Dáil debates

Friday, 9 December 2011

Social Welfare Bill 2011: Committee and Remaining Stages

 

1:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)

I agree with Deputy Creed. A key issue with the interaction between the taxation and social welfare systems is that the two sets of computers do not speak to each other. The basis on which income tax is calculated and the household is identified differs greatly from the way in which the household is described for social welfare purposes.

One way to address this problem is to move to a system of tax credits, particularly as they relate to benefits that affect children. This would achieve the purposes to which Deputy Ó Cuív referred. Shortly after becoming Minister, I appointed an expert advisory group to consider the integration of tax and social welfare with specific reference to the question of how families and children are supported. As Deputy Creed knows, targeting such supports has been discussed for more than 20 years. Fr. Seán Healy has written a great deal on the subject.

We will need greater IT compatibility between the Department of Social Protection and Revenue as well as changes to the fundamental rules defining income earners, family units etc. Given that Ireland has different kinds of families, I agree with Deputy Creed's points.

I do not agree with Deputy Ó Cuív when he suggested that Fianna Fáil wants to cut what pensioners receive. Doing so would be wrong. In the budget, I have tried to ensure that basic contributory and non-contributory pensions are maintained. Pensioners need as much certainty about their incomes as possible. Deputy Ó Cuív was the Minister before me and he may have had ideas about cutting pensions for what he described as wealthy pensioners. Most pensioners are not particularly wealthy. The contributory pension is based on people's contributions. Maintaining the basic rates of contributory and non-contributory old age pensions in so far as we can is an important objective of the Government.

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