I propose to take Questions Nos. 10 and 22 together.
I am glad of the opportunity to put into perspective my comments on the future funding of social welfare services during the Fifth Conference of European Ministers for Social Security which I had the honour to host in Limerick three weeks ago. The conference was held under the aegis of the Council of Europe. The theme of the conference was "Social Security and the Labour Market" and it is not surprising, therefore, that the issue of the future funding of social welfare services should be raised in that context.
There is a clear commitment in the Programme for Economic and Social Progress to protect social welfare rates against inflation and to endeavour to improve as the resources of the economy grow. This Government have honoured that commitment. The question of further increases in rates is a matter for consideration at budget time in the light of available resources.
My comments at the conference were directed at drawing attention to a common feature of social security spending which is being experienced by governments across Europe. That trend is reflected in an increasing financial burden arising from factors such as rising unemployment and the ageing of the population. I made the point that we in Ireland are no different. In our situation, our rate of unemployment is unacceptably high and is a major constraining factor on the development of our economy. It follows, therefore, that with our rising number of unemployed and the high dependency rate inherent in our demographic situation we will find it more and more difficult to fund an increasing level of social welfare expenditure, without an improvement in the economic and financial situation.
My comments in this regard are not new. I made the same point during the passage of the Social Welfare Bill, 1992, some weeks ago. What I said at that time was that the notion that social security in this country was self-financing was a myth. Employers and employees pay into what is called the social insurance fund but the Exchequer also makes a very large contribution to that fund which makes good the deficit between what is received by way of contributions and what is paid out in benefits and pensions. The size of the Exchequer contribution this year will be £143.6 million as in the published Estimates for my Department.
In terms of the problems facing us in the future, we need to consider whether a fundamental review of our social security systems is necessary, which will address the question of targeting our scarce resources to those most in need. In addition, we need to deal with the problems caused by the sheer complexity, range and multiplicity of our social welfare schemes by simplifying and streamlining the system so that it can be more easily managed and understood.
My Department are currently examining those issues. I am preparing proposals at present for simplifying and streamlining the various means tests for social assistance schemes with a view to the introduction of one unified social assistance scheme. The question of the links between social welfare and the taxation system and the scope for closer integration of the two systems is also under examination.