Joan Burton (Dublin West, Labour) | Oireachtas source

-----is not social welfare. The country became over-reliant on the construction industry and the construction bubble collapsed. Currently almost 100,000 people are unemployed as a consequence of that collapse. The crash was not caused by the social welfare system; it was caused by the collapse of the construction industry and the bank guarantee which turned into such a disaster for the country. As a consequence, we have ended up in a structural adjustment programme with the troika in which we have to trim expenditure in order to return the country to growth and sustainability.

Deputy Flanagan may differ from me in his take on core social welfare rates, but for those reliant for their income on social welfare, the core rates are important because that is the core part of their weekly income. If it is their sole income they rely on it for their living expenses, to buy the messages and to live their lives. I disagree with the Deputy that the core social welfare rates - the weekly payment on which so many people, particularly pensioners, rely - are not significant. They are very significant, in my view. The Government has been correct in seeking to protect that payment. The previous Government on two occasions cut the core weekly social welfare rates by €8. People still mention that cut to me all the time.

I do not wish to be dishonest. The country is in a difficult place and we need to find savings. This commitment was agreed to by Fianna Fáil with the troika. However, we have to find those savings in a manner which protects vulnerable people and which supports their core weekly payments. That is my approach, but no decisions will be made about any element of social welfare until the Government, as a whole, decides on the budget. The announcements will be made on budget day.

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