Jim O'Keeffe (Cork South West, Fine Gael)
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Question 172: To ask the Minister for Social and Family Affairs his views on raising the rate of maternity benefit payable to bring it in line with the minimum wage; the cost of same; and if he will make a statement on the matter. [37624/06]

John Perry (Sligo-Leitrim, Fine Gael)
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Question 391: To ask the Minister for Social and Family Affairs if he will raise the level of minimum maternity benefit to bring it in line with at least minimum wage in view of the fact that the current minimum maternity benefit stands at nearly €3 less per hour than the minimum wage (details supplied). [37507/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 172 and 391 together.

Establishing a cost associated with aligning maternity benefit to the minimum wage would depend on the parameters used. It is estimated, on the basis of a rate of €298.65 per week for all maternity benefit claimants, that it would cost an estimated €38 million. This assumes a 39-hour week at the existing minimum hourly rate of wages. The proposals above would be a departure from the existing arrangements — envisaging a fixed rate for maternity benefit linked to the minimum wage rather than an earnings-related payment subject to a minimum and maximum rate.

Entitlement to maternity benefit for employees is contingent on entitlement to maternity leave — legislation for which is the responsibility of the Minister for Justice, Equality and Law Reform. Where women have accrued the requisite number of contributions required to establish entitlement and they are certified by their employers as entitled to statutory maternity leave, maternity benefit is paid during their absence from work.

Maternity benefit has been increased significantly over the past five years in terms of both duration and the amount payable. Maternity benefit is now paid at a rate €265.60 over 22 weeks — or €5,843 for the duration. This represents an increase of 90 per cent over a period where average industrial earnings increased by just 67 per cent. Most recently, Budget 2006 provided for paid maternity leave — and thus maternity benefit payments — to be extended from 18 to 22 weeks. These additional four weeks of maternity leave became effective on 1 March last and will assist some 10,800 women each week. The full year cost of this extension to the social insurance fund will be €32.5 m.

Further improvements in the duration of maternity benefit payments are planned for 2007. An additional four-week extension will be implemented in 2007 — bringing the total period of paid maternity leave and benefit to 26 weeks. Taken together, the full year cost of the 2006 and 2007 extensions will be €64m from the social insurance fund. Any additional improvements in the maternity benefit scheme would have to be examined in the context of the wider fiscal environment and the strategy which we have adopted in relation to social insurance contributions

I am satisfied that the rates and duration of maternity benefit in Ireland represent a reasonable response to the income needs of women on maternity leave and can be favourably compared internationally. While there are no immediate plans to extend the period for which maternity benefit is paid, this issue is being kept under review.