Martin Heydon (Kildare South, Fine Gael) | Oireachtas source

I thank Mr. Gibney for his response. We talked about taxes. Many people on his side of the argument refer to taxing the wealthy, which is a fairly easy mantra. At times the general public do not realise that 6% of the highest earners in this country pay 49% of the income tax and USC, which is a fairly substantial figure. They are also the key people who drive business and economic activity in this country.

I am surprised that Mr. Gibney is opposed to cuts in income tax for ordinary workers. When I was first elected as a Deputy in 2011, I was surprised by the number of people who came to my office who were in receipt of social welfare and told me it did not pay to go back to work because the gap was too big. We knew we needed to cut direct taxation on work in order to make work pay.

Let me be very clear. In my mind, the greatest beneficiaries of the recovery from recession have been householders who in 2011 and 2012 did not have a job but who now have one or two earners and children who know what it is for Mummy and Daddy to get up in the morning and go to work. That is why we made changes and have 190,000 people in work today who were not in jobs in 2012. That is why this year alone we will create an extra 45,000 jobs in the economy. Everything is focused on that.

I am surprised by Mr. Gibney's proposal regarding why we should not have water charges and should instead increase direct taxation and income tax on workers. Ultimately, he is talking about calling a tax a different name and money would not be ring-fenced for the water services that are needed.