Joanna Tuffy (Dublin Mid West, Labour) | Oireachtas source

The has been much publicity and commentary about the recent think tank for action on social change report. The most significant finding of the report is that, basically, after tax and social welfare, Ireland has below EU average levels of income inequality. It starts out with high levels of inequality in the context of market incomes, but when the State kicks in and redistributes income, then it falls below average EU levels of inequality. Unfortunately, the newspapers did not lead with that information. Indeed, TASC did not particularly highlight the finding, although it was very much contained in the think tank's report.

The point is we have the most progressive income tax and social welfare systems. This was borne out in reports as well. A recent meeting of the Oireachtas Joint Committee on Education and Social Protection discussed the impact of social transfers on income distribution. All speakers set out how our tax and social welfare system is highly progressive. When speakers were asked which country was the exemplar in terms of having the most progressive tax and social transfer systems, the answer was Ireland. This is because we have a progressive income tax system and a targeted social welfare system, such that those who need help most get the most. These things need to be acknowledged and highlighted by social democrats. If we do not, there are people who would have it dismantled. Some people do not fully realise the work done in terms of redistribution by our tax and social welfare systems. Of course that progressivity should be built upon. However, it should be acknowledged that it is working well in the first place.

I fully support the comments made by Deputy Nolan. At our committee meeting, John FitzGerald pointed out that of €30 billion in cuts made over the course of the recession, one third of the total, approximately €10 billion, was ploughed back into extra social welfare spend.

Basically, that was to cover the cost of giving a hugely increased number of people unemployment benefit and other benefits such as family income supplement. For example, the Government is spending €100 million more per year on family income supplement at present than when it came into office. Far more money is being spent by this Government in supporting families who are at work and on low pay.

This idea that we cut social welfare spending is not true. In fact, this Government spent the most ever in the history of the State on social welfare in its first year in office, and that level of expenditure has been kept up throughout its term of office. That in itself is progressive. We kept a basic income floor for people during the recession despite the need to reduce our deficits, which has been important in reducing income inequality. I support what Deputy Nolan said and reject this simplistic idea that it is all about reversing particular cuts. It is not about that; it is about responding to people's needs. That is why the Minister for Social Protection has invested so much in Intreo offices and making sure that people who are on social welfare are given supports to help them get back to work. They need to get the necessary education and training and to be helped to get places on labour market activation schemes in order to help them get back into the workplace.

It is not just about reversing cuts. We are actually spending more on social protection now than ever before. It is about how we spend the money to make sure we help people and that we do not create poverty traps. Ultimately, it is about supporting people to get jobs and to get the education and training they need. One of the most important statistics that has come out in recent years is that this country has a very high rate of jobless households. That in itself is a huge contributor to income inequality, which is an issue we need to address.

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