Richard Bruton (Dublin North Central, Fine Gael)
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Question 17: To ask the Minister for Social and Family Affairs the comparison between public social expenditure here and that in each of the other EU countries and the EU average respectively; and if he will make a statement on the matter. [7965/07]

Séamus Brennan (Dublin South, Fianna Fail)
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Eurostat, the Statistical Office of the EU, publishes comparisons of social protection expenditure as a percentage of GDP across the European Union. This includes not only social welfare expenditure but also expenditure in areas such as health care, social housing, employment support programmes and other social inclusion programmes.

The latest such statistics were published recently by the EU Commission in an Annex to its 2007 Joint Report on Social Protection and Social Inclusion and cover developments up to and including 2004. No comparable figures are yet available for 2005 or 2006.

When examining such data it is important to remember that gross expenditure measures do not take account of social charges or taxes which may be levied on benefits after they are paid, nor do they include transfers made by means of tax concessions, as opposed to direct cash payments. For example, tax relief on contributions towards occupational and private pensions, which are an important feature of Ireland's pension system, is not counted as expenditure.

In 2004, social protection expenditure accounted for 27.3% of GDP in the EU-25 countries. The corresponding ratio for Ireland was 17% — up almost 3 percentage points from 2000 (14.1%). The Joint Report acknowledges that the very significant growth in GDP in Ireland means that the very significant real increases in benefit rates and child income support introduced in recent years is somewhat masked. It further notes that the level of expenditure in Ireland is also significantly influenced by the lower proportion of pensioners and the reliance on private pension provision to supplement the State pensions; and lower spending on unemployment benefits in the light of sustained low unemployment figures.

The fact is that under this Government there has been a sustained and substantial increase in social protection expenditure. Moreover, it should be noted that social welfare expenditure will have increased substantially during the 3 year period 2005 to 2007 — an overall increase of 26.3%, well ahead of the corresponding projected increases in prices and earnings. Following the improvements announced in the 2007 Budget, overall spending on social welfare will increase this year to a total of €15.47 billion — an increase of over €190 million from 2006.

This Government will continue to address the scope for further improvements in Ireland's social protection infrastructure, guided by the new National Anti Poverty Strategy, and the National Development Programme while at the same time continuing to take the measures necessary to maintain economic growth and competitiveness and thereby generate the resources for further social investment.