Dáil Debate on Private Members Business: Government counter motion
Statement by Tánaiste and Minister for Social Protection Joan Burton on behalf of the Government
I move amendment No. 1:
To delete all words after “Dail Eireann” and substitute the following:
“notes:
- the importance of ensuring the elderly are fully empowered to engage with society and are enabled to continue to be active members of their communities in all aspects;
- the vital role the Free Travel Pass has played in supporting elderly people and reducing isolation since it was introduced in 1967;
- the broader economic benefit to towns and the hospitality sector that the Free Travel Pass provides by facilitating easier access by the elderly;
- the decision of the previous government to freeze funding for the Free Travel scheme at a time when numbers eligible were increasing each year;
- the failure by the previous government to develop a Positive Ageing Strategy;
- the critical importance of reviewing expenditure to ensure continued effectiveness and sustainability;
- the need for reviews of eligibility, as identified by the Comptroller and Auditor General, in order to ensure that public financial resources are spent in accordance with legislation;
- that cuts to public spending and increases in charges were necessary to restore the public finances after the economic mismanagement of the previous government;
- the publication jointly by the ESRI and the Department of Social Protection of a research report on Social Transfers and Poverty Alleviation in Ireland which highlights the crucial role of the welfare system in alleviating poverty, ensuring those who need it most are protected and helping individuals and their families to overcome the severe difficulties caused by the economic crisis;
acknowledges:
- that the social protection system has been extraordinarily effective in terms of income redistribution and poverty alleviation;
- that the Government has supported and protected the core weekly social protection payments;
- that the Government has protected the Free Travel scheme despite increasing numbers eligible and a freeze on funding imposed by the previous Government and is committed to fully supporting and retaining the Free Travel Scheme as a universal benefit for elderly people;
- that through the National Positive Ageing Strategy, the Government has recognised the contribution of older people to society and has prioritised the concerns of older people across the whole of Government in a new way;
- that all relevant Government Departments are actively working effectively to implement the goals of the National Positive Ageing Strategy across their areas of responsibility;
- the Government's on-going commitment to ensure access to primary care services to over 1.9 million people through the medical card and GP visit card schemes;
- the Government's decision to develop a policy framework for providing eligibility for health services on the basis of medical conditions;
- that stable public finances are helping support long term economic growth and job creation; and
- that this Government is determined to maintain its success in leading Ireland back to sustainable growth in living standards and in employment.”
Introduction
I welcome this opportunity to open the debate on behalf of the Government, a Government which has provided steadfast support for older people.
And in that context, I want to say loud and clear here tonight: this Government has protected the Free Travel Scheme for beneficiaries in all of its Budgets to date, and will continue to protect the scheme.
The Free Travel pass is safe.
I would now like to deal with some of the context to this issue.
The population of Ireland is ageing rapidly. It is estimated that the over-65 population will rise by nearly 220,000 over the next decade to just over 800,000 in 2024.
These demographic changes will pose significant social and economic challenges for individuals, families and society in general. However, such changes will also bring with them many opportunities as older people continue to make a significant contribution to all aspects of Irish life. The Government believes that the challenges can be met and opportunities exploited by planning now to ensure that Irish society is an ‘age-friendly’ one in the years ahead.
The OECD undertook an independent and objective Review of the Irish Pensions System which was published last year. In it, they find that the economic situation of pensioners in Ireland is comparatively good, both with respect to other age groups in the population and in international comparison.
The Government have sought to maintain the basic rate of State pension at 34% of the average weekly earnings. There have been significant improvements with regard to the level of pensioner poverty in Ireland in recent years. This is mainly attributed to substantial increases in the rates of State pensions over the period.
Free Travel
Last week the Department hosted its annual pre-Budget Forum. Many of the submissions received in the Department in advance of the forum and many of the contributions at the work-shops on the day referred to the Free Travel scheme.
All of the representative groups were clear in their support for the continuance of the Free Travel scheme. It is a scheme which is held in the highest regard and valued even by those who rarely use it. It is regarded as a sort of passport to leisure activities, to time with family. For some it is a way to get to work and for others to help them attend their hospital appointments. For many people, it is a life-enhancing support that goes beyond the term “social inclusion”.
