Martin Mansergh (Tipperary South, Fianna Fail)

I repeat that the child tax credits were abolished by the parties opposite in 1984. Over the past dozen years or so, there has been a significant increase in support for child rearing not primarily through the tax system, but through direct payments. That was seen as fairer and more equitable, particularly vis-À-vis those who were not in the tax system. When assessing the consequences of public policy, it must be borne in mind that we also have one of the highest birth rates in Europe.

I do not share the nostalgia for the pre-individualisation era. Individualisation was introduced in recognition of changing social realities. There is a contradiction in Deputy Bruton's argument. He begins by talking about a spouse who withdraws from the workforce because of the cost of child care and is, therefore, implicitly better off. He then seems to say that the moment they get home, they discover that they are worse off because of so-called tax penalties. Given the cost of child care where the full cost is being paid, when a spouse comes home, those costs do not necessarily have to be paid anymore.

I do not dispute the fact that the amendment may, in abstract, be desirable, as is any increase in tax credits. However, we heard it said this morning that the public finances were in a catastrophic state of affairs. We now have an amendment which suggests that the budget gap be made even wider.

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