asked the Minister for Social Welfare the immediate steps he proposes to take to assist social welfare beneficiaries to meet the escalating prices of essential commodities.
Ceisteanna—Questions. Oral Answers. - Commodity Prices.
17.
Since the present Government took office very substantial increases in all social welfare payments have been awarded on two occasions, the second being just over three months ago. The increases in rates of welfare payments and the other improvements in the social insurance and social assistance schemes, such as, for example, the easing of the means test and the reduction of the qualifying age for old age pensions, far outstripped anything done by the previous Government, and the increases in the rates of payment also outstripped by a long way the rise in the cost of living since the present Government came into office. There has, therefore, been a real increase in the value of pensions and other social welfare payments over that period. Owing to the change in the financial year, next year's budget will probably be introduced earlier than in previous years, which will give the Government a further opportunity to review the rates of all social welfare payments.
I think all social welfare beneficiaries would dispute that there has been a real increase in the purchasing power of their incomes. Is the Parliamentary Secretary aware that the increases granted to social welfare recipients in July, 1974, did not even restore the July, 1973, purchasing power of pensions and other social welfare benefits and assistance? Is he further aware that because of the constantly falling money values since July, 1973, the standard of living of these people had fallen catastrophically before the increases granted in July, 1974? Does he not consider that in these circumstances it is absolutely essential that the Government should come to their assistance immediately and not wait until the budget?
I do not agree with the Deputy. In fact, it is not a question of his opinion versus my opinion. It is a question of published statistics that show quite clearly that there was a considerable margin between the cost of living and the percentage by which the payments were increased. This margin proves that there was an improvement in the living standards of the people concerned. At the same time, I agree with the Deputy to some extent that inflation has eaten away some of the benefits one would have hoped these people would have enjoyed.
Would the Parliamentary Secretary not agree that inflation has eaten into the income of those who depend on social welfare much more than the actual increase in social welfare benefits? Is he aware that the purchasing power of the social welfare benefits granted in July, 1973, had been falling constantly each month and that by April, 1974, it had fallen very considerably, that the increase granted in July, 1974, did not compensate for the loss of purchasing power in the pensions and other benefits?
I cannot agree with the Deputy. If he considers the percentage increase that was awarded and the increase in the cost of living index, it is quite clear there has been a real increase in the standard of living of the people concerned although I agree with the Deputy it has been eroded to some extent.
Will the Parliamentary Secretary not agree——
The Deputy has been given considerable latitude by the Chair and he should appreciate that. I am calling Deputy Fitzgerald.
It is very serious matter. Is the Parliamentary Secretary aware that since July, 1974, when the most recent increases were given to those depending on social welfare the prices of all essential commodities, food and clothing and fuel, have risen rapidly and it is now very difficult for those dependent on social welfare to provide even the barest necessities? In those particular circumstances where the purchasing power of the benefit, assistance or pension granted in July, 1974, has fallen so much in such a short time, surely the Government should make further financial assistance available to these people.
I have already agreed with the Deputy that the purchasing power it was intended to give these people has been eroded to some extent by inflation, but I do not agree with the Deputy that the standard of living as such of these people has, in fact, dropped. I do not think it is of benefit to those concerned to misstate what their actual position is. I think their actual position is bad enough without adding to it.
What the Parliamentary Secretary has stated is not in accordance with the facts.