Mary Lou McDonald (Dublin Central, Sinn Fein)
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To ask the Minister for Public Expenditure and Reform if he will equality proof the Government's Budget 2013 expenditure measures; and if he will publish the evidence generated as part of this pre budget proofing process. [51780/12]

Brendan Howlin (Wexford, Labour)
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With regard to budgetary matters, when focusing on the primary objectives of reducing the deficit and returning sustainability to the public finances, it has been of vital importance to the Government to spread the burden of the adjustments in as fair and equitable a manner as possible, while also seeking to minimise their negative impact on economic growth. The Government must ensure the available resources are spent in the best possible way and that critical services continue to be delivered.

The Deputy may be aware that the programme for Government contains a clear commitment requiring all bodies to take due note of equality and human rights in carrying out their functions. I also remind the Deputy that the State and its bodies must, of course, comply with all provisions of equality legislation in the development and delivery of policies and services. Furthermore, Cabinet procedures require that proposals put to the Government indicate clearly whether there is any impact of the proposal on, among other things, gender equality, persons experiencing or at risk of poverty or social exclusion and people with disabilities.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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I raised this issue with the Minister in advance of the budget because the series of austerity measures that have been introduced have hit so hard.

That is particularly evident in low income families and even in some middle income families too. The Minister is probably aware that the ESRI report on the distributional impact of budgets over recent years indicated that the 2012 budget, of all budgets, disproportionately hit people on lower incomes. The report indicated a reduction of approximately 2% or 2.5% of income for the poorest 40% of households, as opposed to a 0.7% impact on the top 30% of households. He is probably also aware that other studies, particularly one carried out by TASC, demonstrate very clearly that the group most at risk of poverty in this State is lone parents. They lost the highest percentage of income in the 2011 budget and that was exacerbated by the 2012 budget.

The Minister has spoken of sharing the burden fairly but I remind him of some of the decisions taken last year. There was a cut to child benefit for third and subsequent children and a cut to the earnings disregard for one-parent families.

Michael Kitt (Galway East, Fianna Fail)
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Does the Deputy have a question?

Mary Lou McDonald (Dublin Central, Sinn Fein)
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There were cuts in back to school clothing and footwear allowances. The Minister cannot take those types of decisions and then claim that he has done any kind of a meaningful equality audit in the proposals. I accept the Government must have due regard for equality law in making policy and carrying out functions but that was not the point of my question. Beyond a token nod towards equality and beyond the rhetoric, will the Minister carry out a comprehensive audit and review of the impact of the measures in mind on the nine categories covered by the equality legislation but most particularly on children and poorer families, or people living in or at risk of poverty? Will the Minister do so in advance of making his announcement on 6 December? Will he publish the information?

Brendan Howlin (Wexford, Labour)
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I will deal with a number of matters raised by Deputy McDonald. Nobody wants to live in an era when we reduce spending, and certainly not to the degree we are required to as part of the programme obligations we must meet to fund all services. We are borrowing money from a lender of last resort on certain conditions. The Deputy knows this full well.

When considering equality in the last budget, we had to consider the budget in its sequence, with a number of measures having an impact over time. We cannot repeatedly go to the same well and we must look to spread the impact. The ESRI SWITCH model does not, for example, take account of capital taxes or VAT, so that has a disproportionate effect. We increased three different types of capital taxes last year and they were not taken into account in that model. We took 300,000 of the lowest paid people from the universal social charge net and we restored the minimum wage, which the Deputy argued we would not or could not do. We also maintained basic social welfare rates.

This was a time when difficult decisions had to be made. More than 70% of all current public expenditure is in areas that affect ordinary people very heavily, such as the health service, provisions for vulnerable people and the social protection and education budget. It is impossible to make the reductions we are obliged to make without considering our options, and we have done that as carefully as possible.

All international studies indicate we must give lone parents the opportunity not to regard themselves as excluded from the workforce but rather provide a chance for them to enter this workforce through education and upskilling. That is the sort of focus the Minister for Social Protection has outlined in some detail.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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I agree with the Minister about providing an opportunity to work for one-parent families, so why in God's name would the Government reduce the income disregard for those people? The Minister mentioned the universal social charge, but there are still people earning €17,000 who are liable for it. I asked the Minister, who is responsible for expenditure, specifically about the measures I presume he will announce in the budget. I asked him, quite simply, to carry out an equality audit. We are not breaking any new ground and these procedures are commonly carried out in other jurisdictions. The Minister should be able to satisfy himself, this Dáil and public opinion that when he speaks about equality, serving its objectives and protecting people on very low incomes and children, he will be able to show this to be the case. I take it from the Minister's answer that he has no intention of implementing a proper equality audit or budget, which is very disappointing.

Brendan Howlin (Wexford, Labour)
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I would be very surprised if the Deputy took anything other than her own view of anything I say. I do not know why she expects an answer as she likes to respond to her own questions with conclusions given in a pre-prepared soundbite to be released afterwards.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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There is no answer.

Brendan Howlin (Wexford, Labour)
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We are in a desperate financial position.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Really.

Brendan Howlin (Wexford, Labour)
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I would not be flippant about this.

Mary Lou McDonald (Dublin Central, Sinn Fein)
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The Minister is being flippant.

Brendan Howlin (Wexford, Labour)
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This affects very vulnerable people and there are no-----

Mary Lou McDonald (Dublin Central, Sinn Fein)
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That is my point exactly.

Brendan Howlin (Wexford, Labour)
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Despite what the Deputy may say or pretend to say, there are no soft options. If a budget is to be downsized when more than 80% is spent on three areas that affect vulnerable people, and there is a requirement under a programme that pays our way to make substantial reductions, it is difficult to not have an impact on people who have carried a significant burden. This Government will act in as fair, balanced and considered way as is possible.