Barry Cowen (Laois-Offaly, Fianna Fail)
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Question 15: To ask the Minister for Social Protection if she will confirm that there will be no cuts to current rates of social welfare payments. [21598/11]

Joan Burton (Dublin West, Labour)
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The Government is committed to tackling Ireland's economic crisis in a way that is fair, balanced and that 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. However, sustainable public finances are a prerequisite for future economic stability and growth, as well as being a prerequisite for maintaining and developing our social protection system. To this end, the State must pursue a determined deficit reduction strategy. The Government believes it is appropriate, to enhance international credibility, to stick to the aggregate adjustment as set out in the national recovery plan for the combined period of 2011 and 2012. Accordingly, there will be an ongoing requirement to curtail expenditure in 2012 and in later years. This is necessary for many reasons, not least so that the State can continue to make social welfare payments at appropriate levels, sustaining social cohesion and treating people with dignity.

The priority of the Government is to get the economy moving, restore confidence, fix the banking system and support the protection and creation of jobs. The success of its economic plans will lay the foundation for the rest of its agenda for change. The jobs initiative is the first step in its recovery strategy and includes a number of initiatives that will be administered by my Department, including the recently-announced internship scheme, JobBridge. In addition, the Social Welfare and Pensions Act 2011 provided for the halving of the lower rate of employer PRSI, thereby making it cheaper for employers to take on and retain workers and thereby reduce unemployment.

There are considerable challenges ahead including the need to protect, as far as possible, the key income supports and services operated by my Department. This process will be informed by the comprehensive review of expenditure currently under way in all Departments and Government agencies, with the key decisions being made in the context of framing the budget for 2012.

Barry Cowen (Laois-Offaly, Fianna Fail)
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I thank the Minister for her initial response. While I acknowledge I have asked this question in the past, I do so in the context of more recent developments such as last week's cut in fuel allowances and so on. The question also arises in the context of the statement made by the Tánaiste, Deputy Gilmore, on the Government's 100th day in office when he stated categorically that welfare rates would not be cut, as per the commitment in the programme for Government. When asked previously, the Minister stated that while she could not necessarily stand over that commitment, she would do what she could for it. Only last week at a meeting of the Select Sub-Committee on Social Protection, she spoke of the efforts being made to make further savings in respect of anti-fraud measures-----

Michael Kitt (Galway East, Fianna Fail)
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The Deputy should frame a question.

Barry Cowen (Laois-Offaly, Fianna Fail)
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It is envisaged that only €50 million will be available in that regard over and above what was saved last year. This is what an official stated in the Minister's presence in response to an answer last week. Where does this sit in respect of the commitment made in the programme for Government or in respect of the Tánaiste's statement? Where does it sit in respect of the statement by the Minister, Deputy Howlin, who also entered the debate some weeks ago, to the effect that the Government would protect rates as far as possible? Does it remain the case that rates cannot be guaranteed as per the commitment in the programme for Government?

Joan Burton (Dublin West, Labour)
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My Department, in common with every other Department, is engaged in the comprehensive review of expenditure. Budgetary decisions will be made in the context of that review and in the context of the budget for 2012. As I have stated to the Deputy previously and as he will appreciate, I am not in a position to make statements or announcements on budget 2012 or in respect of the comprehensive review, given it is under way at present. However, I point to two issues. The Deputy referred to reductions in respect of certain elements of the household benefits package. One legacy issue from the previous Government relates to certain indicative savings, as I discussed in this Chamber during Question Time previously, pertaining to social welfare which included savings in the household budget scheme. Those commitments related to 2011, but they had not been published. They had not all been identified by the previous Government, but the indicative headings had been.

