Mr. Paul Ginnell:

The level of income inequality has not increased much recently. It had been reducing for a long time, but we have seen a slight increase, which is a concern.

The ESRI has assessed the past two budgets as being regressive. This has not yet been factored in to the statistics because the information has not been seen. However, an issue arises regard proofing budgets and determining how this can be done.

The community platform document on reforming taxation and having a more progressive tax system highlights that we are not behind at a European level with regard to income tax. We are behind in two areas - social insurance and local authority taxes. With regard to social insurance, the system is being eroded. People pay social insurance and see what they get back. In recent years the numbers of months for which somebody paying to the fund can receive jobseeker's benefit have been reduced to six and nine. No matter how many years one has been paying to the fund, the maximum period is nine months. This is an erosion of the social insurance system. People see that they get less back than what they have been contributing. This is an issue for the committee to examine. It is an area that needs to be built up rather than eroded.