Paul McGrath (Westmeath, Fine Gael)

I am disappointed the Minister is not prepared to move any way towards increasing the home carer spouse allowance. This allowance was introduced following the introduction of individualisation by the Minister's predecessor. It resulted from a backlash among Government backbenchers who were not happy with individualisation and felt the family with the single income was being seriously discriminated against. Families with one income are still seriously discriminated against. That discrimination is greatest among those on middle incomes, namely, those earning €55,000 to €56,000 per annum. There is a substantial difference in the amount of tax paid by a single income family and a double income family. It amounts to approximately €7,000 per annum, which is a lot of money. That takes into account the home carer spouse allowance.

Increasing the home carer spouse allowance would go some way towards helping those people. The Minister has heard the arguments before that people who want to stay at home to look after their children should have that option. This Government should help to eliminate the economic difficulties preventing that from happening. I ask the Minister to review this allowance. If he is still in office at the end of the year, perhaps he might be able to give us good news in this regard in his second budget. It is not that costly in the context of the benefit it would have. The Minister estimated the cost at approximately €40 million. When one considers the cost of other things and the benefit this would have, it would be well worth while.

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