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Dáil Éireann díospóireacht -
Tuesday, 1 Mar 1988

Vol. 378 No. 6

Ceisteanna-Questions. Oral Answers. - Elimination of Poverty.

12.

asked the Minister for Social Welfare the plans he has to overcome the widespread poverty which now exists.

Poverty has many dimensions. It includes, for example, low or inadequate income, low quality or overcrowded housing, inadequate education and training, low health status and many other features which can isolate or separate people from the main activities of society. The elimination of poverty in the community is one of the underlying objectives of all Government activity and is central to our Programme for National Recovery. As the programme states, one of the four broad areas where progress is envisaged over the next three years is in diminishing or removing social inequities in our society.

In the area of social welfare the services provided by my Department are directed to this purpose. The policy of this Government is to devote whatever resources can be made available to maintaining and improving the social welfare system.

The extent to which additional resources can be made available will, to a large degree, be determined by the success of the Government's policies in achieving growth in the economy. However, I am determined that whatever progress can be made in reforming and developing the social welfare system within the financial constraints which exist, will be made.

The increase in social welfare payments, which were announced in the budget, are a major step in this direction, and are well in line with the Government's commitment to maintain the overall value of social welfare benefits and within the resources available at the same time consider special provision for greater increases for those receiving the lowest payments.

All social welfare recipients will receive a general increase of 3 per cent from July this year and this will more than protect the real value of payments given that the rate of inflation this year is expected to be 2.5 per cent. Those on the lowest social welfare payments, namely unemployment assistance and supplementary welfare allowance, will receive special additional increases which will bring those payments even further above the current rate of inflation. For example, the personal rates of these payments will be increased by 11 per cent.

In addition, the rates of payments in respect of dependent children of social welfare recipients are being streamlined and improved. Again, special increases are being given in the case of the lowest child rates. These changes, which will cost some £101 million in a full year, will considerably improve the incomes of two of the categories of persons most at risk of poverty, namely, large families and recipients of unemployment assistance. This represents a concrete example of this Government's concern for the less well-off members of the community.

For example, a family with three children in receipt of unemployment assistance at the long term urban rate will receive an increase of £6.70 per week, giving a total payment of £98.80 per week from July next. A widow with three children in receipt of a contributory pension will get an increase of £2.80 per week, giving her a new rate of £93.30 a week. A couple on retirement or old age pension will receive an increase of £2.90 per week, giving them a new rate of £99.10 per week.

As the elimination of poverty involves so many areas of public policy, it has been singled out for special and positive attention. To this end, the Combat Poverty Agency have been established. The main functions of the agency are to advise me in relation to all aspects of poverty, to initiate and evaluate measures to overcome poverty, to examine the nature, causes and extent of poverty and to promote greater public understanding of this.

The agency are currently involved in three inter-related areas of work — support for community development projects, research and public information. By encouraging a more co-ordinated and planned approach to combating poverty, the agency can act as a catalyst for change and can make an important contribution towards the elimination of poverty in Ireland.

The agency are currently jointly funding a major survey of poverty in Ireland which is being carried out by the Economic and Social Research Institute as part of the Second EC Poverty Programme. One of the objectives of this study is to establish the extent of poverty in Ireland. The study will make a substantial contribution to our understanding of the level, nature and determinants of poverty and will be of immense value for all policy makers involved in combating poverty.

The Minister confined himself to reciting announcements which have been made twice or three times already. How much does a prescribed relative get per week? What is an unemployed widower with children paid per week? What is the Minister doing about the problem of moneylending which afflicts the poorest in society and which I raised in the Dáil last December? What tangible steps has he taken to increase the sum of £26 on which prescribed relatives are supposed to live? What has he done for single women over 58 years of age who are supposed to live on £37 per week? Has he done anything to single out these unfortunate groups in society for special relief? No.

The Deputy will be aware that this year I have given major increases to the lowest income groups——

The Minister stopped those payments last year.

Deputy Mitchell asked a question and he should listen to the reply.

There are other points which will be tackled in future.

One could debate the Minister's reply all day. However, the Minister knows that social welfare is not in line with inflation. Will the Minister consider phasing in, over a definite period, some of the recommendations in the report of the Commission on Social Welfare as these would be a very positive attack on poverty? Furthermore, some months ago, on two occasions in the House, I asked the Minister if he would consider setting up an all-party committee to consider the recommendations of the Commission on Social Welfare so that all parties could join in trying to eliminate poverty, which is rampant at present.

The Deputy will be aware that one of the major proposals of the Commission on Social Welfare was that those on the lowest level of payments — £35, £36 and £37 — should be brought up——

What about single women and prescribed relatives?

We put £53 million into this area——

The Minister stopped it last year.

The Deputy's party did nothing in this regard for four and a half years and it is ridiculous to hear him ranting and raving when they took no action in this area.

We proposed it last year.

The previous Government merely kept social welfare payments in line with inflation. We have given £53 million to this area although I agree other problems must be dealt with. It is surprising to hear Deputy Wyse saying that we did nothing in this area because when I said in my budget speech that we were giving this extra money to bring the unemployed up to a higher level of remuneration, his party leader told me that this was not the right approach.

That is wrong.

He suggested that these people would be better off getting work but the Deputy knows that it will be quite some time before the 250,000 unemployed will get work——

As a result of Fianna Fáil policies.

In the meantime, it is particularly important to bring those payments up to a decent level. We are the first Government to take positive action in that respect.

You copied the proposals which Fine Gael made last year.

The Minister did not answer my question. Will he consider phasing in, over a definite period, the report of the Commission on Social Welfare? Will he suggest to the Taoiseach and the Government that an all party committee should be set up to examine the recommendations of the commission's report?

I have stated several times in the House that it is my policy to follow the commission's report as a general framework. They pointed out the areas which need particular attention and I have directed my energies to meeting these as far as I can in the present circumstances. The commission suggested special increases for the lowest levels and we have done something about that. We have rationalised the rates for child benefits in the budget and we have also improved the quality of services generally. I assure the Deputy that I will be following the commission's report as a general framework.

Will the Minister not accept that he has pursued policies which give across the board increases in Christmas bonuses or weekly payments which have the effect of giving those with two, three and four pensions a much bigger increase in their social welfare than those depending solely on social welfare payments? Will the Minister accept that very often well-off people who happen to have contributory old age pensions get a Christmas bonus of £60, as an example while a person living on £37 per week gets a bonus of £20 at Christmas? Will the Minister accept that he has refused to concede to the pressures from this side of the House to target more towards those most in need who are the subject of this question, the poor?

The Deputy will be aware that one of the policy lines we have followed is the targeting of resources?

That is not so.

We have already targeted resources in a number of areas and in future we will be targeting resources to those most in need.

Live horse and you will get grass.

The Minister has indicated that there has been an increase in the rate for unemployed and so on but I wonder if he is aware that local authorities are now increasing rents and in many cases are clawing back the increases which the Minister has given through social welfare payments? Does the Minister propose to talk to his colleague, the Minister for the Environment, with a view to having that stopped?

I am concerned about that and I will certainly be pursuing it. The Deputy should remember that the increases will not come into effect until July.

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