Dr. John Sweeney:

I wish to emphasise that our starting point is not ideal because there are huge inequities in the current system. We find it difficult to divert money on behalf of children in low-income households without creating distorting work incentives. We find that children in low-income households, whose numbers have risen hugely, are being treated inequitably. The lucky few are in receipt of FIS but there are many who are not. What we are looking for is a versatile instrument that can solve these aspects of the child income transfer issue. We fully accept that the services agenda is much more interesting. What we propose is an instrument that is quite versatile. There is much reported consensus on keeping child benefit universal. We did not have to agree on a rate for child benefit. A universal payment of untaxed child benefit could be paid at the rate of €5 a month and the principle of universality is respected. The difficulty is in trying to maintain the universality, in particular of an untaxed child benefit, at the rates to which we have grown accustomed. That is causing huge pressures on the State.