People with disabilities in Ireland
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People with Disabilities in Ireland
4th Floor Jervis House
Jervis Street
Dublin 1


Telephone: 01 87 21 74 4
Fax: 01 87 21 77 1
Email: info@pwdi.ie

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PRE-BUDGET SUBMISSION 2007

Introduction

PwDI (People with Disabilities in Ireland) was established in 2000 as an organisation to represent and look after the interests of people with disabilities. It is the only national cross disability organisation funded by Government, or more specifically the Department of Justice, Equality & Law Reform. Its aim is to help all people with disabilities to participate in and influence the decision making process that impact on their lives and the opportunities open to them.

PwDI is an umbrella organisation that brings together people with some form of disability at national and local level to work on common issues that affect all those with disability. Its strength lies in its membership and the local networks spread throughout the country.

Cross disability is a generic term that describes a broad range of disabilities, including those that are physical, emotional, intellectual and mental. It is estimated that there are almost 400,000 people with such disabilities in Ireland, equivalent to almost 10 per cent of the total population. As such it is a very important and potentially influential segment of the Irish population, but one that is rarely afforded the dignity, rights and respect that it deserves. PwDI aims to facilitate this important group in realising its full potential and maximising its influence at local and national level.

Dignity, equality and basic human rights for people with some form of disability are central to the agenda of PwDI. Consequently we believe that Government policy should help those with disability realise these objectives. The particular needs of those with some form of disability must be acknowledged and satisfied if Ireland is to have a truly inclusive and civilised society. With the Irish economic background strong and healthy and the Exchequer finances in a strong position, we believe that Budget 2007 will present another significant opportunity for Government to address, in a meaningful way, this very deserving agenda, and build on the progress achieved since Budget 2005.

Economic Background

The economic background against which Budget 2007 is being framed and against which it will be presented is still very favourable. The Irish economy continues to perform strongly, despite higher oil prices and higher interest rates. In 2005, gross domestic product (GDP) expanded by 5.5% and gross national product (GNP) expanded by 5.3%. This was well ahead of the EU average and once again showed Ireland to be one of the fastest growing economies in the OECD. The main characteristics of the economic performance in 2005 were a strong contribution from consumer spending and gross domestic physical capital formation, with residential house building making a major contribution to the latter.

All available evidence suggests that the positive economic momentum has been maintained in 2006. Official data show that in the first half of the year GDP expanded at an annual rate of 5.3%, while GNP expanded by a very strong 7.9%. Cleary, the growth background remains very solid.

In the first half of 2006, consumer spending continued to be a major driver of growth, expanding at an annual rate of 6.5%. House building also remains very strong, with completions set to reach another record level. The export performance is reasonably solid, expanding by 5.9% in the first 6 months, but imports expanded more strongly at a rate of 7.1%.

Inflationary pressures have intensified during 2006. The annual rate averaged 3.8% in the first 9 months of the year, up from an average rate of 2.5% in 2005. This increase in the cost of living is particularly acute for those living on fixed incomes.

The labour market is still performing strongly. In the two-year period to the second quarter of 2006, the economy generated 180,800 jobs and the employment level exceeded 2 million for the first time.

The ECB has increased its base rate from 2% to 3.25% over the past year and is likely to tighten further in the face of an ongoing and sustainable economic recovery in the euro zone. The ECB could well take its base rate up to 4% by the end of 2007.

GDP growth of around 5.3% and GNP growth of close to 6% looks achievable for 2006 as a whole. Looking ahead to the coming year, the prognosis remains positive. GDP growth of close to 5% looks achievable in 2007. Despite rising interest rates, a significantly higher cost of living in general, and the high levels of personal indebtedness, consumer spending looks set to be the key driver of growth once again. Consumer spending will be supported by the maturing SSIAs, the bulk of which will expire in the first half of 2007, strong growth in incomes, a solid labour market background, and an expansionary fiscal background.

