Dáil Éireann debate -
Tuesday, 14 Feb 1995

Vol. 449 No. 1

Written Answers. - Tax and Social Welfare Codes.

Kathleen Lynch

Question:

23 Kathleen Lynch asked the Minister for Social Welfare the progress, if any, made to date by the expert working group on the integration of the tax and social welfare codes; and if he will make a statement on the matter. [3208/95]

Minister for Social Welfare (Proinsias De Rossa)

The Expert Working Group on the Integration of the Tax and Social Welfare Systems was established in July 1993 by the former Minister of State at the Department of Social Welfare. The terms of reference of the group are:

To identify the problems arising from the interaction of the tax and social welfare systems and to identify the steps necessary to achieve greater co-ordination/integration of the two systems, with particular attention to the impact on people's incomes, and to the tax code, social welfare system, budgetary and administrative implications.

In addition, the group will now be asked to examine the child benefit supplement, the introduction of which is part of the Government's programme for renewal.

The group was asked to prepare an interim report on measures which could be undertaken in the 1994 budget to reduce poverty traps and increase incentives to work and they presented this report in late 1993. In this interim report, the working group made two specific recommendations for the 1994 budget. These were the easing of the means test for lone parents allowance in order to make it more attractive for lone parents to take up work, and abolition of the arrangement whereby employers of medical card holders had to pay the health contribution and employment and training levy on behalf of these employees. Both these issues were addressed in that budget, and the necessary legislation was included in the 1994 Social Welfare Act.

The group is now preparing its final report which it is envisaged will be completed and published this year.