Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

The tax strategy group documents have been very useful in respect of a variety of different issues and have helped our deliberations, as have the presentations from the Irish Fiscal Advisory Council, the ESRI and others. Our party would agree with the Irish Fiscal Advisory Council, the ESRI and others in terms of concern about a narrowing of the tax base and would retain the USC. Will the Minister consider or look at the indexation of tax bands, rates and credits in this budget because failure to do that would be a de facto tax increase to Irish taxpayers? It would be some response to the concerns raised by the Irish Tax Institute paper today, which showed that the real problem is that we are going into the higher rate so early. Starting with proper indexation would at least allow us overcome some of the difficulties that come with that. I am keen to hear whether the Minister will consider the indexation of tax bands and social welfare rates, as has been recommended to us during our hearings.

I know there is a very extensive debate on the nature of child care support and whether it is targeted. We would support it on social justice grounds. I have an interest in terms of the income tax reform papers we presented. It reminds us that the Government has committed to improve the home carer tax credit to make sure whatever we do in terms of child care does not discriminate and that we are not saying to one class of parents that we do not want them or their parents looking after their children and that we want to get them out of that model. Whatever about targeted support for child care in a structured facility, will the Minister look to do something concurrently for parents using other models to make sure that whatever the Government does is not discriminatory in respect of certain types of parenting?

We received a very clear presentation from the Climate Change Advisory Council that showed that our current trajectory in respect of climate emissions will see us face a fine of possibly €5.5 billion from Europe.

We are clearly not on track to meet our renewables and emissions reduction targets. According to the Sustainable Energy Authority of Ireland, we will need a threefold increase in investment in the retrofitting of buildings, or a fivefold increase in investment in sustainable transport, if we are to get anywhere near where we need to go. I do not see any strategic direction in any of the papers towards a low-carbon economy.

The specific issue of local air pollution caused by diesel particulates and nitrous oxide is well presented in the papers, as is the need to remove the perverse incentive in our system towards the sale of diesel vehicles. Will the Minister consider adjusting VRT and excise rates to target people who are buying new cars? Will he look to do this in a revenue-neutral way? I know from past experience that it can be difficult to change tax arrangements if people believe they are being penalised after the fact for decisions they have previously made. Does the Minister think he will look to introduce measures in the budget to recognise that problem, as set out in the tax strategy group papers? Does he think he will be able to do this in a revenue-neutral way in order that motorists will accept that the adjustment which needs to be made is being made in a fair way without necessarily punishing them?