Brian Cowen (Laois-Offaly, Fianna Fail)

To answer Deputy Gilmore's question, as he knows, this is a levy on gross income and, therefore, in respect of anything above that, the levy is applied on the full amount. That is the way it operates. A person on €18,000 a year, beyond the minimum wage, will be asked for a contribution of €180 for the year, or €3.50 tax. In the past, Deputy Gilmore was a member of a Government which probably charged them 26% tax on practically all that income. The person has one twenty-sixth of the burden he or she had in 1997 when Deputy Gilmore was Minister of State in the Department of the Marine.

That is the way the levy system works. It was the way it worked when it was introduced in 1992-93 under a Fianna Fáil-Labour Party Administration. It was also a temporary levy at that time. From memory, it applied to people on half the industrial wage which at that time was only €9,000. We are a long way beyond that now thanks to successful policies implemented in the interim.

On Deputy Barrett's question, under this agreement, we have a three month pay pause in the private sector and an 11 month pay pause in the public sector which should not be ignored and which is a good contribution by workers in an effort to contribute to stability. There are also inability to pay clauses available to employers who are not in a position to assist.

It is not correct to say nothing is being asked of the public sector in respect of payroll costs. We have indicated the necessity for a reduction of 4% on payroll costs in the coming year as a contribution.

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