Richard Bruton (Dublin North Central, Fine Gael)

I wish briefly to discuss amendment No. 16, which I tabled, which pertains to people who are over 70. The Minister fails to appreciate the quadruple whammy this budget has administered to people in this category. If one is a retired person aged 70 or over and has an income that is just over the average industrial age, one will be obliged to pay the 2% health levy for the first time, as well as the new 1% levy, which one would not have paid previously. Moreover, one will lose one's medical card, which I conservatively estimate to be worth €2,000, as well as the medical relief one would have received at the marginal rate, which I estimate to be worth between €1,000 to €1,500. Through this budget, the Minister hit people in this category, with modest incomes and high medical expenses, for approximately €5,000. I refer to people with incomes of between €36,000 and €50,000, for whom this constitutes a 10% hit on their take-home position.

I simply do not understand the reason the Minister should decide that those who are 70 and over, whose income is greater than the magic figure of €700 per week, suddenly have become those who should shoulder a 10% burden. The burden is greater than 10% if it is taken from their after-tax income. I cannot discern the reason the Minister has decided to do this. This is the fourth measure to be targeted at them. The Minister has removed the medical card from them and has hit them for the health and Lenihan levies and now proposes to hit them in respect of their relief for medical offences. It is unfair and I cannot discern the rationale. The Acting Chairman, who has his ear to the ground, will share my wonder as to the reason this measure is being taken. This is the smallest of the concessions Members seek and the Minister should give it.

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