The Deputy's question refers to a comment in the Taoiseach's speech at the opening on 25 April of a conference for senior public servants, the purpose of which was the examination of the lessons learned from the EU Poverty 3 programme and to look at ways of creating a national policy framework to maximise the effectiveness of local development initiatives and to ensure that tackling poverty is a priority objective of all Government Departments and agencies. The Taoiseach in his speech adverted to the danger of developing an ever more polarised society unless a co-ordinated and sustained effort to promote social inclusion is made.
The nature and extent of poverty in Ireland is already well documented, for example, in recent reports from the ESRI and the Combat Poverty Agency. What is changing now, by comparison with the experience in the later 1980s and early 1990s, is that the overall economic indications for the next few years are very good, with rising incomes and levels of employment being forecast by most commentators. The expectation is that these trends will continue for the foreseeable future.
The danger is that general economic growth and increased prosperity will again by-pass those on the margins of society unless targeted and effective steps are taken to ensure that the benefits of economic progress are spread more widely. It is this very real danger of growing disparities between, to take a simple measure, those who have jobs and an education and those who do not have these advantages which creates the prospect of developing an ever more polarised society.
The Government has already begun the process of addressing social exclusion and poverty in this year's budget with a significant improvement in child benefit; as it has been established that in Ireland, households with children have a higher risk of poverty than those without, we increased the monthly payment for each child by £7. We have also provided for a number of other improvements as a first step in tackling poverty effectively and reducing poverty and unemployment traps and inequalities, including a new uniform scheme for lone parents at a cost of £20 million in a full year, which will incorporate the existing deserted wife's benefit and lone parent's allowance, will abolish the concept of "desertion" and apply equally to men as well as women; extending the payment of child dependant allowances payable with long term social welfare payments to 21-year-olds in full-time education; an increase in the minimum unemployment assistance payment for people living in the family home and assessed with board and lodging from £10 to £25 a week; the first £50 per week to be PRSI-free for employees paying PRSI contributions at classes A and H; a similar allowance of £10 per week is also being introduced for contributors paying PRSI at classes B, C and D modified rates, while the self-employed will have an annual allowance of £520; for employers, the current threshold for reduced PRSI rate, £173 a week — £9,000 annually — to be increased to £231 a week — £12,000 — and no increase on the existing ceiling on which PRSI contributors are payable, £25,800, and the provision of an additional £400,000 to the Combat Poverty Agency to fund new pilot programmes and existing grants schemes.
Speaking on behalf of the Government at the United Nations World Summit on Social Development in Copenhagen in March, I made a commitment to implement proposals to substantially reduce levels of poverty and inequalities.
As already announced, the Government has approved my proposals for drawing up an anti-poverty strategy by a high-level interdepartmental policy committee. The strategy will involve all Government Departments and agencies targeting poverty and exclusion in their policy-making, including the people affected in that policy making and implementation.
I place particular importance on the need to ensure that a mechanism is developed to allow for the participation of disadvantaged groups through the organisations that represent them in this process. I intend that there should be wide consultation with voluntary and community organisations. I also intend that disadvantaged people will have a real input into the development of the strategy that goes beyond formal consultation.
The decision by the Government to develop a national strategy to tackle poverty puts the issue of poverty at the heart of Government policy for the first time ever. According to the ESRI Medium-Term Review 1994-2000, an annual GNP growth rate of 5 per cent is forecast until 1999. A rapid convergence in living standards between Ireland and the other EU member states is also forecast. It is our responsibility to ensure that the benefits of this growth are distributed in a manner which will redress economic and social inequalities. This can be achieved only through a comprehensive national strategy across all sectors of the economy.