Oireachtas Joint and Select Committees

Wednesday, 21 January 2015

Joint Oireachtas Committee on Education and Social Protection

Impact of Social Protection Payments on Income Distribution: Discussion

1:00 pm

Photo of Marie Louise O'DonnellMarie Louise O'Donnell (Independent) | Oireachtas source

I read Professor John FitzGerald's paper and was uplifted by it because I thought he had extraordinary things to say. The Minister was actually on her way into the Seanad and I asked her whether she had read Professor FitzGerald's paper on the distribution of income, social welfare payments and the public finances because he had some interesting things to say about the protection of those who were less well off and about the protection of social protection measures in the Government's policies. I am not advocating for the Government, as I am here as an Independent, but I absolutely agree with Senator Michael D'Arcy in that I am very confused. Professor FitzGerald is saying good things to the effect that there was a massive effort to raise taxes and protect social welfare payments, as well as a massive effort to protect those on low incomes, but because Professor Tim Callan is stating the income of those on low incomes fell by 20%, I am a little confused. Perhaps, as Professor Callan suggested, it has to do with answering different questions.

In addition, I note that persons earning €100,000 or more paid 46% of all income tax in 2007. How many of us are now earning €100,000? Are there are statistics available in this regard? How many of the earning population are earning €100,000 or more? I note that the numbers earning €275,000 or more fell by 28%. Who is now earning that amount? I am a tiny bit confused and while the delegates probably think these are baby questions, I ask them to balance the figures. This is because, in one sense, the point is being made that the policies introduced by the Government to protect social welfare payments and those on low incomes worked or are working and that the money went towards those who were not working and were in receipt of social welfare payments. On the other hand, I would have thought there was such a group as the squeezed middle, those earning between €40,000 and €70,000. While I could be very wrong, perhaps the delegates might outline the point a little better. However, it was the most informed paper I had read in a while, for which I thank Professor FitzGerald. I ask the delegates to bear with me on some of the questions asked.

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