Kenny dismisses €5 ‘food rations’ concerns
Enda Kenny insisted that such guideline figures for debt-laden families seeking help would not be “binding” and were only “indicative” yardsticks.
However, the opposition parties rounded on the remarks, saying they proved the Taoiseach is “out of touch” with the realities of financial hardship as people will have to abide by terms laid down by banks under the new insolvency regime.
After days of Government confusion surrounding whether working mothers would be forced to give up their jobs if childcare costs were greater than their take-home pay, Mr Kenny again tried to distance himself from guidelines regarding food spending under draft insolvency rules the Coalition created.
“The guidelines... are guidelines. They are indicative in nature only and are not binding at the end of the day in respect of couples that find themselves in distress,” said Mr Kenny.
“Everyone who sits down with a lending institution or in this case with a [insolvency service] practitioner goes through what their income is and what their expenditure is and every individual circumstance is different depending on the nature of those circumstances.
“People have become very fixed as if these things are binding. They are different in every circumstance and they are indicative only.”
Outrage greeted the news that the Personal Insolvency Service’s draft “reasonable living allowances” indicates that a family of four need spend only €20 a day on food.
The document also states that people living near adequate public transport services may have to give up their cars to qualify for help with debts.
Opposition parties warned delays in publishing the full guidelines was causing unnecessary fear among people already under considerable debt pressure.
Single adults will be allowed only €31 a month to cover health costs — including GP visits, prescriptions, and dental care — under the guidelines, and people offered help could be banned from taking a holiday for six years.
A public transport allowance of €136 a month will be allowed for people forced to get rid of a car, and just over €100 a month will be granted for all household energy needs.
Fianna Fáil finance spokesman Michael McGrath said families were already taking children to the GP as a “last resort” and those with special needs costs would be worst hit.
“Under the new system, banks will be able to insist on even more stringent terms than those in the guidelines, so the Taoiseach’s assurances are cold comfort to the thousands of families desperately in need of help.
“I think all these leaks of the guidelines are a deliberate ploy to condition people who need help not to apply,” said Mr McGrath.
