Simon Harris (Wicklow, Fine Gael)

I welcome the opportunity to speak tonight in this debate on the future of the universal social charge and I thank Sinn Féin for dedicating its Private Members' time to a discussion on this important issue, which no doubt is a cause of extreme concern to families the length and breadth of the country.

The universal social charge in its current form is flawed. It is a blunt instrument which has caused sharp pain to families in Ireland. It was introduced in a rushed fashion by a panicked Government running out of both ideas and political capital. While I am sure Members on all sides of the House would relish the prospect of scrapping the universal social charge, those of us on the Government benches do not have the luxury of ducking difficult decisions. This country, as mentioned by Deputy O'Mahony, is in receivership for all intents and purposes. Our economic future is no longer in our sovereign hands. The errors, mistakes, misjudgments and miscalculations of the previous Government have ensured that economic sovereignty is something we must yet again aspire to as a nation.

As a public representative, I like all Members know very well the problems posed by the USC in its current guise. I am aware of the difficulties facing hard-working families and I, along with my 75 other colleagues in the Fine Gael Party in this House, ran in an election with a very clear commitment in our manifesto on the issue. We did not promise the sun, the moon and the stars. We did not engage in auction politics or make tax pledges over which we could not stand. On page 69 of our manifesto we stated in clear, concise language our commitment on this issue and I would like to put that commitment on the record of the House. Our manifesto stated: "Fine Gael will carry out a review of the effect of the universal social charge on work incentives and employment participation in time for the 2012 budget." That is what we committed to and it is on the back of that manifesto that I and my party colleagues received our mandate to serve in this House In our negotiated programme for Government with the Labour Party we have honoured that election commitment.

Our commitment on this issue stems from the fact that work must pay and that people must be incentivised to work. It is unacceptable that some hard-working families working all the hours God sends find themselves struggling to make ends meet and feeling that they would be better cared for by the State if they did not work at all. We need to ensure that the USC is reformed so that it does not disincentivise people from working and from participating in employment opportunities. To do this correctly, we must carry out a thorough review of the impact of the USC and ensure that plans are in place to change it in the budget which will be presented to the House at the end of this year. I know the Minister and the Government are committed to doing this and I know that this process is open to all Members of the House, of all parties and none. I would encourage all to contribute their views and ideas.

My colleague, the Minister of State at the Department of Finance, Deputy Brian Hayes, outlined in the House last night the problems with changing a taxation system mid-year and the difficulties that such changes would present for already struggling small and medium-sized businesses in Ireland. Creating such difficulties for small local employers is clearly not in the interest of getting Ireland back to work. Furthermore, mid-year and rushed changes would create a series of potential new challenges and hardships for taxpayers, with Revenue having to recalculate tax liabilities and potentially seek additional money from hard-pressed taxpayers. While I have no doubt the intentions of the Private Members' motion are sound and well-meaning, unfortunately the impact and the practicalities are not. It is also important to note that the re-introduction of health and income levies is not necessarily a positive development for the country and its taxpayers. It would require legislative changes to re-create and re-impose these levies.

The amendment before the House tonight clearly recommits the Government to carrying out a much needed review of the USC, which as a result of such comprehensive consideration will ensure that a fairer USC is introduced in time for the next budget. The amendment is in line with the election manifesto of the Fine Gael Party, the programme for Government and the mandate I received from the people of Wicklow and east Carlow. I support and commend the amendment in the name of the Minister for Finance, which is realistic, responsible, economically solid and which commits to resolving the issue by the end of this year.

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