Dáil debates

Tuesday, 10 May 2011

Priority Questions

Social Welfare Benefits

3:00 pm

Photo of John HalliganJohn Halligan (Waterford, Independent)
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Question 38: To ask the Minister for Social Protection the specific cuts to child benefits, disability allowances and other social welfare payments signalled in the draft deal with the EU/IMF and in view of the latest research which indicates that 620,000 persons or 14.1 per cent of the population are already at risk of poverty and the expert belief that this figure would be much higher if it were not for social welfare payments, the way she will implement further cuts whilst simultaneously attaining the target set out in the current national agreement Towards 2016 of eliminating consistent poverty by 2016 [10714/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The challenge for this new Government is unlike any faced before. The priority of this Government is to get our economy moving, restore confidence, fix our banking system and support the protection and creation of jobs. The success of our economic plans will lay the foundation for the rest of our agenda for change and the jobs initiative being announced today is the first step in this regard. It is important to state that the most recent memorandum of understanding with the EU-ECB-IMF does not provide for specific cuts to child benefits, disability allowances and other social welfare payments. The overall aim of the memorandum is to ensure that public finances are sustainable and, to this end, the State must pursue a determined deficit reduction strategy. This will impact on current expenditure across all Departments, including the Department of Social Protection.

The Government is committed to tackling Ireland's economic crisis in a way that is fair and balanced and which recognises the need for social solidarity. This is explicitly reflected in the commitment in the programme for Government to maintain social welfare rates.

I am fully aware of the key role the payments made by the Department play in the social and economic life of this country and in preventing poverty. This is illustrated in the annual survey on income and living conditions carried out by the Central Statistics Office. The latest available report shows that in 2009, more than 91% of the average gross household income of households in the lowest income decile was made up of social transfers. The percentage of gross household income made up of social transfers remained above 50% up to and including the fourth decile where 65% of gross household income was made up of social transfers. In addition to reducing poverty, these social transfers enable households to purchase goods and services in the local economy thereby sustaining jobs and economic activity at a higher level than would otherwise be the case.

Additional information not given on the floor of the House.

While the payments made by my Department have these very positive economic and social effects, there is an ongoing necessity to curtail expenditure in 2012 and in later years. This is necessary for many reasons, not least so that we can continue to make social welfare payments at appropriate levels, sustaining social cohesion and treating people with dignity. Any changes to the wide range of schemes and services operated by my Department will be considered in a budgetary context later this year. This consideration will be informed by the comprehensive review of expenditure currently under way, which will be completed by September.

Photo of John HalliganJohn Halligan (Waterford, Independent)
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The Minister has one of the largest portfolios and there are many questions on the agenda today that affect many people. I am absolutely appalled the Minister is the only Government Deputy present today. I hope the media will take that into consideration.

New research by Social Justice Ireland shows that poverty in Ireland is at an all time high. Since 1987 the income of the top 10% high earners has increased to the detriment of the least well off in society. One in ten children now lives in consistent poverty, a scandalous figure. That figure increased by half last year under the Fianna Fáil Government, largely as a result of its social protection policies.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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The Deputy only has six minutes. He must ask a question.

Photo of John HalliganJohn Halligan (Waterford, Independent)
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I will not need six minutes.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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The six minutes are for all contributors.

Photo of John HalliganJohn Halligan (Waterford, Independent)
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Will the Minister make a commitment today that there will not be any more cuts in welfare benefits, jobseeker's allowance, disability pensions and carers' allowances to ensure the less well off will be protected? In opposition, the Minister opposed all cuts to social welfare payments and advocated the protection of the less well off. Will she give a commitment to the hundreds of thousands who will not be able to afford breakfast in the morning and who will send their children to school without proper clothes, heating or food in their bellies that there will be no further cuts in social welfare?

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I thank the Deputy for his remarks and I share his concerns about children who are experiencing poverty; all Members share that concern. I reiterate the commitment in the programme for Government on social welfare rates by both parties but resources are constrained. Before the budget for 2012, there will be a poverty impact study by the Department and in addition, a comprehensive review of expenditure is under way and it is to be completed by September. That will contribute to the decisions made in the budget for 2012.

Photo of John HalliganJohn Halligan (Waterford, Independent)
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When the Minister was on the Opposition benches, she spoke about eliminating poverty by 2016. The elimination of poverty is about increasing welfare payments for the least well off, but it starts with not reducing those payments any further. I listened intently to the Deputy in opposition when she was an advocate for the less well off. I would like her to stand by that now for the sake of those worst affected by the economic downturn who are suffering horrendously on social welfare so at the very least, their income will not be further reduced.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The most important anti-poverty strategy the country has ever had will be to get people who are unemployed through no fault of their own back into a job. There are those in every town and village in Ireland who never expected or wished to be unemployed but who have lost their jobs or businesses. The primary job of this Government is to ensure people get back to work. That is the strongest anti-poverty measure any Government can put in place.