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CONTENTS

EXECUTIVE SUMMARY

(1) INTRODUCTION

(2) TOWARDS AN ADEQUATE INCOME FOR ALL

(3) HELPING THE LESS WELL OFF COPE WITH RISING COSTS

[NOTES]

EXECUTIVE SUMMARY – PRE BUDGETSUBMISSION 2007

EENNDDIINNGG PPOOVVEERRTTYY FFOORR TTHHOOSSEE IINN EEMMPPLLOOYYMMEENNTT

Having a job is not, of itself, a guarantee that onelives in a poverty-free household. Nearly 14% ofhouseholds in poverty at present are headed bythose with a job – a rate that has doubled overthe last decade. Yet there is little focus onaddressing the plight of the working poor.

Sinn Féin proposals

- Increase the minimum wage to €9.30 fromJanuary 1st 2007 so that it represents 60% ofthe projected average industrial wage for2007.

- Keep all those on the minimum wage out ofthe tax net based on the increased minimumwage rate to be introduced from the 1stJanuary 2007. Cost: approx €915m

- Keep those on or below the average industrialwage of €31,322.20 within the standard ratetax band. Cost: €140m

- Increase the Family Income Supplement by €68per week as proposed by Combat Poverty.Cost: €49m.

- Simplify application procedures for the FamilyIncome Supplement and ensure thatawareness of the FIS is promoted and thatCitizen’s Centres play a role in assisting thosewho need assistance in completing the forms.

IINNCCRREEAASSEEDD SSOOCCIIAALL PPRROOTTEECCTTIIOONNSS FFOORR TTHHOOSSEE OOUUTT OOFFWWOORRKK OORR WWOORRKKIINNGG IINN TTHHEE HHOOMMEE

A total of 976,613 people, or about 23% overallpopulation, were in receipt of a weekly socialwelfare payment at the end of 2005, and manyexperience poverty and deprivation.

Sinn Féin proposals

- An increase of €35.50 in the lowest rates ofsocial welfare. Cost: €1,081million

- An increase of €34.80 in the social welfarepension / State Pension (Non-Contributory).Cost: €182m

- Remove the means test in respect of the StatePension (Non-Contributory) and define it as

taxable income but where tax credits wouldensure that pensioners did not have a taxliability where the basic pension was theironly income.

- Double the living alone allowance to €15.40Cost: Aprox €61.5m

- Increase child benefit by €10 a month. Cost:€139million

- Increase Child Dependent Allowance (CDA) toa single weekly figure of €30 for all recipients.Cost: €180m

- Maternity benefit to be increased to 100% ofincome plus an increase in the bottom rate to€216.80 and the top rate to €309.70. Cost:€36m

- Ensure that proposed reforms replacing theOne Parent Family Payment(OPFP) with aParental Allowance(PA) is accompanied byadequate education/training and childcaresupports.

- Do not reduce the income disregard for PA to€120 from the €146 which currently applies tothe OPFP.

- No implementation of a cut off point from thePA when children reach the age of 7.

- The introduction of a cost of DisabilityPayment of €40 per week for people withdisabilities regardless of whether they are inwork or not. Cost: approximately €620million

- Introduce a right to work for asylum seekerswhile asylum applications are in process

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Rising energy costs, including increases in ESB,gas and fuel costs, are causing hardship to thosealready suffering from fuel poverty, and to thoseon low incomes who simply do not have theability to absorb these increased costs.

Housing- Provision for annualised social housing

construction in line with the NESCrecommendations.

- Ring-fence a minimum of €500 million fromstamp duties for the construction of additionalunits of social housing as above.

- Increase the maximum Mortgage InterestRelief available for first time buyers on, orbelow, the average industrial wage from €800

to €1200 per annum for single people andfrom €1600 to €2400 per annum forwidowed/married people.

- Disabled Persons Housing Grant to cover thefull cost of alterations and to be based purelyon the criteria of need. Allocation for DPG tobe increased by €35m to €105m.

Tackling Food Poverty- The introduction of a weekly free or heavily

subsidised ‘farmer’s box’ of fruit andvegetables to be delivered to those at risk ofsuffering from food poverty

- As a first step towards a comprehensive state-wide school meals programme, provide thefunding to enable all 875 schools identified asdisadvantaged under the Delivering Equality ofOpportunity in Schools (DEIS) action plan toprovide both nutritional breakfasts and lunchto students 5 days a week.

- Additional funding for meals on wheels tocreate a proper state-wide service to meetingthe needs of older people who are unable toprepare their own meals.

Heat and Electricity- Low Income Full Cost Residential Renewable

Energy Grants for Fuel Allowance recipients - Extension of the Warmer Homes Scheme- In order to ensure fair electrify prices, and

energy regulation in the public interestreverse recent ESB hikes.

- Provide those on social welfare payments, andfamilies eligible for FIS, with either a weeklyfuel allowance payment of €25, or theequivalent in an allowance for units ofelectricity and gas, and extend the fuelallowance from the beginning of September toend of April – for 34 weeks instead of thecurrent 29 weeks. Cost: approximately €85m

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- Increase the income threshold qualification forfull medical card coverage to above thepoverty line, thus extending qualification toall incomes below the 60% median income.

- Immediate extension of medical card eligibilityto all under 18 as a key measure to addressgross inequality and real hardship in ourhealth system. Cost: approximately €223

million.- Create a new Back to School Allowance by

absorbing the current Back to School Clothingand Footwear Allowance into a new paymentand adding an additional payment for booksand other expenses to more accurately reflectthe true yearly cost of sending a child toschool as proposed by Saint Vincent de Paul.

- As an immediate interim first step theintroduction of universal pre-school session of3.5 hours per day, five days a week for allchildren in the year before they go to school.

(1) INTRODUCTION

The Government is currently spending more than€62 billion a year. Since 1998, it has recordedcumulative surpluses of almost €40 billion.

The wealth exists in this state to provide a first-class health service, to build sufficient housing toabolish waiting lists, to eliminate poverty in thisgeneration, and to provide a proper standard ofliving for all our people.

But yet, there are still approximately 100,000children living in consistent poverty. Nearly44,000 families are on social housing waiting lists.Approximately 62,000 households are living inpersistent fuel poverty and hundreds of patientsleft on trollies every day.

Prices are rising far faster than wages or benefits.Average childcare costs range from €200 to €350per week per child. Following the approval of a19.7% increase in ESB prices, the averageelectricity bill will increase from €740 to €890 inJanuary. Gas bills will rise to almost €1,700 from€1,260. In November the average price paid for ahouse state-wide was €308,179 while in Dublin itwas €419,809.

Like Connolly, Sinn Féin has no sympathy with“…those who measure a nation's prosperity by thevolume of wealth produced in a country, insteadof by the distribution of that wealth amongst theinhabitants.”

The economic prosperity built by Irish workers hasbeen squandered to create a nominally low-taxeconomy but along with extraordinary affluence,has come unprecedented levels of inequality andexclusion. Having a job and being poor are notmutually exclusive due to the prevalence of lowpaid workers.

We recognise that spending on social protectionsand public services has increased over recentyears and while this is welcome it is not sufficientas the government is starting from an extremelylow base following decades of systematicunderfunding. Many capital projects have gonehundreds of millions of euros over-budget while

more of the people’s money is frittered away onvanity projects or the debacle over electronicvoting.

More public money is channelled to the privatesector. The Estimates last week saw a 58%increase in Public Private Partnership costs in theeducation sector alone. Public land is sold off todevelopers instead of used to provide socialhousing. Aer Lingus, a key strategic asset, isthrown to the vagaries of the market for apittance and then the subject of a hostiletakeover bid to the surprise of no-one exceptMinister Cullen.

The failure that is represented by these facts andstatistics is nothing other than a failure ofpolitical will. It is exemplified by the fact that the life chancesof children today are still significantly influencedby the economic and social position of theirparents. The UN Development Programme'sHuman Development Report 2006 published inearly November placed the 26 counties at 17thout of 18 selected high-income OECD countries inits human poverty index. The Government has been in a position for manyyears to introduce decisive measures to improvethe plight of low incomes families byconcentrating budgetary measures on improvingthe standard of living of all those on or below theaverage industrial wage. It has chosen not to doso. Instead successive income tax cuts havebenefited high income individuals more (in realterms) than those on low-incomes while taxexpenditures have re-distributed wealth in favourof the already wealthy.

