Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 26: To ask the Minister for Social and Family Affairs when revised regulations will be introduced in relation to the diet supplement; and if he will make a statement on the matter. [37243/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 26, 34 and 79 together.

Diet supplements are provided through the supplementary welfare allowance scheme which is administered on my behalf by the community welfare division of the Health Service Executive. Any person who is receiving a social welfare or health service executive payment, who has been prescribed a special diet as a result of a specified medical condition and who is unable to provide for his or her food needs from within his or her own resources, may qualify for a diet supplement under the supplementary welfare allowance scheme.

Diet supplements are subject to a means test. Under the existing scheme. the amount of supplement payable in individual cases depends on which of two categories of diet — low cost or high cost — has been prescribed by the applicant's medical adviser, and the income of the individual and his or her dependants.

With effect from 1 January 2004 the diet supplement scheme was restructured to take account of increases in both social welfare payment rates and the rate of food inflation. In the case of new applicants for diet supplement the amount of supplement payable is based on increased up-to-date diet costs, €44 for lower cost diets or €57 for higher cost diets, less one third of the applicant's income or one sixth of the joint income in the case of a couple.

As increases in the social welfare payment rates were higher than food price inflation since 1996, the shortfall to be met by the diet supplement is less than it was in the past. However, as a special arrangement, people who were in receipt of a diet supplement prior to the introduction of the revised regulations on 1 January 2004 continue to receive their existing rate of supplement until such time as there is a change in their circumstances that would warrant a review of their cases. Pending any further changes, similar arrangements continue to apply this year for existing and new cases, taking account of 2005 rates of social welfare payments.

In order to inform a re-appraisal of the scheme, my Department commissioned a study by an expert from the Irish Nutrition and Dietetic Institute. The study examined the special diets prescribed in legislation for which assistance is available through the existing diet supplement scheme. The study also considered the appropriate level of assistance required to cater for any additional costs involved in providing for necessary special diets, relative to the cost of a normal healthy eating diet.

The findings of this research study have been assessed by my Department to determine how the diet supplement scheme should be enhanced to best effect. Development of a new scheme is complex, as the expert advice is that certain diet conditions covered under the existing scheme should be adjusted quite significantly in the light of the latest medical thinking on nutrition. The institute also investigated the costs of its recommended special diets and compared those with the cost of a normal healthy eating diet, to advise me on the scale of supplements that might be needed. The Irish Nutrition and Dietetic Institute, which carried out the original study, will be formally presenting its report to me shortly.

In finalising a revised scheme and regulations, I want to make sure that any new supplement coverage and payment rates put in place continue to enable people on low incomes to meet the identified extra cost of medically recommended special diets if they need them. In the meantime, diet supplements continue to be provided for existing recipients and new applicants heretofore.

Brian O'Shea (Waterford, Labour)
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Question 28: To ask the Minister for Social and Family Affairs his plans announced in an interview with a newspaper (details supplied) of 2 August 2005 for the establishment of a new agency to take over responsibility for the administration and payment of welfare benefits; when the agency will be established; if same will require legislation; and if he will make a statement on the matter. [37217/05]

Séamus Brennan (Dublin South, Fianna Fail)
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My Department is pursuing a modernisation programme which aims to build on the quality service it provides at present and to ensure an excellent service is maintained into the future. The establishment of a separate agency to administer and deliver social welfare payments is one of a number of options that are under consideration as part of the public service modernisation programme.

The concept of a separate agency for the delivery of social welfare services is not new. A number of countries such as New Zealand and Australia have followed the route of setting up separate executive agencies to deliver some of its services.

The Deputy will be aware of the Benefits Agency which was set up in the UK as an executive agency within the Department of Social Security. The Benefits Agency was replaced by Jobcentre Plus in April 2002 and it currently operates under the aegis of the Department for Work and Pensions. The administration of state pensions in the UK is the responsibility of the Pension Service, which is also an executive agency of the Department for Work and Pensions.

My Department has been structured on Aireacht-Executive lines since the mid-1980s. The Aireacht is responsible for researching and formulating social welfare policy. It also provides a range of corporate services including personnel and finance.

Social Welfare Services is the executive arm of the Department and is responsible for the administration and management of social welfare schemes and services through a network of local, regional and decentralised offices.

My Department is currently embarking on a significant programme of change under the Government's decentralisation initiative and is extremely conscious of the need to carefully manage change so as to ensure that the service it provides to its customers is not adversely affected.

The proposal for a separate social welfare agency is at the embryonic stage and will need to be examined in detail before consideration could be given to its feasibility. Assessments must be made regarding potential improvements in services and the economies or efficiencies that might accrue from such an approach. Issues such as legal, operational, personnel and industrial relations matters will also have to be addressed.

My Department will have the opportunity of examining the experiences of countries which have already pursued this approach and it will be in a position to take on board the lessons from those countries in order to avoid any difficulties which could arise.

Setting up an executive agency to deliver social welfare services will require a major change and a comprehensive examination of all the issues involved and this will be carried out before detailed proposals drawn up. Overall, I consider there is considerable merit in moving the administration of payments to a stand-alone agency and in allowing the Department to focus more on social policy issues behind the welfare payments.