David Stanton (Cork East, Fine Gael)
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Question 140: To ask the Minister for Social and Family Affairs her views on the fact that 700,000 people here still live in poverty despite more than a decade of prosperity and economic growth (details supplied); her views on the way her Department will assist in reducing this figure; and if she will make a statement on the matter. [24807/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The overall goal in the National Action Plan for social inclusion is to reduce the number of those experiencing consistent poverty or basic deprivation to between 2 per cent and 4 per cent by 2012, with the aim of eliminating consistent poverty by 2016. The rate of consistent poverty was 6.5 per cent in 2006 (latest figures available), down from 8.2 per cent in 2003. The proportion actually in poverty is often confused with the bigger proportion identified as being "at risk of poverty". People who fall into that category have incomes below a set threshold, which in the EU has been set at 60 per cent of average median income. This threshold increased in Ireland by 98 per cent from €102.44 in 1997 to €202.49 in 2006, as a result of the rapid increases in household incomes generally, due to the exceptional economic growth. Over the same period prices (Consumer Price Index) increased by 35.8 per cent, average industrial earnings increased by 61.8 per cent and basic social welfare payments by 99.7 per cent.

The "at risk of poverty" measure, therefore, does not indicate that a majority of this group are in poverty, but that despite substantial improvements in income, the rate of improvement in living standards for those on lower incomes has not fully kept pace with the very rapid growth in incomes generally over recent years. However this trend is also being reversed. The percentage of persons "at risk of poverty" reduced from 19.7 per cent in 2003 to 17.0 per cent in 2006. Ireland's comparative position with other EU Member States has also improved, having reduced from the third highest "at risk of poverty" rate in 2005 to tenth highest in 2006.

The NAPinclusion 2007-2016, and Chapter 10 of the National Development Plan 2007-13 are designed to build on the substantial progress already made. The Government's priority aim under the National Action Plans is to provide, over the coming years, the extra assistance and support over a whole range of policies to lift the most vulnerable in our society out of poverty and to enable those on low incomes generally, especially children, to steadily improve their living standards towards the norms prevailing in Irish society. These are ambitious objectives, and the means to achieve these objectives are in the strategic plans. The Government are fully committed to their implementation.