Beverley Flynn (Mayo, Fianna Fail)

Child benefit is hugely important to all families, particularly in the current economic climate. In the past number of months I have heard much from women and families about child benefit and how dependent they are on it.

The Minister for Social and Family Affairs outlined the ways in which families, whether low, middle or high income, depend on the benefit. Their uses for it vary from basic food to paying the mortgage to making other loan repayments to paying for child care costs. The benefit allows women the opportunity to work and is paid directly to mothers. For many women, it has given them the necessary independence, dignity and ability to deal with many household bills related to their children.

Some question whether the benefit means anything to middle or high-income earners. However, while some families may appear to be well-off, often they can be under severe financial strain. It is important the State cherishes and values each child equally, irrespective of their parents' income.

Having said that, it has to be recognised child benefit costs the State €2.5 billion per annum. This year the social welfare budget will come to more than €21 billion. All sides of the House recognise a cut of €4 billion must be achieved in the forthcoming budget. Unfortunately, the Government side is not in the happy position of being able to agree with every single group lobbying for its area to be left alone. We hear the Opposition calling for no cuts to public sector pay or social welfare. If so, one then must ask from where will the €4 billion cuts come.

It has been evident over the past nine years that child benefit has been a fundamental priority for Fianna Fáil. Since 2000, we have increased the rate of child benefit from just €53.96 per month for each of their first and second children and €71.11 per month for the third and each subsequent child to €166 and €203 per child respectively. That shows the commitment on this side of the House to put our money where our mouths are, by allocating significant funding to child benefit when we were in a position to afford it. This has benefited over 600,000 households.

The Minister for Social and Family Affairs, Deputy Hanafin, has gone to great lengths to ensure she has listened to the Society of St. Vincent de Paul, the National Womens Council, CORI and all sides of the House in this debate. The Minister has various options. She could tax child benefit or means test it. I disagree with both options. She could take a straight cut off the top or leave it alone, the preferable option. Although there has been deflation of approximately 5% in the past year, if the Minister must go down any of these roads, she should take a small amount off the top and keep it to the smallest margin possible.

I welcome that from 1 January 2010 a free preschool place will be made available to all children in the year prior to their starting school, which is an important development. The Government gave a commitment to provide equal access to all children. Many children who would not have had an opportunity of obtaining a preschool place in a crèche will have such opportunity from next year.

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