Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

My Department, in conjunction with all the other Departments, is constantly working on the issue of demographics and the issue of scoping out the cost of the known demographic pressures that we are facing as a country. I know from my time in opposition that the figure often provided for demographics may actually not meet the true cost. In the past number of weeks I have been having a lot of bilateral meetings with Ministers as one would expect, and the amount of money that is needed, even to stand still, by way of an existing level of service, can be very significant at times, and it might lead one to think that the figure for demographics has been under-stated.

There are pressures right across the system, but it is an issue of which the Department is very conscious, because if we want to have a proper medium-term fiscal plan, we need to know exactly what the costs are of an ageing population, in terms of pension provision, nursing home care, care for the elderly and home support. We are seeing a fall-off in the numbers coming into primary school, but an increase in those at second level, for example.

We are working with the different Departments and some of them have a very good handle on what the pressures are and the budgetary implications of same. It does tend to be managed on a year-to-year basis, so I would like to see if we can get a more medium-term assessment of what those demographics are, and build that into our budgetary framework. It is certainly an issue that I spoke about in opposition and I am seeing it on the front line now. It is a real issue and we would like to see a more long-term assessment of those demographic pressures.