Dáil debates

Wednesday, 15 June 2011

Priority Questions

Social Welfare Benefits

1:00 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Question 30: To ask the Minister for Social Protection if she remains committed to maintaining social welfare rates as set out in the Programme for Government. [15463/11]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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As I have just told the House in answer to the previous question, the Government is committed to tackling Ireland's economic crisis in a way that is fair, balanced and which recognises the need for social solidarity. The appropriate level of overall expenditure by my Department will be considered in the context of budget 2012 and subsequent budgets. This consideration will be informed by the commitment in the programme for Government to maintain social welfare rates. There will be an ongoing necessity to curtail overall expenditure in 2012 and in later years. The comprehensive review of expenditure currently under way in all Government Departments and agencies will form the basis for achieving this objective. Draft reviews will be submitted to the steering committee in July and they will be finalised over the summer.

The objectives of the review are to inform the best use of resources and to guide us in achieving the Government's public service reform objectives. Better use of resources will enable us to meet overall fiscal consolidation targets, realign spending with programme for Government priorities, target resources at the most effective programmes and set new objectives so that we can continue to make social welfare payments at appropriate levels, sustaining social cohesion and treating people with dignity. All Departments are covered by the review, with each Department preparing a comprehensive assessment and review of programme savings and the identification of efficiencies and reforms.

Cross-cutting issues which relate to a number of Departments are also being examined. The new expenditure review process is crucial to the success of our Government programme. The outcome of the review will be considered by the Government in September. Any changes to the wide range of schemes and services provided by my Department, including the levels of welfare payments, will be informed by the overall Government-wide options identified in the review to better and more efficiently targeted scarce resources.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I asked this question in the context of the commitment in the programme for Government that the Government will maintain social welfare rates. Is that commitment in respect of all social welfare programmes and all rates? Is it for this year, next year and every year? The Minister for Finance, Deputy Noonan, spoke last week about the finances being on track and the commitment in last year's budget being adhered to, in order words, so far so good in respect of the public finances. Does that now afford the Minister the opportunity to commit more specifically than she has done heretofore, reaffirm the commitment in the programme for Government and state now that existing social welfare rates will remain?

I worry when I hear the Minister say "in the context of the budget", "the most effective programmes" and so forth because that may mean she is beginning to make choices in regard to rates. The Minister's commitment is in regard to all welfare rates. Can the Minister reaffirm that considering what the Minister for Finance said last week?

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The commitment in the programme for Government is in regard to welfare rates but the commitment is also to reform and to a comprehensive expenditure review. We had a discussion earlier on Tús and other programmes and options that are available to get people back to education, training and work experience. Part of the reforms I hope to see in the Department is to ensure that younger people do not drift into being on long-term social welfare. It is not good for them, their families or their children. The reform of the social welfare system is to provide options, opportunities and encouragement for people to become active and engaged.

Social welfare involves paying pensions to older people who have retired. We want to ensure that money is spent in a way that is targeted and effective but that also provides options and opportunities that ensure people become active and activated.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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Can the Minister commit to the existing social welfare rates, notwithstanding the authorisations, changes and overhaul of various systems she spoke about in grandiose terms? I take at face value the Minister's commitment in that regard but I ask her to confirm the commitment in respect of the existing rates, especially in the context of what the Minister for Finance said last week.

3:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Suggesting to people that we will reform the social welfare system in a way that ensures people get options and opportunities is not in any way grandiose. I would have thought that was common sense because if we look at any community in any village or town throughout the country we see a wealth of resources available and a community spirit that is anxious to work with the local community and give people opportunities to develop and prosper.

The social welfare system, particularly for those in their active working years, has to be geared to give the maximum encouragement to people who have lost their jobs or were never able to get a job in the first place, so that they can avail of opportunities in education to improve their employability. That is an absolutely critical reform.

The programme for Government commits to maintaining social welfare and to a comprehensive expenditure review. The expenditure review requirements are very onerous. The country is in an IMF structural adjustment programme. That is something to which the previous Government signed up and bequeathed to this Government. We hope to be able to exit that programme and return the country to full financial independence and sovereignty. In the meantime, everything must be reviewed.