Pat Rabbitte (Dublin South West, Labour)

The Minister for Finance had a great deal of money to give away yesterday and he did that. He scattered it around every segment of the electorate from whom the harvest of votes might be improved. There is no innovation, no new ideas and no joined-up thinking. The budget is cautious, predictable and safe. It is not intended to address structural inequality, rather it is designed for one purpose only: to schmooze sections of the electorate that have grown disaffected with the Government. Taxpayers get some of their own money back but they will forget the swindle wrought on them by the Government's calculated failure to index tax bands since the previous general election, which is the greatest stealth tax of all.

I regret that the newspaper of record has got it wrong this morning. I acknowledge this is a major offence and I know the people on the Government benches are very happy with the newspaper of record these days, but nonetheless I wish to correct the record. It states that 23% of taxpayers will now pay at the top or marginal rate. I correct that by stating that 32% will pay at the top rate, not 23%. This is against the Government's pledge of 20%, which commitment was reiterated in Sustaining Progress when it said that 80% of taxpayers would pay at not more than the standard rate. The Government pledge was that 20% would pay tax at the top rate. However, following, rather than before, yesterday's budget, 32% of taxpayers pay at the top rate.

This is the progress made on tax reform by the Ministers, Deputy McDowell and Deputy Harney, who never failed to blow their trumpets. It must irritate the daylights out of Fianna Fáil backbenchers but on and on the Ministers go about how they are responsible for the tax cutting strategy of this Government, with 20-42, 20-20 cashback and everybody is happy. As this House knows and as people outside this House know when they look at their disposable income, tax is a function of how quickly one comes into the initial tax band of 20% and thereafter how quickly one becomes liable to pay tax at 42%. Under this Government, people on the average industrial earnings become liable to pay tax at 42%, which is the point that the Minister, Deputy McDowell, should take on board.

The child care lobby could not be ignored again, but is €19.23 per child per week worth the candle? Do working parents of children over six years of age not deserve help with child care? When it comes to rolling out five-year strategies, has this Government any credibility left? The former Minister for Health and Children, Deputy Martin, should be asked where the health strategy is now. I remind the House of Ballymascanlon. Where is the health strategy today? Where is the Minister, Deputy Martin, today? Where will he be next week after Ivor talks to the Sunday newspapers?

Following years of lip-service to the closing of loopholes and shutting down of tax shelters, some tentative steps are evident, but on the Saint Augustine principle of "not just yet". In the meantime, I suggest anyone thwarted from minimising their tax liabilities in car parks should consider switching to private hospitals as the Tánaiste and Minister for Health and Children, Deputy Harney, sets out to create a parallel private health service against the advice of even the chief executive of the Health Service Executive.

See this speech in context