Dáil Éireann Debate, Wednesday - 6 October 2004
188 Mr. S. Ryan asked the Minister for Social and Family Affairs his views on the United Nations human development report published in July 2004 which shows that Ireland has the second highest level of poverty in the western world; and if he will make a statement on the matter. [23310/04]
Amharc ar fhreagraThe United Nations human development report to which the Deputy refers contains a range of indices which measure the achievements of countries in three basic dimensions — life expectancy, knowledge and standards of living.
The human poverty index, HPI-2, is a multi-dimensional measure of poverty for selected high income OECD countries. It measures how well countries have distributed the overall human development they have achieved, using a range of indicators concerning life expectancy, population below income poverty line, people lacking functional literacy skills and long-term unemployment.
Ireland was ranked 16th out of 17 high income OECD countries with a HPI-2 value of 15.3%, compared to the best performer Sweden, 6.5%, and the worst performer, the United States, 15.8%.
The indicator for the "population below the income poverty line" is a relative income poverty line based on GDP per capita. Ireland’s rank was below the majority of EU countries listed, but better than the UK and Italy. There was no listing for Greece and Portugal. It was also better than developed countries such as Canada, United States and Australia.
GDP is not a good indicator for Ireland of the income available to the country given our exceptional reliance on foreign investment and the consequent scale of profit repatriation abroad. GNP would be a more appropriate indicator.
This indicator also does not show the exceptional progress made in reducing consistent poverty, which is the basis, designed by the ESRI, for the poverty targets in the national anti-poverty strategy. This measures the proportion of our people with incomes below 60% of average disposable income and who are also experiencing deprivation. The numbers of people experiencing consistent poverty in Ireland has fallen by two thirds — from 15.1% in 1994 to 5.2% in 2001 and our target is to reduce consistent poverty to below 2%, or eliminate it altogether, by 2007.
The relative position of certain categories of people has disimproved despite significant increases in real terms in their incomes, because of the unprecedented increases in average household incomes during the period of exceptional economic growth. This has been the result of major increases in employment, better paid jobs, more two income households and lower tax levels.
The Government is committed through the framework of the national anti-poverty strategy and the employment action plans and their further development to progressively improve the position of those who can work, mainly by removing obstacles to employment, and by increasing income support and improving services to those who cannot work.
In relation to the report's long-term unemployment indicator, Ireland ranked joint 11th with the UK on this index and joint 5th in the EU15. The reduction in long-term unemployment from 8.9% in 1993 to 1.2% in 2002 is one of the most welcome and significant outcomes of Ireland's recent economic success. Under the national anti-poverty strategy, the target is to eliminate long-term unemployment by 2007. Continuing progress in reducing unemployment and in increasing access to more and better jobs will make a significant contribution to reducing poverty levels generally.
The national anti-poverty strategy also contains specific commitments in relation to improving literacy skills and life expectancy, responsibility for which come within the remit of the Ministers for Education and Science and Health and Children respectively. These are priority areas for action but, like reducing poverty generally, take time before increased investment of resources show concrete results.
The core objective which this Government and the social partners signed up to in Sustaining Progress is "to build a fair and inclusive society and ensure that people have the resources and opportunities to live life with dignity and have access to the quality public services that underpin life chances and experiences". Government policy is geared towards meeting that objective and the policies I will be pursuing as Minister for Social and Family Affairs both in relation to income support and in the context of the national anti-poverty strategy generally will be aimed at making significant progress towards achieving that core objective.