For Budget 2007 Sinn Fein proposes to prioritisehouseholds on low and average incomes, helpthem cope with rising costs, ensure access to highquality public services, strengthen socialprotections, make the tax system moreredistributive and progressive by eliminatingunfair advantages for the better off. Budget 2007 needs to ensure an adequatestandard of living for all and that includesensuring adequate food, clothing, housing and acontinuous improvement of living conditions.These are not only the rights of the Irish peoplebut obligations of the Irish Government underinternational human rights law.

The revenue now exists to lift people out poverty[1] – to address fuel and food poverty - both byimproving incomes of those who rely on socialwelfare and the minimum wage, and by specificschemes to offer immediate relief to thoseaffected.

As a society, we have both the wealth and thecapacity to do this. The question Minister Cowencan answer on Budget Day, is whether thisGovernment has the will to do so.

(2) TOWARDS AN ADEQUATE INCOMEFOR ALL

The right to an adequate standard of living isexplicitly stated in a number of internationaltreaties to which this state is a signatory,including the UN Convention on Economic, Socialand Cultural Rights (1996). A ‘decent standard ofliving’ would include the ability to afford adecent quality, and adequate quantity, ofessentials including housing, food, clothing,utilities and transport; and the ability to haveaccess to recreation and to be able to participatein cultural life.[2] Sinn Féin argues that thisBudget should aim towards ensuring an adequatestandard of living for all. While it may not bepossible to do this in one budget, a timeframe forits achievement should be set out. This can bedone within the framework of the budgetaryannouncement.

The numbers experiencing poverty demonstratethat a significant proportion of the populationdoes not have an adequate income. In 2005almost one in five of the population was at-risk-of-poverty, while 7% were found to be inconsistent poverty.[3] People living alone andmembers of lone parent households are most atrisk at more than one in three and almost halfrespectively. Also among those most at risk arehouseholds with a large number of children, thoselacking educational qualifications, and theunemployed and ill or disabled. While thosedepending on social transfers make up a largeproportion of the consistently poor, a significantminority of the poor are in households where thehousehold head is in employment.It is Sinn Féin’s objective to ensure that

rewarding, fairly paid, employment is available toevery worker and to ensure income security forthose not in the workforce. We strive towards asituation where everyone enjoys as of right acomfortable standard of living and has a dignified,productive and well-paid job, can retire withsufficient income and not be forced by financialnecessity to work, or to live in destitution, in oldage.

((II)) EENNDDIINNGG PPOOVVEERRTTYY FFOORR TTHHOOSSEE IINN EEMMPPLLOOYYMMEENNTT

Having a job is not, of itself, a guarantee that onelives in a poverty-free household. Nearly 14% ofhouseholds in poverty are headed by someonewith a job – a rate that has doubled over the lastdecade.[4] Yet there is little focus on addressingthe plight of the working poor. The absence of acommitment to addressing low pay was confirmedby the failure of the social partnership process, asan established system for dealing with wageincreases, to put any focus on this issue. Underthe most recent social partnership deal ‘Towards2016’, in addition to the increase of 10% over 27months (working out at annualised increases of4.4%) for all workers, low paid workers got amiserly half per cent additional pay increase orabout 80 cents per week extra. There is noreview clause within the deal and no localbargaining provisions. This means that there is nomechanism to counter the effect of prolonged andincreased inflation such as we are now beginningto experience.[5] To put the increases under‘Towards 2016’ in perspective, while the 10%increase under this deal works out at annualisedincreases of 4.4%, the annual rate of inflationaveraged 3.8% for the first nine months of 2006.

The failure to tackle low pay as part of ‘Towards2016’ demands that the Government ensures thatassisting the working poor is a key priority withinBudget 2007. Sinn Féin proposes that this bedone through a substantial increase in theminimum wage, and by increasing the thresholdsin respect of the Family Income Supplement.

Assisting those trapped in low paid employment,in addition to the proposals set out in thissubmission, will require the eradication ofilliteracy and the extension to all workers’ ofeducational and training opportunities that enableeach to reach his or her full potential.

Minimum wage The one significant measure to tackle low paythat was introduced in recent years is theminimum wage. This is the legal minimum rate ofpay a worker can be paid per hour and is intendedto act as a labour price floor.

When first introduced in April 2000, as a result ofcampaigning by the trade union movement andothers including Sinn Féin, the minimum wage of£4.40, or €5.59, represented 54% of averageindustrial earnings. The minimum wage rate foran experienced adult employee was increasedfrom €7 per hour to €7.65 euro per hour on May1st 2005. By June 2006 the minimum wagerepresented just 50.83% of the average hourlyindustrial wage which had increased to €15.05.[6]In all likelihood by the end of the year theminimum wage will represent less than 50% of theaverage industrial wage.

The new social partnership deal ‘Towards 2016’commits to an increase in the minimum wagefrom January 2007 but does not indicate to whatrate it will be increased. The Irish Congress ofTrade Unions, in a submission to the Labour Court,has argued that a significant rise in the minimumwage is necessary in order to keep pace withwage growth and price rises since 2005, when thewage was last adjusted, and to prevent theemergence of a two tier workforce. According toICTU General Secretary David Begg, the numberearning the minimum wage has increased by 40%since its introduction in 2000 to more than100,000 employees. The minimum wage needs tobe subjected to a mandatory annual cost of livingadjustment (COLA) to keep workers out ofpoverty.

It is Sinn Féin’s view that a benchmark of 60% ofGross Average Industrial Earnings (GAIE) should beset for the minimum wage rate. The increasedminimum wage rate due to come into effect from1 January, 2007 should correspond with thisbenchmark and should be based on the averageindustrial wage as projected by the ESRI MediumTerm Review 2005-2012 published in December2005 for 2007.

People on low incomes should pay less tax. Thisis central to Sinn Féin’s proposals to create amore progressive tax system. Below we proposetax cuts for those on low and average incomes.

Family Income Supplement Family Income Supplement (FIS) is a weekly tax-free payment for families, including one parentfamilies, at work on low pay. To qualify you mustbe in full-time employment, work at least 19hours every week or 38 hours every fortnight,have at least one child living with you orsupported by you, and your average weekly familyincome is below the income limits that are basedon family size. The income limits range from€465 for a family with one child to €905 for afamily with eight or more children.[7] FIS is paidat 60% of the difference between a family’saverage weekly income and the income limitbased on family size. Take-up is low however at30- 40% - therefore thousands of families aremissing out. A twelve page application form forthe payment has been identified as one of thedeterrents.

To ensure that this measure continues to play arole in assisting the working poor, at a minimumthe income limits need to be increased in linewith the growth in average industrial earnings.Sinn Féin believes the thresholds for the FamilyIncome Supplement should be increased by €68per week as proposed by Combat Poverty in theirPre-Budget submission.

Sinn Féin Budget Proposals

- Increase the minimum wage to €9.30 fromJanuary 1st 2007 so that it represents 60% ofthe average industrial wage as projected bythe ESRI Medium Term Review 2005-2012published for 2007.

- Keep all those on the minimum wage out ofthe tax net based on the increased minimumwage rate to be introduced from the 1stJanuary 2007. Cost: approx €915m.[8]

- Keep those on or below the average industrialwage of €31,322.20 within the standard ratetax band. Cost: €140m.[9]

- Increase the Family Income Supplementthresholds by €68 per week as proposed byCombat Poverty. Cost: €49m.[10]

- Simplify application procedures for the FamilyIncome Supplement and ensure thatawareness of the FIS is promoted withCitizen’s Information Centres playing a role inassisting those who need help in completingthe forms.

Sinn Féin Revenue Boosting Proposals

- Introduce a 50% tax rate on high incomeearners with incomes of over €100,000.

- End the ability of high income individuals todeclare themselves “non-resident for taxpurposes”.

