Welfare payments to be spared from ‘pinch’

CUTBACKS across other Government departments will be needed if social welfare payments are to be maintained throughout the recession, it was admitted last night.

Welfare payments to be spared from ‘pinch’

Social and Family Affairs Minister Mary Hanafin insisted her department would be spared as others were forced to feel the “pinch” of the downturn.

The news came as negotiations for a new national pay deal appeared deadlocked as unions branded a wage freeze “a non-runner”.

Ms Hanafin said she had no intention of trying to curtail benefit payments as previous Fianna Fáil ministers had attempted in the past during economic black spots.

“I think it’s the other departments that will feel the pinch in order to ensure the department of Social and Family Affairs is able to provide for the people who are most vulnerable. That is the main commitment of government,” Ms Hanafin said.

Tánaiste Mary Coughlan was roundly condemned in 2002 for trying to impose “savage” cuts on benefit payments dubbed the “dirty dozen” while Social and Family affairs Minister.

Ms Hanafin said she wanted to provide a strong welfare net for those caught in the grip of rising unemployment and she expected that to be backed up financially in the December budget.

“For those dependent on social welfare who perhaps lose their jobs, for families who run into difficulty, we are there and there to support them and that is a priority for government and will continue to be a priority for the budget, no matter what the economic circumstances are.

“I don’t envisage any savings being found in any of the programmes that we have. None of the payments that we made to people were going to be cut back, in fact, quite the opposite as there are people who unfortunately are losing their positions, their jobs, who are coming on the live register. They have to be paid and they will be paid. I want people to have that comfort and that security. And as well for people who perhaps are running into difficulty with their rent or their mortgage if they lose their jobs, help is available for them as well,” the minister told RTÉ.

There was little sign of movement as unions, employers and ministers met at Government Buildings to hammer out a new pay deal after Taoiseach Brian Cowen warned painful spending cutbacks are on the way.

Employers organisation IBEC’s demands for a pay freeze have prompted strong return fire from unions saying workers have already had an effective wage freeze for the last two years as inflation eroded their incomes and cannot make any further sacrifices on pay.

Ministers face a crunch day tomorrow when tax revenue figures are expected to underscore predictions that the economy is in recession.

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