FG TD attacks redundancy rebate cut

A GOVERNMENT backbencher has condemned the redundancy rebate cut in the Social Welfare Bill, which she claims could result in thousands of jobs being lost.

Fine Gael Mayo TD Michelle Mulherrin said the Government’s decision to cut from 60 per cent to 15 per cent the State rebate for redundancies had to be amended to assist small companies with just a few employees.

She described as “cynical” a view that if the measure was brought in quickly, “they will not be able to serve redundancy papers but that is a cynical position to put genuine people into when they will not be able to carry the 85 per cent payment”.

“Why are we putting these people in this situation to tackle a problem, ” the Taoiseach’s constituency colleague asked, when “we have multinationals who leave the country and we have to pay the redundancy for their staff?”

She said it was “all very well for a multinational or an incorporated entity that can hide behind the corporate veil if it goes insolvent but there should be special provision for the sole trader and for the small business because this is significant for them and thousands of jobs could be lost even as we speak while people weigh up their options on account of this new development”.

Ms Mulherrin added: “We see reckless developers who are still fine and who still have their homes because they are protected by the corporate veil while subcontractors, who were not protected and who offered personal guarantees to keep businesses operating, have gone to the wall.”

She voted for the Bill which was passed by 88 votes to 47.

Former Labour TD Tommy Broughan and newly elected TD Patrick Nulty voted with the Opposition. Former minister of state Willie Penrose and former Fine Gael TD Denis Naughten did not vote.

Mr Nulty, who last week announced he could not support the legislation without serious amendment, said: “I believe it contravenes some of the core objectives this country must achieve to get people back to work and to achieve equality and social justice in our society.”

Minister for Social Protection Joan Burton came under sustained attack for the cuts in the Bill. Independent TD Michael Healy-Rae described her as the Minister for “lifestyle choices” and in an angry outburst, he told her: “I’m ashamed to see what you’re doing to go cutting the fuel allowance by six weeks to people that nearly died of the cold last year.

“And what’s your answer to them this year? ‘Perish away and die and get out of our way and we won’t have to pay ye any money then because they’ll be dead with the cold’.”

He also asked the Minister what she had against the third child in reference to cuts in child benefit for people with three or more children. “Are ye telling them they’ll have to stop after two?”

Ms Burton said every cut or change affected someone now or in the future. She told Mr Healy- Rae they had to balance the budget, and “momentous events taking place in Europe may give us some easement or may make the situation in the coming year a whole lot more difficult”.