Joan Burton (Dublin West, Labour)

I remind the Minister of State there is a fundamental difference between what he proposes today and the public service pension levy. In that case at least provision was made to differentiate between people on very low wages of €18,000 and under and others. This measure does not distinguish between anybody on any wage. As I stated in my comments on the Bill, if a person earns €10,000 a year as a part-time cleaner he or she will have to pay the 5%, which from that person will be a gross full 5%. There are a few men involved but most people in that position in the public services are women. People meet them in the offices early in the morning. However, for people such as the Minister of State, other Members of the House and other people in higher-paid occupations in the public services, the reduction in wages will be effective and will carry through with regard to their tax liabilities because as their wages go down, their total tax bill will go down. The impact of these measures are particularly onerous and harsh on the lowest paid people in part-time work. It is foolish to continue, as this Government has done in the budget, creating and widening poverty traps.

The Minister of State referred in somewhat technicolour terms to the golden era of public services.

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