Pat Breen (Clare, Fine Gael)
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Question 121: To ask the Minister for Social and Family Affairs his views on whether the risk of being in poverty has increased substantially for elderly persons over the past ten years; and if he will make a statement on the matter. [17153/05]

Séamus Brennan (Dublin South, Fianna Fail)
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In the period 1994 to 2003, industrial earnings grew by 56% with prices increasing by 32%. At the same time, improvements in the old age contributory pension saw the payment grow by 74%, well ahead of both earnings and prices. However, average household income grew by 122%, driven by income tax reductions and increased workforce participation, and this has resulted in a relatively worse income position for older people and other groups.

Since first taking office, the needs of older people have been a priority for this Government. The Government has sought through significant increases in pensions and changes to other schemes to improve the position of older people. Since 1997, we have increased pensions by up to €80.26 per week or 81%. At present, the maximum rate of the old age contributory pension stands at €179.30. We are committed to increasing the rate to €200 per week by 2007 and significant progress towards this target has already been made.