Joan Burton (Dublin West, Labour)

Several judges commented that there is nothing to prevent the Minister from introducing legislation on the Judiciary. If the Judiciary wishes to challenge it, let it do so. The Constitution seeks to protect the Judiciary where a judge makes a ruling on which the ruling Government disagrees or where that Government tries to take revenge on a judge because he or she is acting in an independent judicial capacity.

The Labour Party put forward an alternative proposal. It was fair and tough in terms of public service reform. I do not understand and have not heard the Minister explain why many of the necessary public service reforms, be they those identified in the McCarthy report or those identified by Ministers at different times in speeches to this House, appear to have been parked. The deal that was to be struck between the public service unions and the Government put great emphasis on delivering real public service reform. Many of the reforms that were indicated for delivery during the time of "Boomtime Bertie" and "When I have it, I spend it Charlie" were parked. I just do not understand the Taoiseach's approach.

According to the Revenue figures for 2007, nine out of every 20 people working in the public service earn less than €30,000. A part-time cleaner in the public service earning less than €10,000 per year will suffer from the same 5% cut as a clerical officer earning €30,000 per year. Deputy Brian Lenihan, as Minister for Finance, will appreciate that while this Bill refers to cuts in gross pay, the impact on net take-home pay will be critical. The marginal rate of tax for somebody earning €10,000 per year is 0% because he or she does not pay tax. Such individuals usually do not pay PRSI because their employers takes care of that. Their gross cut will be also their net cut whereas every other public servant earning from €30,000 to €300,000, including the Taoiseach and senior secretaries general, will only have a net cut as was the same with the pension levy. At least in the pension levy the Minister for Finance exempted the first tranche of income, taking out those on the lowest levels. It is deeply regrettable he did not follow that example with these cuts. Instead, the part-time cleaner on €10,000 a year will pay a full gross and net 5% back to the Government in a salary deduction.

The average salary of employees at the National Treasury Management Agency, from what I have been able to glean, is €120,000. While I accept the agency's staff do good work for the State, they will not be hit at all because it and several other institutions have been exempted in the legislation. Our failed financial sector - the banks- and the public bodies such as the Central Bank and the Financial Regulator which failed to regulate them are also exempted from this legislation.

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