Joan Burton (Dublin West, Labour)

I am very conscious of the needs of people on social welfare and fully understand that a wide range of groups depend on the welfare budget for vital support. In the context of a very tough budgetary environment, I will do my utmost to protect the most vulnerable people in Irish society, including retired and older people in receipt of social welfare pensions and the free travel scheme. My Department will spend more than €77 million in 2011 on the free travel scheme. This will benefit more than 700,000 people, some 520,000 of whom are aged over 66.

Sustainable public finances are a prerequisite for maintaining an adequate system of social protection as well as for achieving future economic stability and growth. For these reasons, the State must pursue a determined deficit reduction strategy. Accordingly, there will be an ongoing requirement to curtail expenditure and prioritise resources in my Department and all other Departments in 2012 and in later years. In this regard, my Department has completed a comprehensive review of expenditure, the purpose of which is to assess the effectiveness and value for money of spending programmes across all Departments and agencies. All spending lines are being examined without exception, and possible ways of reducing spending are being considered in every area of expenditure. The fact that particular ways have been identified in which spending could potentially be reduced does not mean all of these approaches will be implemented.

The intention behind the methodology being followed is to provide the Government with a set of decision options to enable it to meet three objectives. These objectives are, first, to achieve overall fiscal consolidation outcomes, both as regards spending and numbers reduction targets; second, to re-align spending with programme for Government priorities; and, third, to consider new ways of implementing Government policy in the context of public sector reform.

Additional information not given on the floor of the House

In my discussions with my colleagues in Government I will have regard to any views expressed by the UN and by welfare representative organisations. In this regard, I held a pre-budget forum on 16 September which was attended by 34 organisations. I and my officials had the opportunity to listen carefully to their proposals relating to the next budget. I stress that no decisions have been made to date in regard to welfare expenditure next year. Those decisions will be made in due course after full consideration by the Government and will be announced on budget day.

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