Enda Kenny (Mayo, Fine Gael)

I disagree with the Taoiseach. The Minister for Social and Family Affairs did not appear on a popular television programme merely to muse aloud in what has amounted to a cruel exploitation of hundreds of thousands of families who do not now know where they stand in regard to child benefit. The Taoiseach is right that organisations and individuals deserve to know with clarity what lies ahead in respect of their economic circumstances. The child benefit payment to more than 600,000 families in respect of 1 million children has been of direct income support to hundreds of thousands of those families. The Minister for Social and Family Affairs was either flying a kite or deliberately laying down a marker in what, as I said, has amounted to a cruel exploitation of families who do not now know where they stand.

It seems to be acceptable to pump billions into banks and to allow people who borrowed enormous amounts of money to swan around as if they are untouchable by any law. Yet people who find themselves in negative equity or who have lost a second or sole income are faced with a senior Minister implying that it is the Government's intention to cut child benefit. The McCarthy report recommended that €500 million be saved from child benefit payments. However, that amount could have been saved if the Government had accepted the Fine Gael recommendation of freezing public sector pay increments last year and this year. The same amount could have been found if the percentage pay increase under the national wage agreement for this year and last year had not been applied.

I agree with the Taoiseach that there are no false choices. We have looked closely at the circumstances we now face as a result of mismanagement by successive Governments in the last 12 years. We are in a position now where hundreds of thousands of families are under pressure. The Taoiseach's party in Government has, over a period of years, done down the worth of families and children by means of tax individualisation, slashing medical allowances, depriving children of educational facilities and so on. Families have been done down in so many areas and there are now choices to be faced.

I wish to be clear in this regard - my party will achieve the savings that are required without touching child benefit.

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