- End all tax exemptions except where theeconomic and social value outweighs the costto the exchequer of the exemption and insuch cases the exemption should be at theminimal rate necessary to bring about the goalfor which it was introduced.

- Increase in corporation tax from 12.5% to17.5%. (According to the Department ofFinance, the cost to the Exchequer ofcorporation tax forgone as a result of thereduction in the standard rate of corporationtax from 16% to12.5% was €400m per annumat the time of the cut).[11]

((IIII))IINNCCRREEAASSEEDD SSOOCCIIAALL PPRROOTTEECCTTIIOONNSS FFOORR TTHHOOSSEE OOUUTTOOFF WWOORRKK OORR WWOORRKKIINNGG IINN TTHHEE HHOOMMEE

A total of 976,613 people, or about 23% of theoverall population, were in receipt of a weeklysocial welfare payment at the end of 2005.[12]In 2005, the main areas of expenditure byprogramme group were: Old Age (24%), ChildRelated (17%), Illness, Disability and Caring (17%)and Widows, Widowers and One Parent Families(16%).

Social protections are not adequately assistingpeople not in work, or working in the home, toachieve adequate incomes. In 2005 socialtransfers only reduced the risk of poverty by 18%,compared with an average of 25% across the EU asa whole.[13] This was one of the highest rates inthe EU. It highlights the fact that the effect ofpensions and social transfers on reducing the at-

risk-of-poverty rate is low in this state comparedwith other EU countries.

As part of a Combat Poverty Agency ResearchSeminar in October 2004, Tim Callan and BrianNolan of the ESRI in a presentation on RelativeIncome Poverty Risk: What Ireland Can Learn fromthe Best-Performing Countries, identified anumber of broad elements needed for success inreducing relative income poverty risk. These areenhanced education and employmentopportunities and improved income supports.They also pointed out that countries which aresuccessful in reducing poverty havecomprehensive welfare system, high paymentrates and high employment rates.

The Government will have to increase spending onsocial protections if it wants to reduce poverty.

A paper entitled Child Poverty and Child IncomeSupports: Ireland in Comparative Perspective byTim Callan, Kieran Coleman, Brian Nolan and JohnR. Walsh as part of the ESRI’s Budget Perspectives2007 looks at the remarkable achievements of theScandinavian countries in tackling child poverty.In 2004, according to Eurostat figures, theScandinavian Countries (Norway, Denmark, Finlandand Sweden) had the lowest rates of overallincome poverty and rates of child poverty were, ifanything, lower. The study pointed out that theirexceptional performance in reducing child povertywas not due to exceptionally high child incomesupports but to the overall high levels of paymentto those on social protection. It argues that theproblem with child poverty elimination policieswhich seek to deal with child poverty primarilythrough child income support is that children arenot poor on their own – they have a parent orparents living in poverty with them. Avoidanceof poverty requires that parents have adequateincomes too. The proposal below seeks toadvance us towards such a position.

The Lowest Rates of Social Welfare [14]

A target was set under the National Anti-PovertyStrategy (NAPS) Review 2002 to achieve a rate of€150 per week in 2002 terms (equivalent to 30per cent of Gross Average Industrial Earnings in2002) for the lowest rates of social welfare by2007 and the appropriate equivalent level of basic

child income support (i.e. Child Benefit and ChildDependent Allowances combined) to be set at33%-35% of the minimum adult social welfarepayment rate. Following Budget 2006 the currentminimum social welfare rate is €165.80 a week.

It is Sinn Féin’s firm view that it is time now toset a new longer term benchmark against whichthe evolution of social welfare rates can bemeasured. Work on developing such a benchmarkneeds to start now. Sinn Féin is proposing that anew short term target of 35% of Gross AverageIndustrial Earnings by 2008 for the lowest rates ofsocial welfare be set. Budget 2007 should aim toprogress mid-way towards this target by deliveringa rate of 32.5% of Gross Average IndustrialEarnings.

Using GAIE growth rates from the ESRI MediumTerm Review 2005-2012, published in December2005, the minimum rate of social welfare at 32.5%of GAIE would be €201.30, an increase of €35.50.

Sinn Féin Budget Proposal

- An increase of €35.50 in the lowest rates ofsocial welfare. Cost: €1,081million[15]

Pensions

Older people also continue to experience povertyand deprivation. Pension rates are insufficient toensure that older people have adequate incometo live on. Income inadequacy results in elderlypeople cutting back on essentials such as food andheat.

Statistics demonstrate not only a high reliance onpublic pension schemes, but that pensions arepaid at low rates compared to Europeannorms.[16]

The ESRI Living in Ireland Survey 2000 datashowed that over 90% of all pensioners in the 26Counties received a social welfare pension in 2000and that the amount they received provided morethan half their retirement income. Results fromthe 2004-2005 Family Resources Survey show thatone half of the weekly household income in oneadult pensioner households, and approximatelyone third of weekly household income in twoadult households with at least one pensioner,

comes from State Retirement Pension.

The results of the 2006 EU Survey on Income andLiving Conditions (EU-SILC) indicate that over onefifth of persons aged 65 and over are on incomesof less than 60% of average income and this isafter social transfers like pensions are included.European studies have found that differences inpension rates explain 57% of the difference inrisk-of-poverty rates for those 65+.[17] This stateis among only five of the EU 25 states which hasmedian public pensions of less than 60% of medianearnings.

While the old age pension rate has remained lowfor public pensioners, higher paid workers and thewealthy have been able to take advantage ofexcessively generous tax incentives for privatepension savings. This is totally unfair, since allworkers pay higher taxes to support these taxbreaks, yet only a tiny minority benefit.

The total cost of tax relief’s on private pensioncontributions in the 26 Counties was €51 million in1980-81. By 2002 the cost had increased to €2.75billion.[18] We need to end this regressiveincome redistribution in favour of the better offby phasing out these costly and unjust taxexpenditures. The revenue consumed by thesetax incentives needs to be redirected ataugmenting the old age pension to keeppensioners out of poverty. The most recentfigures available from the Department of Financeshow that the average income of those whoavailed of tax breaks for private pensions in 2002was €67,119, or over 2.5 times average industrialearnings at that time.[19] A mere 1,300 or 0.3per cent of the lowest earning 20 per cent ofincome earners on tax records availed of thisrelief while 57,600 or 15.8 per cent of thehighest earning 20 per cent of income earnersavailed of relief under ‘Retirement AnnuityContracts’ in 2002.[20] Statistics are notavailable for those who availed of tax breaks inrespect of other forms of private pensions.

At present the maximum rate of the old agecontributory pension is €193.30 (32% of GAIE)while the maximum rate for the social welfarepension is €182.00 (30.2% of GAIE). A living aloneallowance of €7.70 per week is paid for peopleaged 66 or over with an extra allowance of €10.00

a week for people aged 80 or over.[21] Theliving alone allowance has not been increasedsince 1996. It is a measure which exists inrecognition of the fact that older people livingalone are in a worse financial position comparedto other types of households with older peopleand in recognition of the additional costs,relatively speaking, associated with living alonei.e. the cost of heating a home based on oneincome.

The National Anti Poverty Strategy (NAPS)contained a commitment to raising the non-contributory pension to €200 by 2007. Thisbenchmark, while welcome at the time because itsignalled an intention to incrementally increasethe non-contributory pension, is not an adequatetarget where the goal is to enable older people tohave sufficient income to live.

Sinn Féin is therefore seeking significant pensionreform. We believe that in order to ensureadequate income in retirement there needs to bea basic non-means tested pension for all people ofretirement age. We are proposing that this basicpension would be defined as taxable income buttax credits would ensure that pensioners did nothave a tax liability where the basic pension wastheir only income. This would ensure that whileall would receive the basic pension it would be ofmost benefit to those without other means. Auniversal pension funded out of the generaltaxation system would be progressive,redistributive and would ensure independentpensions for all men and women. Such pensionschemes already exist in a number of countries.For example, Finland has a national guaranteednon-means tested pension based on residence,which puts a floor under the income replacementsocial insurance pension.

Under the pension reform being proposed by SinnFéin, the basic pension would be augmented by asecond tier of pensions related to social insurancecontribution (under which ‘home makersdisregards’ would be replaced with gender neutral‘Carers’ Credits’ for years spent on caring duties).This process needs to start with improvements inthe social welfare pension and the replacement ofhomemakers disregards with carers credits.

