There are only two and a half hours allotted for this Vote.
Supplementary Estimate, 1948-49. - Vote 66—Office of the Minister for Social Welfare.
I move:—
That a sum not exceeding £417,875 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending the 31st day of March, 1949, for the Salaries and Expenses of the Office of the Minister for Social Welfare.
The decrease of £30,605 in the net provision for this Vote as compared with last year is mainly due to a reduction of £28,118 in sub-head A—Salaries, Wages and Allowances. This reduction is due to the closing down of the food allowances branch, following the replacement of food vouchers by cash supplements, and to the co-ordination of functions previously performed by separate Departments. The total number of staffs shows a decrease of 138.
Closely allied with the question of possible economies in staff is the question of accommodation which creates a very big problem for me, not alone in Dublin but throughout the country. The Department's Dublin offices, excluding four employment exchanges, are housed in no less than eight separate buildings at widely scattered points ranging from the Custom House to the Castle and from Lord Edward Street to Earlsfort Terrace. This position, together with the existence of some duplication and overlapping of duties performed in different offices (which were formerly under different Departments) necessitated special arrangements for liaison and supervision and for the amalgamation of sections in the interests of economy and efficiency. In present circumstances there appears to be little possibility of reducing the total number of city offices, and I am afraid that the ideal of a central headquarters office is remote. I am endeavouring, however, to find some solution of this problem.
The largest provincial offices of my Department are, of course, the employment exchanges and, in towns where there are exchanges, the ultimate aim is to house all the local officials of the Department in these buildings so far as practicable. Action towards this end has been initiated in some towns but, unfortunately, many of the existing employment exchange buildings are too small to accommodate any extra staff and others are unsuitable even for their present use. In present circumstances, the acquisition or erection of suitable premises in a number of towns is not feasible and we must do the best we can with our existing premises, except in so far as urgent requirements compel us to make a change. I look forward, however, to the future when we can reorganise our local offices in suitable premises, housing all the local officials of my Department under one roof and eliminating the present wasteful system of scattered offices. In the meantime, within the limits of our resources, the aim is to reduce duplication, improve accommodation, where possible, and effect all possible savings in administraion and cost of premises.
I am also considering the problem of the 80 or 90 branch offices associated with the employment exchanges throughout the country. Except in a few cases, these offices are not staffed by civil servants and many of them are located in unsuitable premises. Deputies are already aware of the shortcomings of this system and I should like to assure the House that no time or opportunity will be lost in my efforts to remedy those defects. Consideration is being given at the moment to the feasibility of setting up a more satisfactory system.
Since the Estimates were circulated certain changes in the different schemes of social welfare have been under the consideration of the Government. It will be recalled that the late Government, as a temporary expedient to deal with the rising cost of living during the emergency, provided the recipients of benefits under several social security schemes with supplements to those benefits. In urban areas these supplements first took the form of food allowances, which during last year were replaced by cash allowances. In rural areas the supplements were in cash from the beginning.
Last year's cash supplements were given to recipients of benefit under both contributory and non-contributory schemes and represented generally a flat rate increase in the benefit and their whole cost was met by the Exchequer. The only exception was the supplementary cash allowances provided by assistance authorities to recipients of old age pensions in rural areas, in which case 75 per cent. of the cost was borne by the Exchequer.
These supplements to the various benefits were, as I have stated, a temporary expedient designed to meet the position which had arisen during the emergency period, but the necessity for them still continues. So far, however, as the insurance schemes of national health insurance, unemployment insurance and contributory widows' and orphans' pensions are concerned, the grant to beneficiaries of supplementary benefits payable in full by the Exchequer was a departure from their insurance basis, and I feel that the time has now come when the insurance principle should be restored. Under the provisions of the Social Welfare Bill, 1948, which was introduced yesterday, I propose, therefore, if the Oireachtas approves, to abolish the cash supplements at present payable to recipients of benefits under the insurance schemes, to increase the benefits by an equivalent amount and to increase the contributions to the amount necessary to meet the increased benefits. The effect of these proposals will be that cash supplements, which are now voted annually, will be amalgamated with the basic benefits and will be received as of statutory right by virtue of contributions paid. The House will be asked on the Bill to fix the 4th October next —the beginning of the second half of the current financial year—as the date from which the higher contributions will operate. The Exchequer will, of course, bear its normal proportion of the cost of the increase in the amount of the benefits.
