Mary Harney (Dublin Mid West, Progressive Democrats)

They will not pay the health levy, as I said yesterday. I think the Deputy was at the press conference at which I made that clear. The Minister for Finance, Deputy Brian Lenihan, has indicated that the health levy will not apply to people over the age of 70.

I wish to make clear that the higher tax benefit at the marginal rate of tax, 41%, will apply to nursing home charges. That benefit will not be eliminated until the fair deal is in operation. When the fair deal is in operation, it would not be unreasonable to bring the tax benefit down to the standard rate of tax, in line with all other medical expenses, voluntary health insurance and mortgage interest relief etc. Those who have examined the Irish tax system from an equity point of view have said all citizens should be treated equally. Those who earn the most money should not get preferential treatment in the tax system, as far as benefits of this nature are concerned.

Deputy Ó Caoláin said the fat cats are getting too much. He went on to say everybody should be able to avail of universal benefits. That does not make sense. At a time when tough choices have to be made, we need to ensure we protect those most in need. That is what we sought to do in the health Estimates adopted by the Government for 2009.

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