Dáil Éireann debate -
Thursday, 27 Mar 2003

Vol. 563 No. 6

Written Answers - Social Welfare Payments.

Ciarán Cuffe

Question:

43 Mr. Cuffe asked the Minister for Social and Family Affairs her views on the information released through the Freedom of Information Act 1997 that pre-budget discussions, between her Department and the Government tax strategy group, revealed the need for higher social welfare payments than subsequently adopted in the budget if NAPS and the programme for Government targets were to be met. [8399/03]

Minister for Social and Family Affairs (Mary Coughlan)

The tax strategy group is an interdepartmental committee chaired by the Department of Finance. Its membership comprises senior officials and advisers from the Departments of Finance, Taoiseach, Enterprise, Trade and Employment, the Revenue Commissioners and my Department. The committee examines, inter alia, strategic issues concerning social welfare increases, the interaction of income tax-PRSI-levies proposals with social welfare proposals including child income support, and in particular the impact of this interaction on the labour market and income distribution.

Each year my Department prepares a paper for the group on the main social welfare budget issues. Last September the paper on the 2003 social welfare budget package was presented to the group by officials from my Department who are members of the group.

The paper details, inter alia, the various commitments in the programme for Government, the NAPS and the PPF relating to rates of social welfare payments. It also outlined, on an illustrative basis, the average annual level of increase which would be required in order to achieve the various commitments in equal monetary steps over the years to 2007. This is just one of a number of approaches as to how the various commitments could be achieved. The paper notes that it will be a matter for Government to determine the pace at which they will be implemented as well as how the benchmark for the lowest rate of payment will be updated in the years ahead.

In relation to the issue of income adequacy, the Government's continued commitment is very clearly articulated in the text of the proposed social partnership agreement. The agreement states that it remains Government policy to meet the target for the lowest social welfare rates and appropriate child equivalence levels as set out in the revised NAPS by 2007.

The issue of the level of increases introduced in any given year is one which must be assessed in the context of the budgetary process, having regard to the level of resources available and the competing demands on those resources. Increases provided for in the budget fully protect or enhance the standard of living of all social welfare recipients.

I look forward to making progress on meeting the income adequacy targets contained in NAPS and now restated in the proposed partnership agreement in the budgets over the period to 2007.