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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Food Subsidies Abolition.

Food subsidies and social welfare payments

Summary

Boland asked how abolishing essential-food subsidies would affect welfare recipients. Haughey said payments would be increased to protect them from subsidy changes; Barry argued increases should track food-price inflation rather than the overall CPI. Haughey would consider the suggestion, and said figures on recipients’ food spending were not immediately available.

asked the Minister for Social Welfare the estimated effect upon the living standards of social welfare recipients, such as widows and orphans, old age pensioners and those who are ill or unemployed, when the Government's proposal to abolish the subsidies on essential food items is put into effect.

Comment on this

It is the Government's expressed intention to ensure that social welfare payments will be raised in line with increases in the cost of living. If at any time the level of subsidy on essential foodstuffs were altered, this undertaking would ensure that social welfare recipients would be protected.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

Is it the Government's policy to increase them in line with the CPI or in line with the food element in the CPI? Food represents a higher proportion of their budget for people in this category than for people in other categories.

Comment on this

Any changes in the subsidy levels would be compensated for.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

The CPI rate is at 8.2 per cent over 12 months up to the middle of August. The biggest item of increase in that rate was for food, which was 10 per cent. The Government should raise the level of social welfare payments in line with the food element in the index and not total index, which embraces drink, mortgages, tobacco and so on.

Comment on this

I will keep that suggestion in mind.

Comment on this

Has the Minister any idea of the proportion of social welfare payments spent on food? We are told that the proportion of income spent on food within the EEC ranges from 18 per cent to 30 per cent in the poorer sections.

Comment on this

I could give the Deputy a figure but it is not immediately available. If the Deputy puts down a question I will give him that information.

Comment on this