Sinn Féin is proposing setting a new short term

target of 40% of Gross Average Industrial Earnings(GAIE) by 2008 for the social welfare pension.Budget 2007 should aim to progress mid-waytowards this target by delivering a rate of 35% ofGross Average Industrial Earnings (GAIE). Usingprojected GAIE growth rates, as above, the socialwelfare pension at 35% of GAIE would be €216.80,an increase of €34.80.


- An increase of €34.80 in the social welfarepension / State Pension (Non-Contributory).Cost: €182m.[22]

- Remove the means test in respect of the StatePension (Non-Contributory) and define it astaxable income but where tax credits wouldensure that pensioners do not have a taxliability where the basic pension is their onlyincome.

- Double the living alone allowance to €15.40per week. Cost: Aprox €61.5m.[23]

- Replace ‘home makers disregards’ in respectof the old age contributory pension withgender neutral ‘Carers’ Credits’ for yearsspent on caring duties.


- Phase out unjust tax breaks for privatepensions.

A significant immediate curtailment of the taxincentives for occupational pensions, PRSAsand approved retirement funds with theobjective of eliminating these incentiveswithin a timeframe of no longer than 5 yearsand the redirection of this funding into thebasic non-means tested pension.

Children and Parents

Children

There are still approximately 100,000 childrenliving in consistent poverty in this state. In orderto assist those children most in need Sinn Féin isproposing standardising the three weekly rates of

payment of Child Dependent Allowance to a singlefigure of €30 per child and to increase ChildBenefit by €10 a month to €160 for first andsecond children and to €195 for third andsubsequent children. The value of CDA hasdecreased dramatically since it was frozen in1994, from 71% of the total child income packageat that time, to 30% in 2006.[24] While childbenefit is paid to all families regardless of means,Child Dependent Allowance is paid to welfaredependent families, making it a more targetedmechanism for supporting children at risk ofpoverty. Therefore it clearly makes sense to nowput the emphasis on improving CDA.


- Increase child benefit by €10 a month. Cost:€139million.[25]

- Increase Child Dependent Allowance (CDA) toa single weekly figure of €30 for all recipients.Cost: €180m.[26]

Parents

Maternity and Paternity Benefit

The weekly rate of Maternity Benefit is calculatedby dividing gross income in the relevant tax yearby the number of weeks actually worked in thatyear. At present 80% of this amount is payableweekly, subject to a minimum payment of €182.60and a maximum payment of €265.60.

These levels do not represent adequate incomereplacement for new mothers when one considersthe financial commitments facing most familiesand in particular mortgage repayments which aregrowing due to rising inflation. Sinn Féin isseeking progressive improvements in maternitybenefits.

Maternity Benefit should be paid at 100% ofearnings subject to, at a minimum, a bottom rateof payment which represents 35% of GAIE and atop rate which represents 50% of GAIE. Thiswould mean increasing the bottom rate to€216.80 and the top rate to €309.70.

Sinn Féin has proposed the introduction of 4weeks paternity leave. This should be paid at the

same rate as Maternity Benefit, as should thepayments which ought to be introduced in respectof parental leave.

One-Parent Family Payment

Those living in lone parent households had thehighest deprivation levels in 2005 with almost 60%reporting deprivation in respect of at least one ofthe eight deprivation indicators.[27] The One-Parent Family Payment (OFP) is a payment formen and women who are bringing children upwithout the support of a partner. It is payable toan unmarried person, a widow(er), a prisoner'sspouse, a separated or divorced person, or onewhose marriage has been annulled. It is subject tocertain conditions, including a means test. If youare divorced or unmarried, you must also haveattempted to seek maintenance from the child'sother parent. The Government has proposedsignificant changes to the One Parent FamilyPayment. While there is widespread agreementthat the One Parent Family Payment needs to bereviewed, a number of issues arise in relation tothe proposals. The Government proposes toabolish the One Parent Family Payment andreplace it with a new means tested ParentalAllowance, which can be paid to all low-incomefamilies at the same rate as the current OneParent Family Payment (€165.80). The co-habitation condition will be abolished.

Under the proposed reforms once the youngestchild reaches the age of seven the ParentalAllowance stops. The theory is that the parentwill move on to education, training oremployment, or a scheme such as the Back toWork Allowance or the Back to EducationAllowance. If none of these options are availableor taken up, the parent will move ontoUnemployment Assistance. Under the proposal, asolo parent must be available for work for 19hours a week to qualify for UnemploymentAssistance. Those in receipt of Parental Allowancewould be allowed to earn up to €120.00 per weekwithout it affecting their payment. This is a dropfrom the current income disregard for the OneParent Family Payment of €146.50.[28] Also,under the proposals, the upper income limit forParental Allowance would be increased to €400per week (already increased from €293 to €375 inBudget 2006).

Sinn Féin welcomes the removal of the co-habitation rule, which has been proposed as partof the planned reforms to the One Parent FamilyPayment. However we have expressed ourconcerns regarding other changes, including theproposals to limit the duration of the payment.This represents a form of threat - all lone parentsmust be enabled to participate in society but apolicy of coercion is wrong. Twenty-three percent of lone parents have no formal education.The proposals from Department of Social andFamily Affairs fail to demonstrate how theseparents will be supported in making up the lostground educationally, raise their children andreturn to the workplace all before their child isseven. There is a popular misconception thatmost lone parents don't work. The reality is that60 per cent of those receiving the One ParentsFamily Payment work, but a majority are in low-paid employment. There needs to be acommitment from FÁS or the Department ofEducation to introduce part-time training tofacilitate these people. Without adequateeducation and childcare supports these ‘reforms’have the potential to actually worsen thesituation of those who presently rely on thesesupports.


- Maternity benefit to be increased to 100% ofincome plus an increase in the bottom rate to€216.80 and the top rate to €309.70. Cost:€36m.[29]

- Introduce paternity leave and parental leaveto be paid at the same rate as maternitybenefit. Cost: approximately €74.5m.[30]

- Ensure that proposed reforms replacing theOne Parent Family Payment with a ParentalAllowance are accompanied by adequateeducation/training and childcare supports.

- Do not reduce the income disregard for PA to€120 from the €146.50 that currently appliesto the OPFP.

- No implementation of a cut off point from thePA when children reach the age of seven.


- Abolition of the employee PRSI ceiling becauseit is regressive. At present those over theceiling pay a smaller proportion of grossincome in PRSI than those earning under theceiling, while both receive the samebenefits.[31] It is estimated that theabolition of this ceiling would yield some€238.2 million in additional revenue to thesocial insurance fund in a full year.[32]Revenue boost: €238.2m.

People with Disabilities

People with disabilities are a specific low incomegroup which experiences disproportionate rates ofunemployment and poverty. Specific measuresare therefore necessary in order to assist peoplewith disabilities.

Both the Commission on the Status of People withDisabilities and the National Economic and SocialCouncil have recommended the introduction of aCost of Disability Payment. This is in recognitionof the fact that people with disabilities incurextra costs as a result of their disability. TheReport of the Commission for the Status of Peoplewith Disabilities entitled A Strategy for Equality recommended that this payment shouldbe made to people with disabilities ‘irrespectiveof whether the person is at work or not’. Thatreport was published 10 years ago, yet this keyrecommendation has yet to be implemented.

The National Disability Authority commissionedand published research on this issue, which itpublished in 2004. That report found that theextra cost of living imposed by disability wasapproximately €40 per week. Sinn Féin is callingfor the introduction of a cost of disabilitypayment at this rate.

In addition to ensuring people with disabilitieshave an adequate income and are assisted inaccessing employment, it is important that thoseorganisations which contribute significantly toimproving the quality of life for people withdisabilities are adequately supported. Theimportant contribution of Special Olympics Irelandin this regard was clear for all to see whenIreland hosted the Special Olympics in 2003.

However the work of Special Olympics Ireland isbeing threatened by funding shortfalls. It isseeking an increase of €3.3 million annually toaddress a projected shortfall in funding and toprovide for sustainability and growth over thenext five years. Sinn Féin supports this demand.

