Vol. 475 No. 7
7 Dr. Woods asked the Minister for Social Welfare the arrangements, if any, which have been made for the reduction of the butter voucher scheme; the changes, if any, he has made in the value or number of vouchers which entitle people to subsidised butter; the number of people who will be affected; the plans, if any, to make up the shortfall for those affected; and if he will make a statement on the matter. [5721/97]
The butter voucher scheme is provided for in European Union regulations which provide for the sale of butter at a subsidised rate to social assistance beneficiaries and the scheme operates as a market intervention mechanism under the Common Agricultural Policy. It benefits some 450,000 social assistance beneficiaries and their 405,000 dependants and is administered for the EU by the Department of Agriculture, Food and Forestry. The Department of Social Welfare acts as an agent for the Department of Agriculture, Food and Forestry in distributing the vouchers to social welfare recipients.
Ireland is the only member state still operating the scheme due to expire in December last. However, the Minister for Agriculture, Food and Forestry successfully negotiated an extension for another two years at the December meeting of the European Ministers for Agriculture, but on the basis of a reduction from two pounds to one pound as the amount of butter per eligible person. This compromise stemmed form the significant reduction in Irish per capita consumption of butter, the annual tonnage of which fell from 40,000 to 13,000 in the 15 year period 1981 to 1995. Butter consumption in Ireland is now less than 11b per person per month. On the basis of these consumption figures, the revised scheme is meeting the average needs of beneficiaries.
The Minister of State has repeated the contents of an earlier press release which misrepresents the position. He went back to 1981 to show that the level of butter consumption has fallen. The review period was the past two years, 1994-6, and we were concerned about the change in that time. However, there was none. Given that the consumption level since 1990 has been approximately 12,000 tonnes per annum, there has not been a fall in the level of consumption. Will the Minister of State confirm that is the position? Will he also confirm that the figures he gave are based on the average for the total population, that butter vouchers are used by beneficiaries and the number used is in the region of 855,000 to 900,000 per annum?
As the Deputy is aware the scheme was introduced to alleviate hardship suffered by persons in receipt of social assistance and to eliminate the butter mountain, which has been achieved. The scheme was never subsidised by the Exchequer despite fluctuations in the value of the subsidy in the past. The value of it remains unchanged at 52p per 11b of butter and the number of monthly vouchers per eligible person has been reduced from two to one in line with EU regulations.
The butter voucher scheme does not benefit all social welfare recipients. However, the Deputy will be aware this year's budget provided for substantial real increases for all beneficiaries. The increase of £3 per week in personal rates of payment together with an additional £1.50 in respect of adult dependants means that all social assistance beneficiaries will receive increases of between 4 per cent and 5 per cent, which is about twice the rate of inflation.
Regarding the Deputy's question about the level of consumption, the total number of vouchers made available has not been taken up in recent years. I do not have the precise figure. The reason for the 50 per cent reduction in the value of vouchers was given to the Deputy in a reply to a parliamentary question answered by the Minister of State at the Department of Agriculture, Food and Forestry. He stated that the Commission's recommendations stemmed from a significant reduction in Irish per capita consumption of butter, the annual tonnage of which fell from 40,000 to 13,000 in the 15 year period from 1981-95.
The level of butter consumption is less than 11b per person per month and the new level of subsidy reflects that position. That and the fact that Ireland is the only member state currently operating the butter voucher scheme made the 50 per cent reduction the most viable possible option for the retention of the scheme. The facts preclude the possibility of having that decision reversed.
The figures given by the Minister of State are a statistical lie. Taking a review period of two years from 1994 to 1996 and using an average change in consumption levels from 1981 to 1995 are an abuse of statistics. There are no ifs or buts about it. In a letter dated 5 February the Minister pointed out that the volume of butter vouchers issued in 1995 was 20.9 million and 21.2 million in 1996. There was an increase in the number of vouchers issued in that period. The real issue is that the Minister for Social Welfare and the Minister for Agriculture, Food and Forestry did not fight the case in Brussels to maintain this measure to alleviate hardship. As a result of that the poorest face a halving in the value of butcher vouchers to which they are entitled.
Regarding the mechanism for the reduction in the value of vouchers, will the same number be issued at half the value they were previously or will half the number be issued?
I reject the Deputy's assertion that what I read into the record is a statistical lie. It is a fact. The Deputy knows full well that soundbites of that nature are misleading.
He mentioned the volume of butter vouchers issued in 1995 was 20.9 million and 21.2 million in 1996, but the number redeemed under the scheme was 16.1 million in 1995 and 17.7 million in 1996. In those two years substantially less than the total number of vouchers available were taken up.
There was an increase in the number taken up in that period.
The total purchases of butter products under the butter voucher scheme amounted to 7,500 tonnes in 1996. It is true that the number of beneficiaries has increased in line with those who qualified under the terms set out in the scheme.
The methodology used to issue the vouchers has been decided. There were some delays in the issuing of vouchers initially due to the time factor involved, but details of the scheme were issued to all recipients and under the new guidelines they will get 50 per cent of the value of vouchers to which they were previously entitled.
Has the value or the number of vouchers been changed? Has the value of the vouchers been reduced?
The number of vouchers issued——
——will be halved?
The recipients will receive 50 per cent of what they were entitled to previously.
And vouchers will be issued at the same value?
Yes.
The Minister of State has told us that there was a redemption of 16.1 million vouchers in 1995 and of 17.7 million in 1996. Those figures highlight an increase in the take up under the scheme as well as an increase in the number of vouchers issued. To suggest otherwise is misleading. The Minister of State did not state that average consumption figures were used for Ireland. Is it not correct that he was referring to an average consumption rate for Ireland?
Those figures were used by the European Union in determining——
That is a nonsense.
Order, please. We have to contend with a time restraint in dealing with priority questions. I cannot dwell unduly long on any of them and I am proceeding to deal with Question No. 8.
This matter concerns 900 people who would like to know if the Minister intends to address the shortfall.
There are ample ways and means open to the Deputy if he wishes to proceed further with this.
