Pat Rabbitte (Dublin South West, Labour)

We all occasionally surrender to self-delusion. When Deputy Kennedy criticises the Opposition for drawing attention to the mistakes that were made, especially by Deputy Bertie Ahern's second Government, in the management of the economy, I must point out to him that he was never in the House to watch Fianna Fáil in opposition. I have witnessed this and, by God, if the Deputy thinks the Opposition is irresponsible now, he ought to have been here to watch Fianna Fáil in full flight in opposition.

I accept that getting control of the direction of the public finances must be part of the solution to the crisis into which we have been plunged. It must be seen as a part of the solution because the package before us is neither fair or balanced. It is punitive on people on low pay. A conflict has been set up between private sector and public sector workers but many people forget, for example, that a clerical officer in the Houses of the Oireachtas or elsewhere starts on a salary of €23,221, a staff nurse at €30,339, and a special needs assistant at €23,232. These people are now liable to the full belt of this levy. When the Taoiseach says he wants to go the route of social partnership, I draw his attention to what the agreed framework document spells out several times. I will quote one paragraph.

The Government and social partners are fully committed to an approach in which all sectors of society contribute in accordance with their ability to do so, and conversely the most vulnerable, low paid, unemployed and social welfare recipients are insulated against the worst effects of recession.

That is not what we have. We have a package that punishes the low paid and rather than a Government boasting about the number of people who do not pay tax, it ought to be highlighting the number of people who are on very low pay.

The package before us is riddled with internal inconsistencies. When tax is applied to the proposed pension levy — it is an income levy and not a pension levy — people on lower pay end up paying more in the pension levy than people on higher pay because the lower rate of tax applies in one case and the higher rate of tax in the other cases.

As outlined in the framework document the Taoiseach has argued for a system of social partnership that would spread the burden in a social solidarity pact. Instead of that the inverse has happened. He has come into the House with a package of proposals that is purely a tax on income. It is an income levy not a pension levy. It imposes disproportionately on people from €15,000 a year. At €30,000 a year — can anybody in this House imagine living on €30,000 a year — the levy will be €1,750. On €50,000 it will be €3,750. Is that fair in the circumstances in which we find ourselves?

It is ridiculous when we organise the business of this House that on an issue of such importance, when we are staring economic crisis in the face, Members of this House who want to contribute to this debate and deal with the issues raised by the Government have five minutes to make a contribution. We need to distinguish between the debates that matter in the House and the ones that are less important. We need to give the Members of the House the opportunity to contribute in a thoughtful, considered and coherent way to offering solutions to address the crisis we now face. The way this debate is structured does not offer that opportunity.

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