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Dublin: 11 °C Sunday 19 May, 2013

Report: 700,000 living in poverty in Ireland

A new report from Social Justice Ireland says that of those living in poverty in Ireland, 200,000 are children. The organisation says that the social welfare system is not fit for purpose and should be replaced.

Image: Leon Farrell/Photocall Ireland

A NEW REPORT says that 700,000 people are living in poverty in Ireland – and 200,000 of these are children.

The report from Social Justice Ireland, which is titled Shaping Ireland’s Future, analyses the economic factors facing the Irish public and the impact of policies set by the current Irish Government.

Fr Seán Healy, Director of Social Justice Ireland, commented:

Ireland’s debt is not the debt of the Irish public – it is partly caused by the reckless gambling of German and French banks. It is unjust and indefensible that Ireland must bear the current debt burden alone – just to protect Europe’s banks. Our current crisis cannot be rectified fairly by prioritising expenditure cuts so as to keep taxes among the lowest in the EU.

Taxation

The report says that the social welfare system “is not fit for purpose” and it should be replaced with a basic income system.

Fr Healy explained:

Twenty-first century society needs a radical approach to ensure that everyone can benefit from future economic growth and development. A basic income system should replace social welfare and income tax credits. This would guarantee an income above the poverty line for everyone.

He said that Ireland can increase its tax take and still remain a low-tax economy. “The Government should move toward increasing the total tax take to 34.9 per cent of GDP and do so by broadening the tax base,” Fr Healy added.

Unemployment and Job Creation

The report has found that more than 14 per cent of the labour force is unemployed, with youth unemployment currently at 30 per cent. The report also states that “the market economy is unable to provide anywhere near the number of jobs required to reduce unemployment any time soon”.

The report says that 120,000 people living in poverty in Ireland have jobs, and the Government needs to adopt a strategy of making large-scale job creation interventions into the labour market or else the high levels of unemployment will only be eroded via emigration.

The Government should launch a major investment programme focused on creating employment and prioritise initiatives that strengthen social infrastructure such as the school building programme and social housing programme.

“It remains a major policy failure that Ireland’s level of long-term unemployment has been allowed to increase so rapidly in recent years,” Fr Healy added.

Education

The report has found that a quarter of all male students over the age of 15 do not have the level of literacy needed to participate effectively in society and in future learning.

It recommends that the Government should introduce a system in which fees are paid by all participants in third-level education.

Migration

Emigration of Irish nationals has tripled since 2008, says the report.

40,200 Irish people have left the country in the past 12 months. Between April 2009 and April 2010, an estimated 27,000 people also left the country.

Fr Healy said that the austerity programme “is contributing to Ireland’s loss of young people” and that the implications of this are stark, as the loss “will pose significant problems for Ireland’s economic recovery”.

The plans of the Minister for Justice to offer residency visas in return for investment in Irish bonds or Irish companies or in Irish property are problematic. The inducement of residency in return for cash investment sends out the wrong message about Irish residency.

Housing

Fr Healy stated that Ireland has approximately 100,000 households on waiting lists for social housing and “no credible plans to address this issue on any scale”.

Almost a quarter of all households on waiting lists have been more than four years waiting for social housing. The report says it is important that the Government ensures prompt delivery and adequate resources to alternatives, such as the Rental Accommodation Scheme.

Fr Healy concluded:

The primacy given to the market by so many politicians, analysts, policy makers and commentators has led to many people feeling that their views are ignored or patronised. The market will not solve all society’s problem. Problem solving and shaping a new future for Ireland requires participation of all people in society.

To access the Social Justice Ireland Socio-Economic Review 2012 in full, go to www.socialjustice.ie

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Comments (55 Comments)

  • Does anyone have any information on what the definition of poverty is? I keep seeing these reports but it is hard to find what they are based on eg. income, expenditure, quality of life etc.

    Reply
    • In this day and age, no sky tv and you are classified as poor.

      Reply
    • I agree, I’d like to see which standards are referred to here. The Irish poverty line? European? Worldwide?

