Jan O'Sullivan (Limerick East, Labour)

I do not propose to go back over all the issues again but I do want to raise one issue the Minister mentioned, which is the use of the term "gross" when referring to incomes, as opposed to "net". Section 3 specifically states: "so long as the person's gross income does not exceed the relevant gross income limit under section 45A". In response to a specific point I made about somebody who sold their house in order to afford nursing home charges, the Minister said that person could apply under the other means test, which is based on net income and allows for certain expenses. The income limits are lower if one applies under that system. My point is with regard to how gross income is defined. As I read the Bill it seems the only things excluded are in section 4, which lists things such as compensation under the hepatitis C tribunal. There are four or five different exemptions in that regard.

I have a letter here from a pensioner who makes a good point. He writes:

Each pension cheque shows three main figures — (1) the gross figure (which one does not receive); (2) the figure for the compulsory PAYE income tax amount (which one does not receive, because it is not your income but the Government's — one never sees it, it is deducted compulsorily at source); (3) the figure for the income you actually get (the gross figure at (1) less the Government income figure at (2)).

This income figure at (3) above is the real gross figure [you] actually receive in your hand and I respectfully suggest should be the one used in the income limits for the recently announced means test for the over-70s [medical] card. To use the unamended gross income figure alone (a gross income we pensioners do not receive) would be very unjust, I feel. The substantial tax portion of that gross figure is Government income, Government property, over which we have no choice — it is no longer the income of the pensioner.

He goes on to appeal "to have this relatively small amendment implemented as outlined above". I read this out because it makes a very fair point. In effect, the real gross figure should be the one after the Government's portion has been taken out, because the pensioner has no discretion whatsoever with regard to the top figure on his or her pension. The Minister will be taking the Bill in the Seanad and it is too late now to propose an amendment that would do that. In any event, it would be ruled out of order for the same reason Deputy Reilly's amendments were ruled out of order — because it would impose a charge on the State. However, I raise it here because it is a valid point. Perhaps the Minister will consider it.

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