Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The abolition of the Christmas bonus was announced in 2009 and to restore it now would cost €261 million.

The rationale for the abolition of the Christmas bonus back in 2009 was that it was preferable to cutting social welfare rates across the board. In 2010 and 2011, however, the Government of the day reduced primary personal welfare rates for all persons under 66 years by more than €16 per week. In budget 2014 the Government was able to protect the State pension, the carer's allowance, the disability allowance and other core weekly payments in addition to child benefit, while still reducing the overall welfare spend as part of the necessary effort to reduce the deficit. It would be grand to think that one could do these things but it is not possible.

I appreciate the difficulties that many people have had and continue to have as a result of the economic recession of recent years. That said, we have gone from a position where the country lost 250,000 jobs in three years to one where 1,200 net jobs are being created every week and there has been a fall in the numbers on the live register over 18 consecutive months. It is heartening to see the trends of confidence. Interest rates have fallen below 4% and even the construction index is rising. We still face significant challenges and it is not easy to make decisions to reduce public debt, but we have one of the highest deficits in Europe. We have targets and objectives to achieve and the people have made great sacrifices, but I think they see the process leading in the first instance to an exit from the bailout and following through to creating more jobs and achieving our target of having a deficit below 3% by 2015. By growing the economy there will be more opportunity for people to get gainful employment and to benefit from the rise in the economy. The Government has committed to not reducing core welfare rates and not increasing income tax because that is a tax on work. These are always difficult balances.

I am sorry to have to say to Deputy Healy that it is not possible to restore payment of the Christmas bonus as it was previously. The cost would amount to €261 million and we do not have that money. Unfortunately, we cannot return to the situation where there was an assumption that everything was available for nothing. Someone has to pay at the end of the day and balance is required. The budget maintained the State pension, the carer's allowance, the disability allowances, other core weekly payments and child benefit. Despite all the cynics and all those who said we would destroy all the welfare payments, that did not happen.

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