Mary Harney (Dublin Mid West, Progressive Democrats)

In order to be helpful, when the Government discussed the child care issue, we were anxious to ensure we were neutral as between a parent who goes out to work and a parent who remains at home to look after the children. We also wanted to ensure that those who do not pay tax because of low earnings, and 36% of income earners on the minimum wage do not pay tax, were not disadvantaged. That is why we chose the direct grant or payment.

Equally those who stay at home receive a tax credit. These are major issues. I accept that pension issues arise and anything we can do to encourage pension provision for income earners, dependent spouses and citizens generally must be encouraged. It is the greatest guarantee that people can live independent lives free from worry about what their circumstances might be in old age.

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