Joan Burton (Dublin West, Labour) | Oireachtas source

I understand the sentiments behind the amendment. The social welfare entitlements of European Union citizens moving around the EU are governed by EU regulations and the co-ordination of social security systems. These regulations have direct effect and override domestic legislation which would conflict with their provisions. Under these regulations, EU citizens enjoy the same benefits and are subject to the same obligations as citizens of the host country. Accordingly, an EU national working in Ireland is entitled to receive child benefit in respect of children living in the home country. The rate at which we pay is adjusted to take account of any payments which are made by the other country. The regulations are viewed by the European Commission as being very important in the context of the free movement provision of the EU treaties. For an amendment, along the lines suggested, to become effective, change would be required at EU level. The European Commission is the only body which can propose such a change. I have raised this matter with the Commission on a number of occasions and discussed it with the Commissioner for Social Affairs, but the agreement of the Commission to this proposal is highly unlikely. There are a number of member states which have concerns around this issue. The Commission attaches great importance to these arrangements in the context of free movement of citizens but there is also legal precedent from the European courts which suggest that any arrangements along the lines suggested, would not be in keeping with the EU treaties.

In terms of the current situation, the amount of child benefit paid in 2012 to children living abroad was €13.3 million for an average of 5,039 families who had 7,922 children. The amount paid in 2013 to is €6.1 million. The average number of families in 2013 to date is 4,893 for 7,792 children. Child benefit is paid to customers in 24 EU countries based on entitlements under EU regulations. We do not have an exact breakdown but there are countries which are significant recipients. Some of these are eastern European countries, including Poland, but also the UK because there is a great deal of movement between Ireland and the UK and also in regard to Northern Ireland which accounts for significant numbers. The situation is further complicated by the Northern Ireland cross-Border issue. The total number of claimants living abroad as of 21 June was 4,728 with 7,590 children. The total number of families receiving child benefit in this country is 614,000 who between them have 1.17 million children, so the total number of claimants abroad is 0.6% of that total. That represents a significant decrease on 2008 which was the high point of the payments when €20.9 million was paid. The amounts involved have reduced significantly, some of which relate to England, Ireland and the North, which is traditional.

Senator Michael Mullins and a number of other Senators asked about controls. Applications are carefully examined and vetted. We also maintain continual contact to confirm that the people are at the addresses stated. If people to not reply or there is no return from the address, we stop the payments immediately. In that way we have reduced the payments. However, it is an issue for a number of member states where social welfare payments are more generous than in some other states.

Certainly, to change the situation we would need the agreement of the Commission and of the European courts. In any of the court matters which have touched on this, the European courts have held the strong view that with the free movement of labour being a critical issue, certain entitlements which arise from working in a country should be available to all workers who move to that country to receive payment. Of course, there are Irish families who would receive payments from other member states, particularly if their payments and supports are significantly higher than the payments and supports here. The main difference is that in some countries the actual payment of child benefit is quite low but there may be child services, such as access to crèches and nurseries which are funded by the municipality. We have always concentrated on a very high cash payment whereas many European Union countries have a mixed system of services and cash payments. Some heavily emphasise services so that there is a universal take-up by children. Therefore the money is spent on children directly. During the period of intense economic growth, the emphasis was on large increases in the cash payment.

There was a change in that policy with the development of the early childhood education system and the introduction of a universal preschool year. I strongly supported that change. As a consequence, almost all children or families take advantage of the provision. It replaced the previous cash payment paid to parents of children under four years at a rate of €1,000 per year. Once the financial crisis began that payment was shifted. Children ranging between three and half and four years now benefit from a universal preschool year. It is one of those areas where we are slowly changing policy towards the mix that other countries have of cash benefits and direct service provision.