Dáil debates

Thursday, 3 March 2005

4:00 pm

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)

I am glad to have the opportunity to record the achievement of which I am so proud because Deputy Bruton likes to hear only the first part of the sentence and shout down the second part. A total of €220 less in tax is being paid by the average industrial wage earner this year compared with 1997, while his or her wage has increased by €11,000. Instead of an average industrial wage of €19,000 when the coalition Government was in office, the average industrial wage now is over €30,000. Despite the fact that his or her wages have risen by €11,000 per year, they are actually paying €220 less in income tax. That is what I am proud of and that is not a difference of €4 per week. I am glad to clarify that point so that we do not continue with the misapprehension that I am proud of a change of just €4.

The second point made by the Deputy relates to this basic choice. The Deputy wants to be a friend to the motorist and seek to review this area with a view to indicating to the public that he will reduce these taxes, despite the fact that a function of these increases has been the buoyancy in vehicle sales. We know all about that from our own experience in terms of the numbers of cars on the road over the past ten years and what is estimated to continue to rise. The level of car ownership in this country is very high. If the Deputy wants to do that he will have to ask the public from where will we get our taxes.

By taking the decision to keep taxes low on income we have far better prospects of increasing job creation and the numbers of wage earners who will contribute to the buoyant revenues of the economy. We believe the model of taxation under the various tax heads is probably the best one as we see it. Others might disagree but if they want to change it, they should tell the public the full story. If they reduce it in one phase, where will they increase it because we cannot try to be a friend to everybody and leave things as they are?

I do not accept that we are not seeing an improvement. The national development plan is being rolled out. For example, if one travels on the N2 today one can see the amount of work taking place on the Ashbourne Road, which happens to be in Meath — with the by-election we might as well be topical.

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