Taoiseach Bertie Ahern strongly defended the provision whereby migrant workers are entitled to the State's new childcare payment during heated Dáil exchanges.
He said it would cost about €1 million out of a budget of €350 million. "So we were going to be real Scrooges and change a 36-year-old regulation to save €1 million in a calendar year.
"We did not do that. If we did, there would be people in here calling me the biggest racist that ever was. So let us not have a lecture on this one." Mr Ahern said a small number of migrant workers in the Republic had children living abroad benefiting from the scheme.
"In child benefit cases, we would be talking about less than 2,000, while benefit might be double that. I was aware of this and discussed it with the Department of Social and Family Affairs as far back as October.
"When we were doing our work on the child benefit costs, the cadre of resources in that was based on the new benefit so there is a direct link between the two."
Mr Ahern said in the past the regulation had benefited Irish people. "We were substantial beneficiaries because Irish people emigrated to other EU states which had much more generous social welfare systems than we had. That was particularly the case in the 1970s and the 1980s, when Irish people were leaving in droves."
The Taoiseach was replying to a series of questions from Fine Gael leader Enda Kenny on the revelation that under EU law employees from any member state can claim child benefit in the country they are working, even if their children are living in their home country.
Mr Ahern said the regulation, EU 1408 of 1971, stated that migrants from EU member states working in a country - in this case Ireland - whose dependent children were resident in their own country were entitled to claim child benefit here in respect of their children, either in full or as a top-up if there was an equivalent payment at a lower rate in their country of origin.
Ruling out a "vouched arrangement", he said it would automatically exclude women in the home. "I don't think that is very bright."
During heated exchanges with Mr Kenny, the Taoiseach said they could not have it both ways: "Let us stop this . . . We cannot have a position when Irish going abroad have reciprocal benefits, right, left and centre, but when somebody from another member state comes in here, we close it off. Let us not try to be backing two horses on a one-horse race."
When Mr Kenny demanded that the Taoiseach withdraw a charge made by Minister of State for Health Brian Lenihan that Fine Gael was racist, Mr Ahern replied: "Deputy Kenny, I do not consider you and your party racist. I did not hear the comment, but I do not consider you racist. Neither would I like to think that anyone would try and turn what is a €350 million budget and say well this could cost a little bit more."
Earlier, Mr Kenny said it was not racist to ask legitimate questions about where taxpayers' money went. "It is not racist to point out that the Government has not done its sums. It is not racist to point out that the scheme announced by the Minister for Finance to help parents of all nationalities with the high cost of childcare in Ireland now appears to be open to children not living in the country."
Mr Kenny said the Government did not have a great track record regarding budgetary announcements. "It was clear, therefore, that the purpose of the early childcare supplement is to help parents with the cost of childcare in this country."
