Joan Burton (Dublin West, Labour)

I appreciate that reductions in child benefit will be difficult for some families. However the provision of cash supports for children is only part of the solution to providing better long-term outcomes for our children. Ireland has comparatively generous child benefit rates but this does not guarantee that our children fare better when they become adults. We need to look at the way in which we use money to address these problems to find better and more sustainable outcomes for our children.

Since being appointed Minister for Social Protection in March this year, I have looked with fresh eyes at the existing social protection system. One of my key priorities has been to balance the books, in particular by starting to put the social insurance fund on a sustainable footing. The fund is expected to have a deficit of €1.9 billion this year and another €1.5 billion in 2012.

Rebates to employers and lump sums paid directly to employees are paid from the social insurance fund. I consider that the level of rebate of 60% is not sustainable in the current economic climate.

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