Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

At the start of my explanation of the general policy approach of the Government to personal taxation, I spoke about relieving USC payments on low-paid workers. I said this was a defective policy instrument whereas income tax was not, because people earning below €16,500 pay no income tax so I cannot give them tax relief through reducing income tax. People marginally above or even a couple of thousand above €16,500, pay little enough income tax and as a result I cannot give them relief in that way. I said also that I was using the personal taxation system as a policy instrument. Of course I am using the cuts in the USC as a labour policy instrument. Of all the people who go out to work in the morning, whether they are highly paid or low paid, most of them work very hard. Whether one works harder than the other does not depend on the salaries they earn. If the Deputy took an interpretation out of what I said, I am sorry that my words were loose and that he was able to take that interpretation. However, the Deputy knows quite well that it is neither my attitude nor my intention because he has been listening to me for three or four years. He knows that is not my position, no more than I would ascribe it to him. He should not try to misinterpret what I say so that he can make a cheap soundbite to put me on the wrong foot. He should argue the merits of the policies I am implementing and play the ball, not the man. I have set out what I would do with personal taxes, this year, next year and, if we are back, the year after. I ask the Deputy to set out his position.