Joan Burton (Dublin West, Labour) | Oireachtas source

The Deputy asked about the increase in the number of social welfare recipients. The figure for 2008 was 1,208,883, or 1,799,875 million if beneficiaries are included. By 2012, that figure had risen to 1,469,202, or 2,259,807 including beneficiaries. I have made the point before that we have very happy demographics in this country at both ends of the life cycle. Almost every year, without particularly drawing attention to it, we pay out an additional €190 million to €200 million to cater for people reaching retirement age. It is a happy fact that retired people in this country are living much longer than was the case in the past. At the other end of the scale, our birth statistics and child population demographics are the envy of countries such as Germany. The reality, however, is that these fortunate demographics come at a cost. Our significant population of children and young people is costly in terms of payments such as child benefit and in the provision of services such as education and health, just as increased life expectancy carries a cost in terms of State provision for older people.

On the Deputy's question about the universal social charge, without wishing to get political about this, I recall a discussion I had with the late Deputy Brian Lenihan prior to its introduction. We shared the same constituency and had that discussion.

When the ESRI wrote the paper it was envisaged as a social contribution but unfortunately - it may have been to do with the troika - when it emerged from the budget it had become a charge.

That leads into the other issue of last year's figures which are set out in table 6. The out-turn was €20.727 million. It was higher because we did a special estimate on the morning of the budget. The Social Insurance Fund was steeply down because fewer people were at work. It was also heavily called upon because so many were entitled to jobseeker’s benefit, for instance, so there was a deficit in the social insurance fund. I presented the actuarial review to the committee that we published at the end of last August which went into that in great detail. We have demographic pressures. Unfortunately, when the plans were being drawn up in respect of the IMF in September 2010 the forecasts were done then but there are 50,000 more unemployed than were forecast when the troika came into the country. We have been carrying that burden but the Departments of Finance and Public Expenditure and Reform give that due recognition and that is why they compensate us for deficits in respect of the Social Insurance Fund. That was the basis for the adjustment towards the end of last year. In other words, the pressure on the Social Insurance Fund will be greatly eased as we get more and more people back to work.