John Browne
Ceist:9 Mr. Browne (Carlow-Kilkenny) asked the Minister for Social Welfare when the free fuel allowance was first introduced; and the increase, if any, due to inflation that has since occurred.
Ceisteanna—Questions. Oral Answers. - Free Fuel Scheme.
Prior to October 1988, there were two fuel schemes in operation with separate eligibility criteria. The urban fuel scheme was administered by the local authorities and the national fuel scheme was administered by the health boards under the supplementary welfare allowance scheme. In 1988 I amalgamated the urban and national fuel schemes into a single national fuel scheme.
The current payment of £5 per week, which is payable to eligible households from mid-October to mid-April, has been in operation since 1985.
In 1990 I introduced an allowance of £3 per week, which is payable in addition to the fuel allowance, in recognition of the additional costs arising from the ban on the sale of bituminous coal in the Dublin area.
The variations in domestic fuel costs year on year are identified separately in the consumer price index which is produced by the Central Statistics Office. The fuel and light component of this index shows that between August 1985 and August 1993 fuel costs have increased by 4.7 per cent.
(Carlow-Kilkenny): Will the Minister accept that the £5 fuel voucher, of considerable benefit in 1988, would have its value reduced to £2.50, £3 maximum, as a result of inflation and the increased cost of fuel in the meantime?
The change in terms of the value and cost of fuel has been relatively small over the period partly because prices fell although they have risen recently. It will be kept under review since it is a very substantial scheme covering a large number of people and is considered in the preparation of the budget every year.
(Carlow-Kilkenny): I think I detected a blush of embarrassment on the Minister's face endeavouring to defend keeping the allowance at the same level whereas old people who need that fuel badly must pay, admittedly not an exorbitant increase in the cost of fuel. When inflation is taken into account, one readily realises that the scheme's value has been more than halved. While I criticised the 3 per cent before as being useless, since it was merely keeping pace with inflation, surely the least that should be done is to take into account increases in the rate of inflation? The £5 could be raised to perhaps £7 which would help.
That is the inflation over the period — the rise has been 4.7 per cent only over the whole period. The reason is that the price of fuel was higher earlier because of fuel crises.
Which fuel? What about coal?
That includes coal.
What was the increase in the price of coal?
As the Deputy knows, we provided an extra £3 for coal used in Dublin.
(Carlow-Kilkenny): Rural Ireland is still alive.
The figure given is an overall fuel price which includes coal.
The Minister is dealing with a reduction for oil so he is artificially——
(Carlow-Kilkenny): The price of coal rose by £7 a ton in the past month and the cost of briquettes — I do not want to knock briquettes produced by Bord na Móna, since it is our local fuel — rose by thirteen pence in the past five years. Bearing in mind that recipients of these vouchers use two bales of briquettes a day, one can readily appreciate the value of a £5 voucher. The Minister said it is considered in the preparation of the budget, but this year's budget has come and gone and nothing has been done. Will he make it a budgetary priority next year?
The figure given embodies the cost of coal, gas, electricity and peat——
——and oil?
No, domestic fuels.
Domestic oil.
It is not mentioned in the list.
I do not want to advance this argument from a scientific viewpoint but, in view of the very obvious change in weather patterns over recent years, will the Minister consider making the allowance available to recipients a fortnight earlier and leaving it in place for a fortnight later until, say, the middle of April or thereabouts? It would be of enormous benefit, particularly to the elderly.
As far as the elderly are concerned, at budget time the principal concentration is on increasing payments and benefits. As the Deputy knows, that is what has been done in the most recent budget, resulting in payments to them above the level recommended by the Commission on Social Welfare. Because of the small variations in fuel prices overall the allowances have remained fairly static over the period concerned and they are based on the figures I gave the Deputy. The estimated total expenditure on the national fuel scheme in 1994 is £39.5 million.
Will the Minister agree that the £5 voucher would not even buy a bag of coal for recipients? It might buy a bag of wooden blocks. Will he also agree to link these prices annually to the consumer price index since, by producing artificially concocted figures, he is misrepresenting the position?
That matter will have to be considered within the context of the budget. Since 1985 the scope of the scheme has broadened very considerably, leading to the total expenditure having increased significantly overall, extending the same benefits to many more people which has necessitated the extra expenditure on the scheme.
Spreading the same pot of jam more widely.