Brian Lenihan Jnr (Dublin West, Fianna Fail)

Deputy Morgan's amendment in substance seeks to repeal something which was at the core of the supplementary budget. The Deputy has indicated he is opposed to the rates of change and he would continue the charge at the rates effective from 1 January 2009.

The levy was introduced to help deal with the exceptional economic circumstances where we as a nation saw a very substantial revenue shortfall for the State. It is worth noting the decline in the revenue income of the State from €48 billion in 2007 to €41.5 billion in 2008 to an amount projected before the budget of a little over €31 billion. That is a very dramatic reduction in tax receipts. I accept that there has been a decline in gross domestic product and an increase in joblessness but the decrease in taxation outpaced the relative decline in those other areas. The tax base of the State eroded dramatically and had to be strengthened in the national interest.

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