Pearse Doherty (Donegal South West, Sinn Fein)

The universal social charge breaks the basic fundamental principle of progressive taxation because it asks those who have the least to pay. It is a tax on the working poor and very low income earners, with those on as low as €77 per week paying the charge. The exemptions which previously existed for income levies - such as for those with medical cards, working lone parents, working widows and those over 70 - are all gone. They have been hit particularly hard. We know about the review but we also know people in our constituencies who are suffering as a result of this universal social charge. Reviews do not cut it for such people as it does not put bread on the table or food in the cupboards. We need early movement on this.

With regard to the terms of the review, when the universal social charge was debated in this House the Minister stated that the floor of the universal charge - at approximately €4,000 - represents a very low income and the Minister should have accepted an amendment to raise the threshold by €1,000. Is that still the view of the Minister? Would it be acceptable, in the Minister's own words, to increase the threshold to €5,000? That would, in effect, mean that those earning €97 per week would pay a universal social charge on all of their earnings. Is that the basis of the review? The Minister replied on the terms of the review and I hope they will be published and debated well in the House before the review takes place.

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