      Reply
    • Brian, I read a report on here not too long ago about poverty, it’s all based on your disposable income.
      Could be something like under 10k p/a disposable income is classed as in poverty, sorry not sure on exact figures but was surprised at it myself.

      Reply
    • The figures CORI/social justice ireland use are based on a raw percentage of averrage incomes and wages based on assumptions about expenditure. Poverty = 60% or less of average CSO income after living costs which I think is a net of 29k per year. This is after taking out entitlled benefits – for example, rent allowance, or an averaged out figure for non entitlement costs such as mortgage or rent. This is why the figures are so flawed – CSO averages out rent/mortgage and utility/transport costs out of a very wide demographic, while entitlement costs are mostly fixed – for example somebody paying rent or gettting rent allowance has far less variance than the cost of rent or a mortgage for income earners, so the assumptions about cost of living for the “non poverty” set are very arbitary.

      As a resullt Healy has persistently overstated “poverty” for fixed income people while overstating wealth for earners. What it really misses is true hardship levels at low to median income levels. Hence his tendency to promote actions which ultimately disincentivise work.

      Reply
  • I think it’s important to know how ‘poverty’ is defined in Ireland. If you do not meet two out of the eleven points below you are classed as living in poverty.

    1. Two pairs of strong shoes

    2. A warm waterproof overcoat

    3. Buy new not second-hand clothes

    4. Eat meals with meat, chicken, fish (or vegetarian equivalent) every second day

    5. Have a roast joint or its equivalent once a week

    6. Had to go without heating during the last year through lack of money

    7. Keep the home adequately warm

    8. Buy presents for family or friends at least once a year

    9. Replace any worn out furniture

    10. Have family or friends for a drink or meal once a month

    11. Have a morning, afternoon or evening out in the last fortnight, for entertainment

    The full text can be found at http://www.socialinclusion.ie/poverty.html

    Reply
  • “The people are hungry: It is because those in authority eat up too much in taxes.”
    Lao Tzu

    Reply
  • Kieran are you telling me that the 440,000 people that are on Social Welfare are all drug addicted alcoholics with children? I don’t know what you are on but maybe you’d pass some of it around!

    Reply
  • This is welcome and timely. Increasing inequality, jobless growth (eventually) and increasing political marginalisation for the poor across Europe is the unavoidable result of pursuing the current policy approach across Europe. The huge historical irony of this is that it increases – not decreases – the possibility of the European dream and project dying as a social chasm opens and the democratic legitimacy of Europe is chipped away. The values of social justice, social solidarity and social subsidiarity have never been more in need in Europe and in Ireland. Many sense (correctly) that we have evolved from the dictatorships of Franco, Salazar, the Greek military, Honecker to a new more subtle and global dictatorship – the Markets.

    Reply
  • “Ireland without her people is nothing to me, and the man who is bubbling over with love and enthusiasm for ‘Ireland’, and can yet pass unmoved through our streets and witness all the wrong and the suffering, the shame and the degradation wrought upon the people of Ireland, aye, wrought by Irishmen upon Irishmen and women, without burning to end it, is, in my opinion, a fraud and a liar in his heart” – James Connolly

    Food for thought for some of the status quo cheerleaders on here.

    Reply
    • Thongs have changed since Jimco walked the streets, haven’t they?

      Reply
    • Of course – The flag, and the accents of the rich and powerful.

      While conditions may have improved for most people since circa 1916, the fact is, many of the problems pre independence still exist – poverty, inequality, plutocratic rule. We may not have poverty on the scale of the tenement buildings in the early 20th century, but don’t be fooled into thinking that Irish capitalists are any better than British ones.

      Reply
  • Your day will come when you’ll be on the food stamps yourself Kieran…we’ll see then what pride you have left walking into a supermarket with coupons in your hand..

    Reply
  • 700,000 living in poverty , I think Capitalism has failed in Ireland but I see snobbery is alive and well Kieran

    Reply
  • When they spend it on booze the govt is getting most of it back as drink is taxed heavily . Therefore it is a win win situation!

    Reply
  • Communism has only been tried in Europe in 30′s Spain, Makhnovist Ukraine and the short-lived Paris commune. All of which collapsed due to external military pressure. If you think the USSR was communist you may need a revision in history.

