Arthur Morgan (Louth, Sinn Fein)

The Tánaiste is faced with a diversity of opinion on this side of the House. I have no problem with the change in capital acquisitions tax and not much difficulty with the change in capital gains tax. However, I have a major problem with the introduction of a levy on life assurance policies and the increase in the levy on non-life assurance policies. The vast majority of those fortunate enough to be able to take out a mortgage from a financial institution are required, upon doing so, to take out a life assurance policy. As part of the deal, it is unavoidable. Such people already face a problem arising from the decision in the budget to slash mortgage interest relief after seven years. As a result of the economic downturn they are in substantial difficulty. The ordinary person in the street will be forced to dip even deeper into their pockets to meet the cost of the new levy and the increase in levy on non-life assurance. I have a major problem with this measure because it is grossly unfair to catch people in this manner.

The Tánaiste travels around the country as much or more than any Member of the House and will be aware that people are in serious trouble. This is not a cliché but a statement of fact. We know the overwhelming majority of people with mortgages, most of which are substantial coming off the back of the boom, are genuinely struggling. As with many other aspects of the budget, the Government's strategy, in introducing this measure, was to take a short-sighted, individualistic and blinkered option. It chose to grab €140 million from people who, if they are lucky enough to get mortgages, will have to pay a substantial amount. This is an unfortunate decision, particularly when measured against the broad range of tax measures.

On the one hand, one has the ordinary Joe and Josephine soap who have to dig deep to pay for life insurance, while on the other end of the income scale we have people who can employ tax consultants to provide the best of advice - in their terms - to enable their clients to get off very lightly. The position is grossly unfair. The Government's stab in the dark, as it were, in raiding a particular pocket was extremely short-sighted. The budget did not contain any strategic long-term measures.

I do not have a problem with the increase in DIRT tax which probably does not go far enough. Deputy Varadkar argued that Government policy was one of tax and spend. The Budget Statement indicates that savings in transport will amount to €300 million, including a reduction of €150 million or 8% in investment in roads.

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