Seán Kyne (Galway West, Fine Gael)
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I thank both groups for their presentations which give us food for thought. Let me address my initial questions to IBEC. Is it using the Croke Park agreement to set pay level for higher grades?

The electronic card for social welfare payments was mentioned. I know that such an electronic card was rolled out in Australia, but there were concerns that there was a stigma attached to it. It obviously would not apply to payment of children's allowance because everybody with an eligible child is entitled to receive that payment. Did IBEC consult supermarkets and retail outlets on whether they were in favour of using that model? Presumably, it would be possible to exclude the purchase of drink and cigarettes with such a card?

IBEC has acknowledged that a property tax will be levied, but it has expressed concern that Revenue will be collecting the tax from a person's pay packet. Will IBEC have an issue with the deduction of the property tax, if that is how employees voluntarily decide to pay it?

How does the Small Firms Association view a third tax rate versus cuts in social welfare or other schemes? It has been said that if child benefit is cut for those on lower incomes, it will mean a 100% reduction in their spending power; for people on higher rates of tax, presumably, it will impact on their savings rather than their spending power. Is there a strong argument for introducing a third tax rate versus cuts in social welfare or other State payments? It is often said that when farmers receive money, they spend it almost immediately. A failure to tackle some of these issues, no more than the Croke Park agreement, will impact on the ability to make payments under farm or social welfare schemes. If it reduces spending power, presumably it will reduce purchasing power within smaller businesses.