'No justification' for cut in money advice service

A row about political donations and investigations developed between the Minister for Communications, Mr Dermot Ahern, and the Labour leader, Mr Pat Rabbitte, during questions about social welfare cuts.

Mr Rabbitte had condemned the cut in the Money Advice and Budgeting Service as the "meanest, lowest and pettiest cut there is, and there is no justification for it".

The Taoiseach rejected Labour claims that cuts in the scheme would drive the poor "into the arms of money-lenders".

But when the Labour leader said the service was set up to act as a broker for people in despair because of poverty or circumstances in the home, Mr Dermot Ahern said: "We know that. We set it up and funded it."

Mr Rabbitte retorted: "When the Minister was in London looking for Joseph Murphy, Proinsias de Rossa set it up", in reference to the Fianna Fáil investigation into the payments to former minister Mr Ray Burke.

Mr Ahern said: "I will be interested when the deputy winds his way to the Mahon tribunal."

The Minister said that "I never took a penny, unlike some".

When the Ceann Comhairle said the Labour leader's time for questions was over, Mr Rabbitte said he was not permitted to speak, that "we were up trees again with Deputy Ahern".

Mr Ahern: "We were not taking money."

Mr Rabbitte: "Nor was I."

The row erupted during the debate over cuts in the social welfare budget supplement, which the Taoiseach insisted was a "subsidy for creditors, mainly banks and lending institutions".

Mr Ahern said when Mr de Rossa was minister "he gave the meanest, scroungiest increase in the old age pension that was ever given".

The budget payment is a supplementary welfare allowance for people supported by the Money Advice and Budgeting Service in brokering a deal with creditors.

Mr Rabbitte said the cost was minuscule, but a person "in despair" over debts was enabled to make a payment to creditors.

Mr Ahern said "the Minister has a responsibility not just to give away money, but to ensure that taxpayers' money is spent, managed and targeted correctly into schemes for which it was originally intended".