Most importantly from a budgetary perspective, the public finances remain in a healthy state. The exchequer returns for the first nine months of the year show that the exchequer deficit stood at just €136 million, which compares to a deficit of €1,123 million in the equivalent period in 2005 and a budgeted deficit of €2,927 million for the full year. Tax revenues were €1,807 million ahead of target in the first three quarters of the year, with Capital Gains Tax, VAT, Stamp Duties and Corporation tax all well ahead of expectations. On the spending side, total expenditure is lower than projected, particularly on the capital side. For the full year, the exchequer financial position is likely to be close to €2.5 billion better than budget expectations.

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PwDI & BUDGET 2007

The task of framing a budget is never an easy one, given the fact that financial resources are by definition finite, while the demand for resources is virtually infinite. However, at a time when the economy is generating a strong performance in the public finances, there are currently more resources available than at any time in the past. The big issue is how these resources should be allocated.

Over the past decade considerable wealth has been created in the Irish economy and general prosperity has improved for most people. At the same time Government has targeted a number of key priority areas in the Irish economy and Irish society with a considerable degree of success, but clearly much more needs to be done.

In framing Budget 2007 the overall economic and social policy objectives should be focused on:

• • Sustaining economic growth and stability
• • Maximising quality employment creation
• • Improving the damaged competitiveness of the economy,
• • Investment in essential public services, and
• • Improving the quality of life of the most disadvantaged in Irish society.

Given the favourable economic and fiscal background all of these objectives should be achievable. To achieve these policy objectives it would be desirable to have no increases in indirect taxes, which would help keep inflation in check, at least full indexation of tax bands and allowances in order to offer much needed assistance to low and middle income workers, and a significant spending package to address areas of social concern and improve the quality of public services.

In relation to Disability, substantial progress has been made over the past couple of budgets, but we believe that much more needs to be done. A group in society that accounts for over 10% of the population and which is extremely vulnerable, should continue to be given very strong consideration. From the point of view of human rights and natural justice, there is a strong moral imperative to address the needs of this segment of society in a proper way. The reality is that people with disability are the most disadvantaged in society; they face very high living costs, have significantly lower levels of employment and pay, and have amongst the worst pension coverage in Irish society. They deserve better treatment.

We believe that Budget 2007 should address the following issues relating to the disability sector.

MANAGEMENT OF FUNDING & ENSURING VALUE FOR MONEY

Since 2000, considerable progress has been made in relation to the disability sector. More recently, the Disability Act and the Sectoral Plans have represented very positive steps, but there are still gaps in the structures. The key priority should be to ensure that the money gets down to the deserving end user, but this is not always the case. Because of the monies that are now spent on the sector, there is a perception that disability has been dealt with. However, 90% of the HSE disability budget is already spoken for by non-statutory agencies, but there are no national standards applied to the delivery of services.

At the moment many different non-statutory agencies have responsibility for spending the money and delivering services, and while some have high standards of delivery, it is not always the case. There are shortcomings in the delivery of services, and it is those with disability who ultimately suffer as a result.

We believe that it is time that national standards should be put in place to bring greater transparency to the allocation of funding and the delivery of services to those who need it most. This would help achieve a more co-ordinated approach to the delivery of services, ensure better value for money, and ultimately improve the lives of those with disability.

The Comptroller and Auditor General concluded that significant unmet needs exist in both the intellectual and physical & sensory disability areas. Unless the entire delivery system is revamped the money spent will be consumed in administration, providing more of the same ineffectual practices rather than making any real difference to the daily lives of people with disabilities.

COST OF DISABILITY ALLOWANCE

The cost of living has increased significantly in Ireland in recent years. The harsh reality is that the cost of living for those with disability is higher than for the general public. Consequently, in a rising price environment, the financial burden for those with disability is considerable.

Those with disability have to spend a greater proportion of their incomes on fuel, heating and electricity than the rest of society. For example, average homes have to fill home heating oil tanks around 2 ½ times per year, but for somebody with a disability, the requirement is significantly higher due to the lack of mobility and the fact that many people with a disability are confined to their homes for long periods of time. Since 2000 the cost of these items has increased at a considerably faster pace than the overall cost of living in recent years.

