MINISTER FOR Social and Family Affairs Mary Hanafin last night outlined savings that could be achieved by reducing social welfare payments at a meeting of the Fianna Fáil parliamentary party.
Ms Hanafin provided information that said €81.3 million could be saved in a year through a weekly reduction of €1 in payments, “with proportionate decreases for qualified adults”, affecting nearly 1.5 million people.
She also gave statistics on Government expenditure on the main social welfare programmes, the growing number of recipients and increases in the basic rates of payment in recent years.
The Minister’s contribution was a “listening exercise and a consultation” and she was “not being prescriptive”, said one backbencher who did not want to be named.
There was also a presentation from three prominent economic experts — UCD economist Colm McCarthy, Government adviser Dr Alan Ahearne and Maynooth lecturer and Irish Timescolumnist Jim O'Leary.
Their presentations focused on the economic outlook and the choices they felt must be made to return the country to growth and job creation, according to a Fianna Fáil statement.
“A core message in all three presentations was the need to have an upfront adjustment in the public finances. Any delay in the adjustment would have a negative effect on our economy. Delayed adjustment would merely postpone, and ultimately multiply, the difficult decisions that need to be made.
“They shared the view that the decisions in the December Budget should focus primarily on cuts to expenditure rather than on increases in taxation. They stressed that our path to recovery, growth and job creation will be quickest achieved by improving our cost competitiveness.” The meeting lasted from 5.30pm until 9pm and was attended by Taoiseach Brian Cowen and Minister for Finance Brian Lenihan.
Last night’s meeting was the first since the heated discussion of the Minister for Transport’s Road Traffic Bill, which was published on Friday. It is understood that legislation was not discussed.
TRedress for women who had been in Magdalen laundries, which had been expected to be discussed, will be discussed later.
