Dan Boyle
Question:2 Mr. Boyle asked the Minister for Social and Family Affairs her views on the most recent statistics showing the gap between rich and poor here is growing ever wider; and if she will make a statement on the matter. [19550/02]
Ceisteanna – Questions. Priority Questions. - Household Budget Survey.
The recently published household budget survey carried out by the Central Statistics Office presented results from the survey undertaken between June 1999 and July 2000. The household budget survey is a survey of a representative sample of all private households in the State. The previous survey was carried out in 1995.
The survey shows the changes in average disposable income of households at different income levels. The economic policies pursued by the Government in recent years have seen significant increases in income at all income levels. That incomes at the higher levels rose more quickly than at lower levels does not take away from this important fact.
The survey complements the analysis of the results of the 2000 Living in Ireland survey published by the Economic and Social Research Institute in July this year. These results confirmed that households at all income levels gained significantly in real terms over the period from 1994-95 to 1999-2000. This is reflected in the sharp decrease seen in the level of consistent poverty in recent years. Consistent poverty – a combined measure using income thresholds and the experience of deprivation – is the measure used for the global poverty reduction target in the revised national anti-poverty strategy. The level of consistent poverty has fallen from 15.1% in 1994 to just 6% in 2000. The Government is committed to reducing it to below 2% – or eliminating it – by 2007. In addition, the revised NAPS provides that progress in relation to the proportion of the population falling below relative income lines, particularly for a sustained period, will be monitored over the lifetime of the strategy.
The policies pursued in recent years by the Government to combat unemployment and reduce the level of consistent poverty have brought about a significant improvement in the situation of those on lower incomes. The revised NAPS contains ambitious targets across a number of areas – including a significant commitment to raise the lowest social welfare rate to €150 in 2002 terms – which will further our goal of creating a society where everyone has the opportunity and incentive to participate fully in the social and economic life of the country.
I welcome the Minister to the dispatch box. Unfortunately, this is only one of the hats I am forced to wear in this House.
Does the Minister accept that the Government, now in its second term, has been successful in redistributing wealth – unfortunately, in the wrong way and to the wrong people? The income gap has widened throughout the Government's terms. Its policies indicate a lack of willingness to tackle the root causes of poverty and to achieve a fair society. The Minister's reliance on consistent poverty—
A question, Deputy.
I started by saying "Does the Minister accept". I would have thought that was fairly conditional.
Does the Minister accept that the use of the indicator of consistent poverty is unique in Ireland? All other measurements of income poverty show this country performing poorly regardless of whether the 60%, 50% or 40% lines in average income are used. The gap between the most wealthy and the least well off in this country is the second highest in the OECD outside the United States. The policies the Government is pursuing in light of rising unemployment and inflation running higher than the European average will make the situation worse.
That was more a statement than a question. It is not appropriate on Question Time.
I do not agree with the Deputy. Indictors of poverty, relative and consistent, are academic. The ESRI, my Department and I agree that the use of consistent poverty is a better measure and indictor. Reliance on income is not a true reflection of poverty, which is the purest view if one looks at relative poverty.
The previous Government targeted and this Government will target resources at those who are less well off. The reduction in the live register and the increase in employment have, as a consequence, increased household income. We have reduced poverty as a consequence of the increased number of people participating in work. More importantly, we have targeted certain vulnerable groups, particularly the elderly and children, and there has been an increase in spending by my Department from £4.5 billion in 1997 to £7.4 billion, or €9.4 billion, last year. That is a true reflection of the increased resources and the more targeted approach to the alleviation of poverty. The levels of consistent poverty have halved. It is my intention and that of the Government to try to address the elimination of poverty. I agree with the Deputy that participation in society and the targeting of resources are important. We have addressed the poverty issue, although we have not, unfortunately, eliminated it. We have targeted those who are most vulnerable.