Aengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

Earlier this year the ESRI published a report on inflation. It stated the rate of inflation for low income families was higher than the average inflation rate during the recession and that it was lower for high income families. When we pick a figure, be it the consumer price index or another, a higher figure applies to low income families during the recession. These families are usually dependent on the contributory or, more likely, the non-contributory State pension. If they have another pension, the position might be different. In its paper the ESRI argues that there should be a monitoring of differences in the inflation rate. One rate should not be used as a yardstick.

I share the same constituency as Deputy Catherine Byrne and it is obvious that she is not speaking to the people to whom I speak. Everyone welcomes an increase in his or her social welfare payments, but that is because they have been hammered in the past. That does not mean that the end is near. I will not oppose a Social Welfare Bill when it contains welcome changes. I did not oppose the Bill on Second Stage, despite the Minister's challenge to those in opposition, nor have I opposed previous Social Welfare Bills.

Changes might be welcome, but we must have regard to the context. In this case, the context is that while contributory pension rates were not changed per se, substantial changes were made to social welfare secondary benefits. Changes were also made to qualifying periods for pensions which, in effect, amounted to a cut in income for those in receipt of contributory or invalidity pension. There was also the cut to the respite care grant and death benefit, for instance, on which many of the people concerned would have relied at some stage. We have had a list of cuts and I do not wish to delay proceedings, but their effects should be remembered.

Deputy Catherine Byrne cannot turn around and say the charge for water is €1.07 a week. If true, only €1.93 will be left of the €3 being crowed about to cover the property tax, increased prescription charges and the cost of changes to the drugs repayment scheme. All of these changes will eat into the increase of €3 which will disappear, without taking account of the effect of inflation, which brings us back to where this debate started. The Government is not rowing back on anything which was done previously. In the scheme of things, the €3 increase is minuscule, given what people have gone through in recent times. The constituents I met in recent times welcome the increase, but they will not thank the Government for it.