Brian Cowen (Laois-Offaly, Fianna Fail)

I will take Deputy Burton's question first. The Review Body on Higher Remuneration in the Public Sector, the Labour Court and all the pay determination bodies that are in place have served us for, in some cases, more than 40 years in dealing with some aspects of public pay remuneration. The pay increases are being made available to the Judiciary and senior people in Garda, Army etc. to ensure we get good, qualified people in those important positions. As the Deputy will know, for members of the Government we have come to different arrangements, which involve a deferral of the pay increase for 12 months and then a payment over three years of the proposed increase. It is not correct to say that that level of money will be made available to politicians this year. We modified the recommendation significantly in that respect.

In response to Deputy Bruton, at mid-year we will make an assessment as to the trend and we will clearly set out our position on that basis. In March there was a bit of a pick-up in respect of some of the tax heads. We are monitoring that situation and we will develop it. It is clear that the reduction of €600 million in capital gains tax will not be recouped.

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