Paddy McHugh (Galway East, Independent)

I will deal with the budget details regarding social welfare. On balance, the social welfare elements of the budget are welcome and will go some distance to addressing the many issues which daily impact on the public. The cost of child care has been regularly ventilated for a long time. This budget attempts to address this issue under various guises.

The payment of an annual child care supplement of €1,000 for each child under six years of age is welcome. This payment is an addition to the existing child benefit which has been increased by €8.40 a month for each of the first two children and a further €7.70 a month for the third child and subsequent children. While the increases in child benefit are small they are nonetheless welcome. A family with two children under six years of age will receive a total package of direct child-related payments from the State worth €5,600 per annum or approximately €170 per week, which is a substantial sum.

Some people say, as if it were a surprise, that this budget has one eye on the next election, but it is framed by a politician. As long as it addresses issues of concern to the public, that is fair enough. This budget has begun to address the child care issue, albeit not quickly or well enough for some people.

I have a problem, however, with the new payment of €1,000 per annum and child benefit being payable to parents, irrespective of income. There should be a means test for payment of this benefit because it is obscene that parents on high incomes receive this payment, which they do not need, while those on low incomes could benefit from higher payments. The resources of the State should be aimed at the needy, not the greedy.

The figures suggest that total social welfare spending will rise by over €1.1 billion next year and pensioners will be among the major beneficiaries, receiving on average, increases of 10%. This is welcome because today's pensioners were the workers of yesteryear who helped put the country where it is today. Their contribution cannot be forgotten and needs to be appreciated. It is welcome, therefore, that next year the non-contributory pension will be €182 and the contributory pension €193.30 per week.

Another group which makes a major contribution to society in a concerned way are carers who perform a valuable role, taking care of the most needy. The increases for them are generous at 17.2% and 17.8%, depending on age. This budget, and its social welfare provisions, go some way to acknowledging the members of our society who need to be looked after. I presume that the message delivered to the Government at the last local government elections is ringing in its ears and it will not forget that in a hurry.

When Deputy Brennan was appointed Minister for Social and Family Affairs it was said he was a right wing Minister in a caring Department, which would not bode well for the less well-off in our society. He has, however, proved his detractors wrong, not alone through the social welfare elements of this budget, but with the improvements he also delivered in social welfare in the last budget. This proves one does not have to wear certain badges or espouse certain philosophies. Actions speak louder than words or slogans, and the Minister's actions since coming to this job show his concern and compassion for the less well-off.

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