Despite strong economic growth, Ireland continues to be among the nations with the lowest social spending and so continues to have one of the highest poverty rates, a report published yesterday finds.
The Combat Poverty report, titled Irish Social Expenditure in a Comparative International Context: Epilogue, is a follow up to a similar study published by the agency in 2003.
This latest study contains updated material but is also presented as a counter to some critics of the 2003 report who said low incomes, when compared with economic growth, could not be realistically painted as "poverty incomes" given the huge surge in the economy at the time .
The report, written by Virpi Timonen of the department of social studies in Trinity College Dublin, draws on the most recent data available for 14 countries in Europe. The data is from 2001, when the "Celtic Tiger" was powering ahead, said Dr Timonen.
It was important, she said, to counter the argument that a country could not have both strong economic growth and high social spending. Denmark was an example where both existed.
Despite this country's rapid economic growth, the study finds Ireland always ending up at the bottom of the league or near the bottom in terms of social spending. "This matters because there is a direct correlation between social spending and inequality," said Dr Timonen.
"Regardless of the measurements you use, Ireland's comparative position with respect to levels of inequality is extremely unfavourable," she added.
She stressed the report did not recommend simply increasing spending on social effort. "There has to be a logic to the spending. If it is as highly skewed as, for example health spending is in the US, the spending benefits accrue to the better off. There is a need for change and reform in key areas," she said.
These were in the areas of taxation policy; supports to the working poor, services and social welfare. "In taxation policy the benefits are highly regressive - ie the systems benefit the better off more than the poor," she said.
The increasing phenomenon of "working poor" (people who had jobs but could not lift themselves out of poverty) should start to be addressed with tax credits to low earners.
On services, the non-availability of childcare was keeping women out of work and in poverty. "I am not aware of any other European country where there is absolutely zero support from the State for childcare," she said. The report also calls for better services for the elderly and people with disabilities.
