Bertie Ahern (Dublin Central, Fianna Fail)

It is the case. The latest reports show that 250,000 people have moved out of consistent poverty. There are still people in poverty, but we have moved a large proportion out. Our flexible workforce has led to strong job creation and we are able to expend resources to assist the less well-off through tackling educational disadvantage. Those reports also show the strong literacy levels in our population when compared with others. A host of indices show that our model is working. There are wealthy people, but I am glad to say that they also pay their taxes.

Following the 2006 budget, the tax rate for a single person on the average industrial wage will be 15%, compared with an average 12% higher eight years ago, when it was 27%. A single PAYE worker on the average industrial wage has seen his or her after-tax income increase by approximately 44% in real terms since 1997 and approximately half of that increase is owing to tax reductions. They receive more money and pay less tax. For those on welfare, contributions have significantly increased. Every report shows that the incomes of those at the lower end of society have increased owing to welfare increases and that 300,000 people who would always have paid tax now pay none whatsoever. All those things show the success of our model.

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