Declan Breathnach (Louth, Fianna Fail) | Oireachtas source

I thank the Chairman for the opportunity to say a few words.

I have watched this document with interest and I have come today to support what Deputy MacSharry has said, the principle of the concept. There are too many in the squeezed middle we often talk about who are not in a position to educate their family. The struggle of families who do not get SUSI grants and must provide education, particularly up to third level, for their children works out costing between €12,000 and €14,000 annually. Historically, in my own family, there were four of us in college at one time. While there is a perception that some families have good incomes and a reasonable degree of wealth, the reality is, if they are not entitled to some form of tax break, some are struggling.

If we are talking about it as a child tax allowance, it is my firm belief - in the same way child benefit is to help families, particularly to get through the education system - the concept here needs to be seriously looked at. It could be tied into suggestions that we made previously about providing people who are struggling to make savings and are living hand to mouth, with incentives such an SSIA facility or an incentive for children to save as they grow older. For example, I have mooted to Deputy Michael McGrath previously the issue of not charging DIRT on students' accounts when they go to college. It is a simple measure and it would not cost a great deal. We need to look at the principle. Education, whether in a trade or in a university, is everything. That squeezed middle needs to be considered for some form of incentive in the tax regime; that will be a learning for life for their children, for example, in taking up the badly needed trades. This is one of the hidden problems to a large degree.

As a public representative, I meet people daily who have problems with social welfare and are looking for additional support. We all recognise those people need help. However, there is a middle-income earner out there who needs an incentive. I fully support Deputy MacSharry's principle and it should be thrashed out.

This is a classic issue that should go to the Committee on Budgetary Oversight. I take it Deputy MacSharry cannot be 100% sure that everything outlined in this document is correct but it should be analysed by the Committee on Budgetary Oversight and offered as a suggestion.