I propose to take Questions Nos. 8 and 56 together.
I have read Professor McAleese's recent article in the Irish Banking Review with interest. Given the significant improvement in the Irish economy in recent years the article aims to examine the changes in Irish fiscal policy and how these have affected different sections of the community. The analyses are based on the key economic indicators over the 1986-89 period, and on the increases in the incomes of various groups. The article concludes that the process of fiscal adjustment did not involve a burden on any major sector of society, because, it is stated, the adjustment process led to growth rather than halted it. The report therefore concludes that “Ireland seems to have brought off a dramatic double; a significant adjustment in the country's fiscal balance combined with a resurgence of GNP growth and greater spread of the benefits of growth.”
I do not consider it appropriate to enter into a debate on the merits of what is an academic economic paper. I would say, however, that the analysis is at a broad macro level and to gain a full picture of the impact of the adjustment process on different sectors of the community would require further study, including detailed data on household incomes and living conditions.
In relation to social welfare services the analysis refers to the percentage adjustments in social welfare rates over the period 1986-89, and documents the Government's success in implementing increases in rates, in many cases considerably in excess of the inflation rate.
Over the period 1987-90, I have raised the personal rate of long term unemployment assistance by 41.5 per cent, representing an increase of 25.4 per cent in real terms. This may be contrasted with an equivalent increase of 14 per cent in the period 1983-86. Similarly, I have increased the minimum payment for child dependants from just over £8 per week in 1986 to a minimum of £11 in 1990.
Increases of this order have contributed significantly to improving the living conditions of the poorer sections of our community. However, there is scope for further improvements. I intend, in future budgets to continue my policy of focusing resources on those most in need.
I would like to assure Deputies that the Government's commitment, set out in the Programme for National Recovery, to improve the position of those on the lowest incomes will continue to be the focus of our attention as the adjustments which have been made in the economy bear fruit over the coming years.