    And what is described here is far, far from communism. It may be better be described as interventionist/social capitalism or at the very most socialism.

    Reply
  • Kieran, the figures are rubbish? why?
    Because you don’t agree with them.
    You say social solutions won’t work in this country, how do you know? We’ve never had anything like a social agenda in this country, one thing is for certain capitalism doesn’t work in Ireland
    And the poor spending they’re SW on drink & fags is not the cause of that. It’s a drop in the bucket.
    “bank. You know how I describe the economic and social classes in this country? The upper class keeps all of the money, pays none of the taxes. The middle class pays all of the taxes, does all of the work. The poor are there just to scare the shit out of the middle class. Keep them showing up at those jobs. ”
    ~George Carlin~

    Reply
  • 1. Two pairs of strong shoes -> Yes
    2. A warm waterproof overcoat -> Yes
    3. Buy new not second-hand clothes -> Yes
    4. Eat meals with meat, chicken, fish (or vegetarian equivalent) every second day -> Yes
    5. Have a roast joint or its equivalent once a week -> Nope
    6. Had to go without heating during the last year through lack of money -> No
    7. Keep the home adequately warm -> All Good
    8. Buy presents for family or friends at least once a year -> All Good
    9. Replace any worn out furniture -> Nope (put a throw over them) -> All Good
    10. Have family or friends for a drink or meal once a month -> Nope
    11. Have a morning, afternoon or evening out in the last fortnight, for entertainment -> Nope

    I am technical living in poverty – thats the mentalist list ever, only in Ireland

    Reply
  • I suggest you go to many of the E Eruopean countries to see real poverty where their wages are 1/4 of ours but their utility bills are the same and they get much colder winters.
    Why do you think so many are still coming here despite the mess we are in.Look at every beggar on the streets and the vast majority are non nationals bar some Junkies

    Reply
  • Read what I said again. Food stamps for those who spend SW on rubbish instead of food for their children. I’m sure many if not most recipients of state largesse spend their money wisely.

    Reply
  • Kieran, your taxes are not being squandered by people on SW but by banks & developers, Yet you choose to attack those living in poverty, that’s snobbery.
    You want to control what the poor spend their money on, sounds like the other “ism” to me

    Reply
  • Kieran can you offer any number about “squandered” Social Welfare. Do you have facts to back up how much money is “squandered”?

    As for the idea of food stamps, how do you propose thats implemented? Do we get BOGOFF vouchers for Supervalu when we sign on? How about Job seekers, how the feck are they supposed to travel to job interviews with a pocket full of food stamps.

    That the problem with people like you Kieran, you’re alright so fuck the rest?

    I’m sure you’re one of those tards who worship Ann Rand. After a life time of being a cheerleader to the 1% Rand died in poverty begging for the social welfare and healthcare she spent a life time rallying against. Thats the thing about ivory towers, when you fall off them it’s a long fall to the gutter.

    Reply
  • Wow Kieran, way to duck and evade my questions. I’ll put it simply so even you can understand.

    If social welfare does not work as you claim and you want to replace it with food stamps please add a way of making this viable.

    Also answer the about job seekers, how can a person get to a job interview on food stamps?

    Please answer these instead of pretending you can’t understand me, like a pretentious jackass. You obviously have an internet connection so anything you don’t get I’m sure you can Google.

    Reply
  • The major flaw with “basic income” is the level of taxation required to sustain such a system. CORI (the true name of “social justice Ireland” – dont you just love how these organisations reinvent themselves?) published a booklet during the boom suggesting tax rates of about 70%. This would penalise lower to middle income workers to such an extent that raw poverty stats such as the distorted ones SJI use would indicatee up to 2 million now plunged into “poverty.” What would also occur is that vendors of essential services used heavily by lower income groups would increase prices to exploit the higher income levels of those at the bottom, while prices of higher end luxury items would fall in commensurate with the drop in incomes of those at middle levels. The rich would increase use of offshore tax shelters while the government could actuallly see a real drop in tax takes (its already happened with VAT).

