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Dáil Éireann debate -
Thursday, 15 Feb 1962

Vol. 193 No. 2

Ceisteanna—Questions. Oral Answers. - Increased Social Welfare Payments.

57.

andMr. McQuillan asked the Minister for Social Welfare whether in view of the increases in living costs and the general acceptance of the need for an all-round increase in pensions to meet such increased costs he will take steps to grant comparable increases in old age pensions and all social welfare payments.

58.

asked the Minister for Social Welfare if he will indicate in what way he intends to improve the allowance extended to old age pensioners, blind pensioners, widows and orphans, unemployed, and other persons in receipt of social welfare benefits in order to assist them in combating the present rises in the cost of living, having regard to the fact that most organised workers have received increases in wages during the eighth round of wage increases.

59.

asked the Minister for Social Welfare whether in view of the recent steep rises in the cost of essential goods and services he will consider granting increases in old age, blind and widows' and orphans' pensions, unemployment, and disability benefits, and social welfare benefits generally.

With your permission, a Cheann Comhairle, I propose to take Questions No. 57, 58 and 59 together.

The latest consumer price index figure available is for mid-November, 1961. This figure was 151, and showed no change from the figure as at mid-August, 1961. It represented an increase of 2 points, or 1.3 per cent. as compared with the figure as at mid-February, 1961. The mid-February, 1962, index figure will not be available until next month.

As Deputies are, no doubt, aware, rates of payment under the social insurance scheme were increased as from the beginning of January, 1961, in conjunction with the introduction of contributory old age pensions, and rates of payment under the social assistance schemes were increased as from the beginning of August, 1961. The increase in the consumer price index during the twelve months to mid-November, 1961, has, as I have indicated, been not very considerable. If variations of the consumer price index figure is the only consideration to be taken into account, the increase during that period would not of itself require an increase in benefit and assistance rates. I can, however, assure Deputies that the position is being, and will continue to be, kept under review.

Is the Minister aware that these people are trying to exist on a diet of bread-and-spread? Does he consider that that situation should be allowed to continue? Does he not himself believe this is a situation that should be remedied? Does he not realise the general public believe it should be remedied?

While these figures are, no doubt, true in relation to the cost of living, they appear to have been equally true in answer to the trade union representatives' appeal for an increase in the general level of wages. But, the case was carried for an increase to meet the increased cost of living. In the light of that, and in the light of what the Minister for Finance has said, that he will examine the question sympathetically in relation to other State pensioners, would the Minister for Social Welfare not seriously consider ignoring what he alleges is a moderate increase in the cost of living and examining the question of the old age pensioners sympathetically? Everybody is agreed that these old people have had a hard and lean year and find it very difficult to exist.

All these questions asked for an increase because of the increase in the cost of living. I pointed out that the increase has been very small up to mid-November.

The major increase in the cost of living has occurred only in the last month, or two, following the increase in wages. These increases will continue. Apart from that there was a rise in the standard of living. If the workers' standards have been raised the standards of those who are unfortunate enough to depend on benefits——

That is an argument, not a question.

Whether it is or not, I am making the argument. Is the Minister aware that there are grounds for an increase on two scores: that there was an increase in the cost of living and that the standard of living has increased? Therefore, their standards should increase proportionately.

In respect of the period which the Minister has mentioned, can he give us any information as to the variation in the price of food within the cost-of-living index figure?

No; I have not got that information here. I have only the cost-of-living index figure for the different dates which I have mentioned. As I said, the figure for mid-February, 1962, will not be available until some time towards the end of next month.

Would the Minister be prepared to circulate an advisory budget to the recipients covered by this Question, showing them how they can exist on these meagre allowances?

As I have pointed out previously, under this Government, these allowances paid by way of insurance and social assistance have more than kept pace with the rise in the cost of living.

Would the Minister try to ensure that any saving there has been with the introduction of contributory pensions and, if possible, other moneys, will be devoted to those who are in receipt of a means test type of assistance?

The increase in the cost of social assistance is much greater than that.

There is a saving.

The increases last year cost much more than that saving.

No. As the years go by, there will be a bigger saving which should be devoted to ordinary old age pensioners.

Does it mean that the only way out of this is to go into the Common Market and thus get better social benefits?

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