Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I thank Deputy John Halligan for his comments and questions. The advisory group on tax and social welfare was established to deal with a number of specific issues relating to the interaction of the tax and social protection systems and to recommend cost-effective solutions to improve employment incentives and achieve better outcomes where poverty is concerned, particularly child poverty. For the information of the Deputy, I note that the report of the group has now been published and is available for everyone to discuss, which was the purpose of the consent given by the Government yesterday. The report will go before the joint committee for discussion in the next couple of weeks also.

It is important to note that in 2013 the Department of Social Protection will spend more than €2.8 billion on supports to families and children through child benefit payments amounting to €1.9 billion, family income supplement payments amounting to €220 million, qualified child increases in weekly social welfare payments amounting to €694 million and back-to-school clothing and footwear allowance payments amounting to €49 million. Overall, this accounts for approximately 14% of expenditure through the social protection Vote. The group felt it necessary to examine how better to target support to low-income families to reduce poverty and improve work incentives. It considered two issues; the taxation of child benefit and a two-tier child income support payment proposal.

The advisory group is clear, however, that child benefit should continue to be paid on a universal basis. The committee will make known its views on this very good report produced by Ms Ita Mangan and it will come back to the Government in due course. In any event, Members will have plenty of discussion about it in this Chamber. However, there will be quite a lead-in time before there is any full implementation of whatever the decision might be in this regard. Basically, while the universal payment is fundamental, the questions around the advisory group's report were, first, to consider the question of taxation of child benefit and, second, to consider the question of a two-tier child income support whereby one would give a universal benefit across the board, which might be reduced for the higher paid and produced for lower-income families or translated into supports for families for child care, preschool and similar areas. This is an issue in which every Member will have an interest. It is a good report and I hope Members will read it. Members will have a discussion on it here but first at the Oireachtas committee before it comes back to the Government.

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