Róisín Shortall
Question:10 Ms Shortall asked the Minister for Social, Community and Family Affairs the stage of preparations by his Department for the introduction of the euro and the start of the social welfare year on 1 January 2002. [15276/01]
Other Questions. - Euro Changeover.
John V. Farrelly
Question:17 Mr. Farrelly asked the Minister for Social, Community and Family Affairs the arrangements which he has put in place to increase all social welfare payments from 1 January 2002; and if he will make a statement on the matter. [15171/01]
I propose to take Questions Nos. 10 and 17 together.
Work is well in hand in the Department to effect a smooth changeover to the euro on 1 January 2002. Customers receiving payments by order books will have books spanning the change-over period well in advance of the change. Euro orders for pay-days in January 2002 and onwards are contained in the new child benefit payment books issuing at present and will also be included in the main annual renewal of child benefit books to issue in June. Euro orders will also be included in payment books to issue to one parent families and recipients of the widows' pension in August next and to other categories of pensioners in October.
Customers receiving their payments by cheque, direct credit to bank and other accounts or on presenting their social services card at their local post office will be paid in euros on their first pay-day in 2002. Payments to customers up to and including 31 December 2001 will, of course, continue to issue in Irish pounds.
Preparations for the euro changeover should not be confused with issues that relate to the alignment of the tax and calendar years from 1 January next. Consequent on that decision, the Government has also decided that, next year, social welfare increases will take effect from the beginning of January. Budget 2002, which will be announced on 5 December 2001, will provide for these increases.
Every effort will be made to ensure that increases are paid by or close to the beginning of January. In some cases, because of the timescales involved in the production of certain payments and books, it will not be possible for increases to be paid in all cases in January. This has nothing to do with the euro changeover but is solely due to timing considerations. In cases, however, where there is delay in implementing the increase, all arrears due will be paid at the latest by mid-February 2002, effective from the beginning of January.
In the current year the effective payment date for budget increases was brought forward significantly to April. This meant that for the first time, social welfare increases came into effect at the same time as the changes in the income tax provisions announced in the annual budget. The position in 2002 will improve even further with the increases effective from January, a full three months earlier than this year, at an estimated cost of £80 million.
The Minister cleverly attempted to distinguish between the introduction of the euro and payment increases. We do not yet know whether the Taoiseach will opt for the late Sep tember or early October window of opportunity. Some people hold the view that the Minister will cut and run because he is afraid to face the early months of the euro. We were devastated to learn at a recent meeting of the Joint Committee on Family, Community and Social Affairs that there will be a significant gap of weeks, if not months, in which social welfare recipients will not receive their due increases. That is grossly unfair. We would be foolish not to expect rip-off merchants and unscrupulous business people in many areas of the economy to jack up prices when the euro is introduced. This happened 30 years ago—
The Deputy should put a question to the Minister.
The one million people who depend on social welfare will face a double whammy on 1 January 2002 and the Minister is doing nothing about it.
I do not know how the Deputy can say that; he must have his tongue planted firmly in his cheek.
It happened before.
It was often said on Pat Kenny's show, Marian Finucane's show and Joe Duffy's show after the budget that it was awful people on social welfare had to wait, but people who paid tax received the benefit of changes on 5 April.
The Secretary General of the Minister's Department said the target cannot be met.
Four years ago, when the Government came into office, people on social welfare had to wait from December until July before they received their increases.
Civil servants in the Minister's Department said the targets cannot be met.
Order, please.
As a result of decisions made by the Government, the increases will be implemented from 1 January. Due to the work of the Government over the past four years, people on social welfare will receive their increases six months earlier.
Mr. Hayes
The Minister's minute is up.
It is extremely difficult to take the Opposition's nonsense given our extremely good record.
Mr. Hayes
The great royal us.
The Minister's minute is up.
The Government has realigned the tax and social welfare year for the first time ever.
Mr. Hayes
This year, not last year.
Order, please.
Mr. Hayes
I thought the Minister was about to take off. With a little luck, perhaps that will happen. I hope the Minister has some increases to give in January given that the Minister for Finance – Mac the Knife Mark II – is seeking £500 million of cuts in line Departments. I hope there will be good news in January.
A question please, Deputy.
Mr. Hayes
Is the Minister admitting that, despite all the technology involved, he cannot deliver social welfare increases to people who get their welfare payments with books on 1 January? This is an appalling indication of his management of the Department. He knew this was coming, but he cannot give a commitment that increases will be delivered on 1 January. This is an appalling indication of the management skills he is bringing to bear on his Department.
The vast majority of social welfare recipients want to continue using payment books because they like going to the post office.
Mr. Hayes
I know that.
If people want their social welfare payment on 1 January, they can opt for electronic fund transfer.
Mr. Hayes
What about people with books?
Such people will get their increase immediately. However, some people wish to continue using books. The Deputy should not try to pretend this is news.
Mr. Hayes
The Minister always rehashes old news. Nobody is better at it.
We have been blunt and upfront about what we wish to do.
It is bad news for social welfare recipients.
We wish to bring forward payments to 1 January instead of 1 July, which is when the Deputy's party gave increases when it was in office.
The Department cannot do it.
The Government has brought forward the date in the full knowledge—
The Department cannot achieve it. It has failed in one of its key objectives.
Given the budget in December, we knew people would not receive their increases immediately on 1 January.
Mr. Hayes
The Minister knows all about blank cheques.
They will get their increases by mid-February and they will be backdated to 1 January.
Mr. Hayes
I hope the cheque does not come from the Taoiseach without a signature on it.
It will be one of the major achievements of the Government.
Written Answers follow Adjournment Debate.