On the non-contributory side it is proposed in the Social Welfare Bill to provide a scheme of old age pensions dispensing with cash supplements and payments through public assistance authorities and to have a new scheme of weekly pensions ranging from a minimum of 5/- to a maximum of 17/6 without any differentiation as between dwellers in rural and urban areas.
With regard to non-contributory widows' and orphans' pensions, it is proposed instead of the four existing areas to have two areas—one an urban area comprising the county boroughs, boroughs, urban districts and incorporated towns, and the second a rural area comprising the remainder of the State. In the proposed urban area the maximum weekly pension would range from 14/- for a widow alone to 58/- for a widow with ten or more children; in the new rural area the corresponding range of new weekly pension rates would be from 10/- to 54/-. It is also proposed to pay non-contributory pensions at the age of 48 (instead of 55 as at present) to widows who have no dependent children.
For both old age pensions and non-contributory widows' and orphans' pensions it is proposed to modify the means test considerably in favour of the claimant.
The changes being made in the old age pensions and non-contributory widows' and orphans' pensions codes will mean that substantial increases will become payable to beneficiaries under those services; the estimated additional cost in a full year will be around £2,500,000. As I have already explained to the House in replies to Parliamentary Questions, administrative difficulties will prevent payment of the increased rates of pensions for some time. After the necessary legislation has been passed, about 200,000 new pension books must be printed, and an individual review and reassessment undertaken in all cases. It will be appreciated that this will be a formidable task, but I can assure the House that it will be pushed ahead with all possible speed.
It is also intended that the cash supplement to unemployment assistance will lose its separate identity and be amalgamated with the basic allowance.
Since 1941-42, food vouchers have been issued by public assistance authorities by way of additional assistance for recipients of home assistance, and grants were made available from the Exchequer each year to meet the cost of the food thus supplied.
After the Social Welfare (Cash Supplements) Order, 1947, had come into force, the issue of food vouchers to certain beneficiaries under existing social welfare schemes was discontinued and the subsequent issue, under Government auspices, of food vouchers by public assistance authorities has been contrary to general policy. It was, therefore, decided that no part of expenditure incurred by public assistance authorities on the provision, after the 27th March, 1948, of food vouchers for recipients of home assistance would be recouped from the Exchequer.
It was appreciated that public assistance authorities would, as a result of the discontinuance of the issue of food vouchers, find it necessary to increase, in many cases, the amount of home assistance paid in cash. As the sudden withdrawal of the entire State subvention at the one time might inconvenience public assistance authorities, the Government proposes to recoup to those authorities, to the extent of 50 per cent., expenditure incurred by them on the provision during the present financial year of additional cash allowances in lieu of food vouchers, subject to a maximum recoupment in the case of each public assistance authority of an amount equivalent to 50 per cent. of the actual net expenditure by that local authority on the provision during 1946/47 of food vouchers for recipients of home assistance. The estimated total amount which will thus be recouped is £75,000.
It is not the intention that a similar grant should be made available in future years but that, instead, public assistance authorities will discharge their normal statutory functions.
The estimated loss to the rates for 1948-49 as a result of the reduction in the grant made available to meet the cost of additional assistance for recipients of home assistance is £75,000, equivalent to a rate of less than 1½d. in the £, spread over the country as a whole. The legislative proposals of which I have already spoken will, however, more than offset this loss, as the demands on public assistance authorities will be lessened as a result of the proposed improvements in the State-administered social welfare schemes.