    The falloff in demand for middle/upper end goods and services would collapse more businesses, resulting in more job losses, which would have a knock on effect. Meanwhile, the increase in entitlement income for those on the bottom rungs of the income ladders would disincentivise work. Unemployment would increase from 440,000 to 900,000 or more and raw poverty levels would double or triple. Self employment, except for contracting, would be wiped out, and a shrivelling tax base would finally bring Ireland into total bankruptcy.

    What orifice is that fat jesuit talking out of that he could really recommend such a catastrophic move? I don’t disagree with him on the residency incentives for investors but we really cannot afford to redistribute income on an entitlement basis with the current state the country is in. It wouldn’t just fail, it would collapse an already fragile economy.

    Reply
  • Bryan – snobbery is condescension to those in lower social classes. I live in and believe in a republic, and don’t believe in the class system. Most of my friends and acquaintances who draw social welfare do not spend their income on intoxicants. Others I know piss everything they have against the wall and complain about everything. Their children suffer from their wasteful behaviour. I don’t like my little bit of tax going to pay for those people to get drunk. I take it personally, because I could have used that tax for something useful. We should all take abuse of OUR taxes personally. SW recipients pay VAT on purchases, and have every right to feel aggrieved at wasteful spending too.
    How is that “snobbery”?

    Reply
  • Wow!
    The reds under the bed have really got you spooked Kieran
    Ireland a socialist republic? When did that happen
    It must have been when Bertie “the only socialist in the Dail” Ahern was politburo chairman
    I’ll leave you to your Daily Mail

    Reply
  • Kieran, if by redefined for me you mean contradicted yourself, Yes you have, several times.
    I have been arguing with an idiot and you have dragged me down to your level and beaten me with experience

    Reply
  • Kieran,
    The tiny minority spending they’re SW on non essentials to the detriment of their children is not the cause of poverty in Ireland
    The failure of successive governments to provide social housing, a fair tax system, an education system these are the causes.
    If people receiving SW bugs you that much, quit the day job, sign on, buy some cheap booze, illegal cigarettes and enjoy.
    If you were in receipt of SW, you, like the majority who are, would spend every penny on essentials for your family then worry if you could keep the heating on when it ran out…….each week.
    Meanwhile the socialism you sneer at is provided to the rich in the form of nationalised banks and NAMA.
    You and Fr. Healy agree on one thing,
    The report says that the social welfare system “is not fit for purpose”
    You say “SW does not address this problem in even a rudimentary fashion, and perhaps it ought to.”

    Reply
  • This is just Socialism 2.0. A rehash of failed policies and juvenile aspiration. Along with Tasc, Social Justice Ireland, live in a fantasy land where those who work are forced to give up their earnings to the indolent and feckless. The delusion is most evident by calling Ireland a ‘Low Tax Country’. Ha! A 55% marginal income tax rate and 23% VAT rate?! Only in Commie La La Land where all income belongs to the all-powerful State could that be considered low tax.
    The solution is simple: a 25% Flat Tax on all sources of income, Abolish the Minimum Wage which is a barrier to employment and taper SW benefits by 50% over 12 months. The State is not your Daddy.

    Reply
  • I heard the Dutch have found a loop hole in EU law that all Non Dutch Nationals not contributing to the economy and are a burden on the State can be repatriated, wudtnt that be interesting?? How wud that work here??? Let’s hear all the. Bleeding hearts.

    Reply
  • Bryan – you are a socialist. Anyone who disagrees with you is probably guilty of snobbery in your view.
    Of course our taxes are used for SW. Where do you think the money comes from? Don’t say it’s borrowed, because borrowings are repaid by – taxes

    Reply
  • You didnt mention food stamps Kieran?
    See below from your first post.
    “How about government encouraging personal responsibility for every working age person in Ireland, tax breaks for start-ups and food stamps for any social welfare recipients spend our cash on booze and “

    Reply
  • Bryan – I erred in the tax comment above, apologies for that.
    Do you suppose that I do not have the same opinion as just every other person in Ireland when it comes to banks and developers? this column, however, is about the so-called 700,000 “poor” in ireland. The figure is rubbish and the socialistic solution to the so-called “problem” is worse.
    Snobbery my eye. It’s an opinion. Judging by the green thumbs it’s a fairly widespread opinion too.

