Vol. 419 No. 2
7 Mr. Ferris asked the Minister for Social Welfare if he has reviewed the anomalies that exist between his Department and the Department of Finance in relation to couples cohabiting; and if he will make a statement on the matter.
A number of anomalies in the treatment of cohabiting couples as compared with married couples under the social welfare system have been removed in recent years, following a Supreme Court judgement in 1989.
The whole question of the treatment of households of different types within the social welfare system was the subject of the report of a review group who were set up following that judgement. That report has been published and submissions have been invited from interested parties.
In the light of the views received I will be examining what further changes need to be made in the system. The desirability of consistency as between the tax and social welfare systems in the treatment of households will be among the considerations to be taken on board in that context. The question of changes in the tax system in relation to cohabiting couples is, of course, a matter for the Minister for Finance.
Will the Minister outline his intentions in relation to the designation of a cohabiting couple? In other words, what is his definition of a cohabiting couple?
It will be a matter for social welfare investigating officers to decide whether people are cohabiting. This matter will have to be left to their discretion. They have to operate under certain guidelines but it is a matter for them to form an opinion at any particular stage as to whether a couple are cohabiting. I do not think it would be practical to draft regulations or to ask people specific questions. This would not be the appropriate way of dealing with the matter. It is left to the social welfare investigating officer to form an opinion as to whether a couple are cohabiting and this is open to appeal.
It is a sad fact of life that divorce is not recognised in this country. As a result more and more couples are cohabiting. Would the Minister not agree that there is something dishonest in the system operated by successive Governments which deems cohabiting couples to be the spouses of one another for social welfare purposes — this means their social welfare entitlements will be less — but not spouses of one another for taxation purposes? It is time the Minister, a self-proclaimed liberal, used his influence in the Cabinet to ensure that we are seen as a modern country with modern legislation and that both our Finance Acts and Social Welfare Acts are interpreted in a fair way.
Matters appertaining to taxation are the responsibility of another Minister.
It may or may not surprise the Deputy to hear that I agree with what he said. In the social welfare area, for which I am responsible, a cohabiting couple are regarded as a married couple. As Deputies know, this change was more or less forced upon us by the judgment delivered in 1989 in the Hyland case. With regard to taxation, this is a matter for the Minister for Finance. I should point out that the present system is also of concern to me and I should like the income tax laws, as they apply to cohabiting couples, to be changed. It is only fair to say that we will have to await the publication of the White Paper on marital breakdown before any decisions can be made in this area. My views on this aspect of Irish life are well known and I will use my influence to ensure the introduction of a realistic set of laws in relation to marital breakdown. I am afraid I am only one of a large number of people in this position.
A few of the Minister's Cabinet colleagues also have a specific interest in this issue. The Minister is not alone in this respect any longer.
