Child poverty and water charges
Deputy Joan Collins cites UNICEF’s rise in Irish child poverty and asks the Taoiseach to accept responsibility for Government policies, including water charges. The Taoiseach disputes the report’s current relevance, points to job creation, tax reductions, child-benefit increases and social-housing measures, and says economic recovery will improve conditions, while Collins and others argue inequality and hardship are worsening.
I refer the Taoiseach to the recent UNICEF report, Children of the Recession. The report deals with the impact of the recession on children in the OECD. Many Deputies referred to it but no one has held the Government to account for the impact of its decisions on children in the State. The figures for Ireland make for sober reading, to say the least. The number of children suffering poverty rose from 18% in 2008 to 28.6% in 2012. We are now catching up on the United States, which has a disgraceful rate of 32.5% and we have passed the UK rate of 25.6% child poverty. The figures represent a damning indictment of global capitalism, given that such poverty can exist in the richest countries as a consequence of the inequalities that lie at the heart of capitalism, and in fact is an essential part of the system. Before the crash In Ireland, 18% of children lived in poverty but inequality has increased dramatically due to the austerity enforced on ordinary families by the Government and the previous Fianna Fáil-led Administration. Children are going to school hungry. They are arriving at crèches with doughnuts or chocolate bars because that is what is on offer in the local shops. A total of 729 children in 400 families in Dublin alone have lost the roof over their heads. Families are forced to live in hotel rooms with nowhere to cook or play.
I also refer the Taoiseach to the young mother from Cork who wrote to a national newspaper to ask what is the point of working to pay bills or taxes when the real losers are one's children. The mother is part of a working family. She said in her letter that her two children are being raised in child care centres like caged hens while the parents work. They are out of the home for longer than the average industrial worker.
At the other end of the scale, the report I cited states that 16% of those aged between 15 and 24 years are not in employment, education or training. Along with those forced to emigrate they are part of a generation cast aside. That is the real price of austerity and the choice the Government has made, along with the previous Government. Does the Taoiseach agree that is the result of the choices the Government has made by bailing out the bankers and protecting the wealthy at the expense of those in society who most need it?
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However, I agree that the situation the Government inherited three and a half years ago was unprecedented in terms of the scale of the economic challenge. A total of 250,000 jobs were lost. Virtually every house in the country was in negative equity. There was disillusionment and disappointment and no hope. Emigration and poverty stared many in the face. We have come a long way since that time and we still have quite a distance to travel-----
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-----but the figures that are now emerging show an improvement in the situation for children and families all over the country.
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With interest rates having fallen to less than 2% for the country, the creation of 75,000 new jobs, with the highest rise in consumer confidence in seven years and the first budget in seven years where there were no tax increases and no reductions in services, the improvement speaks for itself.
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Tell that to the children who are starving. It is disgraceful.
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Deputy Joan Collins mentioned housing. In the recent budget the Government allocated €2.2 billion for social housing and is bringing forward changes in flexibility in the planning legislation, with two Bills on the way. In addition, there has been an instruction to NAMA to assist in terms of the provision of both unfinished units and land for construction to take place. Money has been allocated for the improvement of up to 1,800 vacant units in Dublin and around the country. Construction and reconstruction work is under way. The Construction 2020 programme will stimulate the construction sector which, as the Deputy is aware, collapsed at the end of the so-called Celtic tiger years.
Deputy Collins correctly referred to young people. That is why during Ireland's Presidency we were the country that promoted and introduced the Youth Guarantee, with the Tánaiste playing a leading role. That is why the nature of FÁS was changed entirely and it evolved into SOLAS. Serious levels of funding has been provided for training, apprenticeships to trades and to provide opportunities.
The Deputy also mentioned a letter from a young mother in Cork. I admire her writing to the newspaper.
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She was giving out about the Government.
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As she pointed out, this is something that has befallen tens of thousands of families. I say to Deputy Collins that it is the reason in the budget that for the first time in quite a long time, the Government was able to reverse the trend by reducing income tax.
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The Government widened the gap by doing that.
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Household bills and taxes were increased.
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Following the income tax reduction, a couple with two incomes stand to have €1,200 returned to them. As the Deputy is also aware, child benefit increased by €5 per child per month. That will apply again next year and the following year.
It is a recognition of the sacrifices made by people but it is also a reflection of the Government wanting to give back to those who have been most seriously pressurised by the impact of the recession on our country. That trend will continue over the next number of years.
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The Taoiseach's reply amazes me. The UNICEF report said it did not have to be like this. Many other countries such as Chile, Poland and Romania did a much better job of protecting their children through five years of so-called fiscal adjustments with countries beholden to the International Monetary Fund faring worst.
The chief executive officer of Barnardos has said, "Sadly, we know the number of children living in poverty in Ireland grew horrifically during the recession". What we have learned from this report is that it was not inevitable. The Taoiseach is saying it has been inevitable. Some 18 out of 41 countries managed to reduce child poverty, despite the economic downturn. The increase in this country is the fifth worst in a list topped by Iceland and Greece and it is a damning indictment of the Taoiseach's Government and the previous Government and of the policies of austerity which have been implemented over the past number of years. The Taoiseach has given people the crumbs off the table and these are being swept aside into the dustbin.
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I have a final important point, if the Ceann Comhairle will bear with me.
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The woman in Cork said: "No one will ever stand over my grave and say, 'Wasn't she great at paying her water taxes' but it will be at the exact moment that my children will evaluate the quality and the years I gave them." Is the Taoiseach standing over this policy? Will he abolish the water tax? It is causing so much grief, stress and concern for every single family in the country and this family is an example of what they are all going through. Abolish the water tax as a start.
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The UNICEF report covers the period to 2012. What the Deputy does not seem to accept is that the changes happening in our economy are reflecting to the benefit of families and children-----
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I refer to the jobs being created which impact on the economic situation for more and more families.
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With unemployment falling from 15.2% to 11% and soon to be at around 10%, it is heading in the right direction.
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It is still much too high but it is in a stronger position than previously. The jobs being created now, such as 2,000 jobs announced last week, will also benefit the current situation and in the future. That is what we want to build on.
Deputy Collins referred to the water charges when she spoke about the letter from the young mother in Cork. As I pointed out to the Deputy, in this most recent budget, in the next budget and in the one after that - if the people so wish - multiples of the water contributions will be given back to families in their income tax reduction and in increased child benefit, as has happened in this case.
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Creating a gap between rich and poor.
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For a working couple on average wages of €50,000 a year, the return will be of the order of €1,200, together with the increased €5 per child per month.
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That is not an average wage; €50,000 a year is not an average wage.
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The GP cards being extended to children aged under six means no payment at the point of contact with the doctor. The provision of the free preschool year is a help to many families - not everybody - but to many families with young children of preschool age. This will continue in the future.
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The Taoiseach is ignoring the facts.