Mary Coughlan (Donegal South West, Fianna Fail)

Is breá an rud é go bhfuil mé ar ais sa tSeanad. Seo an chéad ócáid dom Bille a cur ós comhair an tSeanaid. I am very pleased as Minister for Social and Family Affairs to introduce my first Bill in this House. This is one of two Bills, intended to implement the social welfare package announced in the recent budget.

This year's social welfare package amounts to €530 million and represents some 40% of the total budget allocation of €1.3 billion. This is a reflection of the Government's priority to protect the living standards of social welfare recipients at a time when difficult decisions have to be made with regard to the management of the public finances.

Since the Government took up office in 1997, Ireland has changed dramatically for the better. The number of people at work has risen by 400,000 to 1.8 million, the rate of unemployment has fallen dramatically from 10.3% to 4.6% and the number of long-term unemployed has dropped from 90,000 to 22,000. Social welfare spending rose by over €3.5 billion between 1997 and 2002, well in excess of the rate of inflation, and payment rates for both recipients and their families have improved very considerably in real terms. Between 1997 and 2002, we increased the main payment amount for a pensioner couple by 50%.

As I outlined to Senators last month during the debate on the development of the social welfare system, the policies pursued by the Government over recent years in combating unemployment and in bringing about real improvements in social welfare have led to significant reductions in the level of consistent poverty. In 1994, the level of consistent poverty was 15.1% and this was reduced to 6% in 2000, the latest year for which figures are available.

However, this Government is most anxious to protect the weak and vulnerable in our society and to safeguard the gains made in building social inclusion. We are delivering an additional €833 million in social welfare spending next year, bringing the projected level of spending to over €10 billion for the first time. Social welfare expenditure in 2003 will be €4.5 billion higher than it was in 1997, an increase of nearly 80%.