Dáil debates

Tuesday, 17 July 2012

2:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)

I propose to take Questions Nos. 17 and 19 together.

The Government is committed to tackling Ireland's economic crisis in a way that is fair, balanced and recognises the need for social solidarity. The appropriate level of overall expenditure by the Department of Social Protection will be considered in the context of budget 2013 and subsequent budgets. This consideration will be informed by the commitment in the programme for Government to maintain social welfare rates.

Sustainable public finances are a prerequisite for future economic stability and growth, as well as being a prerequisite for maintaining and developing the social protection system. The Government's priority is to secure economic recovery, promote growth and employment, and enhance our international reputation. As Deputies will know, we are required to return to the 3% general Government deficit over a period of time, as set out in the Stability and Growth Pact. The State must pursue a determined deficit reduction strategy. Accordingly, there will be an ongoing requirement to curtail expenditure in 2013 and later years.

There are a lot of challenges ahead and we want to protect, as far as possible, the key income supports and services operated by my Department. These services and supports impact in some way on the lives of almost every single person in the State. They are important to older people, children and those who have lost their employment following what was done to the banks by the previous Government. The scope and scale of this expenditure play a key role in the wider economy. Social welfare income support is widely recognised as being one of the most important forms of stimulus in European economies.

There is no question of introducing changes by stealth. If the Government decides to change eligibility rules or make other changes to achieve savings, any such measure will be announced in the budget and debated in this House.

As regards the preparations for budget 2013, I will be holding a pre-budget forum in the autumn to which I will invite a wide range of organisations, including the Society of St. Vincent de Paul. I will listen carefully to their submissions on the next budget. In addition, I will take into account the views of the Money Advice and Budgeting Service which operates under the aegis of the Citizen's Information Board, an agency of my Department. As part of the deliberative process for the next budget, the Department will analyse, in so far as possible, the distributive and poverty impact of possible welfare changes. These impacts will be taken into account in arriving at final decisions on the budget.

The Government's priority is to get the economy moving, restore confidence, fix the banking system and support the protection and creation of jobs. The success of our economic plans will lay the foundations for the rest of our agenda for change.

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