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Dáil
‹ Leaders’ Questions.

Future social welfare payment cuts

Summary

Gilmore sought assurances that basic social welfare rates would not be cut, citing concern about pensioners and people receiving €204 weekly. The Taoiseach declined to give a categorical future commitment but said rate cuts had previously been rejected and payments had increased.

As I said, the estimated total spend on social welfare this year is €21.3 billion. Given that the anticipated total tax take will be between €32 billion and €35 billion, based on Exchequer returns thus far, the Deputy will accept that this level of commitment by the Government to social welfare provision is unparalleled and unprecedented in the history of the State. I accept that the Deputy, as an Opposition Member, would like categorical assurances on a range of issues. As a member of the Government, it would be unfair of me to decide, in a situation where the Minister for Finance is only beginning an Estimates and budgetary process, that expenditure of that order should not be considered in any way.

Regarding the Deputy's interpretation of my replies, I remind him that there was no cut in social welfare rates last year. The reason we avoided such cuts was in order to ensure that we protected people to the greatest extent possible.

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What about the 2% cut?

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In regard to that particular matter, an option that was available was to cut rates. I am responding to the Deputy's leader. One of the options for the Government to consider was the cutting of rates, but it was not taken up on the last occasion. Not only were there no cuts in rates but, as I have indicated, there was an increase of between 3% and 3.8% in rates against the background of a disinflationary rate of 4% this year. During the times when resources were available to the Government in far greater measure than is the case now, the social welfare provision did not simply meet the inflationary effect, as was the policy of a Government in which the Labour Party was centrally involved, but far exceeded inflationary targets, and rightly so, in line with national anti-poverty strategy commitments and targets, many if not all of which were met by this Administration when it had the capacity to do so.

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