Mary Hanafin (Dún Laoghaire, Fianna Fail)

I appreciate the case outlined by Deputy Enright. It is a very difficult situation and it is difficult for families and couples. Unfortunately, unless these measures are taken now, we will not be able to get the correct balance between our income and expenditure. The Government, in this budget and the previous one, made great strides in cutting back on expenditure and the increases in the income and health levies was one part of that.

Despite the fact that this is a heavy burden on people, which I accept, the measure regarding redundancy payments is clarified in this Bill so the higher rate of tax will not apply to such payments. We are also ensuring people cannot front-load any of their income to avoid the levies, which makes it more equitable. That is the purpose of these amendments, as well as bringing such measures from regulation into law.

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