Oireachtas Joint and Select Committees

Wednesday, 26 September 2012

Joint Oireachtas Committee on Education and Social Protection

Budget 2013: Discussion with Minister for Social Protection

11:30 am

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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I thank the Minister and officials for the presentation, as it is a welcome move to have the opportunity to question a Minister before she starts her budgetary negotiations with other Departments. It is a good mechanism which recognises the role the committee can play in trying to tease out some of the issues and provide helpful suggestions.

There is a context, which has been stated by the Minister. The briefing made a good point at the beginning, which was partially quoted by Deputy O'Dea. It probably should be stated more often that when dealing with the Department of Social Protection, the primary role is to support people. In doing so, there is a contributory effect on the local economy and social consequences. The briefing made that point quite well.

Any changes in the Department can have consequences, which sets it apart from other Departments. The media and some commentators have an agenda because the Department is the biggest spender, with the idea that its expenditure must be cut as a result. The logic omits the fact that because of the recession, the number of people dependent on the Department has increased. Even if we remained at the current level of payments and allowances, the spending of the Department would increase, despite controlled savings or efficiencies within the Department. There is a job of work to be done. Our party, in its costed alternative budgets, has not increased payments but we tried to ensure that the status quo remains, even with the increase in prices facing people dependent on social welfare, including the price of gas and electricity. Those will have a greater impact on people in need of the Department's help.

The briefing also documents, in a table, the range of cuts implemented to date by this and the previous Government. It is quite stark, with the Minister mentioning that €2.7 billion has been taken from the system. The vast majority of the €2.7 billion has been taken from the pockets of people dependent on social welfare and has not come from efficiencies within the Department or controlled savings. That means the local economy has suffered the consequences, and children have also suffered when parents cannot put food on the table.

There is a list, as the Minister stated when we discussed the issue of youth unemployment. In the last year the level of unemployment has increased substantially. The number of long-term unemployed who have different needs has increased also. Even since the production of the Government's Action Plan for Jobs, there has been an increase in the number of job losses in the economy.

I will proceed to my questions. The Minister has stated in the past that the intention of the Government is not to cut social welfare rates. Is that still the intention? Does the Minister believe the reduction in the number of months for payment of the fuel allowance is a cut in social welfare rates? The changes she has implemented with regard to lone parents are the same as a cut in the rates. The reductions in rent and mortgage interest supplement are also cuts in the rates. So far, the Minister has been cutting but saying there is no cut in the rates. Is that commitment dead in the water at this stage?

My other question is related to the committee because it agreed on a report I produced on the single working age payment. One of the recommendations in that report was that in any social welfare reform the value of existing earnings disregards for secondary benefits and the means or capital allowance should be maintained. That was signed up to by the members of the committee. Is the Minister aware of this and will she have regard to it when planning changes to the social welfare payments in the forthcoming budget?

A review was due to take place of the cut to disability allowance which was announced last Christmas. We are now in the middle of what we are told are the budgetary negotiations before the next budget, but we still have not seen the review. Will the change the Minister intended to make simply be included again in the budget or will the review be published beforehand in order that we will have an opportunity to discuss it?

The briefing note states the Revised Estimates for 2012 provided for a deficit of €1.82 billion in 2012 but that this figure is now likely to be exceeded. Is there any indication of the amount by which it will be exceeded? This has major implications for future planning. Table No. 4 on social welfare expenditure appears to indicate there will be a drop in expenditure this year. The expenditure figure will be €20.547 billion, but if the deficit is to be exceeded by the figure given, how will that expenditure figure increase? Will it be the same as last year, which will mean there will be no overall saving?