviously not registered. The figures for unemployment are undoubtedly frightening.

Hear, hear.

They are undoubtedly causing a great deal of anxiety and emotional stress and, in some cases, financial difficulties, but let us put it into proper perspective. Deputy Andrews told me that it is only during Coalitions apparently we have unemployment.

Those are not my exact words.

The facts are the greatest indictment of our society and of the way we approach this matter of employment and unemployment. We have approximately 116,000 unemployed now. In January, 1973, the registered figure for unemployment was 76,000 and in February, 1973, there was a general election and in the three weeks' campaign of that general election unemployment was not even an issue. That is the greatest indictment of all as regards our attitude to unemployment. A figure of 76,000 unemployed, 6 to 7 per cent, was such an acceptable figure and so taken for granted that it was not a major issue in the general election. Law and order was a major issue, prices were an issue, and half way through the campaign rates became an issue.

Is the Parliamentary Secretary forgetting about the 14-point plan? Was that not an issue?

The Parliamentary Secretary must be allowed to make his own speech without interruption.

I did not mention— and I am glad the Deputy has brought it to my mind—the 30,000 that were emigrating every year up to the middle sixties, and if you add the two together, the 76,000 registered unemployed and the 30,000 emigrating——

That is Coalition mathematics at its best, selectivity at its purest.

I am only stating facts and they can be verified. The unemployment figures for January, 1973, are available to anybody. There were 30,000 emigrating per year up to the middle sixties.

And you add that to the 1973 figure for unemployment.

The Parliamentary Secretary should be allowed to proceed without constant interruption.

They are figures that are published. They are not coming out of my mind. The point I am making is that now in extraordinarily difficult economic circumstances——

With 50,000 more people out of work——

I am not playing down the difficulties.

——and the Government are doing damn all about it.

I am not playing down the seriousness of it not only for the individuals concerned but for society and our economy as a whole. What I am doing is putting it into its proper perspective and reminding Fianna Fáil, who apparently like to forget that there was ever unemployment in this country before the Coalition came into office, what the facts are, and not only about the numbers but that for 16 years of continuous Fianna Fáil rule, with a short three-year break, and for 16 years before that the numbers were acceptable.

The Parliamentary Secretary should put it into perspective.

Would Deputy Murphy cease interrupting?

That is the most frightening aspect, that when every country in Europe, including the present members of the EEC, was experiencing full employment, in the middle forties, right through the fifties, with one short break, and right through the sixties, we had this acceptance level of 6 to 7 per cent. Yet Fianna Fáil have the audacity to talk about unemployment as if it was a new discovery.

Those jumbled mathematics are no solution to the 50,000 more people unemployed.

The crime of Fianna Fáil——

This Government have committed a crime against the Irish people——

Deputy Andrews, please.

The real crime is Fianna Fáil's attitude and their complacency that they could lull this nation into an acceptance of those figures as being normal. They have drifted a long way from being what the people who supported them took them to be. They have shifted their whole emphasis; in the early period of their party there was a social commitment, some kind of radical approach to the solution of some of our problems. I am sad to say that they have now become the party of the privileged. They are grouping around to latch on to a feeling of discontent among the more well-heeled members of our society.

The great socialist Labour Party have not lost their identity within the Coalition?

It is pathetic to see a party that is as yet the largest party in the country scratching around looking for a policy.

Do not shed any tears for us. You would be glad to see us extinguished.

Order. The Parliamentary Secretary must be allowed to proceed without interruption.

I made a promise I would not interrupt and I am sorry I have broken it.

To every progressive measure that was brought into this House by this Government——

How many are unemployed?

I have just gone into that, and I went into it when Deputy Haughey was Minister for Finance.

Things were a bit better then.

They were, indeed, but for whom?

I have sheafs of letters here from people looking for jobs.

For whom were they better?

For the working people who were in jobs. The Parliamentary Secretary cannot get away from the fact that there are 118,000 people unemployed now.

I have just gone into that.

In this morning's post alone——

The Parliamentary Secretary, without interruption.

I do not feel like repeating my contribution. I doubt if the Chair would allow me no matter how willing I would be to do it for Deputy Haughey's benefit.

He can read about it in the daily report. Do not repeat it. Spare us, please.

That is the record of the Fianna Fáil Party as far as unemployment is concerned.

Is that what he is discussing?

Like a few commentators in the Press who are still blaming Fianna Fáil for the state of the country.

Deputy Fitzpatrick raised some issues.

Anonymous and cowardly commentators.

Deputy Fitzpatrick objected to the fact that the Department of Social Welfare were engaged in a campaign to ensure that people knew their entitlements under social welfare. He went to great lengths objecting to advertisements being placed in the papers and to television being used to ensure that people who were entitled to social welfare payments knew of them. In the course of his objections he went on to compare last year with this year. He said that although we had engaged in a publicity campaign last year, we were not doing so this year because the increases offered were not in our favour. According to him, it could be said that we were keeping a low profile.

I want to assure Deputy Fitzpatrick, and any other Deputy who might be interested that there will be no departure from the policy which was initiated by the Coalition. We will, as usual, engage in a campaign through the media to ensure as far as possible that people know their entitlements and how they can obtain them. If Deputy Fitzpatrick had given this matter much thought—from the tone and content of his contribution he did not give much thought to any part of this Bill, so he did not discriminate against this particular part —he would have realised that it was not possible for us to engage in such a campaign until the Bill became law. I can assure the House that when the Bill becomes law we will once again use the media to the maximum to ensure that the people entitled to benefits get them.