    Reply
  • Bryan, the Social Justice Ireland Roman Catholic religious organisation,
    700,000 figure is rubbish because ALL of those defined as being in poverty are clearly not, merely less well off than the average. One man’s poverty is another man’s wealth.

    A parent who spends a lot or all of his or her SW income on wasteful living
    is not, in the strictest sense of the word, poor, but stupid or selfish, or
    both. However if their children are not receiving basics, they (the children) most certainly are poor and deserving of receiving a portion of the benefits the state gives to their parents. Cash which they never see the benefit of is not of any use to children whose need is for food and clothing.
    Living in the same household in vastly different circumstances is a common
    problem in Ireland. SW does not address this problem in even a rudimentary fashion, and perhaps it ought to.

    You say SW abuse is a drop in the bucket? It’s this disregard for OUR cash and OUR taxes that has this country in the mess it’s in. Perhaps corruption has seeped from the bottom to the top instead of the other way around…

    Reply
  • Bryan I did not propose SW be replaced by stamps, but food stamps for those who booze away our cash, which I defined in later posts. And redefined several times for you. I think I made it clear I am in favour of SW.

    Reply
  • Steve
    Again, what are you talking about? I mentioned nothing about food stamps replacing SW. That’s a poxy idea me
    ould flower. I mentioned nothing about jobseekers, whatever your point – not mine – was about them.

    Do you know how to debate without being abusive and rude? You might make sense if you were not so hotheaded and actually read what you were trying to respond too.

    Reply
  • And you, Bryan, have shown yourself to be as rude and uncouth as most of your ilk. Learn to argue a point on merits and perhaps you won’t be so
    doltish next tune.
    One contradiction. Where?

    Reply
  • Steve – What’s a “tard”? And who is “Ann Rand”? And what is “BOGOFF”? Why have “squandered” in inverted commas? I didn’t use the word “squandered”.
    You mentioned “Supervalu” and “Food Stamps” and “You’re alright so f’###
    the rest”
    What is your post all about, Steve? Do you care to counter some points I made?

    Bryan – In my experience – my experience, not sacred fact, but merely what I see – what you term a “tiny minority” is a significant minority and the children who suffer are real children. Why do you suppose the figure to be a “tiny minority”?

    What makes you think I am bothered by people receiving SW? Quite the
    opposite is true. SW is absolutely essential in a democracy. However, abuse of SW – abuse of any public funds – is unacceptable, by big government or small citizen. Also, I am reacting to the article by the SJI. You are hung up on banks and developers. I see the connection but, in reaction to that rotten piece above, I am focusing on one aspect. The points I make can stand alone without my having to surrender my meagre income and sign on to the dole I’m not entitled too. Although, to be honest, I could do with the money after over 2 months of unpaid sick leave.

    Don’t you get it? – this is a Socialist Republic. We already redistribute
    national wealth to the less well off as dole payments, disability, old-age
    pensions, lone parents allowance, rent supplements, children’s allowance, tax breaks for low paid workers etc. We are amongst the top SW payers in
    the world relative to both GDP and average income. That is great.

    The SJI report is a farce which does not address the real causes of poverty, but serves a who-knows-what political agenda.

    Don’t believe everything you read in the papers, Bryan. Some folks are out
    to serve a purpose different to that stated.

    Reply
  • Bryan, Socialism is redistribution of wealth by those who earn it to those who don’t. For better or worse, that is already in effect here. Taxpayers have the wealth, government takes it and redistributes.

    The Daily Mail? Never bought it in my life, although I read a copy once and found it wanting. Too much ink, my servants couldn’t iron it dry.

    I suppose you are a Daily Telegraph groupie and Israel Basher?

    If you can make up stuff to knock it down, I suppose I can make a straw man too. Although unlike most socialists I debate with, I like to argue points on their merits and not on any perceived notions of what my opponent believes or peruses

    Reply

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