Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Deputy put that question to me earlier when he raised the issue of inflation and I did not answer it. That is related to demographics. We will not select a particular area based on the impact that demographics or inflation will have on it. With regard to public services, the growth of inflation has a particular effect on social welfare payments. It is the responsibility of the Government of the day to make a decision on the changing of either social welfare payments or public sector pay. I do not believe it is the right thing to commit to automatic indexation because we have to respect the ability of a Government to make a decision about how to best use taxpayers' money. The area in respect of which demographics is most important is that relating to primary and secondary schools. The expenditure ceilings we have for the coming years take account of that.

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