Joan Burton (Dublin West, Labour)

In the context of a general discussion on the points raised by the two Senators, I agree the framing of the social welfare budget for 2012 has been exceptionally difficult. Ultimately, however, I had been left with a framework of cuts proposed by Fianna Fáil that ran between €622 million and well over €800 million. I do not suggest Fianna Fáil found implementing such measures to be pleasant either because in each of the preceding two years the cuts made by Fianna Fáil to social welfare payments had amounted to more than €800 million. This had meant a loss over two years of €27 a week for a married couple and a loss of more than €16 a week for a single person. Fianna Fáil had favoured across the board cuts which had resulted in highly significant drops in income for everyone in receipt of social welfare benefits.

During the Second Stage debate I told Members that I had made a conscious decision to maintain the primary social welfare rates for two reasons. First, those in receipt of social welfare payments had already suffered significant cuts to weekly payments in the previous two years. There had been across the board cuts to child benefit. Members should recall that I chose to defend basic rates and the overall consequence of so doing is clear. The overall cut in social welfare expenditure is €475 million, leaving overall expenditure at €20.5 billion. Consequently, the reduction next year is approximately 2.2%. Given the enormous difficulties and deep recession facing the country, this was as low as I could get the reduction.

The second reason I opted for this approach is, as I stated in my Second Stage contribution, social welfare expenditure is extremely important from an economic stimulus point of view in each town and village. Maintaining core social welfare rates will have the most beneficial effect on the economy in terms of maintaining purchasing power. Against much advice, I have been able to maintain the core pension payment for all pensioners, as well as payments to carers either on a full-time or half-rate basis. Managing to achieve this for carers and pensioners, given their importance in Irish society and the contribution they had made and continue to make, constitutes a significant achievement.

I understand Fianna Fáil's concerns, but that party left a menu or parting note on my desk in the Department of specified cuts of between €622 million and €822 million. I was obliged to negotiate on what had been left as my legacy by Fianna Fáil in extremely difficult circumstances. In that regard, I have sought to protect core payments. In addition, I have negotiated successfully with my partners and the other members of the Government to reduce the overall figure in respect of what Fianna Fáil left behind to €475 million. I acknowledge a cut of €475 million is still deeply painful and not something I would have wished for. However, it emphasises the prospects for reform to further improve the possibilities for people in receipt of social welfare payments, particularly those who are unemployed, to return to employment.

Senator Paschal Mooney has suggested all of the savings should be made through activation meaures. I am sure he is aware that to create a good activation system under which people would have good prospects, one must spend money to get people back into education and training.

We will also be obliged to spend a great deal of money in assisting people to obtain jobs. It is not always possible to persuade employers, large or small, to give job opportunities to some of the 400,000 plus individuals who are on the live register. Vacancies are sometimes being filled by those who are not on the register. This is a major issue. Activation is not cost free. We need a major discussion on this matter, not just with those who are unemployed — and who require access to pathways and options — but, in the context of job opportunities that become available, with employers. Some 125,000 people left the live register during the year. These individuals replaced those who had retired, they filled new vacancies and so on. It is a matter of concern that sufficient numbers of people on the live register did not obtain an adequate proportion of the total quantum of jobs available. That is an issue to which we may return at a later date.