Dáil Éireann Debate, Thursday - 26 January 2012
8Deputy Billy Kelleher asked the Minister for Social Protection if the Troika in their most recent review of the EU IMF agreement implementation or in previous reviews brought up any specific issue in relation to social protection; if they issued any specific guidance or dictates on social protection reform or reductions in expenditure; and if she will make a statement on the matter. [4385/12]
Amharc ar fhreagra41Deputy Aengus Ó Snodaigh asked the Minister for Social Protection the status of the work done to date by her on the development of the implementation plan she is committed to deliver to the Troika by the end of March 2012; if she will provide an indication of what it will contain; if she will publish it to allow for debate in Dáil Éireann in advance of submitting it to the Troika; and if she will make a statement on the matter. [4356/12]
Amharc ar fhreagraI propose to take Questions Nos. 8 and 41 together.
In November 2010 the then Fianna Fail-Green Party Government negotiated an agreement with the European Union-ECB-IMF funding troika which included undertakings regarding the social protection area, each with a specific timeframe for delivery. That Government agreed a structural adjustment programme which we are now working through and which I stress is subject to a weekly, monthly and quarterly reporting process as well as ongoing discussions on all expenditure headings, including social protection.
The progress made on current commitments is discussed with the troika delegation when it visits Dublin for each quarterly review, the achievement of commitments is noted where relevant, and the agreement is revised to reflect any new or follow-on commitments made in the course of the quarterly review, as appropriate. All of the commitments in the social protection area that were required to be delivered up to the present time have been delivered in full and on time.
Spending on social protection in 2012 is expected to account for almost 40% of current Government expenditure. The EU, the ECB and the IMF recognise the scale of spending on social protection and have emphasised the importance of reform in this area both as a contribution to fiscal consolidation and to facilitate economic recovery. The troika has not identified any specific programmes that should be curtailed or discontinued but rather expressed overall targets to be achieved.
However, as Deputies will be aware, the Government announced expenditure ceilings for all Departments for 2013 and 2014 when budget 2012 was brought before the Dáil last month. These provide for savings of just over €1 billion in total by the end of 2014 in the social protection area above the savings from measures introduced in budget 2012 and previously.
In that context, the Government has agreed with the troika that by the end of March the Department will draw up a comprehensive programme of reforms that can help better targeting of social support to those on lower incomes, and ensure that work pays for welfare recipients. The Government has also agreed that it will take steps to strengthen activation and training policies to help jobseekers get back to work.
The work done to date in respect of both of these commitments builds on policy documents published in 2010 in the areas of pensions, child income supports, payments to people of working age and payments to people with a disability.
It is not intended that the reform programme would be finalised by end of March. My intention is to bring reform proposals to Government initially and then to the Oireachtas in advance of finalisation, with implementation to commence in budget 2013.
Will the Minister accept that we need reform of the schemes on an ongoing basis? Many of the reforms mentioned in the EU-IMF memorandum of understanding were already in train and under discussion in the Department, particularly the rationalisation of the child payments, disability payments and so on. Does she intend to proceed with the part capacity provision introduced in the budget that would allow persons on invalidity pension to work and receive a partial payment, depending on the level of disability, the objective of which would be to facilitate those with a disability to remain in the workplace on a long term basis? Is the Minister confirming today that the changes to community employment schemes, one parent family payment, child benefit and so on in the budget were not dictated by the EU-IMF and were decisions of the Government rather than the censure of the IMF?
In the language of high diplomacy, Deputy Ó Cuív was the Minister in the Department and a member of the Government that negotiated the deal with the troika. The format of structural adjustment programmes around the world - we are not the first country to be in such a programme - is that there is enormous discussion between the people in the IMF, which is overseeing and supervising the programme and providing the loans, and the officials in the country which is in the programme. Clearly, that is what happened when the IMF came to Dublin in November 2010, though if the Deputy recalls there were some denials from some members of that Government that such a process was under way. We are in a framework. The framework that was signed up to by Fianna Fáil and the Green Party includes very detailed, weekly, monthly and quarterly reporting and discussion at all appropriate intervals of what progress is being achieved. The objective of the Government is to see the country exit successfully from the adjustment programme and return to economic growth. We must have regard to the programme. The troika members are exercised by issues such as activation, the cost overall of social protection and by various elements of various schemes. In the language of structural adjustment programmes they take an interest in all of these issues and, as we have heard from time to time, different parts of the troika have different views on different issues. I do not think the troika would describe itself as dictating to any particular Department.
Deputy Aengus Ó Snodaigh has a similar question.
Will the Minister confirm that the agreement to date does not commit us to delivery or introduction of a single working age payments scheme per se but to reform of the social welfare system and more efficiency? Does she agree that prior to moving to such widescale reform such reform should be predicated by a roll-out of activation measures of training and educational opportunities and, in particular - the elephant in the room - jobs being available. If only one part is rolled out the only people who will suffer are those who are dependent on social welfare. Has the Minster contacted the Department of Education and Skills, which would be involved in some of the activation and educational opportunities, and the Department of Jobs, Enterprise and Innovation? Will the presentation to the troika in March-April be a combined one or will the Department of Social Protection make its presentation first?
I will take the last question first. The working method is to have both. Nine Departments have conversations and discussions with the troika on a continuing basis and when they come to do their reviews in Dublin, just as they report on a continuing basis. The co-ordinating Departments for dealing with the troika are the two finance Departments which oversee the process.
On the single working age payment and roll-out of activation opportunities, I agree with the Deputy that there are commitments in regard to both in respect of the end of the first quarter of 2012, which were signalled when the original structure of the adjustment programme was put in place. We will meet that deadline. Obviously, the most important one is that in the context of the €1 billion, to which I referred earlier, being spent on various employment supports ranging from the two scheme to CE schemes to back to education allowances, it is important to give as many people who are unemployed as much opportunity as possible to take part in appropriate options, opportunities and training and that they are spread as widely as possible among those who are at risk of becoming long-term unemployed.
In regard to the activation programme, next week I will launch with the Taoiseach, the Tánaiste and the Department of Education and Skills a programme on the options, opportunities and structures of helping people to engage with the system in terms of getting back to work, back to education and back to training.
Deputy Ó Snodaigh asked about jobs. The jobs initiative, launched by the Government in May 2011, has produced good and significant responses from employers particularly in the area of tourism from various parts of the country, including the west. I am pleased that JobBridge, the national internship scheme that I launched in July 2011, has had a huge take up from employers. It is interesting that there is a significant demand from people who were not originally in the JobBridge process, such as lone parents and people with a disability, to take part in it. We are looking at that issue. A huge volume of people on the live register on job seekers' allowance are very interested in engaging in opportunities and we must ensure that actually happens. The troika constantly asks questions about this area.
Written Answers follow Adjournment.
The Dáil adjourned at 5.50 p.m. until 2 p.m. on Tuesday, 31 January 2012.
