Brian Hayes (Fine Gael)

I apologise on behalf of our spokesperson, Senator Cummins, who regrets greatly that he is unable to take this important Bill because he has been in hospital in recent weeks. He has asked me to stand in for him tonight and tomorrow. I welcome the Minister and her officials, whom I know very well given that I was social welfare spokesperson for my party for two years in the Dáil. I admire the officials greatly for their knowledge of what is one of the most complicated areas of public policy and for the advice they have given Governments, Members and committees of the Houses over the years.

Many Governments have, over the past ten or 15 years, seen a radical reduction in consistent poverty. Ireland's figures compare favourably with those of other countries given the considerable reduction in the number of people in consistent poverty. Such people may not have a house, warm clothes or enough money to provide the bare essentials.

The main problem we face, which has been exacerbated in recent budgets, is the rise in relative income poverty in spite of the fact that we have had a very successful policy on reducing consistent poverty. The gap has grown substantially in relative terms in the past seven years in particular. Part of the problem concerns the social welfare system, for which the Minister is responsible, but a more significant part concerns taxation policy. There are only two ways in which the State can have an impact on people's income, either through direct taxation or social welfare.