Bertie Ahern (Dublin Central, Fianna Fail)

Deputy Rabbitte stated that the tax system ignores the low paid, yet of the 1.8 million people in the work force, more than 620,000 are exempt from income tax. Where a number of years ago, one quarter of workers were exempt from income tax, the figure is now one third.

In the past seven years, the Government has reduced the standard and higher rates of income tax by six percentage points. When the Labour Party had the opportunity it reduced rates by just 1%. The Government has introduced a fairer system of credits, increased their value substantially and widened the standard band. We have doubled the tax exemption limits to €15,500 for single people and to €31,000 for married people. The average industrial worker, in whom Deputy Rabbitte purports to be interested, earns €10,000 more than in 1997, but pays approximately €250 less in tax. The Government has also introduced one of the lowest rates for people on the minimum wage. Some 30% of the population holds a medical card and the Government is seeking to expand that figure.

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