Seasonal work and rural cuts
Deputy Thomas Pringle argued that social protection cuts were hurting rural workers whose jobs are seasonal or part-time, and suggested the Government should pay more attention to corporate welfare. The Taoiseach replied that job creation measures, lower VAT for hospitality and regional investment were improving work opportunities, while saying the proposal’s cost was a budget matter.
Over the past four years, I have highlighted the effect the Government's social protection cuts have been having on workers in rural areas, but this has always fallen on deaf ears. Maybe I, like many on this side of the House, have been highlighting the problem from the wrong perspective. We have been concerned about the effects cuts have had on workers and their families as their incomes have been reduced. However, in order to get the Government's attention should we be looking at the corporate welfare issue? The recent Apple tax debacle has shown that corporate welfare is something the Government really cares about.
The only option for many people in rural areas of Donegal is seasonal and short-time work. It means they depend on social welfare to help them to keep their families above the poverty line when no work is available. Crucially - no doubt the Government will understand this - the cuts it has implemented also have a direct impact on ability of employers to have an available workforce when they need them. In the fishing, textile and tourism industries, employers depend on social welfare to keep workers available when there is no work for them.
The Government's cuts have targeted not just workers but also employers. Since 2012 it has cut the length of time during which under-employed workers can get jobseeker's benefit to six and nine months. It has stopped workers getting jobseeker's benefit when they are in short-time work. It has slashed the income disregards and farm assist, and has refused part-time farmers, who earn less than €90 a week from farming, jobseeker's benefit when they are laid off from work. That this has drastically reduced the income of workers who cannot get alternative employment does not seem to concern the Government but perhaps the fact that it affects employers is of concern to it.
In the north west last week IBEC highlighted that employers cannot rely on the availability of workers when they need them because of these cuts. Will this make the Government look again at the cuts it has implemented? Reversing the cuts to the duration of job seeker's benefit, farm assist disregards and increasing the income limit from subsidiary employment would cost around €65 million nationally. This measure would assist employers by helping workers to be able to survive periods when there is no work thus making them available for work when the next fishing or tourism season comes around. The Government has refused to help workers. Perhaps it will help employers in rural areas in the coming budget by reversing these cuts.
Comment on this
The focus of the previous Government and this one is to help workers and employers. We now have over 2 million people at work. We have evolved from having a national action plan for jobs to having eight regional action plans for jobs. They deal with specific areas such as those raised by the Deputy in terms of infrastructure, quality of water, communications, roads, power and so on. Employment is increasing.
We have set up the Low Pay Commission to take a structured and objective look at the minimum wage. The previous Government increased the minimum wage on two occasions and significant numbers of people have been taken out of the tax bracket altogether. The opportunity has been taken to focus on helping employers as well. We adjusted employers' PRSI in granting an increase in the minimum wage.
These are matters for the budget. They will all be reflected upon in the next week to ten days. Issues affecting employers, to make it more attractive and easier to employ people, and for workers will be announced on budget day.
Comment on this
The Taoiseach has missed the point in his answer, which might be deliberate. The issue is not with the minimum wage or employers' PRSI.
The issue is that in many rural areas across the country and not only in Donegal the only work available is seasonal work or part-time work for two or three days a week. As a result of the cuts implemented by Government not only do families not have sufficient income to survive but employers cannot be sure they will have workers available to them when business picks up again because of the seasonal nature of that work. The people about whom I am speaking would love to be working full-time but in rural Ireland there is no full-time work. The Action Plan for Jobs, cuts to employers PRSI and so on will not create full-time work for those workers. What they need is the security of a welfare net to enable them to remain in their communities, live in rural Ireland and be available for work. All these people would take up full-time employment if they could get it but the employers do not provide it because the nature of the business does not allow for it.
As a result of the Government's cuts, people cannot remain in rural Ireland and are therefore not available for work when business picks up again. This is an easy matter to resolve. It is also impacting on employers, which I have been highlighting for a number of years would happen. What we need is a response from the Taoiseach that assists workers and employers. This proposal requires serious consideration.
Comment on this
I disagree with Deputy Pringle. This morning, I opened the Connect16 Ireland conference in the RDS. This involves 800 buyers from all over Ireland and abroad looking at how business can be expanded in the country. The Deputy forgets that the Government reduced VAT for the hospitality sector from 13.5% to 9%. Donegal is a case in point where people have moved from seasonal work to full-time work. I note the comments today of the owner of Sandhouse Hotel to the effect that he knows at least ten students who worked in his hotel and put themselves through university through seasonal employment. The Deputy decries that.
The effort and the impact of Government is focused on creating employment and getting people out of unemployment, out of poverty and into the world of work. Obviously, seasonal workers are entitled to apply for and avail of jobseeker's allowance during the off-season. While it is not a benefit consistently available to them, they are entitled to it. While the Deputy might decry the regional activities of the Action Plan for Jobs, they do make an impact in his area. The Deputy forgets the success of the concept of the Wild Atlantic Way, which is so important in his county. The Deputy may laugh at it-----
Comment on this
-----but in terms of seasonal employment in Donegal, it has added greatly to the operation. This morning, I met the operators of Ballyliffin Golf Club, which is a serious contender for the hosting of an Irish Open, which will draw thousands into the area and provide spin-off opportunities for those in that region. As infrastructure improves so too will the attractiveness for investment for employment, both seasonal and full-time.
In regard to the Deputy's statement that his proposal would cost €65 million I reiterate that is a matter for the budget. I remind him that seasonal workers are entitled to apply for jobseeker's allowance.
Comment on this
It would be useful if Members paid close attention to the clock.
Before moving on to the next item, I would like to clarify for Members that the matters that may be raised under the heading, Questions on Proposed Legislation, are as follows: business on the Order Paper; the taking of business which has been promised, including legislation promised either within or outside the Dail; the making of secondary legislation; arrangements for sittings and when Bills or other documents on the Order Paper needed in the House will be circulated. The time allocated in this regard is 15 minutes, with Deputies allocated one minute to ask one question.