Professor Tim Callan:

I will try to hit some spots. Senator Marie Moloney asked questions about the division between public and private sector employees and the unemployed. People also wonder whether they are particularly hard done by compared to others. The only remedy is to improve the quality and quantity of information available on these topics, as we are trying to do in making the research available and known.

The Chairman asked about the SWITCH model. It takes account of the complicated structure of public sector pay and changes over a period. We could not take into account straightaway the increase in the capital gains tax rate, but, with information supplied by the Revenue Commissioners, we have patched it in for the budget for the next year. It is a difficult area and the CSO has announced today that it expects to publish the findings of the new survey of household wealth soon. A lot of work must be done on this issue, which will open up these topics in ways that can feed into the debate.

I have some concerns about whether the property tax can be described as progressive. That does not mean that it is a bad thing, but looking at the burden as a proportion of income, it comes out as being higher on those on low incomes. The way the United Kingdom has chosen to deal with the issue is to have a special council tax benefit, a name for its property tax. I am not saying it is ideal, but it is an issue for debate. There is a deferral option, but it is not the same as the waiver option provided in the United Kingdom. It is tenable to say the system is progressive in many other ways, but it is a political decision.