Yesterday, I asked the Taoiseach about the Government's plans regarding child benefit as part of the social welfare package and he replied that all elements of Government expenditure were being considered in the budgetary analysis with the Budget Statement less than four weeks away. I pointed out to him that 600,000 families draw child benefit on behalf of more than 1.1 million children and I recognised that adjustments and savings have to be made in the social welfare area as well as other areas, given the disastrous economic circumstances into which we have been led by the Government.

However, I also recognise it is possible to achieve the savings without having to resort to cutting child benefit. What is happening in this regard, without clarity from the Government, is that hundreds of thousands of families who have been driven into negative equity, who may have suffered one or two job losses and who are faced with increased school transport charges and third level registration fees, reduced tax allowances for medical expenses and a range of other income levies have to face planning their budget for the next year with the possibility of a child benefit cut.

While I recognise social welfare must make a contribution, I have examined this issue and I repeat that, in so far as Fine Gael is concerned, it is possible to achieve the savings without having to resort to cutting child benefit. Today's Irish Independent carries a detailed set of proposals as part of what appears to be a secret plan by Government to cut the rates of child benefit. In respect of the Taoiseach’s remark yesterday that social welfare is to be considered as part of the Government strategy for cuts, will he clarify if it is the Government’s intention to cut child benefit?

The Leader of the Opposition will be aware that the budgetary discussion is ongoing and that clarity will be provided on 9 December. We will indicate what choices the Government had to make, the reasons we made them and we will seek to do this in a way that is as fair and as equitable as possible. With regard to the social welfare budget, I have simply made the case that we have a spend of €21.5 billion under that expenditure heading and the scale of adjustment that has to be made means we have to look at areas we normally would not look at. That has to be done because if we do not make the adjustment, the prospect of a sustainable level of service provision for people dependent on social welfare would be put at greater risk and a greater adjustment would have to be considered in the future. It is a question of examining all the options carefully and the Government is conscious of this having seen increases in social welfare rates, even last year. We sought to bring forward increases of between 3% and 3.8% in the budget, even though the cost of living has fallen by 6.5% this year.

The Government is conscious this is an area for careful consideration but the Deputy knows he cannot expect me to outline any aspect of the budget, particularly when decisions have not been taken. We have been open, honest and frank in conveying to the public and to the House that all areas of expenditure, including the social welfare budget, must be examined to make the adjustment we have to make. This is against a background of a social welfare budget that is 20% higher than last year. They are the issues and the facts and we have to deal with them. I am afraid the Opposition will have to await the day of the budget when we will outline the decisions taken. No decisions have been taken but all options are being looked at.

Will it be a short or a long look?

When I was a young lad, the perception at election time used to be that Ernest Blythe took a shilling off the old age pension. It took 60 years to get rid of that myth that the party I lead was responsible for that disastrous cut.

It is not gone yet.

I accept the Government has difficult choices to make. We have considered these choices and none of them is easy, but the Taoiseach is not being honest and open with the people in respect of this. He said everything is on the table, yet the Irish Independent produced a detailed plan backed up with statements by a Government spokesman. The article states the Government intends to ensure fairness across the board but it would not be fair to introduce a flat rate cut in child benefit, as that would impact unduly on lower income families, and, to achieve fairness, they would be given a higher amount under a qualified child allowance. However, the Government will have to ask the Revenue, according to its information, who are the high income earners in the country who would then have to voluntarily submit this information to Government. Whoever dreamt up this concoction in the Department of Social and Family Affairs needs to be called into the Taoiseach’s office and asked about administrative nightmares.

Hundreds of thousands of families do not believe the Government when it says it wants to be fair, open and honest about this. They believe there is a secret plan at the heart of this and the Government is moving to cut child benefit in the December budget. This follows the nightmares created by the Government over the removal of the medical card for the over 70s, income levies, job losses, negative equity, increased third level registration fees and school transport charges and a range of other measures. The one universal payment made in respect of each child in the country is child benefit and the Minister for Social and Family Affairs says she now wants to adhere to the principle of a universal payment. That does not treat all the children of the nation equally, as was set out in 1916 and many times since.

I am prepared to say that it is possible to achieve the required savings without touching child benefit. Will the Taoiseach put families at ease and at least say he is hearing the clarity of decision from the Opposition? Will he tell us he understands the anger of people and that this one area of social welfare will be left untouched by the knife of Government on 9 December?

In the next four weeks, the Leader of the Opposition can indicate to a whole series of people that there are easier ways to deal with the situation. We await the alternative budget proposals of the Opposition and we will see how credible and sustainable they are.

The Taoiseach is in government.

You will hear them.

Then he will copy them.

None of them is easy.

Meanwhile, the Government will continue to prepare for the budget, taking all options into account. It is right that we look at all options. In last April's supplementary budget, the Minister for Finance indicated that child benefit would be examined. The McCarthy report also made reference to it. When there are limited resources one must assist those who are most vulnerable and, perhaps, make adjustments for others who are on higher incomes. These options are being looked at.

Given the size of the adjustment which must be made, social welfare cannot be immune. We must be careful in coming to decisions in this area. We will use the time available for further discussion, we will come to our conclusions and bring those decisions to the House.