Savings in social welfare budget essential, says Hanafin

THE GOVERNMENT cannot get the finances of the country right without in some way making savings in the social welfare budget, Minister for Social and Family Affairs Mary Hanafin has said.

Speaking at a pre-budget forum for representatives of voluntary and advocacy groups in Dublin yesterday, the Minister said they needed to be “realistic about their expectations”.

Over 30 groups attended the forum in advance of December’s budget, including St Vincent de Paul, older persons’ advocates, children’s charity Barnardos, and the Disability Federation of Ireland.

Ms Hanafin told delegates the Government was spending €58 million every day on social welfare. She also highlighted the €2.5 billion to be spent on child benefit this year.

She said the Government was faced with unprecedented financial circumstances and had to continue to provide services and supports for all of society, but particular focus had to be on vulnerable people dependent on social welfare.

“As we face into the budget I will be looking to minimise the impact of any changes to the greatest possible degree. However, the current economic reality means that some areas of expenditure will have to be reduced,” she said.

She also said the Government could not get the finances of the country right without in some way making savings in the social welfare budget. People needed to be realistic about their expectations, she said.

“Please do not think any decisions have been made, they have not,” she said. “Your input into the budget is absolutely critical.”

Fr Seán Healy, director of Social Justice Ireland, said there was no need or justification for reducing social welfare payments.

“If the budget is to be fair and if it is to succeed in protecting the vulnerable, then Government must take an integrated approach to tackling the country’s current problems,” he said.

“In practice, this would, among other things, mean no cuts in social welfare rates.”

He said there should be an increase in the overall tax take while keeping Ireland a low-tax country and without raising income tax rates.

Better value for money should be secured in the delivery of public services and the public sector should be reformed.

Age Action spokesman Eamon Timmins said the Government had a moral obligation to protect Ireland’s most vulnerable older people in the budget.

“The challenge facing the Government is not just one of balancing expenditure against tax revenue,” he said. “It also has a very real obligation to protect its most vulnerable citizens, by ensuring that any changes in policy or spending do not hurt those who cannot take any more hardship.”

He highlighted the “devastating impact” the proposed carbon tax would have on vulnerable older people unless measures to protect them are introduced simultaneously.

“There must be corresponding increases in the fuel allowance to cushion the poorest older people from rising fuel prices as a result of the new tax,” he said.

He also said funding for rural transport schemes needed to be protected because older people were highly dependent on them.

The National Women’s Council of Ireland head of policy, Orla O’Connor, said families were already being hit from all sides. She urged the Minister not to cut child benefit.

“Child benefit must remain a universal payment as it is the only payment paid directly to mothers to pay for all the costs relating to children: food, clothing, school books and uniforms and childcare,” she said.

Bob Jordan, director of homelessness charity Threshold, said €67 million a year could be saved by Government if deposits paid to landlords for people on rent supplement were held in a deposit protection scheme instead.