Olwyn Enright (Laois-Offaly, Fine Gael)

While I do not have a problem with the technical aspect of the amendments, I have a problem with the principle behind them. I accept this measure has been introduced as a result of a budget in which difficult decisions were required but disagree with the manner in which they were reached. The Government did the opposite of what the Fine Gael Party proposed. We sought to reduce borrowing with two thirds of savings to be made in expenditure and one third to be made in increases in taxation. For this reason, I oppose the measures on the health levy.

I will give an example of the impact on families of the decision to double the health levy, to change PRSI thresholds and to increase the income levy. A middle income family on €60,000 is seeing the marginal rate of tax rise from 43% before last October to 51% from next month, which is a significant increase for families. These families have lived within the means they had up to this point, rightly or wrongly. To a large extent their debts are at these means. When one speaks to people who are trying to live with these changes, one finds its is a difficult burden and people are finding it impossible to cope.

The health levy on top of all that has made it immensely difficult for families and some families will not cope. Some families will still be working and will not be eligible for help, but they will try to turn to the Minister, Deputy Hanafin, through community welfare or whatever, for mortgage interest supplement or other help. Many of them will not realise they are not eligible. The approach being taken is wrong and is not fair on ordinary families. They are already struggling with negative equity and loss of income. People in the private sector have suffered a considerable loss in income, as have those in the public sector as a result of the income levy. This high level of taxation will damage our ability to grow the economy in the current recessionary climate. It is for that reason I will oppose amendment No. 20.

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