The Free Travel Scheme was introduced in 1967 in order to provide transport services to those aged over 70 who were living alone and in receipt of a social welfare pension.
Owing to the range of policy changes implemented since 1967, the scheme is now universally available to all persons permanently living in the State aged 66 and over as well as carers in receipt of Carers Allowance and certain others such as persons in receipt of Disability Allowance and Invalidity Pension. The effect of this broadening is that in excess of 20% of the total national population benefits from the scheme at present.
The Free Travel scheme permits customers to travel for free on most CIE public transport services: Irish Rail, the DART, Bus Éireann and Dublin Bus. It can also be used on the LUAS and a range of services offered by up to 90 private operators across the country. Free travel is also available on cross-border journeys to and from Northern Ireland. Customers aged 66 years and over can travel for free on journeys within Northern Ireland as part of the All-Ireland travel scheme.
Customers of the scheme who are married, cohabiting or in a civil partnership receive a pass that allows their spouse, civil partner or cohabitant to travel with them for free. Certain customers with disabilities or incapacities can get a companion pass which allows any person over age 16 years to accompany them for free.
The cost of the scheme has risen significantly in recent years. The factors which have contributed to this are the overall increase in population, the change in customer numbers caused by changes in eligibility and population changes, improvements to the service provided and increasing transport costs.
Review and reform
I wish to turn for a moment to the whole question of review and evaluation. Successive Governments over many years have spoken of the need for greater policy analysis, evaluation and review of expenditure. There has been significant investment in training for civil servants and additional recruitment of qualified analysts and evaluators. Despite this, each time a review of a scheme or a policy is announced, there are expressions of alarm and outrage.
We make no apology for carrying out a review of a scheme that is almost fifty years old. In the last five years, public services have faced an unprecedented challenge as we have tried to deliver services faster, better and more cost-effectively. All elements of the public service must work together to deliver value for money and quality public services that meet the needs of our community. Our commitment to reform must be built on the core values of integrity, fairness, accountability and openness.
Current review of Free Travel
In January 2012, officials from the Department of Social Protection, the Department of Transport, Tourism and Sport and the National Transport Authority met to discuss the operation of the Free Travel Scheme. Following from this meeting, I, as Minister for Social Protection, and the Minister for Transport, Tourism and Sport, agreed to the establishment of an interdepartmental working group with representatives from the two Departments, as well as the Department of Public Expenditure and Reform and the National Transport Authority to review the free travel scheme.
The context of the review was the freeze on funding imposed by the previous Government at a time when numbers eligible for the scheme continued to rise.
The purpose of the review was to examine and report on the current operation and future development of the
Free Travel Scheme.
While the interdepartmental working group has been tasked with ensuring “that its recommendations have regard to the likely impact on costs both immediate and into the future”, the group had no specific mandate to identify potential savings based on current funding levels.
The Terms of Reference for the Review are to:
1. Clarify the scheme objectives and examine the current validity of the objectives, including their compatibility with the overall strategy of the Department of Social Protection and with national transport strategy;
2. Examine the customer group eligible for free travel and, if necessary, make recommendations on the better targeting of the scheme and changes to eligibility;
3. Examine the extent of the service provided and, if necessary make recommendations to adjust the service;
4. Identify the data on usage which is available, deficiencies in data collection and make recommendations for improving data collection;
5. Examine the issue of fraud and control and make recommendations for improvements, particularly in the context of the introduction of the Public Services Card;
6. Examine the levels of funding for the Free Travel scheme in the context of overall exchequer funding for transport and the respective roles of PSO and Free Travel funding;
7. Consider the interaction between Department of Social Protection, the Department of Transport, Tourism and Sport, National Transport Authority and transport companies, their respective roles and make recommendations for the improvement to the administration of the scheme and the potential for an increased role by the National Transport Authority.
This review is about ensuring the viability and sustainability of the Free Travel scheme into the future, not just this year or next year. Both I and the Minister for Transport have made it clear that the Free Travel pass is safe, has been protected in recent budgets and will continue to be protected.
Conclusion
This Government has a vision for older people, a vision of an Ireland which recognises and respects their valuable role in society by providing them with support, where necessary, to enable them to participate as fully as possible in economic and social life. I commend the Government’s motion to the House.
END