Sinn Féin Budget Proposal:

- The introduction of a Cost of DisabilityPayment of €40 per week for people withdisabilities regardless of whether they are inwork or not. Cost: approximately €620million.[33]

- Increase funding to Special Olympics Ireland byapproximately €3.3 million annually.

Refugee Families

The Irish Refugee Council has highlighted thepoverty faced by asylum seekers. It is illegal forasylum seekers to enter into paid employmentand they therefore must depend exclusively onDirect Provision, which is hostel accommodation,full board and a weekly payment of €19.10 foradults and €9.60 for children.

This discriminatory system has been described asleading to physical, economic and psychologicalmarginalisation of refugee families. It results inthese families experiencing poverty and having tocope with difficulties clothing and feedingthemselves and their children.

The poverty experienced by refugee families hasbeen exasperated by the introduction in May 2004of the Habitual Residency Conditions (HRC), whichdeny child benefit payments to newly-arrivedasylum seekers, among others. This change alsohurts migrant workers, and their families, many ofwhom are in low paid employment.


- An end to the system of Direct Provision.

- Introduce a right to work while asylumapplications are in process.

- Abolition of the habitual residencyrequirement for child benefit.


- By giving asylum seekers the right to workthey will pay tax and therefore contributerevenue to the Exchequer.

(3) HELPING THE LESS WELL OFF COPEWITH RISING COSTS

Low and average income households consume agreater proportion of their income on dailynecessities such as food, heating, housing andtransport. For example the poor spend twice asmuch on fuel, as a proportion of income asaverage.[34] Inflation hits these householdshardest.

Consumer Price Index (CPI) inflation measured4.0% in September, having reached a height of4.5% in August. Interest rates stood at 3.37% atthe 31st October 2006 – a sharp rise from the2.26% at which it stood a year earlier. Theselevels of inflation are placing a huge burden onthose who had to borrow excessively foroverpriced houses at a time when inflation was ata much lower rate. On top of this, increasessanctioned by the energy regulator are beginningto bite. In recent months increases in both ESBcharges and gas costs have been announced.Those on low incomes simply do not have theability to absorb these increased costs. It isworth noting that in 2005, almost 40% of personsin lone parent households reported having debtproblems, along with 15.3% of persons in ‘otherhouseholds with children’ and 10.2% of householdswith ‘2 adults and 1-3 children’.[35]

Below we put forward proposals to assist those onlow and average income cope with rising housingand energy costs. We also put forward proposalsto tackle food poverty and to redress costsassociated with what should be free publicservices.

((II)) HHOOUUSSIINNGG

Access to adequate housing is widely recognised afundamental human right and as such, theGovernment has a responsibility to ensure thateveryone is able to secure housing for themselvesand their families. Those on low and averageincomes, and would-be first time buyers, face thegreatest difficulties in securing housing.Adequate units of social housing are not beingdelivered. Nothing effective has been done tocombat house price increases and to makehousing affordable. The wealth of recent years,including the revenue generated by the propertysector, has not been used to house thoselanguishing on social housing waiting lists.Consequently while some people are forced intolow quality, high cost private rentedaccommodation, others are forced out of theirown communities into vast commuter belts.

The most recent housing needs assessment carriedout in 2005 shows that at the time the assessmentwas carried out there were nearly 44,000 familiesidentified as being in need of social housing.According to the Department of Finance Bulletinfor November 2006 the average price paid for ahouse state-wide is now €308,179 while theaverage price paid for a house in Dublin is€419,809. According to the Permanent TSB/ESRIHouse Price Index, national house price inflationwas 15% in the twelve months to September 2006,compared to 7.2% in October 2005.

In its Financial Stability Report 2006 the CentralBank estimated that house prices were overvaluedby at least 14%.[36] If this, which some wouldconsider an underestimation, is correct it wouldmean (based on the average house prices above)that houses across the state are overpriced by anaverage of €43,145 while houses in Dublin areoverpriced by an average of €58,773. The CentralBank report warned that a continuation of highincreases in house prices, along with increasinginterest rates, is contributing to a deterioration inaffordability in the housing market; that thevulnerability of heavily indebted households tointerest-rate hikes has increased; and thatrepayment burdens for existing and prospectivehouse buyers will increase significantly if marketexpectations for interest rates are realised; andhouse prices continue to grow strongly. These new

burdens will be particularly onerous for recentlymortgaged households.

The NESC Report on Housing recommended a netincrease of 73,000 units of social housing between2005 and 2012 in order to meet social housingneeds.[37] The NESC has estimated that this willcost in the order of €1.4 billion per year in 2004terms or an additional €500 or €600 million peryear above existing capital expenditure.[38] Inorder to meet this target by 2012, approximately12,000 additional social housing units a year needto be built.

Property as an investment has been hugelypromoted and boosted under the presentadministration. Recent figures from the CentralStatistics Office show that as many as 275,000houses in the state, equivalent to 15% of the totalhousing stock, lie empty.[39] In May 2005, DavyStockbrokers estimated that in the first half of2004 six out of ten houses/apartments were builtas second/holiday homes, or were built asinvestment properties for which no tenant wasfound.[40] This has had severe and detrimentalconsequences for first time buyers who are forcedto compete with wealthy investors when they aretrying to secure housing. In the face of suchcompetition first time buyers find themselvespriced out of the housing market. Governmentintervention needs to ensure that the houses thatare built go to those in need of a home and not tothose seeking to make profit from investing inproperty. This requires measures to reduceinvestor led demand in the housing market.Notably, the ESRI report on the Ex-ante Prioritiesfor the National Development Plan 2007 – 2013published in October 2006 recommended using thetax system to reduce private sector demand forthe output from the building sector. Sinn Féinsupports this approach.

The disabled and elderly need assistance to helpmeet the cost of essential modifications to theirhomes. The Disabled Person Housing Grant (DPG)was established to make such alterations possiblewith the least financial burden on people withdisabilities and their families.[41] Sinn Féin haslong been calling for reform of this scheme, whichis not effective as it fails to cover the full cost ofalterations and under-funded councils have to findone third of the cost from their own budgets. The

maximum limit of €20,230 does not take intoaccount the cost of the building work. Theserious deficiencies in this scheme cause very realhardship for people who need essential, and oftentimes costly, modifications. We have called forgrants to cover the full cost of alterations and forthe grants to be based purely on the criteria ofneed. Sinn Féin therefore supports the demandfrom Disability Federation Ireland for theGovernment to increase the overall allocation toDPG by €35million to €105 million.

Government policy must focus on ensuring thatthe revenue generated from the property boom isutilised to clear the social housing backlog andmust ensure that taxation policies give first timebuyers an advantage over investment buyers fromwhom they face direct competition. It must alsoensure that funding is available for the repair andmaintenance of local housing stock and enable allthose who need it to avail of Disabled PersonHousing Grants to cover the full cost of essentialmodifications.

Sinn Féin Budget Proposals:

- Provision for annualised social housingconstruction in line with the NESCrecommendations.

- Ring fence a minimum of €500 million fromstamp duties for the construction of additionalunits of social housing indicated above.

- The initiation of a ‘housing maintenance andrepair needs assessment’ of all local authorityhousing stock, and a commitment from theGovernment to provide whatever revenue isnecessary to carry out such repair andmaintenance.

- Increase the maximum Mortgage InterestRelief available for first time buyers on orbelow the average industrial wage from €800to €1200 per annum for single people andfrom €1600 to €2400 per annum forwidowed/married people.[42] Cost:approximately €8m.[43]

- Disabled Persons Housing Grant to cover thefull cost of alterations and to be based purelyon the criteria of need. Allocation for DPG tobe increased by €35m to €105m.


- Introduce a tax on second properties.

- Increase Capital Gains Tax from 20% to 40%.

((IIII)) TTAACCKKLLIINNGG FFOOOODD PPOOVVEERRTTYY

We are among the wealthiest states in the world.We have come a long way since the Famine yearsof the nineteenth century. There is no shortageof food here. Yet in this food rich state there arepeople in our midst who continue to be under-nourished, and who continue to suffer from foodpoverty. Just as in 1847, it is not a question ofshortage of supply - it is a question of access andaffordability, to healthy food in particular.

