Vol. 497 No. 5
271 Proinsias De Rossa asked the Minister for Social, Community and Family Affairs the way in which payments made by the United Kingdom Department of Health and Social Services and other EU social services departments to people resident in Ireland will be calculated for means test purposes following the commencement of the euro regime in January 1999. [25367/98]
When determining, for the purposes of assessing a claimant's means, the value in IR£ ‘Irish punts' of social security payments made in other EU currencies, the Department employs an exchange rate mechanism which is used within the EU for social security transactions betweeen member states.
This exchange rate mechanism is provided for under Article 107 of Council Regulation (EEC) No. 574/72 on social security for migrant workers. The rate represents the average of the daily exchange rates for each currency in the first month of a quarter for use in all transactions during the course of the succeeding quarter. The exchange rate is calculated by the EU Commission on the basis of the rates used for the calculation into ECU within the framework of the European Monetary System.
With effect from 1 January 1999, the method for fixing exchange rates set out in Article 107 will become obsolete for conversions between the currencies of member states participating in the euro, since the conversion rates will be fixed irrevocably from that date onwards.
In the case of participating member states, the current method of conversion will be replaced after 1 January 1999 by the conversion rule contained in Article 4(4) of Council Regulation (EC) No. 1103/97 of 17 June 1997. In effect, there will be a fixed exchange rate between currencies of participating states up to 1 January 2002. Conversion will no longer arise between participating states after 1 January 2002.
In relation to conversions between a participating and a non-participating member state, such as the United Kingdom, the conversion rule contained in Article 107 can continue to be applied after 1 January 1999. However, as the national currency units of the participating member states will no longer be quoted, the euro will act as the central currency for all such States from that date onwards.
In the case of the United Kingdom, for example, the exchange rate of the pound sterling for the euro will be determined in accordance with Article 107 for each quarter. In calculating the value of a payment made by the UK Department of Social Security, the amount will first be converted into euro using the appropriate rule prescribed under Article 107 for the reference period. Then the euro amount will be converted into IR£ ‘punts' using the fixed exchange rate. This will also apply in currency conversion in the case of payments made by the other non-participating states.
272 Mr. Perry asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that all REP scheme payments received by persons on disability allowance are assessed as income; if his attention has further been drawn to the fact that the REP scheme payment is not classed as income on disability benefit and is a form of discrimination; the plans, if any, he has to amend this anomaly; and if he will make a statement on the matter. [25369/98]
In assessing means for social assistance purposes, account is taken of the value of any capital or investments, together with any cash income that the person has.
Over the years, different methods of assessing capital and income have applied in the case of the various social assistance schemes. Some of these differences are designed to achieve specific policy objectives. For instance, in recognition of the special contribution which carers make to our society, the carer's allowance scheme provides for a substantial disregard of £150 a week in the amount of income which the spouse of a recipient may have, without affecting the carer's entitlement.
However, it is recognised that there is a need to standardise many of the different methods of calculating means in order to achieve greater equity within the system. In this regard, considerable progress has already been made in the area of standardising the assessment of capital. The question of making further progress in this area, including the extension to the disability allowance scheme of the current disregard in respect of REPS payments, would have financial implications. Any such measure would therefore, have to be considered in a budgetary context, in the light of available resources and having regard to the commitments in the Government's Action Programme for the Millennium, Partnership 2000 and the National Anti-Poverty Strategy.
Disability benefit is a contributory social insurance payment and entitlement is not, therefore, affected by any income that the claimant may have. However, as the self-employed, including farmers, are not insured for disability benefit purposes, it is highly unlikely that a person who would be qualified for disability benefit would also be eligible to receive a REPS payment.
