Kieran O'Donnell (Limerick East, Fine Gael)

I wish to speak in support of these amendments. Deputy Burton referred to the point I wish to make in respect of orthodontic treatment. Public provision for orthodontic treatment is not great and is highly limited. Many parents have started their children on courses of orthodontic treatment that can take up to two or three years. They have committed to expenditure that is not of a type that one can incur before the end of 2008 to get relief at the marginal rate. Many of those affected are on relatively reasonable incomes and pay tax at the higher rate. If such treatment had started before an appropriate date, such as the date of the budget, consideration certainly should be given to extending marginal relief for a year. This would be a reasonable proposition regardless of the cost.

As for the over-70s, who are being caught by the 1% levy, their medical expenses as a proportion of their income are much higher than those of younger people and strong consideration should be given in respect of marginal relief. I also wish to make a general point on the 1% levy to which the Minister referred. While I am open to correction, the aforementioned levy is the first that is not for any particular purpose. Normally, a levy is granted for a purpose. For example, the health levy was granted for health expenditure and the income levy for youth. The new levy really is akin to another form of income tax. While one may call it a levy, effectively it constitutes income tax. For example, in the area of capital allowances, aside from the point Deputy Bruton made previously, people in small businesses who invest in equipment and who are paying no income tax will be hit with this 1% levy, which constitutes income tax. While the Minister may call it a levy, it is no such thing. I support the amendments and restate my two points in respect of orthodontic treatment where it has been started and the ongoing medical expenses of the over-70s, for whom relief at the marginal rate was a huge factor in their disposable income.

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