Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The programme for a partnership Government contains a commitment to develop the process of budget and policy proofing as a means of advancing equality, reducing poverty and strengthening economic and social rights. It also includes a commitment to ensure the institutional arrangements are in place to support equality and gender proofing in key Departments and the independent fiscal and budget office. I am pleased to advise that several initiatives have been undertaken for this year's budget to progress this commitment, including a range of analysis that has been published as part of this year's budget documentation.

Annex A of the budget book presents information illustrating the effect of the budget measures on different examples of income earners and household types across a range of income levels. It also contains tables showing the development over time of the average effective tax rate for different household types across a range of incomes from a variety of sources.

Annex B of the budget book, Income Tax and Progressivity Issues, analyses the role the income tax system plays in the distribution of income, an important factor in assessing the fairness of budgetary policy.

As is customary following each budget, the Department of Employment Affairs and Social Protection will shortly publish a social impact assessment of the budget. This will use the SWITCH model to consider the impact of budget 2018 on households across the income distribution and present its overall distributional impact by income group and family type. It will also examine the impact of the budget on the "at risk of poverty" rate and work incentives. The social impact assessment is being completed in consultation with the Department in respect of the income tax elements of the budget.

The social impact assessment framework developed by the Department of Public Expenditure and Reform to facilitate a more comprehensive assessment of budgetary policies on household living standards is described in the paper, Equality Budgeting: Proposed Next Steps in Ireland, which is also published on the budget website. This framework will complement the established social impact assessment carried out by the Department of Employment Affairs and Social Protection.The framework focuses on policy areas that cannot be incorporated easily into the existing SWITCH model, specifically the impacts of public expenditure on recipient households. It also outlines the pilot approach taken to gender budgeting adopted for this budgetary cycle. I acknowledge that budget and policy proofing is an important means of advocating for and advancing equality, reducing poverty and strengthening economic rights, but I am also cognisant of policies and strategies being developed across the Civil Service, which work informs the policy options advanced. I know, for example, that my Department is represented on the group which is considering the national strategy for women and girls for the period 2017 to 2020 which is underpinned by the societal values of equality, non-discrimination, inclusiveness, generosity, intersectionality, diversity and respect for human rights. I will ask officials in the Department how these issues might best be addressed in the context of next year’s budget. Therefore, I do not plan to accept the recommendation.