Brian Cowen (Laois-Offaly, Fianna Fail)

With regard to the question of how inflation is measured, the harmonised index is the best in terms of international comparators and knowing where we stand vis-À-vis other countries. I accept the point that when mortgage interest rate repayments are included, the CPI is higher and that these are real payments being made by real families. A significant investment is being made in social and affordable housing. I can bring to the attention of the Minister of State concerned, Deputy Batt O'Keeffe, any specific reforms that are required with regard to thresholds.

The changes we have made in child benefit have been very helpful to young families with children, particularly larger families. When one calculates the direct payments by the State in supporting young families, with child benefit and the early child care supplement, one finds in many cases that people on low but taxable income are more than compensated for the taxes being paid. Due to the way the social welfare system interacts with the tax system, many families are in a far better position in terms of the burden placed on them than was the case ten or 15 years ago. Examples of that can be seen in various Budget Statements over the years.

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