Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

I thank the Minister for producing some of the Estimates. Many of us who are first-time parliamentarians find it quite oppressive to be sitting here with restricted numbers and, ultimately, going into a budget without going through the process of having the larger scale numbers, especially at a finance committee, and with the figures being supplied to the specific committees thereafter so that we can have an advanced and mature debate as to how the country gets out of its woes, but I welcome this step. There are many of us who feel this is not going far enough. It is part of the reform agenda. We think there should be a better budgetary process.

This budget is about fairness. The most important point is not to give everyone an equal burden but to give those with the most capacity the most to carry, both in the public expenditure sphere and in the taxation sphere.

I will make two points on taxation, which I acknowledge is an easier way to go. There is an additional universal social charge of 3% for the self-employed earning over €100,000. If the Minister were to apply that across the board for everyone, according to the Department of Finance, it would bring in another €75 million in taxation.

The Minister will be aware that I and many of my colleagues would be of the belief that the top 1% of earners in this country are earning over €453,000 a year. That is not money that specifically drives the domestic economy. Much of that money goes into luxury items and items that are not key drivers of labour-intensive activities, and it is not spent in the domestic economy.

I understand it has a knock-on effect on the banking sector but those who have most should be paying a solidarity tax. It could be conditional to the point where the GDP deficit reaches 0%, at which point it would erode once again to allow people to be ambitious in society.

Over recent months we have pitted the public and private sector against each other, which does not serve anyone well. I do not know how we lost our appreciation for industrial peace. Perhaps we should show more scenes from Athens and highlight the fact that 48 buildings were burned to the ground in that city’s equivalent of Grafton Street. Vigilantes are walking around Athens demanding money from people every day.

The fairness element of the budget means that parts of the public sector which are very well paid are doing more but the price they are paying is not enough for some people. There is also a section of the private sector that is not contributing enough. A generational gap has emerged between young and old. If we learned anything from yesterday’s figures on banking, it is that we need to address the issues arising for the 167,000 people who come from the same generation as Deputy Donnelly and me. I do not mind whether these issues are addressed through expenditure or taxation but we must give a break to those who are in effect the key drivers of this economy rather than leave them without disposable income or facing a black hole.

The Government controls a high proportion of the two pillar banks. Those banks will ultimately be sold in the market. When we sort out the cost of funds, they will be profitable once again and their projected cashflow will ultimately determine the price at which they are sold. I do not want to see these banks running off into the sunset with the money taken from a generation through extended terms of credit. The Government needs to impose a moratorium on profit making by the banks once they sort out their cost of funds, which should be completed in the near future.