People experience food poverty where they lackan adequate and nutritious diet. In 2004 CombatPoverty, Crosscare and Saint Vincent de Paulpublished a report entitled ‘Food Poverty andPolicy’, the findings of which suggest that foodpoverty is a real and significant issue for low-income households. Based on 2003 data onpoverty, up to 10% of the population in this state(375,000 people), can be considered at risk offood poverty. This increases to 15% of children(125,000 children). While commentators regularlyreport on poverty figures and statistics, foodpoverty itself seems to have been comparativelyignored, but the problem is getting worse.

The people most likely to suffer food poverty arethose on low incomes. They eat less well andhave inferior food intake and lower compliancewith recommended dietary and nutrient intake;spend relatively more money on food, but not onhealthy options; have difficulties accessing anadequate variety of good quality, affordablefoodstuffs; know what is healthy, but arerestricted by finance.Growing levels of health problems are linked tolow income and poor diet, with the reliance on acheap fast-food culture having detrimental affectsfor a significant proportion of people andcontributing to the growth of obesity and relatedmorbidity and mortality.

The National Taskforce on Obesity recommendedthat ‘The Department of Finance should carry out

research to examine the influence of fiscalpolicies on consumer purchasing and their impacton…obesity, for example risk-benefit assessmentsof taxation that supports healthy eating andactive living, subsidies for healthy food such asfruit and vegetables.’[44]

It also recommended that the Department ofSocial and Family Affairs should review socialwelfare (assistance) payments to take account ofthe relative lack of affordability of most healthyfoods for socially disadvantaged groups.

A conference organised by the National Council onAgeing and Older People (NCAOP) in October waspresented with the findings of research whichshowed that almost one in five older people whoare admitted to hospital are undernourished.[45]A representative of the NCAOP pointed out that‘meals on wheels’ suffered from severe shortagesof resources that impeded development of theservice which, if properly resourced, offered oneway of tackling malnutrition amongst olderpeople. The Irish Senior Citizens Parliament iscalling for a strategic plan to provide a state-widemeals on wheels service as the present servicedoes not cover all older people in need and itsstandard varies from area to area. There is a needto establish state wide standards for this serviceand to ensure that it covers the whole state sothat older people have it available to them intheir communities

Sinn Féin Budget Proposals:

- The introduction of a weekly free, or heavilysubsidised, ‘farmers box’ of fruit andvegetables to be delivered to low incomefamilies / disadvantaged groups identified asbeing at risk of suffering from foodpoverty.[46] Qualification criteria could besimilar to that for the fuel allowance. (Theintroduction of this scheme would have theadded benefit of supporting Irishagriculture).[47]

- The introduction of a state-wide ‘School FruitScheme’ where all junior and senior infantswould daily receive a free piece of fruit.[48]

- As a first step, towards a comprehensive state-wide school meals programme, provide the

funding to enable all 875 schools identified asdisadvantaged under the Delivering Equality ofOpportunity in Schools (DEIS) action plan toprovide both nutritional breakfasts and lunchto students five days a week.

- Additional funding for meals on wheels tocreate a proper state-wide service meetingthe needs of older people who are unable toprepare their own meals.

((IIIIII)) HHEEAATT AANNDD EELLEECCTTRRIICCIITTYY

Fuel poverty describes the inability to affordadequate warmth in a home, or the inability toachieve adequate warmth because of the energyinefficiency of the home. Indeed, fuel poverty isexasperated by poor energy efficiency in housingstock, poor insulation and inefficient heatingsystems.

The most recent estimate of fuel poverty in the26 Counties (2001) indicates that approximately62,000 householders are experiencing persistentfuel poverty, with a further 165,000 householdersintermittently affected.[49] At presentelectricity and gas allowances are paid under thesocial welfare household benefits packagethroughout the year to pensioners, disabled andcarer-led households towards their heating, lightand cooking costs. Other measures to help thoseat risk of fuel poverty include the Warmer HomesScheme under Sustainable Energy Ireland’s (SEI’s)Low-Income Housing Programme (LIH). Thenumber of homes dealt with under this scheme islimited, as are the actions under it, - to date,only approximately 9,800 homes have had arange of energy efficiency measures implementedincluding attic insulation, draught proofing,lagging jackets, energy efficient lamps and insome instances wall insulation. While theGovernment introduced Residential RenewableEnergy Grants at the start of this year, lowincome households are least likely to take upthese grants. This is because these grants onlycover a portion of the overall cost of changingover to renewable energy systems, which cut bothfuel costs and emissions output.

The ability of those on low incomes to adequatelyheat homes is also affected by recent decisions by

the Energy Regulator to sanction increases inelectricity and gas prices.

At present the Commission for Energy Regulation(CER) is an independent body responsible for theliberalisation of Ireland’s energy sector. Itsobjective is to bring competitors into theelectricity market. On the 10th October theregulator approved an average 19.7% increase inelectricity prices to be charged by ESB CustomerSupply from 1 January 2007. This increase camein the aftermath of the announcement by the ESBof a 55% increase in profits. ESB prices are atpresent being pushed up to entice others into themarket to compete with the ESB. Prices are beingpushed up to bring in competition, supposedly tobring prices down. The increases announced bythe ESB will hit low income people hardest. Theincreases demonstrate that the regulator is notupholding its duty to take into account the needsof rural customers, the disadvantaged and theelderly.

The CER is not serving the interests of the peopleor of business. ICTU General Secretary DavidBegg has said that the recent gas and electricityprice hikes "..were wrong and the regulatoryregime in that sector is now driving inflation inpursuit of a flawed competition strategy.” ICTUhas called for these price increases to bereviewed immediately.[50] The decision tosanction these increases was taken at a timewhen oil prices had begun to fall back from thepeak they had a reached a number of monthsearlier. The role of the regulator must bereviewed to ensure that serving the commongood, and not the agenda of liberalisation,underpins its work. If this requires changes to theElectricity Regulation Act, 1999, this needs to bedone. Approval for the increases needs to bewithdrawn.

The average annual household gas bill before thelatest increases was €1,260. That will rise toalmost €1,700. Likewise the average electricitybill will increase from €740 to €890. While theGovernment has announced some measures tolessen the effects on social welfare recipients,the working poor and those on fixed incomes willbe hit hard by these increases.[51]


- Low Income Full Cost Residential RenewableEnergy Grants for Fuel Allowance recipients

Sinn Féin is proposing a new scheme based onthe Residential Renewable Energy Grantsintroduced in Budget 2006 specifically for lowincome households. Under the scheme thatSinn Féin is proposing anyone assessed asbeing entitled to the fuel allowance and/orhaving an entitlement under the free energyscheme, will be entitled to a grant to coverthe full cost of installation of sustainableheating alternatives (to be open to both localauthority tenants and homeowners who areentitled to fuel allowance). The introductionof this scheme will have the added benefit offurther boosting the renewable energyindustry while contributing to the state’s driveto reduce CO2 emissions.

- Extension of the Warmer Homes Scheme

At present the Warmer Homes Scheme underSustainable Energy Ireland’s Low IncomeHousing Programme, is a limited schemewhich aims to improve the energy efficiencyand comfort conditions of homes occupied bylow-income households. It provides fundingfor the installation of insulation and otherenergy efficiency measures in around 2,000eligible homes each year. Sinn Féin isproposing additional funding be provided tofacilitate the scheme meeting the needs of10,000 homes a year. Cost: approximately€8.45m.[52]

- As recommended by the Society of St Vincentde Paul provide those on social welfarepayments and families eligible for FIS witheither a weekly fuel allowance payment of€25, or the equivalent in an allowance forunits of electricity and gas, and extend thefuel allowance from the beginning ofSeptember to end of April – for 34 weeksinstead of the current 29 weeks. Cost:approximately €85m.[53]

- In order to ensure fair electricity prices andenergy regulation in the public interest,reverse recent ESB hikes.

- Ensure all new social housing is fitted withalternative energy sources.

