David Stanton (Cork East, Fine Gael) | Oireachtas source

Yes. Under amendment No. 5, the "Minister shall, within 12 months of the enactment of this Part," create this index, start using it, make regulations and use it "along with" the other index. However, the amendment does not make it clear how this is to be done and which of the two indices is to be given the greater weighting, if any.

When the UK did something similar, people ended up being worse off. The Deputy suggested that this matter could be reviewed again within five years, but that is a relatively short period of time for something like this to bed down. I referred to the UK's annual survey of hours and earnings, ASHE, under which people ended up worse off than would have been the case under the UK retail price index, UK RPI.

The harmonised index of consumer prices exists and we are anxious to get this legislation in place as soon as possible so that people can avail of and benefit from it. We need certainty. That there will be a comprehensive review of the legislation within five years of its enactment will allow us to examine how it has been working over a significant period and make changes.

People need this legislation. It is in place and almost ready to go. It is reasonable to watch what happens in the UK. A great deal of thought has gone into the Bill. These amendments were examined by the interdepartmental working group. It concluded that an index based on the Irish harmonised index of consumer prices should be the initial index specified in the Bill. It is from that group that I am taking advice on these amendments.

For those reasons, we should proceed with what we have. If changes need to be made, they can be considered in a number of years' time after we have seen how the legislation has operated, but we are confident that it will operate satisfactorily and will benefit people who need assistance.