Michael McCarthy (Labour)

I move amendment No. 3:

In page 3, before section 1, to insert the following new section:

"1.—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 on the implications of increasing the fuel allowance and living alone allowance to take into account the increase in the cost of living since those allowances were last increased.".

The rate of inflation and the rise in the cost of living have affected us all but they have not been reflected in some payments, particularly in the fuel and living alone allowances. Consumer reports and surveys continually tell us that the cost of living is rising at a rapid rate. We can see the difference between goods purchased in Newry and Drogheda, an indication of the high prices we pay. The increase in the cost of living most affects those on the margins because the increases in their entitlements are immediately eroded. The Minister should look at this amendment and take into consideration that while these payments might seem small in an overall context, they are very important to those receiving them. It is important that increases reflect the increase in the cost of living.