Rural dwellers on breadline
The vulnerability of life in the countryside has been made clear in the research findings of the Vincentian Partnership for Social Justice (VPSJ).
This is a pre-budget alert for the Government on the fragility of rural households, and for the rural development industry to re-direct its efforts towards rural dwellers on the breadline.
Take the weekly budget of two rural parents and their children, aged 10 and 15. Food is dearer away from the big supermarkets, and costs them €157.72. Allow €39.33 for clothing, €27.37 for personal care, €7.63 of health-related costs, €28.27 for household goods, €10.96 for household services, €27.82 for communications, €88.49 for social life, €22.38 for education, €113.18 for transport, €42.34 for fuel, €6 for personal costs, €52.87 for insurance, and €28.74 of weekly savings and contingency costs.
Their weekly costs are €653.10. If they depend on jobseekers benefit, and save €40 by running only one car, they are short €133.99 per week. If one adult works full-time, and they run two cars, taking into account the national minimum wage and all social welfare entitlements, they are short €87.93 per week.
A second adult working part-time still leaves them €53.98 short (In this scenario, earning minimum wage, 25% of household income still comes from State transfer payments).
But the worst-off rural dweller is a single male aged 40 to 55, living alone in receipt of jobseekers benefit. His expenditure exceeds weekly cash income by €154.63.
VPSJ researchers examined 16 income-expenditure scenarios, only eight of which can enjoy a minimum essential standard of living in the countryside. Cheaper urban living allows some respite, with 13 of these 16 household scenarios estimated to be able to meet their physical, psychological, spiritual, and social needs.
VPSJ make the point that the national minimum wage and social welfare payments are arbitrary, developed by negotiation between policy-makers, and not based on informed social consensus about what households need – unlike their research focus groups, which are drawn from different socio-economic backgrounds. Their research indicates that a ‘living wage’ in rural households is between €12.24 and €20.13, compared to the minimum wage of €8.65 (experienced adult worker).
Even if wages rise, expiring medical card eligibility and the burden of income tax, PRSI, and levies can widen the gap between salary and net income.
Weekly costs for rural households are between €69.91 and €108.61 higher per week than urban households – mainly due to higher transport and food costs.
Lack of public transport in rural areas makes a car or cars necessary. Many older rural houses are harder to heat. However, childcare and social life are less expensive. It’s vital data for policy-makers, and for organisations working with people on the ground. Even in the Celtic Tiger era, rural areas were suffering due to the declining importance of agriculture. Now, rural areas will clearly experience a recession drain to urban areas, where living is cheaper, unless help if forthcoming.
The main source of that help must be the EU programme to address local needs, boost the quality of life in rural areas and promote the creation of micro-enterprises – the €425m LEADER rural development programme.
LEADER, co-funded by the EU, allows rural communities to help themselves improve quality of life and diversify the rural economy.
In the six years to 2013, an estimated 3,100 jobs were created, and 3,900 existing jobs sustained by LEADER companies, which assisted 8,000 enterprises and trained more than 30,000 people.
Now, difficulty in borrowing for LEADER projects threatens to hamstring the 2007-13 scheme – just when the rural development need is greatest.
