SIXTY PER cent of income coming into the exchequer is being spent on social welfare so savings had to come from that budget, Minister for Social and Family Affairs Mary Hanafin said as she defended the cancellation of the Christmas bonus or double welfare payment.

The Minister told the Dáil that of a €21.3 billion budget, her department had to cut €300 million, “which is a very, very small proportion of that budget”.

She said the choice was to cut the bonus payment or make cuts across the board in social welfare, a move dismissed by Labour social and family affairs spokeswoman Róisín Shortall, who claimed that the €156 million revenue required for the payment this year could be raised through further restriction on interest relief on rental property, including restriction of relief on commercial properties.

Ms Shortall said that provision had to be made for people who had lost their jobs.

“They are the most vulnerable people now, people who have lost their jobs and need our support. And that is a 20 per cent increase on last year.”

She accused Labour of being “completely disingenuous to say you could have brought more in on income because you had to, for the future of the finance, ensure that you cut expenditure and the increase of the income”.

Labour’s private members’ motion “deplores the mean-spirited decision” of the Government to cancel the Christmas bonus, or double payment of social welfare introduced in 1980 and which represented an effective 2 per cent cut in social welfare payments over the full year.

“Evidently the Government would rather hit pensioners and the poor than phase out what amounts to a €700 million tax relief subsidy for landlords of commercial and residential properties.

“Evidently it’s okay in an emergency to suspend payment to long-term welfare recipients yet leave untouched the hundreds of millions in tax relief for the pensions of rich company directors.

“Evidently people on low fixed incomes can afford to take a hit next Christmas while the 6,000 tax exiles remain untouched by tax reforms.”

Minister of State for Health John Moloney said nobody wanted to propose or support cuts in social welfare but all departments to deal with the public finances. He hoped people would understand that while it was a serious measure, the Minister had made a commitment that as soon as the public finances come towards restoration that this particular cut would be also dealt with.