Welfare system in need of overhaul, Taoiseach tells Fine Gael conference

Mass unemployment is in danger of becoming a long-term problem for Ireland unless the welfare system is radically overhauled, Taoiseach Enda Kenny has warned.

Mr Kenny made it clear there would be “nothing for nothing” in future as he insisted all unemployed people must co-operate with back-to-work programmes in order to escape “welfare traps”.

Speaking to some 300 party members at the Fine Gael two-day convention in Limerick, Mr Kenny said one-fifth of households were categorised as jobless. This was twice the European average and “very damaging to our society”, he said.

“The fact is without significant reform of the social welfare system we have a long and unprecedented period of long-term unemployment... so changing that system is not only desirable, it’s essential,” he said.

Praising Social Protection Minister Joan Burton for bringing in successful jobs programmes, Mr Kenny warned that “while every jobseeker had rights, every jobseeker has responsibilities; in the present circumstances there is nothing for nothing”.

With 415,000 people unemployed, Mr Kenny reminded his party that if employable people want to received benefits, they must engage with back-to-work services provided.

He said that, although the majority of the unemployed want to work, due to the culture fostered by previous governments they “are locked into a range of welfare traps”.

He said to remove those traps, to break that cycle, they have to look at implementing plans such as social employment clauses.

Mr Kenny said the Government was borrowing €1bn a month to pay bills such as social welfare.

He warned of a range of social welfare traps in existence and said the unemployed must engage with State agencies to receive payments in return.

Mr Kenny also announced the formation of a policy think-tank to be called the Collins Institute in honour of the party’s greatest hero, Michael Collins.

The Taoiseach said it would operate separately to the traditional Fine Gael development of new ideas in order to try and provoke more innovation in Government thinking.

The party is holding its national conference amid heavy security as major demonstrations by a coalition of protest groups are expected today.

The full day of the conference will see the party debate political reform in the aftermath of its failure to get the country to back plans to abolish the Seanad.

Health Minister James Reilly will be taking part in a “town hall” style question and answer meeting regarding the HSE amid a number of controversies such as the refusal of medical cards in cases of grave illness.