PUBLIC ASSISTANCE ALLOWANCES

Dr Kanwaljit Soin asked the Acting Minister for Community Development how the monthly allowance of $150 for people on public assistance was arrived at; and whether this is an adequate sum for subsistence.

Mr Abdullah Tarmugi: Prior to 1990 Public Assistance (PA) rates were based on the Minimum Household Expenditure (MHE) determined by the Department of Statistics. In 1989 the Committee on Destitute Families of the Advisory Council on Family and Community Life expressed reservations about using the MHE and called for a review taking into consideration the changes in consumption patterns and prices of goods and services.

To overcome the limitations of using the MHE, my Ministry engaged a consultant firm to conduct a survey on the lifestyle and consumption patterns of low-income families, including PA recipients, ex-PA recipients and other low-income families. The 1990 survey showed that households with children had higher consumption expenditures than households of the same size without children. The 1991 PA rates were increased based on the survey results. For the first time families with children were also given a higher quantum of PA allowances. In 1992 the PA rates were again increased taking into account increases in the Consumer Price Index since 1990. No survey was carried out as consumption patterns were unlikely to have changed in the intervening two years. The current PA rates effective since 1st January 1993 range from $150 for one-person households to $430 for households with one adult and three children.

In addition to Public Assistance allowances, PA recipients and their dependants are given free medical treatment at outpatient clinics and restructured hospitals. Assistance is given to schooling children by the Ministry of Education and schools through waiver of school fees, supplementary fees and the provision of free textbooks, uniforms, bursaries, etc. My Ministry helps in job placement and provides interest-free loans of up to $2,000 to help PA recipients set up small businesses. As the PA rates are based on actual expenditures as determined by a survey and with the additional package of assistance, my Ministry feels that the help given is adequate. Nevertheless, we will continue to review the PA rates every two years to ensure that they meet current needs.

To help PA recipients upon the introduction of GST on 1st April, PA rates will be increased by $5 to $15 per month or between 3.3% and 5.2% over the current rates depending on household size. This increase will more than offset the GST.

My Ministry will be reviewing the PA rates in the next financial year. We will be conducting another survey to determine the changes in consumption patterns and prices of goods and services for low-income families. Based on the survey the PA rates will be revised if necessary.