Joan Burton (Dublin West, Labour)

The Government is committed to tackling Ireland's economic crisis in a way that is fair, balanced and that recognises the need for social solidarity. The appropriate level of overall expenditure by my Department will be considered in the context of budget 2012 and subsequent budgets. This consideration will be informed by the commitment in the programme for Government to maintain social welfare rates. However, sustainable public finances are a prerequisite for future economic stability and growth, as well as being a prerequisite for maintaining and developing our social protection system. To this end, the State must pursue a determined deficit reduction strategy. The Government believes it is appropriate, to enhance international credibility, to stick to the aggregate adjustment as set out in the national recovery plan for the combined period of 2011 and 2012. Accordingly, there will be an ongoing requirement to curtail expenditure in 2012 and in later years. This is necessary for many reasons, not least so that the State can continue to make social welfare payments at appropriate levels, sustaining social cohesion and treating people with dignity.

The priority of the Government is to get the economy moving, restore confidence, fix the banking system and support the protection and creation of jobs. The success of its economic plans will lay the foundation for the rest of its agenda for change. The jobs initiative is the first step in its recovery strategy and includes a number of initiatives that will be administered by my Department, including the recently-announced internship scheme, JobBridge. In addition, the Social Welfare and Pensions Act 2011 provided for the halving of the lower rate of employer PRSI, thereby making it cheaper for employers to take on and retain workers and thereby reduce unemployment.

There are considerable challenges ahead including the need to protect, as far as possible, the key income supports and services operated by my Department. This process will be informed by the comprehensive review of expenditure currently under way in all Departments and Government agencies, with the key decisions being made in the context of framing the budget for 2012.

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