There has been much in the media about the Government gearing up into election campaign mode, with promises of tax cuts, beginning in the budget to be announced next month.

What about the growth figures?

I am sure the Tánaiste, as leader of the Labour Party, would have nothing to do with such cynicism, using people's money to buy an election.

Will the Deputy pay her property tax so?

Stay quiet.

These are the Fianna Fáil politics of old, which the Government promised to banish. We know how these promises worked out in practice. Will the Tánaiste commit to prioritising the reversal of cuts in social services and welfare payments before any consideration of tax cuts is made by the Government? That is essential following on from the MABS report. People should not have to go with a begging bowl. They should be able to maintain their dignity in securing an income to be able to live. Does the Tánaiste find it incredible that Ministers are talking about income tax cuts when the HSE is talking about shedding 700 jobs a month to come within budget, a budget which has been savaged for the past six years? The Minister of Health is looking for €1.4 billion just to maintain current health service provision.

Will the Government parties start considering the restoration of the Christmas bonus to welfare claimants and the reversal of cuts that have seriously affected people with disabilities? Will they examine the situation where only 16% of women are entitled to the full State contributory old age pension? Will the Tánaiste bring in the home-maker's credit scheme, which she promised to do when she changed the eligibility criteria for old age pensions? She claims we are at the end of austerity budgets and has come to the House with growth figures from the CSO. Few people will feel a benefit from this when they get their water tax bill next year. It has been claimed by some Ministers that tax cuts will put €5 or €10 extra in people's pockets, but that money will be taken directly out of their pockets through another austerity tax, the water charge. Will the Tánaiste make it clear to citizens that she will prioritise those people who have felt the austerity attack most?

I have published with the Taoiseach three commitments which are important in the context of the forthcoming budget. The first is, as I said in reply to Deputy Micheál Martin, an agreed budget of €42 million for a payment on a quarterly basis of €100 per year to people in receipt of the household benefits package. It will be paid to 410,000 households and includes retirees, carers, people with a disability and families in receipt of the domiciliary care allowance for children. That is a significant number and it is a budget commitment.

Some of the NGOs and others I meet regularly were concerned about the free travel pass, which is iconic and much valued by retired people. We gave a commitment that it would continue.

The third commitment we made, which cuts to the heart of the Deputy's question, was that in the budget we would introduce additional measures to support families with children on a social welfare income such as jobseeker's allowance and that we would incentivise people to take up employment as it became available. The great thing about the CSO figures is they show the economy is seriously in recovery. The figures are striking. GDP grew by 5.8% in the first half of this year, while GNP, year on year, was up 9%, which means that we have left the worst difficulties and the collapse of the economy behind. It is not a credit fuelled bubble, which is what happened in the 2000s as the economy recovered.

The Members behind the Tánaiste do not even believe that.

Families with members returning to work receive approximately €30 per child. They will be able to hold on to that payment for a period.

And pay for dirty water.

For instance, if someone has two or three children, it would be worth €60 or €90 to them per week, in addition to what they might be entitled to receive under the family income supplement scheme. The best way to help families and individuals who have lost their jobs, for the most part through no fault of their own, is to help them to get back into employment.

This year we will spend an increased figure on family income supplement. By the end of the year it will be at least €280 million. I propose, and I am in discussions with our partners, that in the budget we examine what room we have to assist people. This includes examining whether there is room for tax relief for people on middle and low incomes. We also must consider people who are unemployed and whom we are able to assist more in getting back to work.

While that is very good, I repeat that the Government is using the argument of tax cuts and putting it on the agenda as a ploy to get elected in the next general election.

It is a stunt.

Will the Tánaiste give a clear declaration that she will prioritise reversing the cuts in social welfare and public services? We want to hear it from the Tánaiste. I want to hear the Government identify areas where cuts will be reversed and make a commitment not to introduce tax cuts as a ploy to try to get re-elected in 2016.

The Deputy will be glad to hear that this year we have spent an extra €200 million approximately on the additional pensioners who are reaching the age at which they qualify for a pension. We have a very positive demographic in terms of older people. We have more older people, and they are living longer. I do not know if anybody from the Technical Group attended yesterday’s meeting of the Oireachtas Joint Committee on Education and Social Protection, where we spent two and a half hours going through the social welfare figures. Deputy Ó Snodaigh represented Sinn Féin for the entire meeting and the other parties were also represented. I explained in detail that we are spending more in significant areas of social welfare because, for example, we have more pensioners and we are paying child benefit to 600,000 households, comprising more than 1 million children. These are demographic pressures, due to our growing population, which we are meeting.

The Deputy should not be down on tax relief for ordinary workers on the average industrial wage.

Hear, hear.

Deputy Joan Collins has a strong record on low-paid workers.

Young people going out to work find they are entering the top rate around €32,000 or €34,000. If we develop recovery for the economy, of course people relying on social welfare income should be assisted, but so should the people going out to work and paying the taxes and PRSI that allow us to have a good social welfare system. As Labour Party leader, I find it equally important.