Dáil Éireann debate -
Tuesday, 20 May 2003

Vol. 567 No. 1

Written Answers. - Anti-Poverty Strategy.

Trevor Sargent

Question:

113 Mr. Sargent asked the Minister for Social and Family Affairs her Department's view of the 2003 socio-economic review issued by the Conference of Religious in Ireland which contends that the gap between rich and poor has further widened and never before has the distribution of income been so unequal. [13513/03]

Joan Burton

Question:

132 Ms Burton asked the Minister for Social and Family Affairs her views on a recent study by a group (details supplied) which found that the gap between rich and poor has widened and that income distribution has never been so unequal; the reason Ireland has such a low annual spend on social protection; and if she will make a statement on the matter. [13550/03]

Minister for Social and Family Affairs (Mary Coughlan)

I propose to take Questions Nos. 113 and 132 together.

I have noted with interest the recently published CORI Socio-Economic Review 2003, which focuses on reducing poverty and achieving social inclusion. These are key objectives of my Department which we are pursuing through the implementation of the revised national anti-poverty strategy. In relation to the gap between rich and poor, the CORI review cites figures which show that the position of the lowest income households relative to the position of the highest earning households has disimproved over the past 15 years. This is attributable to a range of factors, but it is certain that a primary factor has been the very substantial growth in employment and reduction in unemployment which has occurred in that period.

It is widely accepted that reliance on income alone as a measure of poverty has limitations, most particularly in a period where there has been a very rapid growth in average incomes. The consistent poverty measure developed by the Economic and Social Research Institute, which incorporates both income and the presence of various indicators of deprivation, provides a broader picture of poverty arising from a sustained lack of resources.

According to the most recent figures, Ireland has seen significant reductions in consistent poverty over the past decade from 15% in 1994 to 6% in 2000. The levels of consistent poverty among vulnerable groups such as children and older people have also fallen during this period. In the revised national anti-poverty strategy, the Government has committed itself to further reducing the numbers of those who are consistently poor to below 2% and, if possible, to eliminate consistent poverty altogether. Trends in relative income will also be monitored over the period of the national anti-poverty strategy.

The CORI review also quotes EUROSTAT figures which show that in 2000 Ireland's social protection expenditure as a proportion of GDP was the lowest in the European Union. Over recent years, however, Ireland has differed significantly from other EU member states in terms of its high rates of economic growth and its low level of unemployment. The fact that Ireland has the lowest elderly population in the EU and that it relies less on State provision in a number of key areas, such as supplementary pensions, and child and elder care services, inevitably results in Ireland's social protection expenditure as a percentage of GDP being below the EU average. This will change in time as economic growth and unemployment levels fluctuate and as the population ages.

The policy of improving the standard of living of all those dependent on social protection is continuing, as resources permit and guided by the National Anti-Poverty Strategy. It is necessary to bear in mind that the degree of progress that can be achieved in this area in Ireland, as in all EU countries, is dependent on ensuring the economic growth which provides the resources necessary to achieve real improvements.