Tommy Broughan (Dublin North East, Labour)
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Question 24: To ask the Minister for Social and Family Affairs if his attention has been drawn to the recent ESRI report, Trends in Welfare for Vulnerable Groups, 1994-2001, which found a widening gap between rich and poor; the steps he will take to ensure that this gap is closed; and if he will make a statement on the matter. [30943/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I welcome the ESRI report, Trends in Welfare for Vulnerable Groups, 1994-2001, which will be a useful addition to the research on poverty levels for vulnerable groups. The report provides an insight into the situation of these groups in terms of their risk of experiencing poverty and social exclusion.

Although this report refers to the period from 1994 to 2001, a combination of economic growth and active labour market policies has led to Ireland maintaining its strong employment performance in the years since then. The overall employment rate increased from 65.7% at the end of 2003 to 66.7% at the end of 2004. The overall labour force participation rate was 61% at the end of 2004.

It is important to recognise that these polices have seen a significant reduction in the actual number of persons whom the ESRI categorise as being in the economically vulnerable class, that is, persons experiencing relative income poverty, basic deprivation and economic strain. In 1994 about three in ten persons were in this category. By 2001, the ESRI states this had fallen to just one in nine.

Since 2001, active labour market policies have continued, as has the policy of increasing social welfare payments well above the rate of inflation. One of the consequences of the rapid economic growth experienced in Ireland has been significant increases in net household incomes from employment and profits. There have also been substantial increases in real terms in social welfare payments, but these have not been at the same pace as the increases in incomes generally. The recent UN Human Development Report showed, however, that when measured using the anchored poverty line approach, which adjusts poverty lines each year according to changes in consumer prices, the level of poverty actually fell in Ireland by 55.9% between 1994 and 2000. The policies that produced this outcome have continued to apply since 2000.

The causes of poverty are many. Working to eradicate it requires action across a range of different policy areas. The Government strategy includes actions in relation to employment, social welfare, education, health, housing, equality and so on. The strategic approach in the national action plan against poverty and social exclusion, NAP/inclusion, means that these actions are being co-ordinated in an integrated joined-up way by the office for social inclusion, which is located in my Department. It also means that through this process the experience and best practice of the other 24 EU countries can be readily availed of in developing and implementing effective policies to combat poverty and in evaluating their implementation.

The higher than average risk of poverty for certain vulnerable groups, such as those identified in the ESRI report, means that targeted efforts are required for persons in these groups. This is why the NAP/inclusion specifically contains targets and commitment for these, and other, vulnerable groups, designed to alleviate the cumulative factors which result in their higher than average risk of poverty rates. A key set of factors in this regard are the barriers to employment in relation, for example, to lack of education and training, to lack child care and other services that can prevent people getting well paid jobs — the best route out of poverty. The upcoming consultation process for the next NAP/inclusion, to be produced in late 2006, will include a renewed focus on vulnerable groups, with a view to identifying policies, such as those for removing barriers to employment, to improve their situation.