Eamon Gilmore (Dún Laoghaire, Labour)

These resolutions deal with the abolition or phasing out of a batch of reliefs, the abolition of most of which were recommended by the Commission on Taxation. In general, the Labour Party agrees with the removal of many of those reliefs, particularly in the circumstances in which we find ourselves. However, I have an issue with regard to the abolition of two of the reliefs. The first is the same one that has been raised by Deputy Creed. I agree with what he has said on that. The abolition of the exemption from benefit in kind for employer provided child care is a mistake. It is a mistake because it will hit a relatively small number of working parents. The provision of child care in places of employment is something that should be encouraged by the State. Working parents must go to considerable expense to provide child care and make child care arrangements. Many parents have to take a child to a child minder, drop another child to school and then get to work on time. The provision of child care in places of employment is the route we should be taking, particularly for very young children.

We should remember that it is not so long ago since we had a problem in this country with regard to maintaining staff in the workforce, particularly working mothers. Some years ago, much emphasis was placed on the measures that needed to be taken in order to provide adequate child care or incentives and supports for working mothers. Employers were encouraged to provide dedicated facilities in places of employment. It is a retrograde and mean step to row back on that provision. Not only is the amount involved, €6 million in a full year, relatively small but I also do not believe it will be realised. If the benefit-in-kind is removed, some employers who currently provide child care facilities may decide to discontinue doing so and the elimination of the arrangement will be the tipping point that causes some people to leave the workforce. As a country, we do not provide much encouragement for working parents, and working mothers in particular, to stay in the workforce. In many cases, child care is subsidised for parents who are not working, and rightly so. This exemption to benefit-in-kind helps parents who are working. It is not a sound argument to claim that only the larger employers offered child care. We should be trying to encourage more rather than fewer employers to likewise. I strongly support Deputy Creed on this matter and the Labour Party is opposed to the elimination of this relief. If necessary, we will oppose the financial resolution on those grounds.

The abolition of rent relief will, again, hit working people, and young workers in particular. Rent relief benefits young people who were frozen out of the housing market. These are the very people who are at present contemplating whether they will stay in this country or throw in the towel and emigrate. They are the people who will be affected by the 10% reduction in salaries of new entrants to the public service. I get e-mails from young graduates who ask me why they should be put on a lower rate of pay when they start working as teachers. Rent relief applies to people who are at work. Those who are not at work qualify for rent allowances.

The Taoiseach challenged the Labour Party on where we stood in regard to working people. These two provisions will directly hit working people and will be a disincentive for work. Many of the young people to whom I speak are starting despair for the future of this country. On top of cuts in pay and tax measures, the little bit of rent relief they received will now be taken away from them.

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