Vol. 550 No. 4
114 Mr. B. Hayes asked the Tánaiste and Minister for Enterprise, Trade and Employment the reasons her Department chose to reject the majority recommendation in the social welfare benchmarking report, when the Government published the review of the national anti-poverty strategy which seems to accept the recommendation; and if she will make a statement on the matter. [8556/02]
A group was established under the Programme for Prosperity and Fairness with terms of reference to "examine the issues involved in developing a benchmark for adequacy of adult and child social welfare payments, including the implications of adopting a specific approach to the ongoing up-rating or indexation of payments having regard to the long-term budgetary, PRSI contribution, distributive and incentive implications, in light of trends in economic, demographic and labour market patterns."
The group consisted of the Departments of Finance, Social, Community and Family Affairs and Enterprise, Trade and Employment as well as representatives of the employer, trades union, farming and community and voluntary pillars. The group was chaired by an independent chairperson.
In the light of the various issues examined, a majority of the group considered that a target of 27% of gross average industrial earnings, GAIE, for the lowest social welfare payments was not an unreasonable policy objective to be met in full by 2007.
As set out in paragraph 8.4.5 of the report the view of my Department, along with the representatives of the Department of Finance and the employer pillar, is it was inappropriate to establish a formal benchmark and that the existing arrangements which have seen real increases, that is, in excess of inflation, in welfare rates should continue to apply. Essentially, it would be left to the discretion of the Government to determine the level of welfare increases from year to year having regard to the range of high priority demands on the Exchequer and to the issue of affordability, sustainability and compatibility with the social economic and employment needs of the economy on a continuing basis.
Question No. 115 answered with Question No. 112.
