Michael Mulcahy (Dublin South Central, Fianna Fail)

I will consider the resolutions in order. I join other Members in supporting Financial Resolution No. 9, which deals with the pensions issue. The previous position was unnecessarily generous to high income earners and a threshold of €150,000 is totally acceptable.

In general, I support all these resolutions. The Government is acting correctly to stabilise the national finances and to do otherwise would be irresponsible. However, there is a duty on me, as a Member of the Dáil, to point out things that may not actually work. My first concern is with regard to Financial Resolution No. 10 and income tax. People are now very flexible with their money. There are many markets throughout Europe and elsewhere where money can be invested, and many ways to invest. The Minister will agree it has always been a policy of every Government to encourage people to save. I am concerned that the more the rate of DIRT is raised, the more people will be disincentivised to save.

Does this measure apply to the post office? If it applies fully to post office savings, then again there is no incentive for people to put money into the post office. There is an argument for encouraging people to put money into a State or semi-State institution. I agree with the point made by Deputy Rabbitte, but he appeared to say that all the money in deposit accounts is earned money, but that is not quite true. There could be money on deposit that is not earned income.

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