Dáil debates

Thursday, 9 December 2010

Financial Emergency Measures in the Public Interest (No. 2) Bill 2010: Second Stage

 

7:00 pm

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)

The other measure I welcome is that on vouched expenses. It means that people can prove where they spent their money. They can also prove that being in politics is a costly business. I do not subscribe to cutting pay so much that it provides an incentive either for corruption or for merely the wealthy to get into politics, but we must set an example at a time when everyone else has been pinned to the wall. There is a little room for more to be done, in terms of the Taoiseach's salary and that of Ministers, and some more in terms of Deputies. I would hope that there is another increase to the same measure in next year's budget. It is essential.

Following my earlier speech to which I have referred, Deputy Noonan mentioned some of the existing anomalies in the case of very high earners and he made a relevant point. If those anomalies exist whereby the self-employed are a little better off following this budget, it sends out the wrong signal. I acknowledge the effort made, which was to try to equalise the system under the USC so that the top 52% marginal rate was paid by both the PAYE sector and the self-employed to ensure it goes a good way towards creating a unified tax system. However, in creating a unified tax system, one is benefiting some of the self-employed. A budget that is, in essence, trying to be fair, must, as well as being fair be seen to be fair.

Deputy Noonan - to whom I paid tribute previously for his brave stance in abolishing Fine Gael's taking of corporate donation and for whom I have a great deal of admiration - has referred to this anomaly. While it only affects a certain cohort and while, as he pointed out, a person on €100,000 is contributing five times more than a person on €20,000, it sends out the wrong signal at a time when we are saying, for example in the social welfare budget, that those who can least afford them must take cuts. I hope the Minister for Finance returns with the speed with which the Government returned last year when the remunerations of certain civil servants were restored post haste. I hope these anomalies can be ironed out, even within a unified system. Why not increase the top marginal rate to 53% or 54%? At least it would mean the anomaly would be narrowed. Perhaps it is because the PAYE sector might be hurt too much and I would be grateful if the Minister clarified that it is something that can be addressed next year and that it will be ensured that the self-employed pay their fair share once more. It certainly sends out the wrong signal at a time when we are making a tough budget in the national interest. It has to be done and I think a genuine effort was made to make the budget fair, but it also has to be seen to be fair.

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