Dáil Éireann - Volume 494 - 30 September, 1998

Written Answers - Fiscal Policy.

Mr. Gormley Mr. Gormley

398. Mr. Gormley asked the Minister for Finance if it is his policy to maintain a link between social welfare payment increases and wages rather than with prices in the context of preparations for the December budget; and if he will make a statement on the matter. [17042/98]

Minister for Finance (Mr. McCreevy) Charlie McCreevy

462

Minister for Finance (Mr. McCreevy): Social welfare payment increases are not directly linked to either wages or prices. At every budget the amount available for allocation is limited. This means that social welfare increases have to reflect [462] the balance struck between the many competing demands for these limited resources. That has been the approach in the past and will also be the approach in the 1999 budget. Notwithstanding these constraints, in this year's budget, I provided for increases of £3 per week in personal rates, while qualified adult allowances rose by 3 per cent. These increases were well above the expected rate of inflation and reflected substantial progress towards meeting the commitment in Partnership 2000 to implement, before the end of the Partnership, the minimum rates recommended by the Commission on Social Welfare. I also announced an increase of £5 per week in the full personal rate of all old age and related pensions, which gave these elderly people increases ranging from 6 per cent to almost 7.5 per cent, or at least three times the expected rate of inflation. Furthermore, all increases in social welfare payments were brought forward to the first week in June 1998, which meant that the new rates were payable for 31 weeks in 1998 as compared with 29 weeks in previous years.

The Government's Action Programme for the Millennium also contains a commitment to increase the old age pension to £100 per week by the year 2002. I hope to make some progress in this year's budget towards fulfilling that commitment.

Mr. Sargent Mr. Sargent

399. Mr. Sargent asked the Minister for Finance if he will consider the funding crisis in our mental handicap services in the framing of his forthcoming budget; his views on the proposal of the National Association for the Mentally Handicapped of Ireland that a figure of £25 million be provided specifically to eliminate waiting lists for services and to deal with the appalling conditions being experienced by people with a mental handicap who are resident in psychiatric hospitals including St. Ita's, Portrane, County Dublin; and if he will make a statement on the matter. [17044/98]

Minister for Finance (Mr. McCreevy) Charlie McCreevy

Minister for Finance (Mr. McCreevy): The Government is currently considering the 1999 expenditure Estimates, together with the financial envelopes for the years 2000-1. It would be neither practicable nor appropriate for me to speculate on the outcome for one particular aspect of these deliberations.

Dáil Éireann 494 Written Answers Fiscal Policy.

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