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Dáil Éireann debate -
Thursday, 13 Mar 1980

Vol. 318 No. 11

Ceisteanna—Questions. Oral Answers. - Social Welfare Contributions.

51.

asked the Minister for Social Welfare if any decision has been made on the relative cost of the employer-employee social welfare contribution and the amount of the Government contribution and if he will make a statement on the matter.

I assume that the Deputy is referring to the relationship between the amounts paid by employers, employees and by the Exchequer towards the costs of social insurance benefits.

It is set out in section 39 of the Social Welfare Act, 1952, that any amount by which the income of the social insurance fund for any financial year is less than its expenditure shall be paid out of moneys provided by the Oireachtas. It follows, therefore, that the amount of the Exchequer contribution to the cost of social insurance benefits is a residual figure which may vary in accordance with trends in numbers claiming benefits and in the amount of contribution income collected during the year.

In recent years the Exchequer contribution to the costs of social insurance benefits has been approximately 20 per cent of the total expenditure on benefits and no change is planned for 1980. After account is taken of the costs of the rate increases and other improvements announced in the budget the Exchequer is expected to contribute a sum of about £86 million for social insurance expenditure in 1980.

As a percentage of the Exchequer's contribution is it fair to assume that the figure is constant?

The total amount may fluctuate but the Exchequer's contribution of 20 per cent is constant.

I assume the 20 per cent will be constant for 1980?

Is it fair to assume that part of the substantial increase in social insurance benefit rates has been financed substantially this year by employers and employees?

The traditional 20 per cent is covered by the State.

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