Fianna Fáil Deputies spoke about the 10 per cent increase but neglected another aspect—perhaps it did not appeal to them to highlight it too much. As well as the 10 per cent increase provided under this Bill, there is also a very significant advance in the field of social welfare—to me probably the most significant section of the Bill—that is, an extension of three months in unemployment benefit not only in respect of pay related benefit but also of the flat rate benefit. I believe this is the first time since the introduction of this type of payment that the period of eligibility has been extended for the flat rate benefit. In my view, this is a very significant and progressive step in the social welfare code.

I do not want to delay the House much longer. Deputy Dowling in his short contribution—the only reason it was short was that he let me in to conclude the debate—said that what was needed was an overall plan for social welfare. I can assure the Deputy, as I have been trying to convey to the Deputies opposite, that we have an overall plan for social welfare and have been pursuing that plan consistently and, I am glad to say, successfully over the last three years. One of the most immediate and necessary objectives was to increase the payments under the social welfare code. Everybody knows that the monetary payments made in that area when we took office were extremely low and clearly reflected, in my opinion, the low priority the Fianna Fáil Party in Government gave to this area of social welfare. In the last three years we have managed to increase those benefits substantially. I am not suggesting that they are adequate because they are not. In many cases they have doubled and led to a substantial improvement in the real living standards of the recipients.

I do not feel there is any room for complacency about this aspect of social welfare but we should face up to facts as they are and acknowledge this achievement. Social welfare has not, and will not, under this Government be treated as purely an income maintenance scheme. There are many other things in the field of social welfare which still remain to be done, not only dealing with the amount of the payments but with the extent of the coverage. That has been greatly improved by the removal of the income limit and by bringing into the code deserted wives, unmarried mothers, prisoners' dependants and so on. There still remains a considerable amount to be done. In 1973 we laid out a comprehensive plan. We set our sights on where we wanted to go and we did not keep it a secret.

During the debate on the Estimate for the Department of Social Welfare in 1974 I spelled out in considerable detail what we hoped to achieve. Any Deputy can find that speech on the records. Anyone examining it will find that there has been substantial progress towards the attainment of the overall goal that we set ourselves. However, there is a considerable way to go. There remains the question of the self-employed, for instance, who comprise approximately 31 per cent of our people and who are outside the social welfare code. The fact that no provision has been made down through the years for this category has caused unnecessary hardship and difficulties in some cases.

It is our belief that it is possible to attain all the aims that we set ourselves on coming into office. Indeed, many of our objectives have been brought to fruition and many more are at an advanced stage of preparation. In the very near future there will be various proposals before the House in this area for consideration. As I said earlier, I had been finding it very difficult to know what Fianna Fáil want in the sphere of social welfare.

However, I realise now how this difficulty arose. How could I possibly know what they want when they themselves do not know what they are looking for?

That is a pathetic effort especially since there are children in the gallery. It is shameful.

Can the Deputy not show good example to the children instead of descending to their mental level?

How dare the Parliamentary Secretary insult the children?

I would regard it as an insult to them to compare them with Deputy Murphy.

The Parliamentary Secretary is being contradictory. He told me last night that I was constructive.

Will Deputy Murphy please desist from interrupting?

Would Fianna Fáil, in the interest of the whole area of social welfare, be prepared to produce a policy? We have been hearing about policy committees and think-tanks within the party and there have been some rumblings from them during the past three years regarding our policy in the social welfare sphere but I would welcome the publication by them of their policy in this area.

Of course, the Parliamentary Secretary would welcome that.

I assure the Parliamentary Secretary that we have a policy document in relation to social welfare. No doubt he would like us to think that he speaks openly in every regard but the booklet I have here is a monument to Fianna Fáil.

I find it rather puzzling that a political party, although claiming to have a policy document in a certain area, would keep that document secret.

Documents.

One would have thought that the purpose of their having a document was to inform the public of their policy.

I would remind the Parliamentary Secretary of the 14-point programme which was produced by the Coalition three weeks before the general election.

The Parliamentary Secretary must be allowed to conclude.

We introduced policy documents at times that are propitious and when we wish to produce them.

If Fianna Fáil have such a document, why are they keeping it secret?

We had a policy in relation to social welfare since the foundation of the State. The policy embodied in the booklet that I have here is a monument to Fianna Fáil.

I appeal to the Deputy and to Fianna Fáil generally to let the Irish people in on their secret, to let us know how they would effect a cutback of between £20 million and £30 million in the area of social welfare.

That is not in my policy document.

Perhaps, then, Deputy Andrews' policy in this regard is different from that of other Fianna Fáil spokesmen. It is a matter of public record and was reported in the Press that a cutback of the order I have indicated was advocated by Fianna Fáil in relation to social welfare. The people are entitled to know how this cutback can be effected. Would it mean a reduction in old age pensions, in unemployment benefit or in children's allowance?

The Parliamentary Secretary is making the best of a very bad case.

To let us in on the secret might not alone benefit Fianna Fáil but might lead to serious contributions from some of their backbenchers, not to mention some of their frontbenchers, in relation to social welfare. I look forward with eagerness to the publication of the policy the Opposition claim to have.

Question put and agreed to.
Agreed to take remaining Stages today.
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