Cowen and Hanafin signal major cuts to social welfare

THE TAOISEACH Brian Cowen and the Minister for Social and Family Affairs Mary Hanafin have indicated there will be significant…

THE TAOISEACH Brian Cowen and the Minister for Social and Family Affairs Mary Hanafin have indicated there will be significant reductions in social welfare spending in the budget.

The comments were made at a meeting yesterday between the Taoiseach, Ms Hanafin and the Community and Voluntary Pillar under the social partnership process.

Séamus Boland of Irish Rural Link, who attended the meeting, said the talks centred on the economic situation. The Taoiseach had again indicated that cuts of up to €4 billion had to be implemented, he said.

Mr Boland said the Taoiseach and Ms Hanafin had said that as part of this process there would have to be significant reductions in social welfare spending.

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They had said the country could not afford the current level of expenditure. Neither the Taoiseach nor the Minister provided details of where the cuts might fall.

Mr Boland said the Community and Voluntary Pillar had argued that cuts would hurt those who were the most vulnerable.

He said the Community and Voluntary Pillar had said that if the country could not afford fairness and justice for the weakest in society it could not afford to provide tax breaks for those who were among the wealthiest.

Ivan Cooper of The Wheel, who was also at the meeting, said the Community and Voluntary Pillar believed that a broadening and deepening of the tax base had to form part of any solution.

A spokeswoman for Ms Hanafin said that at the meeting the Taoiseach had outlined the general situation regarding the social welfare budget and the economic position.

She said it was never the intention that the meeting would deal with specific issues. Ms Hanafin had invited the Community and Voluntary Pillar to further talks on how cuts could have the least impact, she added.

Earlier this month the Minister for Education, Batt O’Keeffe, told an economics conference in Kenmare, Co Kerry, that 38 per cent of current spending by the Government was on social welfare payments.

He said that this figure “must be reduced”.