Dáil Éireann debate -
Thursday, 16 Feb 1956

Vol. 154 No. 4

Committee on Finance. - Vote 62—Social Assistance.

Minister for Social Welfare (Mr. Corish)

I move:—

That a supplementary sum not exceeding £844,000 be granted to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1956, for Old Age Pensions and Pensions to Blind Persons, Children's Allowances, Unemployment Assistance, Widows' and Orphans' Non-contributory Pensions, and for Sundry Miscellaneous Social Welfare Services, including Grants.

Deputies will recall the two Social Welfare Acts passed last year — the Social Welfare Act, 1955, which provided for increases in the rates of old age and blind pensions and widows' non-contributory pensions, and the Social Welfare (Temporary Provisions) Act, 1955, which authorised the doubling of such pensions in a week in December last.

This Supplementary Estimate is mainly to provide for the cost of these improvements which affected approximately 194,000 pensioners.

The increases in the rates of pensions took effect from the 29th July last and amounted to 2/6 a week for adults, with, in the case of widows' pensions, a further increase of 1/- a week each for one or two qualified children.

In the course of preparation of the Supplementary Estimate, the position under the other sub-heads of the Vote has also been reviewed. It has been found necessary to increase the original provision of £130,000 under sub-head H — Grants Towards the Supply of Fuel for Necessitous Families—by £35,000. This is mainly due to an increase in the price of machine turf as from the 1st September last and to payments to local authorities of balances of grants in respect of earlier years now falling due on receipt of final audit certificates.

On the other hand, it is now estimated that there will be a total saving of £148,000 on the original provisions for other sub-heads of the Vote. This saving is due mainly to the numbers of recipients of unemployment assistance and of children's allowances being less than had been expected, with consequential savings on the relevant sub-heads.

The provision in the original Estimate for Appropriations-in-Aid remains unchanged. The effect of the Supplementary Estimate is to increase the net amount required for social assistance in the current financial year to £18,425,500.

Mr. Cunningham

There are a few points in connection with this Supplementary Estimate with which I should like to deal. One is in connection with the increase which was given to a number of social assistance recipients, including old age pensioners, at Christmas. That was to compensate for an increase in one item for the 12 months. It does not cover the full increase. Is any provision being made, or will provision be made in the Budget, for a continuation of this increased payment on the termination of the period at present covered? In view of the increase in the price of tea, provision should be made for a permanent increase in the relevant social welfare benefits or at least for an increase that would be as permanent as the increase in the price of tea.

Having regard to the increase of 2/6 per week and the other increases mentioned by the Minister, I thought the Minister would have taken this opportunity of indicating the Government's intention in regard to social welfare payments generally because, since last July, the cost-of-living picture has changed considerably and is changing every day and promises to change considerably during the coming year. This would be the time and the opportunity for the Minister to indicate the Government's intention in regard to social welfare benefits generally. If it was found necessary in July last to increase these benefits as a result of the increases in living costs which had taken place, surely there is a much greater necessity now to review the picture and to indicate what the Government intends to do. Every day we have other sections of the community seeking and getting justice. Wage earners are seeking and getting justice; they are seeking increases solely on the grounds of the higher cost of living. They have methods by which they can enforce these things. Fortunately, a good number of employers, including the Government, have admitted that the grounds for such wage increase demands are justified and they have acceded to the demands and granted those increases.

The Government has done that in other cases, and so have many large employers. What I would like to hear now is what the Minister and Government intend to do in regard to these people who have no way of enforcing their just claims. It is almost nine months since the increase for which the Minister is now seeking money was granted — 26th July, last. Since then, we have had steep increases in the cost of living and there are promised more increases in the prices of such commodities as coal early in the year now commencing. This vast body of persons in receipt of social welfare benefits are anxious to know whether they can expect anything from the Government to compensate them for the very great hardships which the present cost of living position imposes on them. It is only right they should get some indication as to what they can expect.

Mr. MacCarthy

There is one aspect of the Minister's Supplementary Estimate to which Deputy Cunningham made a passing reference which I should like to elaborate, that is, the steep rise in fuel prices. In consequence of that, I would ask the Minister to review the position regarding the extension to necessitous persons and old age pensioners in other towns and cities the provisions already in operation in the chief cities for cheaper fuel during the winter months. I think representations have been made from time to time to the Minister to extend the provisions of that Estimate, so as to include these people. I feel sure the Minister is as concerned as we all are about the steep rise in coal prices over the past number of months and it would be a deplorable thing if some households were left without adequate fuel supplies during severe winter weather. I feel sure the Minister has been considering this and that he will endeavour to extend the scheme as I have suggested.

Mr. Corish

First, I should like to deal with the point made by Deputy MacCarthy in regard to the free fuel scheme. The Deputy will probably remember that this scheme was not introduced, so to speak, primarily as an assistance scheme back in 1940 or 1942. It was designed to ensure that people in certain districts in the urban areas and large cities would be guaranteed their supply of fuel. It is true and reasonable to say that it now may be regarded as an assistance measure. I could not make any promise at the present time in that regard.

Mr. MacCarthy

I did not expect the Minister would be in a position to do that.

Mr. Corish

But the Deputy will realise where my sympathy lies in regard to those people who are depending on coal for heating and cooking. On the general question of certain welfare benefits, it would be wrong for me to boast unduly of the increases for which this Government have been responsible since taking office, but the increases that have been effected in respect of old age pensions and widows' and orphans' non-contributory pensions compare more than favourably with the increases given in previous years. This year, an extra £1,500,000 is being spent on these people. I want to assure the House, and Deputy Cunningham, that I am as conscious of the need for an increase in benefits to the other social welfare recipients as anybody else.

I can assure the House that these people are having my active consideration and, when circumstances permit, as I trust they will in the not too distant future, I hope to bring proposals before the House to provide increases for these people to compensate for the increased cost of living. But let us not run away with ourselves on that question. I do not think Deputy Cunningham would concede that, even in the régime of his Government, from 1932 to 1948, and again from 1951 to 1954, all these social welfare benefits were stepped up every time there was an increase in the cost of living. Old age pensioners had to wait for very long periods before they got their not over-generous increases of 1/6 and 2/6 a week. I would certainly be in favour of, and would subscribe to, any scheme that would provide increases in these social welfare benefits on the basis of increases in the cost of living. That would be ideal, and I can assure the House that it would mean far fewer headaches for the Minister for Social Welfare. I am afraid, however, that at the present moment it would be extremely difficult to devise such a scheme, but we are very conscious of the need for an increase in these benefits. Circumstances permitting, the Government will provide the increases.

Vote put and agreed to.

Supplementary Estimate reported and agreed to.

Business suspended at 6.50 p.m. until 7.30 p.m.