Brian Cowen (Laois-Offaly, Fianna Fail)

Unfortunately, we have made the decision. It was a very difficult one and had to be considered in the context of the last budget. We decided we would not be in a position to make that supplementary payment this year. The total cost of the Christmas bonus payment in 2009 was approximately €223 million. The estimated cost for 2010 is €245 million.

In recent years, there have been significant increases in social welfare rates. The Christmas bonus payment was made against a background, in other Administrations, when increases in social welfare payments were very small. When resources were available to the Government, social welfare and pension rates improved significantly, and quite rightly. Those increases were in excess of inflation and were the correct choices at the time.

We are now in a different situation and we must deal with the gap between spending and revenue. The total Exchequer revenue for this year to the end of October is €26 billion and the total social welfare bill is more than €21 billion. That sets the background of what the Government must contend with, apart from public service pay and pensions and the provision of services. In other times we have been able to increase rates and provide for further supplementary payments. It is clear that the availability of another €223 million is not possible in present circumstances.

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