I thank the Ceann Comhairle for the opportunity to raise this issue and the Minister for Social Protection for staying in the Chamber to respond to my comments. An ongoing issue over the past 12 months is that the earnings of many farm families and self-employed people are being assessed on previous years' income rather than actual income.
The drop in income for farm families came as a direct result of the collapse of farm gate prices, such as the one third decrease in the price of milk. This problem was exacerbated by extraordinarily bad weather conditions which forced farmers, particularly those in wetland areas, to purchase additional feeds for their animals. One young family with whom I am acquainted relies on €6.50 in social welfare benefits to support husband, wife and two children and had to raise money elsewhere to put food on the table. This family's case was sent for appeal but it has not yet been resolved. The family was not even able to get insulation aid. Unfortunately, this is only one of many families facing hardship.
Another young man who is self-employed in the furniture business applied for social welfare because he had no work or income. He originally received €9 per week but when his case was re-examined his benefits were increased to approximately €100. However, he did not receive a back payment. Three of the furniture shops he supplied closed down, which is a clear indication of the difficulties this sector is facing.
I was assured by the Minister for Social and Family Affairs and departmental officials that the cases I describe are rare but farm organisations from all over the country have alerted me to similar problems. I recently chaired a meeting of farm-related people in Cavan town at which two of the main issues discussed were the serious lack of finance and the failure of farm families and the self-employed to get social welfare benefits.
One of the problems I have encountered in regard to self-employed builders is that inspectors are demanding the closure of businesses over C2 and VAT payments. This is totally unacceptable and unrealistic because all that a self-employed builder wants to do is build. Without his papers, he cannot even tender for the smallest jobs involving disability grants or school repairs. These papers could give him the opportunity to return to employment and get off social welfare, thereby not only saving taxpayers' money but also providing further tax revenue. I accept the need for proper scrutiny but equally I see the need for realism and common sense at a time when self-employed families are coming under extraordinary pressure.
On a more positive note, my local builder supplier has rehired full-time drivers for his ready mix concrete products. This reveals that some level of activity is returning to the business sector. The sun is shining and the price of milk has increased somewhat, thus perhaps reducing the pressure on the system. It is unfair, however, that anyone should have to wait 12 months or longer for an appeal regarding an income which the Minister's predecessor, the Minister for Tourism, Culture and Sport, Deputy Mary Hanafin, admitted no longer existed as a result of the failure of the building boom and decline in farm product prices. As a member of the Committee on Social and Family Affairs, I had the opportunity to raise this issue with the previous Minister on numerous occasions. She was positive and helpful and assured me that social welfare inspectors had been advised to take account of the serious fall in income, whether in farming or self-employment. Unfortunately, however, the position remains difficult.
In all my years in the Dáil I have found the social welfare structures and staff to be most understanding and, in the main, constructive. Unfortunately, for whatever reason, a major difficulty has arisen in this area. People, especially the young, are under severe pressure from both an economic point of view and mentally. They did not want to be in the current position, nor did they ever dream they would be in this position. I plead that the appeals be dealt with as a matter of urgency, files reviewed where possible and realistic payments made.
I received a letter from the Minister dated 31 May 2010 and I appreciate the speed with which he replied to my correspondence. The letter refers to a person who receives jobseeker's allowance at a rate of €97.50 per week. The individual in question does not have any income and until a few weeks ago received more than €300 per week. This figure was reduced to less than €100 per week without any reason being given. I hope the Minister, as an active politician who understands the problems experienced by those involved in this sector, will address this issue. I would be pleased to go through the details of some cases with him.
