Brian Cowen (Laois-Offaly, Fianna Fail)

Ireland is unique because it is the only country in the OECD to have achieved this. The figures do not take account of the further improvements we made in the 2007 budget. Married one-earner couples on the average industrial wage in this State are uniquely placed compared with their counterparts in all other OECD countries in that they pay less in income tax and social security contributions than they receive in cash transfers and that is very significant.

As I mentioned on Committee Stage, there are other perspectives on this issue. While I do not agree with everything the OECD has to say on this area, Deputies will recall the organisation holds the view that the Government should abolish the home carer tax credit and consider moving to a fully individualised system of taxation to reduce both average and marginal effective tax rates on second earners in married couples. Female participation rates in the workforce are below the OECD average and the organisation suggests we need to further incentivise second earners in families, many of whom are women, to enter the labour market. I do not totally concur with that view.

As I outlined on earlier Stages of the legislation, the claim that individualisation was introduced in 1999 to increase the female labour supply is not the full story. The weakness of our income tax system, as Deputy Burton pointed out, was how heavily it bore on single people because to improve their position, double increases had to be given to married one income couples and this used up scarce tax resources. If we individualise tax bands, we will inevitably increase the relative burden on single earners for a given amount of tax relief. While I accept people may make life choices at different times, I am not sure that the clock can be turned back at this stage and nobody is suggesting that I should do so. It was correct to move towards this with caution and to recognise societal attitudes and circumstances had to be taken on board while, at the same time, ensuring we facilitated participation in the workforce to the maximum extent.

I do not accept there is a need to go down the road suggested by the Deputy because the tax package introduced in the budget was worth €1.25 billion. I made my decision and choices, as every Minister for Finance does, in the context of a good economic policy that enables the Minister of the day to consider tax reductions. While I do not accept the amendment, I recognise it gives an opportunity to Members to air their views on this matter. Given the overall budget packaged amounted to €1.25 million, no Deputy has suggested where the additional €7.36 million required for the amendment will come from. That is a matter for the Government and not the Opposition to worry about.

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