These rising fuel costs and the general high level of expense associated with disability make it imperative that the Minister for Finance introduce a weekly cost of living payment in this year’s budget. It is estimated that a weekly payment of €50 is needed to meet the extra costs associated with a high level of disability, down to €10 for those with moderate disabilities. A cost of living payment for those with a disability should be set at a minimum level of €50 per week, means tested in a sensible way. This payment should be indexed on an annual basis at twice the annual rate of Consumer Price Inflation. Such indexation would be recognition of the higher inflation in areas that are particularly important for those with disabilities. It is a fundamental principle of equality that somebody should not have a lower standard of living by virtue of having a disability.

It is a fact that people with disabilities are two and half times less likely to have a job than those without a disability. This places this segment of our society at a serious disadvantage and a serious risk of poverty. A cost of disability allowances would go some way towards offsetting this disadvantage.

CARERS ALLOWANCE

The carer’s allowance is a means tested payment for those aged 18 or over caring on a full time basis for someone who requires full time care and attention and will require it for at least 12 months. We believe that this allowance should not be means tested. Furthermore family members who act as carers are not entitled to a carer’s allowance, despite the opportunity cost involved for that family member and the extra cost to the Exchequer of having to provide a carer. Statistics from the CSO show that there are almost 150,000 people in Ireland providing unpaid help for a family member or friend with a disability or health problem. These unpaid carers are currently given little or no recognition by the state for the valuable task that they perform. If the government had to pay all of these carers it would cost the state something of the order of €300 million per annum. This is a direct saving to the state. The individualisation of the tax system attracted many female workers back into the labour force and seriously depleted the availability of carers. This places those with disability at a serious disadvantage and is symptomatic of the undervalued nature of the carer’s role. The status of paid and unpaid carers needs to be treated as a key priority.

HOUSING ADAPTATION

There is currently an unacceptable backlog of applications for Adaptation Grants and there are currently delays of up to two years for grants coming through. In the meantime, people with disabilities are being forced to take out loans to effect structural changes that are necessary to allow them live as normal a life as possible.

Furthermore, the maximum grant available is under €20,000 and the individual has to make up the shortfall out of his/her own resources. For people living on fixed and limited incomes, most of whom are not in the workforce, this is not acceptable. Housing adaptation places a huge financial burden and strain on a sector that already has to endure considerable financial stress by virtue of disability. Due to funding constraints, many local authorities have not been in a position to fulfil their obligations. This is totally unacceptable and needs to be addressed. Such grants allow many people with disabilities remain in their own homes and in their own communities. The longstanding Department of the Environment review of the structures has not yet been published, but needs to be completed and published as a priority.

BLIND PERSONS CAR ADAPTATION GRANTS

The criteria governing The Disabled Passengers & Disabled Drivers VRT & VAT Refund Scheme 1994 excludes blind people from this scheme. This scheme was introduced to assist persons with disability to become more mobile. Blind people have a serious disability that seriously inhibits their mobility, yet they are excluded from the scheme. Ireland is the only EU country not giving financial assistance to blind people in relation to their increased costs of mobility. This anomaly should be rectified in Budget 2007.

REHABILITATIVE EMPLOYMENT

People on disability benefit are finding it increasingly difficult to access rehabilitative employment due to the fact that by the time the exemption is granted (normally 6 weeks) the potential job has gone to another candidate. Furthermore, 3 exemptions are normally as much as people get. This does not reflect the reality of the lives of people with disabilities and places a serious impediment in the way of those attempting to access employment. It needs to be sorted out.

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CONCLUSIONS

In an environment of strong economic growth, greater general prosperity and strong public finances, Budget 2007 provides another opportunity for the state to improve the conditions and quality of life for people with disability. In this context we welcome the recommendation from the ESRI in the ‘Ex-ante Evaluation of the Investment Priorities for the NDP 2007-2013 that there is a requirement for ‘increased investment for additional non-acute facilities in order to support stated strategy with respect to care of the elderly, the disabled and individuals suffering from mental illness’. This has to be a priority going forward, but there is also an immediate requirement to provide much needed assistance to the sector.

Budget 2007 provides such an opportunity. After many years of neglect there is still a lot of catching up to do in relation to the treatment of people with disability.

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