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Dáil Éireann díospóireacht -
Wednesday, 4 Jul 1990

Vol. 401 No. 1

Ceisteanna — Questions Oral Answers. - Fuel Allowance.

Michael Ferris

Ceist:

7 Mr. Ferris asked the Minister for Social Welfare if he intends to increase the free fuel allowance for those living outside the greater Dublin area in line with his announcement for the Dublin area; and if he will make a statement on the matter.

Eric J. Byrne

Ceist:

32 Mr. Byrne asked the Minister for Social Welfare the steps he intends to take to assist those on low pay, who are not in receipt of the family income supplement, to meet the extra cost of fuel, arising from the Government decision to prohibit the sale of bituminous coal from September; the reason the proposed £3 per week will not be payable until mid-October as the ban on bituminous coal comes into effect in September; and if he will make a statement on the matter.

I propose to take Questions Nos. 7 and 32 together. The additional fuel allowance of £3 per week which I am introducing for low income households in built up areas of Dublin is designed to compensate some 81,000 households for the additional costs arising from the ban on bituminous coal in these areas. There is no such ban outside Dublin and the question of extending the additional allowance to persons resident in other areas does not arise. The ban on the marketing, sale and distribution of bituminous coal will come into effect from 1 September so as to ensure that it is effective in time for next winter. Payment of the additional fuel allowance will coincide with the period of the heating season under the national fuel scheme, namely mid-October to mid-April.

Apart from persons entitled to a fuel allowance under the national fuel scheme, the new allowance for smokeless fuel will also apply to persons receiving short-term unemployment assistance, unemployment benefit or disability benefit for at least three months and to recipients of family income supplements, provided these categories satisfy the other conditions for entitlement under the national fuel scheme. In relation to family income supplement I have made significant improvements in recent years in the benefits available under this scheme and further measures, aimed at increasing the numbers entitled to payment under the scheme and the level of take-up, will take effect later this month. These improvements include substantial increases in the rates of payment and the introduction of a new minimum payment of £5 per week. I am satisfied that the measures being taken to compensate those on low pay to meet the additional costs arising from the ban on bituminous coal in the Dublin area represent a very substantial package designed to protect social welfare clients against the additional costs involved.

While I accept that the improvements in the Dublin area are welcome would the Minister not agree that they create anomalies for the poor in the rest of the country who may also want to use smokeless fuel? If the Minister agreed to use his offices to extend the free fuel allowance throughout the country there would be a beneficial effect on the environment and it would assist recipients of social welfare payments. It would also help Bord na Móna to dispose of their massive stocks of smokeless fuel which could be channelled through the Department. Would the Minister agree that that would be the right way forward to remove the anomalies between the poor in Dublin and the poor in the rest of the country?

This is an allocation which will form part of the national environmental action plan. It is in that context that the sum of £3 million was allocated to me, in addition to the 1990 provision of £28.1 million, for the national fuel scheme generally. Therefore this year I will have the £28.1 million generally, plus the £3 million which comes under the national environmental action plan. The question of covering additional areas within the country is a matter for the national environmental action plan. I will certainly convey the Deputy's views to my colleague, the Minister for the Environment.

Would the Minister confirm — by answering yes or no — whether any person in receipt of unemployment assistance or disability benefit will, of right, be eligible for the £3 weekly fuel allowance?

The Deputy asked for a "yes" or "no" answer. If he does not mind me saying so, it is silly to ask me to do so. My reply is "yes" under the conditions set out in my reply. For anyone in receipt of such benefit for over three months who comes within the terms of the national fuel scheme the answer is a simple "yes", once they comply with the other conditions.

So the answer is that anybody drawing disability benefit is not automatically entitled, nor are those drawing unemployment assistance automatically entitled to this allowance as soon as they exceed this three month period?

They are automatically entitled if they come within the terms of the national fuel scheme.

Is this not the trick in the wording?

Not at all, because the terms mean that they do not have other substantial income. If we were to do that it would create a great distortion of the whole system——

So it means that it will apply both to those in receipt of disability benefit and unemployment assistance?

——under the conditions of the national fuel scheme. In other words, if somebody is in receipt of disability benefit or unemployment assistance and has no other income from any other source, beyond the income ceiling allowable under the national fuel scheme——

The reason I am posing this question is this——

This appears to be leading to argument. We must proceed by way of relevant, brief supplementary questions. A final supplementary from Deputy Byrne.

With regard to my Question No. 32, now that the Minister is introducing the regulations from September rather than mid-October would he agree that the least he can do is to bring forward the payment of benefit from mid-October to the beginning of September, the date from which there will be a ban on the marketing, sale and distribution of bituminous coal because the winter is going to be——

Please, Deputy Byrne, you have made your point.

First, I must correct the Deputy. I am not bringing in any regulation on 1 September. I am making arrangements to extend the provisions of the national fuel scheme to cover additional people. We are providing an extra £3 per week under the national fuel scheme for its duration. The reason it covers that period is that it relates to the temperatures obtaining within that period — that is well established — from mid-October through to mid-April. I can show the Deputy these some time if he wishes, if he is not familiar with them, but it is those temperatures on which the provisions of the national fuel scheme are based. The Deputy is referring to the date on which my colleague, the Minister for the Environment, will bring in the order for the ban on the sale of bituminous coal which is 1 September. That is a different matter.

In view of the rather disappointing information the Minister has now given us in relation to disability benefit and unemployment assistance recipients and the extra fuel subsidy and in view of the fact that it will not be automatically available to all recipients — as he has clarified today — does this mean they will all be subjected to a means test or will have to apply to their local health centre, because I am sure the data in relation to "other income" is not readily available to the Minister? What will be the mechanism to be applied in the case of those who will qualify for, apply and receive such benefit? The Minister indicated on the last occasion on which we discussed this that it would be paid automatically with their benefit. How can that be if they are to be subjected to a means test?

Under the terms of the national fuel scheme. It was never anything other than under the terms of that scheme. One would be creating a great distortion and be spending money in a very wild fashion if one were to throw it out to everybody who happened to be eligible for a social welfare benefit because, as the Deputy will know, some such people will have considerable additional income separately. It was always a question of the national fuel scheme being extended to cover people who would not normally be covered by its provisions, for instance people in receipt of disability benefit in excess of three months who will be eligible under the terms of the national fuel scheme.

How would they apply?

They will all be known and invited to apply. It is a very large, administrative undertaking but they will all be invited to apply. They will have automatic entitlement once they come within those terms. It is a very simple procedure to ascertain that fact. I should say it will bring 81,000 households into the system. That is the estimated figure.

I am calling Question No. 8.

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