Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 28 Jan 1975

Vol. 277 No. 7

Ceisteanna—Questions. Oral Answers. - Social Insurance Fund.

4.

asked the Minister for Social Welfare the percentage of the expenditure of the social insurance fund which is at present being met by (a) employees (b) employers and (c) the Exchequer.

As the reply is in the form of a tabular statement, I propose, with the permission of the Ceann Comhairle, to circulate it with the Official Report.

Following is the statement:

Social Insurance Fund

Year

Expenditure

Percentage Contributed by Employees

Percentage Contributed by Employers

Percentage Contributed by Exchequer

£

Ended 31st December, 1975 (estimated)

150,110,000

33.86

42.12

23.44

Would the Parliamentary Secretary state from a glance at the tabular statement if it is approximately one third in each case?

I think it would be better to wait for it to appear in the Official Report to see the overall picture.

Would the Parliamentary Secretary state if the practice of the State contributing to the social insurance fund will be abandoned in the new legislation coming up next month?

As the Minister for Finance pointed out in his budget speech, over a six-year period there will be a phasing out and, as the Tánaiste stated in the Dáil some time ago, the whole financing of social services and social welfare is under examination at the moment.

Would the Parliamentary Secretary say whether at the end of this six-year period the cost of contributions to workers and employers will be increased by £6 million to £10 million?

I would not agree with the Deputy's estimation. As I said, the whole financing of the health services and the social welfare services is under examination.

Does it not appear from what the Minister for Finance said in the course of his budget statement that the financing will now rest mainly on contributions paid jointly by the workers and the employers, and does that not imply that the State will cease to make any contribution to the cost of the stamp?

As far as I recollect, the Minister for Finance said that the object would be to bring the situation more into line with what is normally the position in the other EEC countries. I can assure the Deputy that, when the full examination of the financing of the social services is completed, there will be ample opportunity for all interested parties to comment.

Is there not a clear indication in what the Minister for Finance said in his budget speech that the State will no longer contribute to the cost of the stamp for insured workers and, therefore, that will mean an extra burden on workers and employers?

As I understood the Minister's statement, over a six-year year period the object will be to bring the State contribution more into line with that which applies at present in the other member states of the EEC.

Thereby relieving the State of its contribution to the insurance fund.

Not totally so far as I understand it.

If the State contribution is phased out at the end of that period would not the saving to the State be £35 million?

Top
Share