Arthur Morgan (Louth, Sinn Fein)

I proposed amendment No. 9 to try to achieve a fairer taxation system or to take at least a small step in that direction. The threshold of €18,304 is an extremely unfair level at which to commence the 1% levy. The level of €37,000 is more in line with the average industrial wage. Surely somebody on an amount below the industrial wage should not have to shoulder the burden of the 1% levy.

In the case outlined by my colleague, Deputy Burton, if the security guard was due to go home at 6 p.m. but the colleague due to relieve him did not turn up in time and he was asked to stay till 7 p.m., he could suddenly be over the threshold. People do not become liable for that element of the 1%, but for the full amount and that is grossly unfair. This discourages the work ethic. Why would anybody want to be enterprising, seek overtime or get stuck into the job in order to enhance themselves or their employer when a penalty is about to be applied to them, a penalty that is exceedingly unfair?

Many of the points were made on Committee Stage, but it is worth pointing out again that this levy penalises families on low incomes and removes vital spending power from them. It will cost these families in excess of €500 per annum when the cumulative effect is taken into account. As the Minister did not change his mind on this on Committee Stage, I do not expect he will do so now, but let us hear what he has to say anyway.

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