Joan Burton (Dublin West, Labour)

The challenge for this new Government is unlike any faced before. The priority of this Government is to get our economy moving, restore confidence, fix our banking system and support the protection and creation of jobs. The success of our economic plans will lay the foundation for the rest of our agenda for change and the jobs initiative being announced today is the first step in this regard. It is important to state that the most recent memorandum of understanding with the EU-ECB-IMF does not provide for specific cuts to child benefits, disability allowances and other social welfare payments. The overall aim of the memorandum is to ensure that public finances are sustainable and, to this end, the State must pursue a determined deficit reduction strategy. This will impact on current expenditure across all Departments, including the Department of Social Protection.

The Government is committed to tackling Ireland's economic crisis in a way that is fair and balanced and which recognises the need for social solidarity. This is explicitly reflected in the commitment in the programme for Government to maintain social welfare rates.

I am fully aware of the key role the payments made by the Department play in the social and economic life of this country and in preventing poverty. This is illustrated in the annual survey on income and living conditions carried out by the Central Statistics Office. The latest available report shows that in 2009, more than 91% of the average gross household income of households in the lowest income decile was made up of social transfers. The percentage of gross household income made up of social transfers remained above 50% up to and including the fourth decile where 65% of gross household income was made up of social transfers. In addition to reducing poverty, these social transfers enable households to purchase goods and services in the local economy thereby sustaining jobs and economic activity at a higher level than would otherwise be the case.

Additional information not given on the floor of the House.

While the payments made by my Department have these very positive economic and social effects, there is an ongoing necessity to curtail expenditure in 2012 and in later years. This is necessary for many reasons, not least so that we can continue to make social welfare payments at appropriate levels, sustaining social cohesion and treating people with dignity. Any changes to the wide range of schemes and services operated by my Department will be considered in a budgetary context later this year. This consideration will be informed by the comprehensive review of expenditure currently under way, which will be completed by September.

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