Dáil debates
Tuesday, 25 May 2010
Priority Questions.
Departmental Expenditure
2:30 pm
Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 32: To ask the Minister for Social Protection the amount that will be identified for savings within his Department in view of the instruction by the Department of Finance that departmental cuts of €3 billion must be identified within a month; and if he will make a statement on the matter. [21935/10]
Éamon Ó Cuív (Galway West, Fianna Fail)
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As the Deputy will appreciate, the Government is keeping the current and prospective budgetary position under constant review in the context of its medium-term economic strategy. In that regard, the Government will consider in the coming weeks various possibilities for savings that could be advanced in budget 2011. As part of its preparations for that, the Government has decided that each Minister would identify possible savings within his or her remit and advise the Department of Finance of these by the end of this month.
In identifying possible savings I will seek to protect the vulnerable irrespective of age. The main objectives of the Government medium-term strategy are to assist economic growth and job creation through a restoration of competitiveness; to prevent the general Government debt rising to unsustainable levels; and to restore expenditure and taxation to more sustainable levels.
As part of the strategy, it was announced in budget 2010 that the Government intended to make a further adjustment in current Government spending in 2011 of the order of €2 billion. In addition, it is also intended to make adjustments in capital spending in 2011 of the order of €1 billion. Capital spending, estimated at just over €10 million in 2010 for my Department, forms a tiny fraction of the nearly €21 billion overall expenditure and of capital expenditure generally.
My Department is currently engaged in the process of identifying a menu of initial options for structural programme savings in 2011. This process will also have regard to the outstanding recommendations of the special group on public service numbers and expenditure programmes. The options identified will, in turn, be considered by Government as one element of its deliberations on budget 2011 over the forthcoming months.
It is important to stress that, at this stage, no decisions have been taken either by me or by the Government in regard to changes in social protection schemes and services in 2011. Rather the options which will be identified by my Department will be designed to assist and inform the Government's consideration of the next budget. The sustainability of public finances is crucial for all and I genuinely believe that the Government must take steps to reduce overall public expenditure and restore stability to the public finances if we are to avoid the risk of making the economic situation far worse for everyone in society. This includes the recipients of the various schemes and services operated by my Department.
The Government has already made difficult decisions in this regard and the next steps towards recovery will require further such decisions. At the moment, I am engaged in an intensive round of consultations with a wide range of welfare representative organisations and I am listening carefully to their views. In an uncertain international environment, my priority will be to ensure that the overall Government strategy is advanced and to protect those most in need in a manner which is sustainable in the years ahead.
Olwyn Enright (Laois-Offaly, Fine Gael)
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My question was more specific than the Minister's reply suggests. I asked him to indicate the amount of savings he expects to be identified for his Department. Of the €3 billion in savings for which the Minister for Finance has asked, what specific proportion has been asked of the Department of Social Protection? If he has not been given a specific figure by the Minister for Finance, is he drawing up a list of proposed cost-saving measures, or how is he going about it? In short, has the Minister for Finance specified that X amount must be cut from the social protection budget or is it up to the Minister for Social Protection to come up with his own proposals?
Éamon Ó Cuív (Galway West, Fianna Fail)
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There will be a preliminary identification of various options which will then be examined and costed. These will be the subject of discussion between me and the Minister for Finance and, later in the year, the Cabinet will go through all these options before final decisions are made. The amount of money to be saved by any Department will be decided collectively by the Cabinet in the run-in to the budget. It is early days in the process and I am currently considering the savings to be made in various areas. At this stage there are no specific proposals on exact savings to be made. That is not the way it is done.
Olwyn Enright (Laois-Offaly, Fine Gael)
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The Minister said his priority is to protect the vulnerable irrespective of their age. However, recent comments of his, which he has not rowed back on, have raised concerns, particularly for pensioners. He has since provided some clarity in this regard but people remain genuinely worried. In the context of the budget for social protection, will the Minister indicate the categories of persons he considers the most vulnerable?
Éamon Ó Cuív (Galway West, Fianna Fail)
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I am looking at all the data and taking into account such issues as consistent poverty. Later this week I will meet with a broad cross-section of voluntary groups dealing with the elderly, lone parents, the unemployed and so on. Arising from all those discussions that will continue month after month, I hope it would be possible to arrive at a consensus in terms of the issue I highlighted, that is, the need to protect the vulnerable.
Olwyn Enright (Laois-Offaly, Fine Gael)
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Who are the vulnerable in the Minister's view? He has criteria for vulnerability and some are more vulnerable than others. Who does the Minister believe are the ones that he must protect?
Éamon Ó Cuív (Galway West, Fianna Fail)
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As I said, data on consistent poverty is one important criteria-----
Olwyn Enright (Laois-Offaly, Fine Gael)
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The elderly are a group in severe difficulties when one examines the OECD figures.
Éamon Ó Cuív (Galway West, Fianna Fail)
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The point is that there are people on very low income in all age groups who are vulnerable.
Éamon Ó Cuív (Galway West, Fianna Fail)
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When one examines the data one will see this spans across all age levels. Those on the lowest amount of money are very vulnerable. I want to examine all of the data, have a continuing dialogue with all of the different groups, listen carefully to them and not make decisions on the hoof in May but try to have as much information and discussion to ensure I am well informed when the Cabinet discusses these issues later in the year. That will ensure that whatever decisions we must make will be made in an informed and sensitive way and that we make a particular effort to protect those who are vulnerable.
Olwyn Enright (Laois-Offaly, Fine Gael)
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From the Minister's experience, who are they?
Brendan HowlinÉamon Ó Cuív (Galway West, Fianna Fail)
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In financial terms, obviously it is those with the least income.
Éamon Ó Cuív (Galway West, Fianna Fail)
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As the Deputy is aware, in terms of-----