Kieran O'Donnell (Limerick East, Fine Gael)

In regard to the bonuses paid to bank employees, if the Irish taxpayer had not given the guarantee it is likely AIB would no longer exist. Bonuses are being paid because of the Minister for Finance's lack of negotiating skills at the time the guarantee was put in place.

As people on the minimum wage invariably work in short-term employment and move from job to job, they are likely to be hit by the new rate before too long. An individual earning the current minimum wage will pay an income levy of €360, whereas he or she would pay €436 per year into the universal social charge if he or she earned the new minimum wage. The Minister clearly did not think through that flaw. Weekly take home pay for the minimum wage will decrease from €339.08 to €297.62. There is a fundamental flaw if an individual must pay more tax even though his or her income has decreased.

When we are looking for an enterprise culture, we are concerned with the cost to the employer. Many small employers are under pressure. The Minister could have taken away employer's PRSI at the lower rate, which would affect people on the minimum wage and save €30 per week for the employer. This method saves €43 but many people will not be able to take up employment. I ask the Minister to examine this and make changes. It is fundamentally flawed and unfair.

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