Dáil Éireann Debate, Wednesday - 6 October 2004
149 Mr. Sherlock asked the Minister for Social and Family Affairs his views on recent comments from the Combat Poverty Agency which are critical of the growing gap between rich and poor here; if he has received a copy of the agency’s annual report; and if he will make a statement on the matter. [23323/04]
View answerThe Combat Poverty Agency launched its annual report for 2003 on 28 September 2004. The comments made on the numbers at risk of poverty, referred to by the Deputy, were made at the launch by the agency's director.
The "at risk of poverty" indicator is based on the percentage of persons below 60% of median income. This indicator rose from 19.8% in 1998 to 21.9% in 2001. This was mainly due to the significant rise in average incomes which occurred during a period of rapid and high economic growth in Ireland when the median income threshold almost doubled from €83 in 1994 to €164 in 2001.
The significant real increases in social welfare payments during this period — 27% above the increase in the cost of living between 1997 and 2004 — did not fully keep pace with these almost unprecedented increases in average income during the period.
However, they did meet a key priority aim of our national anti-poverty strategy which is to reduce, and if possible, eliminate consistent poverty. The "consistent poverty" indicator, developed by the ESRI, measures the percentage of persons below 60% of average income and experiencing basic deprivation. Over the period 1994 to 2001, the numbers experiencing basic deprivation reduced by almost two thirds from 15.1% in 1994 to 5.2% in 2001. The aim is to reduce consistent poverty below 2% or, if possible, eliminate it by 2007.
The reduction in unemployment, especially long-term unemployment, and increasing employment participation, especially among married women, has been the key to the remarkable increase in the standard of living of a majority of our people. It is essential that we continue to ensure that the economic success that has brought these improvements in living standards is maintained. The one reality in common which those who have lagged behind share is the fact that they are not in employment or are in low income employment.
These groups include certain families with children, especially lone parent families, larger families, where the second parent may have to care for the children full-time, and the families of people with disabilities. A key policy aim is to progressively remove obstacles to such people getting more and better jobs and benefiting directly from our economic success.
Another group at risk are pensioners, although the "at risk of poverty" indicator may understate their income. No account is taken of home ownership and the benefits this provides to older people, a high proportion of whom own their own homes. Neither is account taken of the value of the package of free schemes made available to certain pensioners and other groups such as carers and people with disabilities. However, the indicator does underline the importance of the priority this Government is giving to significantly increasing pensions in real terms and, in particular, the target to increase pensions to €200 per week by 2007. Consideration will also be given in this context to improving the position of pensioners living alone, especially women.
Income indicators can result in the focus being placed entirely on income. It is also important to ensure that access to and the quality of services such as health and care services, housing and accommodation are also improved given their importance for overall quality of life, especially for pensioners.
The national anti-poverty strategy, NAPS, together with the National Action Plan against Poverty and Social Exclusion, provide the framework for the strategic response by Government to one of its most important challenges of reducing and, if possible, eliminating poverty and social exclusion. This strategy will be further developed in the years ahead.
