Mary White (Carlow-Kilkenny, Green Party)

In recent months we have all become far more conversant with the language of finance. We have spoken about bear and bull markets, regulators, taxes, shares, dodgy banks and dodgy bankers. Today, however, I intend to focus on taxation policy and the measures I would like to see implemented over the course of future budgets.

It was the view of my party when it entered government that the taxation code would have to be rebalanced so that higher earners would pay more and that the tax base must be made more sustainable. It was for this reason that we insisted on the establishment of the Commission on Taxation, which is due to report in the middle of the year. As outlined in the programme for Government, the commission was asked to examine four key areas. These were as follows: the balance between taxes collected on income, capital and spending; tax expenditures with a view to recommending the discontinuation of unjustifiable tax expenditures; the future financing of local government; and the feasibility of fiscal measures to protect the environment, such as a carbon levy. The latter is of particular concern given our escalating emissions. According to the Economic and Social Research Institute, now may be the ideal time to introduce a carbon tax when fuel prices are low.

I have two specific proposals for Fine Gael. The first is to revise toll charges. Second, I have been speaking to the Minister for Communications, Energy and Natural Resources, Deputy Ryan, about the possibility of introducing a tax on mobile telephone texting. Given that there are 4 million people in the State and taking into account average texting frequency, a charge of 1 cent per text message would be a relatively painless way of yielding some €1.4 billion in one year. Such a scheme would provide a means of spreading taxation in a fairer way. I am pleased that some elements in the media have already picked up on this. I hope it can be implemented in the short term.

For the Green Party, our priorities in regard to rebalancing the tax system are based on the principle that those who have the greatest capacity should pay the most. We are in favour of sustainable taxes on wealth and property. There should be devolved financing of local government so that local authorities have funds at their disposal that will allow them to counteract the reckless overdevelopment of some towns and villages which took place in recent years, where development levies were collected at the expense of appropriate planning. In that context, the current debate on the introduction of water charges, which seems to be led by noises from Europe, is an important debate in terms of how we might in future finance local government. Citizens must become more conscious of their domestic consumption of water. The water supply is of concern to everybody. We have even had predictions that there may yet be a war fought on the basis of a struggle for access to water supply. Water is precious and it is the responsibility of all of us to conserve it.

While there is much rhetoric from the Opposition about the need for fairness in the tax base, it is important for us all to acknowledge the importance of spreading the tax burden. The low-tax regime we have enjoyed in recent years is no longer sustainable. Everybody will be obliged to pay more tax in return for the services the State provides. The last several months have been ghastly, in this House and outside of it, as the financial turmoil unfolded. With unemployment rising, I am delighted that the Minister, Deputy Ryan, has set aside €100 million for insulation grants. As well as making people's homes warmer and reducing their fuel costs, this scheme will take plumbers, small builders and electricians off the dole queues. This is one small step of which we are very proud.

Tough times require tough measures. However, the Green Party will insist that any cutbacks are implemented fairly. For a long time, we were a prudent people. More recently, we became big spenders. The Japanese have a wonderful word, chindogu, to describe this type of unrestrained spending. Much of our new-found wealth was spent on unnecessary purchases. I met a person recently who had built an enormous house with six bedrooms, all en suite, but who has now lost his job. That type of behaviour was the consequence of reckless lending to people who hoped the good times would never stop rolling.

Despite the Opposition's hypocrisy, I am hopeful that the decision to guarantee bank deposits and recapitalise the banks was the correct one. The bottom line is that people must have trust and confidence in the banking system. I spoke to an elderly lady in my home town of Borris, County Carlow, who proclaimed how happy she was to insert her ATM card into the slot and find, after all, that the money comes out. That security has been achieved. I am hopeful too that small and medium-sized enterprises will be better able to conduct their business now that there is additional liquidity in the banking system. It is important for all towns and villages that small retailers, and even larger stores, can keep going in tough times. I am confident the State can regain its former high standing in international banking circles. I commend the Government's amendment.

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