Brian Hayes (Fine Gael)

I move amendment No. 4:

In page 4, before section 3, to insert the following new section:

"3.–The Minister shall, as soon as may be, after the passing of this Act prepare and lay before both Houses of the Oireachtas a report:

(a) contrasting the increase in 2002 of the Consumer Price Index with the increases paid to the entitled persons under the Act of 2002;

(b) evaluating the suitability and appropriateness of the items and weightings used by the Central Statistics Office in computing the rates of increase in the Consumer Price Index to the needs of the principal categories of entitled persons under the Principal Act;

(c) setting out the Department's assessment of those groups potentially most seriously affected by significant inflationary pressures which may arise because of internal and external factors in 2003.".

We have about 45 minutes left in which to deal with the Bill, so we will probably make progress. As the Minister is probably aware, this is a long-standing amendment that has been tabled in respect of every Social Welfare Bill while I have been a Member. I am sure she has been advised that it cannot be accepted. Its objective is to ensure that the increases provided for in the Social Welfare Bill each year are indexed in respect of inflation. This year, the increases were in the region of €6 to €11. The increases already made, which bring themselves to bear on a range of services and goods, are such that it is difficult for those who have received them to make ends meet. Amendments Nos. 4 and 5 attempt to introduce an indexing section in the Bill that will allow us to see at regular intervals how the increases are holding in respect of the groups that have received them at the end of December and in early January. This makes absolute sense.

Inflation is posing a problem. As I said on Second Stage, any junior economist could tell one that the first people affected by inflation are those on fixed incomes because they have no way of amending those incomes to account for the increased prices of many goods and services. Hyper-inflation affects poorer people more than any other group in the economy. The Minister should acknowledge that there is a need to accept my amendment. If I am ever in her place, I might accept such an amendment.