asked the Minister for Social Welfare if the Government intend using the 6½ per cent pay increase guidelines of the Three Wise Men in relation to social welfare payments; and if she intends to limit increases to this figure in 1982.

The level of social welfare payments for next year is a matter for consideration in the context of the budget for that year. The Deputy can rest assured, however, that the Government will fulfil their commitment to those who depend on social welfare payments. The level of these payments will be such as to guarantee their recipients against loss of real income.

Would the Minister not agree that there is at present widespread concern about the level of payments which will be made in the coming year, particularly because of the implications of the report of the Three Wise Men? Would the Minister put people at ease by telling them that they will not be held down to a 6.5 per cent increase, as the Coalition wish wage earners to be, against a inflation rate in excess of 20 per cent?

There is a solid commitment in our programme of which the public are well aware. As well as a commitment to improve the tax situation generally, and especially for the lower paid, a specific commitment has been repeatedly given that payments to beneficiaries will be increased to guarantee no loss of real income and an actual improvement.

Is the Minister saying that the full increases required due to the plan to transfer from direct taxation to indirect taxation will be met and that the full effect of inflation will also be met for social welfare beneficiaries?

That has been the commitment of the Government prior to and since the election.

23.