Margaret Cox (Fianna Fail)

I thank all Senators who contributed to this debate and I thank the Minister for Social and Family Affairs for her attendance. Many comments referred to the carer's allowance. While I would also like to see the means test abolished, I have to point out that the carer's allowance will cost €132.8 million in 2002 and that figure would increase significantly if the means test was abolished. The Government has considered various possibilities, such as increasing the disregard, changing the respite grants, introducing free schemes for people in receipt of carer's allowance and introducing carer's allowance to people in receipt of domiciliary care allowance. At present – and perhaps until we return to the boom times to which Senator McHugh referred – the Government's present approach represents the best use of available funds. Abolition of the means test now would result in diverting funds from other areas where they are badly needed. We have to help as many people as we can in present circumstances. While we would like to abolish the means test for carer's allowance, that is something for consideration at another time, not in the immediate future.

Senator Ryan referred to the income limit of €121 for eligibility for a medical card. With the introduction of the minimum wage, people's earnings are not as low as that. The reduction in the number of people on medical cards is due to the fact that there are more people at work. The best way towards eliminating poverty and creating greater social inclusion is through the creation of sustainable employment rather than having people depending on social welfare payments.

Senator Ryan also referred to MABS and to issues which he said we should not be happy with. Inequality has been reduced. The proportion of people below 60% of the average income has fallen from 15% in 1994 to 6% in 2000. That is a significant improvement and further targets have been set for the anti poverty strategy, including a reduction in consistent poverty. Senator Mansergh posed the question as to whether it is better to be absolutely better off but relatively poorer as opposed to being relatively better off but absolutely poorer. I believe most people would agree it is better to absolutely better off. It is somewhat simplistic to speak, as we sometimes do, in terms of the rich getting richer and the poor getting poorer. That will continue to happen—