Martin Mansergh (Tipperary South, Fianna Fail)

I do not believe we will have any difficulty in debating with Deputy Morgan the social conscience of this party, as exemplified in social policy back to its foundation.

I recall this measure being discussed in quite an animated fashion in the tax strategy group in the late 1990s. At that stage the figure of £6,000, if I recall correctly, was the sum being debated and the issue as regards the allowance, which was being introduced for the first time, was whether this initiative was compatible with equity within the tax system. It has now grown for totally pragmatic reasons to €15,000 and nobody doubts it serves a useful social purpose. It recognises the difficulty of collecting or enforcing tax collection from such a source. On the other hand, if some limit is kept to it, this encourages one form of relatively inexpensive child care provision as compared to some of the alternatives and provides useful and tax-free earnings to a household where there may well be other sources of income. The issue is apart from cost considerations, which lies behind all of these amendments. If it is increased, will that mean the cost of a particular form of child care for the people using it will straightaway increase by the same amount? It seems that in present circumstances €15,000 is not a bad level and in fact is fairly generous, stretching issues of tax equity practically to the limit.

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