Róisín Shortall (Dublin North West, Labour)

I oppose this section. Much of the attention has been focussed on the income levy and other cuts contained in the budget, but the health levy is a major increase, which people are only realising now and they will be very aware of it next week when they get their pay packets.

It is a substantial increase. New rates of 4% and 5% are proposed, 4% for those earning more than €26,000 and 5% for those earning more than €75,000. The example I looked at recently concerned a family with an income of €40,000, which is not excessive by any means and is a very moderate income. In those circumstances, a family with a person earning €40,000 is already struggling. As a result of this amendment, some €67 a month will be taken out of its pay-packet. It cannot take that kind of hit. Many families are paying even more.

The health levy and income levy combined will mean a loss of €100 per month. Very often such families with young children on very modest incomes are also struggling to pay large mortgages. Unfortunately many people find themselves in that situation because of the complete failure of this Government, and recent Governments, to have any kind of decent housing policy. There was a rip-off everywhere, where developers were let run riot. Such people are now very often also in negative equity, trying to pay a very large mortgage and losing out on income tax relief on their mortgage interest payments. They now have to pay these levies on top of that. If they have young children they are also losing the early child care supplement. I did the calculations based on a family with one income of €40,000, which is average. They are losing €250 a month as a result of the cuts in the budget.

If the Minister knows anything about her constituents, they are not all well off. She has plenty of constituents-----

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