Mary Hanafin (Dún Laoghaire, Fianna Fail)

When one is two weeks out from a budget, there is every point in talking to him, particularly when everything that we do on the payments in my Department is directly related to what will happen on 14 October.

I share many of the concerns about the impact of rising fuel and energy costs. No doubt they have impacted on the people who are most vulnerable. My priority, as Minister for Social and Family Affairs, is to ensure that Government assistance is available to those who most need our help. They are older people, those with disabilities or serious illnesses, and people on low incomes.

Over the past number of years, people will be aware that quite substantial increases have been given at budget time on the various payments. The concentration, based on the best advice, was to increase the primary social welfare rates so that people would be able to meet their basic living costs, including their heating costs throughout the year. That is why, rather than increasing some of the additional benefits, increases of €10, €12 and €14 a week were given on the primary payments. Unfortunately, with the way the finances are at present, there is no prospect of being able to give increases of that level, but I am conscious that fuel is a particular problem for people this year.

There has been some debate here about inflation and the rising costs. It is important to record the increases in the payments over that period. Since December 2001, overall inflation has increased by 28%, but energy product prices have increased by 74%. However, increases in social welfare payments have been between 71% and 88% in the same period. The increases were quite significant and designed to help people meet all their basic living costs, including heating costs.

In addition, the fuel allowance is paid to approximately 300,000 people. Some 358,000 people receive electricity or gas allowances — that is the figure in the amendment to the motion.

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