Michael McGrath (Cork South Central, Fianna Fail)
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Question 28: To ask the Minister for Social Protection if she will assure Dáil Éireann that there will be no further reductions in social welfare allowance. [21425/11]

Barry Cowen (Laois-Offaly, Fianna Fail)
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Question 41: To ask the Minister for Social Protection if she will confirm that there will be no cuts to current rates of social welfare payments. [20290/11]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 28 and 41 together.

The Government is committed to pursuing the deficit reduction strategy in a way that is fair, balanced, and which recognises the need for social solidarity. Sustainable public finances are a prerequisite for future economic stability and growth, and for maintaining and developing our social protection system. In that regard, the Government believes it is appropriate, in order to enhance international credibility, to stick to the aggregate adjustment as set out in the National Recovery Plan for the combined period 2011- 2012.

The appropriate level of overall expenditure by my Department will be considered in the context of Budget 2012 and subsequent Budgets. This consideration will be informed by the commitment in the Programme for Government to maintain social welfare rates.

The economic situation is such that there will be an ongoing requirement to curtail expenditure in 2012 and in later years. This is necessary for many reasons, not least so that we can continue to make social welfare payments at appropriate levels, sustaining social cohesion and treating people with dignity.

The priority of this Government is to get our economy moving, restore confidence, fix our banking system and support the protection and creation of jobs. The Jobs Initiative is the first step in our recovery strategy and includes a number of initiatives which will be administered by my Department including the recently introduced Internship Scheme JobBridge. In addition, the Social Welfare and Pensions Act, 2011, provided for the halving of the lower rate of employer PRSI thereby making it cheaper for employers both to take on and retain workers and thereby reduce unemployment.

There are considerable challenges ahead including the need to protect, as far as possible, the key income supports and services operated by my Department. This process will be informed by the Comprehensive Review of Expenditure which will be completed over the summer. The findings of the Review will then be available to the Government and will feed into its discussions on possible changes to schemes and services generally. The key decisions in this area will be made in the context of framing the Budget for 2012.