I have a problem with the second legacy issue arising from the period in office of Fianna Fáil and the Green Party. In its budget plan for this year it made provision for an unemployment job seekers' figure of 405,000, which is way out of line with the actual average figure, 445,000. There are attendant pressures. The decision taken last week was very difficult. However, as I said this morning at the committee meeting, there have been savings; for example, the Department no longer pays for the rental of telephone handsets from Eircom for which it was paying a significant amount of money. A discount has been achieved and the service has not been altered for individuals, but there has been a saving to the Department.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 16: To ask the Minister for Social Protection if she will reverse her decision to cut the fuel allowance and household benefits package in view of the impact such cuts will have on thousands of vulnerable persons including older people and those with disabilities. [21600/11]

Joan Burton (Dublin West, Labour)
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My Department will spend over €530 million in 2011 on the fuel scheme and the telephone, gas and electricity elements of the household benefits package which will benefit over 630,000 people. Difficult decisions have had to be made in the light of commitments made by the previous Government. Unfortunately, I am not in a position to reconsider the changes to the fuel allowance and household benefits package announced last week. From September, the fuel allowance is to be standardised at €20 per week, the current rate for the majority of customers, with no additional allowance payable to those living in a smokeless fuel area. The cost of the telephone allowance will be reduced following negotiations with Eircom which will ensure customers will receive €26.86 of value on their bills, at a cost to the State of €22.22 per month. The number of free units provided under the electricity and gas allowance scheme will be reduced to the level at the start of 2007 from 2,400 units to 1,800 per month. These three measures will generate savings of €17 million in 2011 and €65 million annually.

While we have had to implement these measures, the House should be aware that the savings were provided for last December in budget 2011 but were not specified or announced by the Government at the time. While, of course, we want to protect the basic social welfare payments which have very positive economic and social effects, regrettably there is an ongoing necessity to achieve savings owing to our commitments with the IMF-EU-ECB troika. There will be an ongoing necessity to curtail overall expenditure in 2012 and later years.

Energy poverty is a factor of income, energy prices and the thermal efficiency of the home. The most cost-effective means of protecting households from energy poverty is to reduce their consumption of energy through improving the thermal efficiency of the home. My colleague, the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, and I are working towards this end.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister's reply contains an amount of information but an amount of information is not contained in it. The Minister states €530 million will be expended this year, while the Estimates suggest a figure of €395 million; this is without taking into account the cut of €17 million which the Minister did not announce to the committee last week when we dealt with the issue. This is a time of rising prices and the Minister is cutting gas and electricity allowances by 20% and 25%, respectively, for pensioners in the main. In attempting to defend these indefensible cuts in recent days the Minister has repeatedly argued that 21% of those in receipt of the household benefits package do not use all the units included in the allowance. Will she acknowledge that neither she nor the Department knows anything about the circumstances of these 21% of recipients or, in fact, in many instances, the circumstances of the remaining 79%? Will she admit she does not know who they are, whether they are the ones sitting in the dark and the cold, scrimping and scraping and afraid to turn on the light and use up their allowance in case they exceed it? This is especially pertinent, given the recent hard winters we have endured. Many of them may be in hospital or even on holidays abroad, but we do not know. The Minister is basing a cut on the 21% on whom she has no information as a result of which the remaining 79% of recipients who exhaust their full fuel allowance will now be hit by a 25% cut.

Joan Burton (Dublin West, Labour)
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In reply to the Deputy's first point and his justified concern about the rise in energy prices my Department supplies a number of units, in this case, 1,800. If the energy price changes and is increased, the Department will cover this increase. I reassure those in receipt of energy units under the household scheme that any rise in the cost of the units is covered by my Department. If there are exceptional needs, community welfare officers can provide additional specific exceptional needs payments for those who may have specific additional needs. I have also said that should there be a third bad or very cold winter - I hope this will not happen - I will be open to considering, as was done by the previous Government last year, additional payments.

Total fuel allowance payments amount to €228 milliom, while the amount for electricity, telephone, TV licence and gas allowance payments comes to €367 million. The free travel allowance is a separate allowance and not under discussion, but the total amount comes to €74 million. I do not know from where the Deputy got his figures. Perhaps we might compare them. It may be that they relate to people in receipt of allowances as opposed to those in receipt of benefits who may be counted separately in a different part of the volume.