Oireachtas Joint and Select Committees

Thursday, 29 September 2016

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Estimates for Public Services 2016: Department of Public Expenditure and Reform

9:00 am

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The Minister gave a figure of €1.4 billion for pay restoration. What I am trying to reconcile, and it is not an ideological reconciliation but just a matter of fact, is that we are spending as much now as we were in 2008. We have taken a huge number of people out of the tax net. There are a number of issues on which politics and politicians are hooked. Some want to get rid of the USC and some want people on low pay not to pay any tax. However, with that level of expenditure, the number of staff we have and a reduced capital programme, something will have to give. They all cannot occur. What is the Minister's position? What would he like to see occur with regard to USC and taking people out of the tax net? The figures show that 29% of people will pay no income tax. That is one of the highest rates in Europe. There is also the view of the Fine Gael Party that we should abolish the USC and there is talk of replacing it with something else for high earners. However, USC is pencilled in, which is over €4 billion. What is the Minister's position on those?

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