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Dáil Éireann debate -
Wednesday, 4 Apr 1979

Vol. 313 No. 7

Ceisteanna—Questions. Oral Answers. - Consumer Price Index.

7.

asked the Minister for Social Welfare, in light of the recently published figures for the increase in the consumer price index, if any consideration is being given to reintroducing the October increase for social welfare recipients.

8.

asked the Minister for Social Welfare if it is his policy to review the level of social welfare benefits in the course of the year in view of movement in the consumer price index.

With the permission of the Ceann Comhairle, I propose to take questions Nos. 7 and 8 together.

The increases in rates of social welfare payments for 1979 announced in the budget were based on the anticipated movements in the consumer price index outlined in the budget for the year as a whole.

The interests of social welfare recipients will be borne in mind in any developments that may result from the consultations regarding taxation, pay levels and other relevant matters at present taking place.

In view of the fact that the cost of living has increased more than anticipated and provided for in the budget, is it the Minister's intention to seek more money for social welfare recipients?

As the Deputy is aware, the projection in the budget was that the CPI would be down to 5 per cent towards the end of the year. If that is so, even though it is running at 10 per cent at present, social welfare recipients will do reasonably well.

Does the Minister consider that the disabled person's allowance of £13, out of which £6 per week rent is paid, is sufficient to keep a person alive?

The Deputy has made that point several times.

I brought that case to the attention of the Minister's Department. Does the Minister consider that the remaining £7 is sufficient to keep a person alive?

The Deputy knows that a supplementary welfare allowance is available in cases of that nature.

Is the Minister aware that the Minister for Economic Planning and Development said recently that the Government's programme of phasing out the remaining food subsidies would be reconsidered because of the increase in inflation this year? In other words, he accepted that the inflation rate is worse than anticipated in January. In these circumstances, would the Minister consider reviewing social welfare payments for the same year?

I regard myself as having special responsibility for social welfare recipients. Part of that responsibility is to keep an eye on the situation that emerges from the current consultations and to take whatever action is necessary.

Does the Minister agree that social welfare recipients are not as well off today as they were 12 months ago, taking into account that the increase for some categories was 12 per cent and 16 per cent for others, and that the cost of living has increased by 17.9 per cent, which is the official figure?

The figure for the cost of living increase is 10 per cent not 17 per cent.

In relation to food it is 17.9 per cent.

As Deputy Dr. O'Connell said, many people find it impossible to live on their meagre social welfare allowances.

The interests of social welfare recipients will be borne in mind in any developments which result from the present consultations.

In view of these talks, if the inflation rate stays in double digits this year into the autumn, would the Minister undertake to review the position then?

The Government will keep the situation under review.

Has the Minister made representation to the Government for the reintroduction of the October increases?

I do not have to make representations to the Government; I am a member of the Government.

Has the Minister submitted any proposals?

Proposals I make to the Government are a matter between me and the Government.

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