Dáil debates

Tuesday, 7 December 2010

Financial Resolution No. 33: Income Tax and Corporation Tax

 

11:00 am

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)

Aontaím le cuid mhaith den mhéid a bhí le rá ag an Teachta a labhair romham. I am surprised the Labour Party Deputy did not mention a third measure in this group of financial resolutions that will hit the working person, namely, the removal of tax relief on trade union subscriptions. Now is the very time when we should be encouraging those who still have jobs to retain their trade union membership so that they can have proper representation in a time of recession and ensure their pay and conditions are not further undermined. Removing the relief will make it more expensive to be a member of a trade union, which is a retrograde step.

The other two measures only add to the pain this budget will inflict on the working poor, as well as those who have just about been getting by until now. Employers will be forced to discontinue providing child care facilities. Tax reliefs were supposed to benefit everybody by encouraging good practices. Many tax reliefs were, however, introduced to line the pockets of a small number of people in our society. We lack a system of universal child care which is free or, at least, cheap for young couples who labour under huge mortgages because of the property boom and the shortage of social housing. They must meet the high costs of child care simply to stay in work and pay their bills.

The rent charged on properties in Ireland is higher than in any other European country of which I am aware. Rent relief was a limited mechanism for those who could not avail of social housing because local authorities were not funded sufficiently. The budget further reduces the grants paid to local authorities, regeneration projects and social housing initiatives. People will as a result be forced to remain in rented accommodation but the tax relief they enjoyed to date will now be lost. We have not seen substantial reductions in rent in all parts of the country. Rents in Dublin have not decreased at the lower end of the market to the degree that would justify the removal of the relief.

The State has not yet ensured that all landlords are properly registered and inspected. Rent relief would have provided a mechanism to enforce standards among landlords. Once it is abolished, we will revert to the old practice of paying into the black economy because there will be no need for registration. These three measures are detrimental to the public good and should be opposed.

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