Michael Bell
Question:81 Mr. Bell asked the Minister for Social, Community and Family Affairs if he has given further consideration to introducing the full rate of social welfare increases in euro from 1 January 2002. [20117/01]
Written Answers. - Euro Changeover.
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 changeover period well in advance of the change. Euro orders for pay days in January 2002 onwards are already contained in the main annual renewal of child benefit books which issued last month. Euro orders will also be included in payment books to issue to one parent families and widows pensioners in August next and to other categories of pensioners in October.
Customers receiving their payments by cheque, by direct credit to bank and other accounts or on presenting their social services card at their local post office will be paid in euro 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, 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. I should mention also that in the current year the effective payment date for the budget increases was brought forward substantially 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 be even more significantly improved with the increases effective from January, which is a full three months earlier than this year.