Dáil Éireann Debate, Wednesday - 30 March 2011
19 Deputy Billy Kelleher asked the Minister for Social Protection if she will elaborate on the commitment in the programme for Government to examine family and child income supports and if all cuts in child benefit are absolutely precluded by the programme. [6052/11]
View answerFamily and child income support payments both assist parents in contributing to the costs associated with raising children and play an important role in the objective of reducing child poverty. The Government is conscious that these payments are an important source of income for all families, particularly during a time of recession and unemployment. A value for money review of child income support policies and associated programmes was published by my Department in November 2010. The review covered policy around child benefit, qualified child increases and the family income supplement payments, as well as aspects of some other child-related payments. My Department is also undertaking some follow-up work, including a consultation seminar held yesterday with interest groups on the review which gathered the views of stakeholders as to the future direction of policy on child income supports. Creating jobs and tackling poverty are two of the key challenges we face. It is essential that our tax and social protection systems play their part in addressing these problems. As we stressed in the preamble to our programme for Government, in order to address the very substantial problems that we face, it is essential that new ways, new approaches and new thinking will form the constant backdrop to the work of the Government. For this reason the Government will seek to benefit from the expertise of a commission on tax and social welfare that will consider a number of issues arising out of the operation of the tax and social welfare systems. The Government will consider the scope of the commission's work and the practical arrangements around its operation and an announcement will be made on this as soon as possible.
The Government is committed to tackling Ireland's economic crisis in a way that is fair, balanced, and which recognises the need for social solidarity. In addressing all aspects of the public finances, it will seek to ensure that resources are allocated fairly and that less well-off families are protected in so far as possible. Decisions on the child benefit payment rate are a matter to be decided in a budgetary context.
I wish the Minister well in her new portfolio and know she will embrace the work of the Department as much as she embraced her appointment. Notwithstanding my tongue in cheek, I wish her well.
I welcome the Minister's response. However, will she clarify what is proposed with regard to the commission on social welfare, when it is expected to be established and when it is expected to report? This is a critical part of the overall review of social welfare. Value for money reviews were published last year and these indicated clearly there would be a change in thinking from the Department. During the election, the issue of further reductions, in child benefit in particular, was considered a red line issue. In view of the programme for Government and the negotiations that have taken place since then, is it still the view of the Minister and of the Government that child benefit remains a red letter issue?
The Fine Gael proposals with regard to less waste, lower taxes and stronger Government are expected to deliver savings of approximately €250 million in the area of child benefit by 2014. How does the Minister square that circle in the context of trying to retain dependants' social welfare payments and at the same time achieve the Government target of saving up to a quarter of €1 billion in the area of child benefit? This target suggests there will be some form of reduction in child benefit or the family income supplement. Otherwise, the circle will not be squared.
I thank Deputy Kelleher for his good wishes. I am unsure whether Fianna Fáil has decided on its spokespersons, but I welcome the Deputy here today.
The programme for Government contains a commitment to maintain social welfare rates. I cannot at this time give an explicit commitment on child benefit rates, as specific decisions on payment rates are made in a budgetary context. However, the Government considers it a priority that a more fundamental examination of our system of family and child income supports is required. It is for that reason we will ask the commission on taxation and social welfare, when established, to examine and make recommendations on these payments, with particular emphasis on addressing the cycle of child poverty. These are the commitments in the programme for Government. In the context of the commission on taxation and social welfare, the programme sets out a number of areas which will be examined, including the issue of child and family income supports and the issue of the self-employed and their relationship to the social insurance system.
When does the Minister envisage the establishment of the commission and when does she envisage it reporting? Will the commission operate on a broad consultation basis or on the basis of the expertise of the appointees to it?
The Department and I are currently reviewing the establishment of the commission and I hope to be in a position to make an announcement in the near future. I hope the issue of child and family income supports will be the first matter to be considered. As the Deputy knows, a great deal of work has been done in this area down the years and I hope the commission will be in a position to report within a reasonable timeframe.
