Olwyn Enright (Laois-Offaly, Fine Gael)

It is progressive only in the sense that if one earns more one pays more, but the doubling of the levy is not progressive. The Minister is right in that choices had to be made, but it is the choices made by the Government with which we have a difficulty. The emphasis was put on the easier option, which was increasing taxation, rather than asking every Department to go through its spending programmes line by line to find savings. Better savings could have been made that way. The option that was taken will hurt families in particular; they are effectively paying the price for the mismanagement - that is what it has been - of the last number of years. These are the same families who are paying massive mortgages on houses that are now in negative equity. Around 37% of their mortgages are effectively going to the State as that is what they spent on tax on their houses. These are the people who are being asked to pay the health levy and the increased PRSI, which I will deal with. This was mentioned in our proposals, but as part of a different package. The Government can pick and choose bits of other parties' packages, but it is the totality of what it is doing that is causing difficulty.

We are obviously not going to reach agreement on this. Understanding my constituents or the Minister's constituents is one thing, but the difficulties we are asking people to take on in their lives are another thing entirely, particularly for families with children. All the understanding in the world will not make it any easier for them to make ends meet.

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