((IIVV)) CCOOSSTTSS AASSSSOOCCIIAATTEEDD WWIITTHH WWHHAATT SSHHOOUULLDD BBEE FFRREEEEPPUUBBLLIICC SSEERRVVIICCEESS

HealthThe extent of the health crisis in this state isobvious for all to see. So too is the inequality atthe heart of the system. We do not have a healthsystem that is free at the point of delivery. Thosewho suffer most as a result, are those on low andaverage incomes who are above the incomethreshold for the medical card. Primary care isthus not accessible to all who need it, when theyneed it, leading many people to go withouthealthcare or to seek medical advice much laterthan they should, contributing to the disastrouscongestion in high cost A&E wards.

Sinn Féin published a comprehensive health policydocument in 2006. In it we set out our vision of aseamless all-Ireland health service based onuniversal public provision – that is, one thatprovides full equality of access, and that is freeat the point of delivery as of right.

As a first step in a phased transition to full publicprovision Sinn Féin is seeking the immediateextension of the medical card income thresholdand the extension of the medical card to all under18s.


- Increase the income threshold qualification forfull medical card coverage to above thepoverty line, thus extending qualification toall incomes below the 60% median income.

- Immediate extension of medical card eligibilityto all under 18s as a key measure to ensure nochild goes without needed healthcare. Cost:approximately €223 million.


- Immediately end tax breaks for privatehospitals and the land gift scheme, phase outpublic subsidisation of, and ultimatelyreplace, the private system within an agreedtimetable.

EducationThe rising costs of sending children to school,over and above what is paid for through tax,challenges the whole notion that we enjoy asystem of free education. The cost of sendingchildren to school puts severe pressure on lowincome families, particularly when schools returnin September. It creates anxiety for familiestrying to cope with the cost, and pushes thevulnerable in the direction of money lenders. Thereality is that only limited direct supports areavailable to low income families towards the costof sending a child back to school. Those whoseparents are on social welfare are eligible for theBack to School Footwear and Clothing Allowance.However this does not take account of the costsof school books.[54] Nor does it address theplight of the working poor.

A back to school cost survey carried out byBarnardos in 2005 found that[55]:

- A family with one child going into first yearsecondary school faces a book bill of over€300

- Two children in secondary school can meanparents are paying over €500 on books.

- A family on low pay who are not eligible forthe Back to School Clothing and FootwearAllowance, can face additional costs of over€100 per primary school child and over €150per secondary school child for a basic uniform,shoes and jacket.

Sinn Féin Interim Budget Proposals

- Create a new Back to School Allowance byabsorbing the current Back to School Clothingand Footwear Allowance into a new paymentand adding an additional payment for booksand other expenses, to more accuratelyreflect the true yearly cost of sending a childto school as proposed by the Society of SaintVincent de Paul.[56]

- Extend eligibility for this scheme to allfamilies in receipt of Family IncomeSupplement in addition to those in receipt ofsocial welfare.

- Adequately resource all schools, particularlythose in disadvantaged areas, to implement aschool book rental scheme in order todrastically reduce the cost of books toparents.

Childcare

Childcare costs represent a second mortgage formany families. The OECD has estimated thatchildcare costs parents in this state an average of30% of the disposable income of the averagedouble income family.[57] Average costs rangefrom €200 to €350 per week, per child. While theGovernment has introduced some positivemeasures in previous budgets, these have notmade a significant difference for those seekingaccessible affordable childcare.

Lack of adequate childcare, including pre-school,after-school and out-of-school childcare,continues to restrict the participation of parentsof young children, particularly women, in theworkforce, in education and in training.

Proposals for ensuring access to affordablechildcare were at the heart of both Sinn Féin’s2005 Pre-Budget submission Putting Children Firstand our 2006 Pre-Budget submission PuttingChildren First – Time for the Government toDeliver. At the core of Sinn Féin’s proposals wasthe introduction of a universal pre-school sessionof 3.5 hours per day, five days a week, for allchildren in the year before they go to school, asrecommended by the National Economic andSocial Forum (NESF) in its report on EarlyChildhood Care and Education published in 2005.That NESF report had pointed to ‘the veryinadequate implementation of policy on childcarein Ireland and the markedly insufficient financialinvestment in the education and care of ouryounger citizens’.


- As an immediate interim first step theintroduction of universal pre-school session of3.5 hours per day, five days a week for allchildren in the year before they go toschool.[58]

Sinn Féin Revenue Boosting Proposal

- Overall, the NESF has estimated that for every€1 invested in early childhood care andeducation a return of €7.10 can be expected.

[NOTES]

[1] According to the Pre-Budget Outlook,published in October 2006 by the Department ofFinance states “The Public finances remain ingood health, showing a projected GeneralGovernment surplus of 1% of GDP and a debt-to-GDP ratio of 25 _ % in 2006.

[2] Essential public services such as healthcareand education should be available to all as ofright.

[3] EU Survey on Income and Living Conditions(EU-SILC) 2005 (Central Statistics Office, 16November 2006). The at-risk-of-poverty rate is the share ofpersons with an equivalised income below a givenpercentage (usually 60%) of the national medianincome. The rate is calculated by ranking personsby their equivalised income from smallest tolargest and extracting the median or middlevalue. Anyone with an equivalised income of lessthan 60% of the median is considered at-risk-of-poverty. This means, according to the EU-SILC2005 that in 2005 persons living alone with a netincome of less than €193 per week wereconsidered to be at risk of poverty, while thethreshold for households consisting of two adultsand two children was €447.15. An individual isdefined as being in ‘consistent poverty’ if theyare identified as being at-risk-of-poverty andliving in a household deprived of one or more ofeight basic deprivation indicators. Thesedeprivation indicators are as follows:

1. No substantial meal for at least one day inthe past two weeks due to lack of money.

2. Without heating at some stage in the pastyear due to lack of money.

3. Experienced debt problems arising fromordinary living expenses.

4. Unable to afford two pairs of strong shoes. 5. Unable to afford a roast once a week. 6. Unable to afford a meal with meat, chicken

or fish (or vegetarian equivalent) every secondday.

7. Unable to afford new (not second-hand)clothes.

8. Unable to afford a warm waterproof coat.

In April 2006 the ESRI put forward a basic

deprivation measure using eleven indicatorsreplacing the previous eight-item index. It arguedthat “The new set of items provides a morecomprehensive coverage of exclusion from familyand social life. This measure of basic deprivationcan then be combined with a low-incomethreshold to produce the consistent povertymeasure. In doing so the analysis supports the useof a threshold of 2 or more on the basicdeprivation index, rather than the threshold of 1used with the original index. About 8-10 per centof the population are then measured as being inconsistent poverty in 2003” see Reconfiguring theMeasurement of Deprivation and ConsistentPoverty in Ireland, Betrand Maitre, Brian Nolanand Christopher Whelan (ESRI, April 2006).

[4] Creating a More Inclusive Labour Market(National Economic and Social Forum February2006).

[5] Previous agreements contained such a reviewclause and it was invoked in 2000 when anunpredicted rise in inflation took place andworkers gained an additional pay increase provingthe importance of such a clause.

[6] Industrial Earnings and Hours Worked (CentralStatistics Office, 20 October 2006). The annualaverage industrial wage as of June 2006 is€31,322.20

[7] Assessable earnings are calculated by takingaway your tax, your employee PRSI contribution,your Health Contribution and your superannuationfrom your gross pay.

[8] Reply to Sinn Féin spokesperson on FinanceCaoimhghín Ó Caoláin TD from the Minister forFinance to Parliamentary Question 235, 14thNovember 2006.

[9] Reply to Sinn Féin spokesperson on FinanceCaoimhghín Ó Caoláin TD from the Minister forFinance to Parliamentary Question 250, 14thNovember 2006.

[10] Combat Poverty Pre-Budget Submission 2007

[11] Reply to Sinn Féin spokesperson onEmployment and Workers Rights Arthur Morgan TDfrom the Minister for Finance to Parliamentary

Question 476, of 28th September 2005.

