Vol. 531 No. 3
25 Mr. Broughan asked the Minister for Social, Community and Family Affairs the preparations under way at his Department for the changeover to the euro; whether 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. [6019/01]
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 pounds and from 1 January 2002 all payments will issue in euro. As I said previously, the amounts will be rounded up to the benefit of customers.
As the Deputy will be aware, the Government decided some time ago to align for the first time 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 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. Deputies would agree this was a source of much complaint from recipients. Because of bringing forward the increases to 1 January, however, the time will obviously 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. 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 budget.
Additional informationThese 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 Minister has now admitted that increases in social welfare benefit and assistance will not take place on 1 January next year, despite the much trumpeted promise by the Minister for Finance some months ago.
The Deputy should ask a question.
Does the Minister agree the Secretary General of his Department, in response to an inquiry under the Freedom of Information Act by the journalist, Olivia Doyle, said in effect that the implementation of the increases in euros on 1 January was absolutely impossible? Does the Minister admit that it will not be possible to keep to that timetable? Does he agree there is deep and widespread concern among pensioners and social welfare recipients generally at ongoing rampant inflation and the possibility of a similar "rip-off" during the change-over to the euro, as happened previously with decimalisation of the Irish currency? This is reported to be happening already on drink prices.
The date of 1 January will be a very busy time because of the changeover to the euro. I remind the Deputy that, when this Government came into office, the December budget of the previous Government provided that people did not get their increases in social welfare payments until the following June or July. Now, as a result of the decisions which we have made progressively over the past four years, all the payments have been brought forward to 5 April this year and, for the first time, will be aligned with the tax year.
Furthermore, as of next budget, the social welfare increases and tax arrangements will operate from 1 January, 2002. There will be a huge gain for people on social welfare. The cost to the Exchequer and the gain to social welfare recipients as a result of the earlier operative date will be £85 million. There is a six months cycle involved in changing social welfare books, as they are known. No matter what date we pick in relation to the increases in payments, social welfare recipients will have their books changed at various times after 1 January 2002 but in reality their increases will be effective from that date. It is to the credit of this Government that those payments and the tax adjustments are being brought forward as close as possible to budget date.
The six minutes allowed for this question has expired. The Chair has no discretion to extend the time available to either the Minister or the Deputy. We must move on to Question No. 26.
