Mary Coughlan (Donegal South West, Fianna Fail)

I can see why this amendment is a hardy annual in discussions on the Social Welfare Bill. Heretofore, the rate of the increases has been well above that of inflation. Annual inflation is at 4.8%. The minimum rate increase is above that and takes inflation into consideration. I appreciate that there have been increases in some household expenditure but there have been reductions in many other essentials such as clothing and footwear.

It has been a key objective in all the Social Welfare Acts to protect and enhance the value of all rates of payment in relative terms. Further reports and analyses are not warranted. The consumer price index makes available to the public and my own Department the information requested. We also work closely with the ESRI and with the Combat Poverty Agency which analyses the impact of social welfare rates after each budget. Voluntary organisations do likewise. Even if inflation exceeded the budget projection of 4.8 per cent for this year, actual inflation to date will be fully taken into account when we consider revision of the rates for next year.

We are working on averages. Not all economists will agree, but we are going on a 4.8% inflation figure, and the social welfare rates increases have allowed for this, and for the necessities of people when unfortunately they find themselves dependent on my Department. Social welfare increases over the past years have well exceeded inflation, and many of this year's rates also exceed the projected inflation rate.