Mr. Paul Ginnell:

Ireland has a low tax base compared to other EU countries and employer PRSI is one of those areas where we are behind. We are not behind so much on income tax but on employer PRSI there is quite a considerable gap. We do not have a specific demand but definitely suggest moving higher and towards the EU average. There is resistance to that from certain quarters. That is one of the main areas where there could be some catch-up compared to other European countries.

Poverty and equality proofing is something we have been highlighting consistently for a number of years with all Departments. The EAPN has done it bilaterally but also, as part of the community and voluntary pillar, we meet regularly with the Departments of Finance and Public Expenditure and Reform. It is consistently on the agenda. It is consistently something they say they are working on but we have yet to see what exactly they are doing on it. We keep hearing there is something in the offing and there is supposed to be an event next year. Initially they were saying that they would hold an event early next year on this but we do not know the detail of what is being proposed.

On the USC, the issue is being raised in terms of the erosion of the tax base. From our point of view, it is important to maintain a steady tax base because of the demand for services and investment. While it can be argued that taking people on lower pay out of the tax net is important to their pay, we consider increasing pay by giving a living wage is another way of ensuring people have a decent income. The Deputy mentioned his report, which I was at the launch of and have read. It is a comprehensive report and it shows the holistic approach that needed to be taken to taxation, pay and access to services. In terms of a minimum essential standard of living, which is the basis on which a living wage is calculated, one must look at the cost of services. If the cost of a service is reduced, for example, by a child care subsidy, which, in turn, reduces the cost of living, it makes it easier for people and all of this balances out. The cost of housing is another obvious matter in respect of which this would apply. All of these things interplay with each other. There is a need for a holistic approach to how these issues are addressed. That is what we said on an integrated anti-poverty strategy. It is not about one issue but how these work in the round, which is why we say the committee has a role in ensuring that the issues are worked in the round.