My recent inspection of the principal Dublin institutions for the blind revealed that through lack of funds considerable difficulties were being encountered in the maintenance of the various services for that less fortunate class of our fellow citizens. I came to the conclusion, having regard to the increased cost of maintaining such institutions, that local authorities should be asked to increase their annual capitation contributions to £40 with effect from the 1s April, 1948. I am glad to say that almost all of those authorities have agreed to increase the contributions to that figure.
I thought it only fitting that something should also be done from the State side, and again I am pleased to say that the Minister for Finance has approved of proposals to increase the amounts paid from State funds to the approved agencies by way of annual capitation grants. The revised rates, which also become effective from the 1st April, 1948, are :—£40 per annum in respect of each workshop employee, £20 per annum for each worker maintained in a hostel, £20 per annum for each inmate of a home, £40 per annum for each pupil in a school residence.
With regard to blind pensions, I propose in the new Bill to grant pensions at an earlier age and to modify the means test as at present applied. I have also directed that an examination be carried out in my Department with regard to further proposals for the betterment of the conditions of the blind. I am seeking the authority of the Government for the establishment of a consultative council to advise me in matters affecting the blind. I need hardly say that the needs of this section of the community will be considered sympathetically by me.
Having dealt with the more important matters that actually arise on the Estimates, I take, with the permission of the House, the opportunity of making a few general observations on the activities of my Department.
Might I remind the Minister, for the information of the House, that Votes 66 to 44, inclusive, as set out on the Order Paper, are being covered?
As the House is aware, my Department has in hands the preparation of a comprehensive social insurance scheme. I hope to be in a position before long to present our proposals in the form of a White Paper, and I do not, therefore, propose to make any statement now as to what form these proposals may take. I should like to point out, however, that the subject is very complex and has many ramifications. Each of its elements calls for a considerable amount of deliberation before one can be satisfied as to the best course to recommend, and I would be unhappy to present anything less than the best that our resources will allow. In the meantime, Deputies would do well to give thought themselves as to what measures might be most suitable, with particular reference, perhaps, to the scope of the scheme (i.e., the persons to be insured) and the range of benefits.
In connection with the comprehensive scheme I may say that one of the problems to be solved is the future of the National Health Insurance Society. All the schemes of social insurance, except sickness insurance, are administered directly by the Department. In the case of sickness insurance, the direct administration of the scheme is carried out by the society. Most of the advantage which is expected to flow from the establishment of the Department of Social Welfare in the matter of co-ordination and control of administration would be lost if, solely because of the existence of the society, sickness insurance should continue to have an administrative organ separate from all the other services. Consequently, in the interests of efficiency and co-ordination, it will be necessary to integrate the society with the proposed comprehensive scheme.
Officers of my Department have recently had discussions with officers of the Ministry of National Insurance in Great Britain and of the Ministry of Labour and National Insurance in Northern Ireland with regard to the making of reciprocal arrangements as between the various schemes of social insurance. While there have never been any such arrangements in connection with unemployment insurance, such arrangements in connection with national health insurance have been in operation since 1923 and have worked satisfactorily.
Until the 5th of this month there was no great disparity in contributions and benefits under the insurance schemes in operation here and in Great Britain and Northern Ireland but, since that date, when new schemes came into operation in Great Britain and Northern Ireland, disparities are more marked and there is increased difficulty in effecting reciprocity. I expect, nevertheless, to conclude, in the next few days, agreements covering sickness and maternity insurance and the insurability of seamen, and I am not unhopeful that some worthwhile arrangement will be worked out in regard to unemployment insurance. Deputies will recollect that enabling legislation was passed about a fortnight ago.
I should like also, if I may, to make a brief reference to the establishment in April last of the Commission on Emigration and other population problems. Notwithstanding a few dissentient voices, I think the personnel of the commission has met with general approval, and I am confident of their ability to give us expeditiously a useful report on this most serious subject. I would ask all who are in a position to help to consider it their national duty to co-operate wholeheartedly with the commission so that we may be able to evolve a population policy and devise means for remedying such evils as emigration and rural depopulation.
I thought you had the remedy.
You talk on this Estimate and I shall deal with that.
Progress reported; Committee to resume later.