Mary Hanafin (Dún Laoghaire, Fianna Fail)

We are conscious of the fact that even though prices have begun to fall, this has happened in areas where, as yet, there has not been an impact in respect of social welfare recipients. There has been an impact in respect of mortgages and such an impact is now being felt in the areas of food and fuel. For the reason I have outlined, we chose not to reduce payments.

The other reason not to cut regular weekly payments is that far more people receive such payments than receive the Christmas bonus. If we had introduced an across-the-board cut, the payments being made to all those people who lost their jobs since last Christmas would have been reduced. It is difficult enough for people to lose their jobs and to be obliged to accept a payment of €204.30 per week without their having to accept a further reduction in their incomes.

See this speech in context