Eamon Ryan
Question:18 Mr. Eamon Ryan asked the Minister for Social and Family Affairs her views on the statement of the Combat Poverty Agency that the recent budget has a mildly distributive effect on income poverty. [4928/03]
Written Answers - Anti-Poverty Strategy.
Since its establishment, the analysis of the Combat Poverty Agency has made a major contribution to the Government's efforts in tackling poverty and social exclusion. This is an ongoing process and, in line with normal practice, the agency made a pre-budget submission to me and met with officials from my Department prior to the budget. While I understand the agency has not, as yet, published a formal analysis of budget 2003, members may be aware that it made a presentation to the Joint Committee on Social and Family Affairs on 14 January last. This presentation included an analysis of welfare and tax changes in the 2003 budget.
In its presentation, the agency highlighted, in relation to the last budget, that the €10 per week increase in pensions means that pensions are set to reach their target of €200 by 2007; greater priority had been accorded to welfare expenditure than tax reductions and that the welfare element of the budget package had increased from 62% in budget 2002 to 74%; the bottom 40% of the income distribution benefited by up to 0.4% when allowance is made for earnings growth while the better off, in contrast, saw a relative decline in their income of up to 0.7%.
The agency therefore concluded that the overall welfare and tax package was mildly redistributive and should have a positive effect on income poverty. This conclusion is important because it reflects the Government's determination to protect the most marginalised in our society at a time of great economic uncertainty. However the annual budget, by its nature, can only have a limited impact on the long-term factors which drive poverty and social exclusion. In recognition of this, the revised national anti-poverty strategy – Building an Inclusive Society – announced in February 2002, sets out a number of key targets which the Government seeks to attain. This strategy, the commitments in the programme for Government and the proposed new national pro gramme, Sustaining Progress, will form the framework for future development of the social welfare system. I look forward to making further progress in the years ahead on the achievement of our social inclusion targets.