'Cuts driving poor to moneylenders'

THE Government is driving those most in need into the hands of moneylenders, Labour leader Pat Rabbitte said yesterday.

Attacking what have become known as the "savage 16" social welfare cuts, he challenged the Taoiseach over the decision to deny people community welfare assistance if they are also getting help from the Money Advice and Budgeting Service (MABS).

MABS staff help those in financial trouble to pay off debts and budget their finances properly.

"The effect of what the minister has done is to drive those people into the arms of moneylenders. To drive them further into debt and to undermine the money advice bureau service.

"It's the meanest, lowest, pettiest cut and there is no justification for it," said Mr Rabbitte as he attacked Minister Mary Coughlan.

"I watched the Minister for Social and Family Affairs giggle her way through question time. All very endearing unless you're one of the victims of her social welfare cuts."

Mr Rabbitte said the cost of MABS was miniscule yet those affected would suffer greatly and no longer be able to lift themselves out of the poverty trap.

Taoiseach Bertie Ahern defended the Government, saying almost 11 billion was being allocated to the Department of Social and Family Affairs in yesterday's budget.

Ms Coughlan has responsibility not just to give away money but to ensure it is targeted correctly, Mr Ahern said.

Mr Ahern maintained that the MABS supplement had been a facility mainly for banks and normal support services for those in need would not be affected.

"Those identified by the Department of Social Community and Family affairs will get an exceptional needs payment and all in receipt of that would not be affected," said Mr Ahern adding that there was

9.9 million available for the MABS scheme this year. "The fact is that the normal support service of the money advice budget service will not be affected by the measures," he said.