Vol. 531 No. 3
42 Mr. Broughan asked the Minister for Social, Community and Family Affairs the preparations under way at his Department for the changeover to the euro; if social welfare recipients will receive their increases on time as a result of the changeover; the steps he is taking to ensure that delays do not occur; and if he will make a statement on the matter. [5725/01]
The project to effect a smooth transition to the euro in my Department is well in hand. The necessary resources are in place and detailed plans have been drawn up covering the changes needed to the computer systems which support the business, the staff training needed and the information needs of our customers. Work is proceeding on schedule and a smooth transition is expected. In accordance with these plans, payments to customers up to and including 31 December 2001 will issue in £ Irish and from 1 January 2002 all payments will issue in euros.
As the Deputy knows, the Government decided some time ago to align the tax and calendar years from 1 January 2002. The Government has also decided that increases in weekly social welfare payments will apply from the beginning of January 2002. The period of time between the announcement of budget increases and the coming into effect of those increases has been sufficiently long in the past to enable the increases to be incorporated in pension order books as from the normal renewal dates of those books. In view of the bringing forward of the increases to 1 January however, the time period will be shortened and there will be some delay in the implementation of the increases. Every effort will be made to ensure that any such delay is kept to a minimum and, of course, payment at existing rates will continue and any delayed increases will be fully paid. The administrative arrangements for payment of the arrears are currently under consideration and all options are being examined to ensure that any delay in people receiving their increase is minimised.
In the current year the date for the budget increases has been brought forward substantially to April. This means that for the first time, social welfare increases will come into effect at the same time as the changes in the income tax provisions announced in the annual budget.
These increases in payments will be included in the payments due to beneficiaries on and from the effective date in each case in April next. The position in 2002 will be even more significantly improved with the increases in early January being a full three months earlier than this year. The aim is to ensure that these increases will be paid on the due date. Even if this is not possible, due to the timing of the budget or other circumstances outside my Department's control, to pay the 2002 increases on the due date, those increases will be paid considerably earlier than this year, to the benefit of all recipients of social welfare payments.
