Brian Cowen (Laois-Offaly, Fianna Fail)

As I said, since this Government came to office in 1997 child care benefit has increased by nine times the rate of inflation during the period. That is a fair indication of the effort being made. It is always a question of resources. Clearly, child benefit does not defray all family child care costs, nor was it designed to do so. It was, however, recognised as being probably the best mechanism by which support would be provided for families. It was not meant to defray the total costs of family requirements but would certainly be of some assistance to them. The fact of the benefit increasing at a rate of nine times more than the consumer price index is a fair indication that the policy of the Government has been to use that benefit as a means of providing some assistance in these circumstances.

The home care tax credit, which is €770 per annum and may be claimed by a jointly assessed married couple where one spouse remains in the home to care for one or more dependants, was not increased in the budget but was the only credit that was not increased. The one-parent family, widowed parent and incapacitated child tax credits were increased. The Deputy is entitled to highlight the only one that was not increased but I am entitled to mention the other increases. The home care tax credit was introduced in the Finance Act 2000 and was designed to recognise the contribution made by a spouse who remains working in the home. The provision is intended to assist in cases where a spouse has forfeited a second income to care for dependants in the home.

The Deputy asked why double income married couples get nothing extra through the tax code in respect of their children. It is a question of targeting resources. Under Government policy, the main instrument through which the State provides support for parents with children is the child benefit system. Expenditure on it is more than €1.9 billion, which is a not inconsiderable amount. I have no plans to move away from that approach but we will keep the issue under review.

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