Kieran O'Donnell (Limerick East, Fine Gael)

What does the Minister mean? My point is that one must approach this matter in an integrated manner. Will the Minister justify reducing the minimum wage and increasing tax for those earning the minimum wage? These are the facts. I ran the numbers to show that those earning €17,992 per annum working a 40 hour week at an hourly rate of €8.65 pay a 2% levy or €359.84 on annual earnings. If the hourly rate is reduced to €7.65, they will earn €15,912 for a 40 hour week and pay a levy of 2% on the first €10,036 and a 4% levy on the balance. They will pay €435.76 under the new system. How can this system be described as progressive, especially when someone earning €200,000 will gain under the universal social charge? The position is unjustifiable and suggests the Minister did not run the numbers or consider the outcome of the proposals in depth, as any Government should be required to do.

In the cold light of day the Minister will see that the measures are unfair and regressive and do not provide an incentive to take up employment at the lower rate. The underlying theme of all budgets is whether they are fair. While I accept we are in a financial crisis and must find savings and new means of generating revenue, we must do so in a manner that avoids driving the economy into the ground or leaves the less well-off struggling even more. I ask the Minister to examine this issue.

Will the Minister explain the logic of reducing child benefit for the third child by €20 when the reduction for other children is €10? I have four children.

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