Olwyn Enright (Laois-Offaly, Fine Gael)

I thank the Minister for her reply. I suppose it summarises the thoughts of Government but not the consequences of what it intends to do.

I shall put to the Minister an example I received today from a constituent. Her family has lost €8,000 in real terms annually because of the public service levies. She has four children aged under five and has lost an additional €4,000 through the abolition of the early child care supplement. Her basic question concerns how we value children and how we consider the actual burden - a word I do not like to use - placed on families when they have children and the responsibilities that follow.

In her response the Minister briefly mentioned the issue of disincentives which would be my biggest concern if either a tax or means testing were to be introduced There are already several poverty traps in the social welfare system which create disincentives for people to take up employment if such employment exists. First, how great is the Minister's concern that introducing means testing or a tax might create the greatest of all poverty traps for people with families? Second, has any thought been given to the idea of having tax credits for families with children if either of these schemes is to be introduced? A constituent said to me this week that in our taxation system her bins are valued more than her children. She can get a tax credit for her bin but not for her children. When one puts it that way one has to wonder how we value children.

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