Mary Hanafin (Dún Laoghaire, Fianna Fail)

Leaving aside borrowing, some 60% of the income coming into the Exchequer is being paid out on social welfare. Unfortunately, it was necessary, therefore, to make savings within my Department's budget. A large part of this will come from controlled savings, a matter to which I will return later. Savings will be also made in respect of rent supplement and the reduction in payments to 19 year olds. Account must be also take of the positive aspects involved with encouraging people to return to education, etc.

It is wrong to state that we did not make choices with regard to the social welfare budget. One of the choices with which we were faced was whether to cut all of the payments made to more than 1 million people each week. No one wanted to do so. This was particularly the case because we were conscious of the fact that although there is deflation and although prices are coming down, it is only now we are witnessing decreases in the cost of food and electricity.

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