[12] Based on the preliminary census 2006population figure of an overall population of4,234,925 persons

[13] EU Survey on Income and Living Conditions(EU-SILC) 2005 (Central Statistics Office, 16November 2006)

[14] The lower rates of social welfare are:Invalidity Pension recipients aged under 65(€171.30); Widow’s and Widower’s ContributoryPension and women in receipt of Deserted Wife’sBenefit aged under 66 (€171.30); Widow’s andWidower’s Non-Contributory Pension and womenin receipt of Deserted Wife’s Allowance agedunder 66 (€165.80); Death Benefit Pensionrecipients aged under 66 (€194.60); DisablementPension (€196.90); Unemployment Benefit andAssistance (€165.80); Disability Benefit andAllowance (€165.80); Blind Pension recipientsaged under 66 (€165.80); Supplementary WelfareAllowance (€165.80); Farm Assist (€165.80); andOrphan’s Pension and Allowance (€138).

[15] Reply to Sinn Féin spokesperson on Socialand Family Affairs from the Minister for Social andFamily Affairs to Parliamentary Question 165, 9thNovember 2006.

[16] Securing Retirement Income: NationalPensions Policy Initiative – A Brief Guide to theReport of the Pensions Board (Pensions Board,September 2000).

[17] Pension Policy in the EU 25 and its PossibleImpact on Elderly Poverty (European Centre forSocial Welfare Policy and Research, April 2006)

[18] Reply to Sinn Féin spokesperson onEmployment and Workers Rights Arthur Morgan TDfrom the Minister for Finance to ParliamentaryQuestion 287, 30th May 2006.

[19] Reply to Sinn Féin spokesperson onEmployment and Workers Rights Arthur Morgan TDfrom the Minister for Finance to ParliamentaryQuestion 69 of the 28th June 2006.[20]Reply to Sinn Féin spokesperson onEmployment and Workers Rights Arthur Morgan TDfrom the Minister for Finance to Parliamentary

Question 156, 22nd March 2006.

[21]There are approximately 125,000 people agedover 66 currently in receipt of a living aloneallowance with a social welfare pension.Department of Social and Family Affairs.

[22]Reply to Sinn Féin spokesperson on Socialand Family Affairs Sean Crowe TD from theMinister for Social and Family Affairs toParliamentary Question 166, 9th November 2006

[23]Reply to Sinn Féin spokesperson on FinanceCaoimhghín Ó Caoláin TD from the Minister forSocial and Family Affairs to ParliamentaryQuestion 390, 14th November 2006.

[24]‘Making Poverty the Policy Priority’ CombatPoverty Pre-Budget Submission 2007 (CombatPoverty, 2006)

[25]Reply to Sinn Féin spokesperson on Socialand Family Affairs Sean Crowe TD from theMinister for Social and Family Affairs toParliamentary Question 167, 9th November 2006.


[27]EU Survey on Income and Living Conditions(EU-SILC) 2005 (Central Statistics Office, 16November 2006)

[28]For those with earnings over this amount,once the disregard has been applied, 40% of theremainder would be assessed as means (currently50 per cent is assessed as means).


[30]Reply to Sinn Féin spokesperson on FinanceCaoimhghín Ó Caoláin TD from the Minister forSocial and Family Affairs to ParliamentaryQuestion 389, 14th November 2006. NB: This isbased on an assumption that all fathers wouldtake the leave and 95% of them would be paid atthe higher rate.

[31]This view has been echoed by the Departmentof Social and Family Affairs, which stated in 2002that ‘abolition of the ceiling would make theemployee PRSI system more progressive …Abolition of the ceiling would thereforestrengthen the social solidarity element of thesystem in that a proportion of all income wouldbe pooled for the benefit of all contributors.’Department of Social and Family Affairs PaperOutlining the Principal Issues Relating to AnyConsideration of PRSI Changes for 2003:Submission from the DSFA to the Tax StrategyGroup (Ref TSG 02/21) (21 February 2002).

[32]Reply to Sinn Féin spokesperson onEmployment and Workers Rights from the Ministerfor Social and Family Affairs to ParliamentaryQuestion 1038, 27th September 2006.

[33]Reply to Sinn Féin spokesperson on FinanceCaoimhghín Ó Caoláin TD from the Minister forSocial and Family Affairs to ParliamentaryQuestion Q 416, 14th November 2006.

[34]A Review of Fuel Poverty and Low IncomeHousing (Sustainable Energy Ireland, 2003)

[35]EU Survey on Income and Living Conditions(EU-SILC) 2005 (Central Statistics Office, 16November 2006)

[36]Financial Stability Report 2006 (Central Bankof Ireland 8th November 2006).

[37]Housing in Ireland: Performance and Policy(National Economic and Social Council 2004).

[38]Financial Stability Report 2006 (Central Bankof Ireland 8th November 2006).

[39]‘Construction and housing in Ireland’, CentralStatistics Office July 2006

[40]‘Davy on the Irish Economy’ (DavyStockbrokers, May 24th 2005)

[41]A review of the Disabled Persons Grantscheme including the conditions governing theEssential Repairs Grant scheme and the SpecialHousing Aid for the Elderly scheme has beenfinalised by the Department of the Environment,Heritage and Local Government. Minister Dick

Roche has indicated that the Department hasproposals for the future operation of the schemeswhich will be announced shortly. Reply to SinnFéin spokesperson on Finance Caoimhghín ÓCaoláin TD from the Minister for the Environment,Heritage and Local Government to ParliamentaryQuestion, 8th November 2006.

[42]Mortgage interest relief is given at thestandard rate of 20%. The relief is subject toupper limits, depending on your personalsituation. The following are the maximumamounts allowable for 2006. (To calculate whatthis is worth to you each year after tax, youmultiply the tax credit amounts below by 20%.)The higher limits for first-time buyers, apply forthe tax year in which the mortgage is taken outplus six subsequent tax years.

Single Widowed/MarriedFirst Time Mortgage 4,000 euro 8,000 euroOthers 2,540 euro 5,080 euro

[43]Reply to Sinn Féin spokesperson on FinanceCaoimhghín Ó Caoláin TD from the Minister forFinance to Parliamentary Question 259, 21stNovember 2006.

[44]‘Obesity- The Policy Challenges’, (The Reportof the National Taskforce on Obesity 2005) Page87.

[45]‘Healthy Eating for Older People Urged’ inthe Irish Times of 26th October 2006 by CarlO'Brien, Social Affairs Correspondent.

[46]It is worth noting that as far back as 1996 theNutrition Advisory Group proposed pilot projectsfor low income families to provide sufficient foodto meet their requirements.

[47]The contract for delivery of this proposalwould have to be put out to tender, thereforecosts cannot be provided.

[48]While latest figures available from theDepartment of Education and Science show thatthere are 58,458 students in Junior Infants and59,960 students in Senior Infants the contract fordelivery of this proposal would have to be put outto tender therefore costs cannot be provided.

[49]A Review of Fuel Poverty and Low IncomeHousing (Sustainable Energy Ireland 2001)

[50]ICTU further noted that electricity priceswere below the EU average when the ESB was thesole supplier, regulated by the Department ofEnergy whereas now with so called competitiondomestic electricity prices are higher than the EUaverage and rising.

[51]The Government has announced plans tooffset the cost of energy price rises by increasingthe entitlement of 335,000 pensioners and socialwelfare recipients to a third more free gas andelectricity.

[52]Reply to Sinn Féin spokesperson on Social andFamily Affairs Sean Crowe TD from the Ministerfor Communications, Marine and NaturalResources to Parliamentary Question 151, 9thNovember 2006.

[53]Pre Budget Submission 2007 Society of StVincent de Paul

[54]It is worth noting that in many other states itis the norm for students to borrow school booksfor the duration of the school year rather thanbeing forced to purchase them as is the case inthis state.

[55]The High Cost of Free Education BarnardosPress Statement ( 9th August 2005)

[56]The Society of Saint Vincent de Paulrecommends that this payment should be €300 forprimary school children and €475 for children over12 years of age, payable to families on socialwelfare payments and households with FIS incomelevels

[57]“Starting Strong II: Early Childhood Educationand Care” (OECD, September 2006)

[58]The NESF in Early Childhood Care andEducation estimated capital costs of €1.48 billionand annual running costs of €636 million.

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