SEANAD REPORT:DAN BOYLE (Green Party) said that Ibec director Danny McCoy should consider his position on the board of Fás following his call for cuts in social welfare in the budget.

Mr Boyle said the Government had no intention of changing the minimal income standards of those dependent on social welfare.

He said there was a rich irony in Mr McCoy calling for social welfare cuts given his €14,000 fee for his membership of the Fás board. It represented 50 per cent more than the basic rate of social welfare.

“The statement by the director of Ibec was far from helpful.

“I do not believe there is capacity to ask for his removal from that organisation because it is separate and independent, but given that he earns a fee from a State agency which is many times the amount on which social welfare recipients live, he certainly needs to consider his position.”

Shane Ross (Independent) said it was “quite extraordinary, disgusting and unnecessary” to hear Ibec call for cuts in social welfare.

It was worse than that because Mr McCoy appeared to promote that particular policy on the RTÉ radio Morning Ireland programme.

“The extraordinary incongruity of a director of Fás, the State agency which is meant to promote the interests of the unemployed and those on social welfare, wearing an Ibec hat on air and suggesting that people on social welfare should have their payments cut is completely unacceptable.

“Directors of Fás get paid €14,000 per year for a part-time job and for doing very little.

“Their only achievement appears to be that they presided over a spendthrift waste of money over many years.”

Eugene Regan (FG) said there was an issue of leadership in Ibec.

“At a time when we are trying to find solutions to the serious problems in the public finances and the economy, it is unfortunate to introduce such divisive proposals.”

Ivana Bacik (Independent) said that on a day when they saw appalling pictures of people in Dublin joining a queue for food, they should reflect on the fact that the Ibec call was unwise.

John Hanafin (FF) said it was futile for any one pillar of society to point to another and suggest that it bear the burden.

Referring to the “totally outrageous and arrogant proposal” by an Ibec representative, Nicky McFadden (FG) said this “so-and-so” should be asked to withdraw it immediately.

Dominic Hannigan (Labour) said the “kite-flying” by Ibec was totally uncalled for.

“Social welfare rates were low in the past. During the Celtic Tiger, many people were in poverty. Any cuts to social welfare rates will put more children into poverty.”