Michael McGrath (Cork South Central, Fianna Fail)

I thank the Minister for his brief reply. Since the universal social charge was introduced in last December's budget, it has been the subject of very strong criticism from what were then Opposition parties and it formed an important part of the general election campaign, where it was made clear there would be changes to the charge. People were led to understand those changes would happen sooner rather than later. There will be much disappointment that any review would now be in the context of the 2012 budget.

What is the Minister's thinking at this stage with regard to changing the universal social charge? I know he commented in the past on the impact on people with low incomes and those who have become known as the working poor. Without pre-empting the process, can he given an indication of where changes are likely to be made? Given that changes must be fiscally neutral, where will savings be made to offset the reduction in income from the charge?

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