Dáil Éireann debate -
Thursday, 27 Feb 1992

Vol. 416 No. 4

Adjournment Debate. - Social Welfare Equality Payments.

Mr. G. Mitchell

I commence by wishing the new Minister for Social Welfare, Deputy McCreevy, well in his new job. I hope that he brings to his Department the same refreshing attitude that he has brought to the House over a long period.

In the budget speech of the Minister for Finance he stated that £22 million would be paid in 1992 for the purpose of making substantial retrospective payments. I ask the Minister when payment of that £22 million will commence.

In the Minister's budget speech he also said that there would be further substantial payments in 1993 and 1994. Could the Minister for Social Welfare tell the House what percentage of the retrospective payments due will be paid in 1992; what amounts will be left until 1993; and what amounts will be left until 1994?

Both the House and the public need to know whether it is only women who will benefit from these payments. Are there any benefits due to men under the equality payments? I know that substantially the payments are due to women but are they due exclusively to women?

I should like to know when the payments will come about because increasingly people are contacting the Department of Social Welfare, the Department are not able to tell them anything, and those people are coming to see their TDs, TDs are getting in touch with the Department and nobody knows precisely what is the position. In the meantime, there is increasing expectation building up. I hope the Minister will use this opportunity to clarify the position as far as he can and that he will be in a position to announce when payments will commence. There is a huge expectation among people who may not qualify at all, people whose husbands did not lose payments and people who were widowed at the time, who perhaps were not affected by the equality payments, and are unsure of their position. The sooner this matter is dealt with and people know where they stand the better it will be for this House and for the Department.

I appreciate that these payments will commence this year. I regret that we have to wait until 1994 to clear up the matter completely. The people who will be paid this year should know, as should the people who will be paid next year and the year after, so that we will not have a huge number of people building up expectations and perhaps even making commitments which they will not be able to keep. I hope the Minister will be able to indicate the average level of payment to each recipient under these arrears and that he will be in a position to give as much details as possible, because this is of increasing concern to members of the public.

Minister for Social Welfare (Mr. McCreevy)

I thank Deputy Mitchell for his kind remarks. I hope to live up to some of his expectations. I am sure I will disappoint him in others, but I will do my best.

As Deputy Mitchell knows, this is a complex area. The Deputy has raised a number of important points and I hope to be able to answer some of them. This has gone on now for a long number of years. Eventually there will be a legal case with a severe cost to the State. At least the Government this year have gone some way towards relieving the problem in accepting the court decision and in back-dating these payments.

The areas of the social welfare code which were discriminatory within the terms of the equal treatment directive related to the entitlements of certain married women. There were four such areas. Married women received lower personal rates of benefit in the schemes of disability benefit, unemployment benefit, invalidity pension and occupational injuries benefit. Married women received unemployment benefit for a maximum duration of 12 months as against 15 months for claimants generally. Increases were not normally payable to married women in respect of adult and child dependants and married women in general were precluded from qualifying for unemployment assistance. The deadline for implementation of the Directive was 23 December 1984 and the necessary provisions to introduce equality treatment were provided for by way of the Social Welfare (No. 2) Act, 1985. The provisions of that Act were brought into force by way of commencement in two phases in May and November 1986. In May 1986 provision was made for an increase from 12 to 15 months for the maximum duration of unemployment benefit payable to married women and at the same time reduced rates of certain benefits payable to married women were replaced by the standard rates.

The measures introduced in November 1986 provided for equal treatment in relation to increases for adult and child dependants and for the admission of married women to the unemployment assistance scheme on the same basis as claimants generally. The delay in implementing the necessary provisions resulted in a number of court proceedings arising from which three separate references were made by the Irish court to the European Court of Justice for preliminary rulings under Article 177 of the Treaty. Following detailed consideration of the most recent decision of the European Court, the Government have decided to provide for equality of treatment in respect of the period of delay in implementing the Directive.

As announced by my predecessor, the necessary legal provisions will apply retrospectively from the deadline for implementation, that is December 1984, to the actual dates of implementation in May and November 1986. The retrospective payments involved will be made on a phased basis over the period from 1992 to 1994. Under the first phase, all married women who received a reduced rate of benefit during the period of delay will receive a higher amount this year. At the same time, married women who exhausted their entitlement of 12 months of unemployment benefit during this period will be paid for the additional three months subject to appropriate evidence of unemployment in respect of any such period. The cost of this phase, which will be made this year, is £22 million, a sum the Government have provided for in the budget. The necessary resources are being made available by the Government.

Details of the payments to be made under the second and third phases will be announced as soon as the proposals are finalised. At the same time, the necessary legislative provisions which are being made by way of statutory instrument under the European Communities Act will be introduced. Work on the overall package is at a very advanced stage and I expect to be in a position to announce the precise details of the payments to be made under the second and third phases within the next month or so. Work on the necessary administrative arrangements to enable the payments to be made is already underway in the Department. A very significant volume of claims will have to be processed under the retrospective legislation and it is not possible as yet to provide a precise date in the current year as to when amounts payable under first phase will be made, but in fairness to Deputy Mitchell, I do not expect the payments to be made within the first six months of this year.

Mr. G. Mitchell

Will it be a lump sum?

Mr. McCreevy

We have not worked out the precise details yet. The Government have given a commitment that these payments will be made this year. Every effort will be made to ensure that this is done as quickly as possible. The Deputy asked if payments were also due to the spouses of married women. The areas of the social welfare code which were discriminatory within the terms of the Directive related to the entitlement of certain married women only. Consequently, payments will not be made to married men under the proposed legislation.

An Ceann Comhairle

The House will now hear two minute statements on matters appropriate to the Minister for Justice.