Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I am because it is €1 billion. To make tax proposals that are capable of adding to inflationary pressures within our economy, we would need a tax package worth many multiples of €1 billion. When people see our budget day tables, in which we will lay out whatever tax proposals the Government agrees, they will see net change in disposable income versus the rates of inflation that many are facing. There will be a difference. In order to have a tax package that is, from an income tax point of view, capable of adding to inflation, it would have to be ahead of the rates of wage change that we are expecting to see in our economy and probably ahead of the rates of inflation that we are now seeing and expect to see into next year. At €1 billion, we will not be doing that.

Reverting to the Chair's point about universal measures, nearly no one who is earning €39,000 will qualify for the targeted measures that the Minister, Deputy McGrath, and I hope to introduce in a few weeks' time. As the Chair knows from representing people in Dublin Central - she knows it well, given that it underpins what she has raised with us at this meeting - many of them are feeling the impact of higher bills.