Mary Hanafin (Dún Laoghaire, Fianna Fail)

If a choice had been available to continue to pay the Christmas bonus, we would of course have done so. It was undoubtedly one of the most difficult decisions that the Government had to make in the earlier part of this year. I accept that not everybody on social welfare has a mortgage or engages in foreign travel, but it is also fair to say that in more recent months other elements of the CPI, including the price of food and clothing, have dropped significantly as well. In making the decision in April, we had to have regard to the fact that we had given an increase in January, which was factored into the decision not to pay the Christmas bonus.

I know how difficult this is and there would be nothing nicer than to be able to turn around to people and say that we can pay it, but the money is just not there, unfortunately. The Exchequer is already spending at a rate which is far above what we are taking in. As everybody knows, there is a gap of €22 billion between what is coming in and going out. Whether it is a household or individual budget or the State budget, the message is the same: one cannot spend what one does not have. I regret that we cannot pay it this year.

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