Anne Ferris (Wicklow, Labour)

I would like to take this opportunity to thank the people of County Wicklow and east Carlow for electing me to the 31st Dáil and I promise to serve them to the best of my ability in the coming years. It is a great privilege for me to stand here in the Dáil Chamber representing the garden county and it is not one I take lightly.

These are difficult times for the people of Ireland and as a Government we have a responsibility to ensure we fix our economy and rebuild our society, anchored on the core principles of equality and solidarity. The motion proposed by Sinn Féin, while welcome, is premature and I will join my colleagues from Fine Gael in supporting the counter motion proposed by the Minister of State at the Department of Finance. I remind the Members in Sinn Féin that the programme for Government, which was debated and voted on here just two weeks ago, included a promise that as part of our fiscal strategy we are committed to a review of the universal social charge. While I agree with some of the points contained in the Sinn Féin motion, it is a bit ironic to hear the Sinn Féin Deputies call on a daily basis for a reversal of the budget cutbacks when earlier this month their counterparts in Northern Ireland voted through one of the most austere budgets in recent history. As the Leader of the SDLP, Margaret Ritchie, said: "The position of the party can be summarised as follows: in the North, green Tory; in the South, different story."

The new national Government, only in office now a few weeks, has inherited a mess from the previous Fianna Fáil Administration and we are fighting on a number of fronts to reverse some of the terrible decisions it made. Among these, we are committed to changing the unequal and regressive system created by Fianna Fáil in its levying of the universal social charge, a scheme which actually reduced the amount paid by some of the highest earners, while attacking low paid workers. The Labour Party, in its manifesto, committed to a review of the universal social charge so as to identify the families that have been hardest hit and to reform the tax accordingly. It is clear that this tax was not thought through properly and came as something of a shock when people opened their pay packets in January. Indeed recent Exchequer figures have shown that the State's finances are not as expected, despite the introduction of the universal social charge.

In seeking to create a more equal and fair society, I am particularly proud of the commitment in the programme for Government under our proposals on a fiscal strategy for the implementation of a minimum effective tax rate of 30% for very high earners, the abolition of tax shelters which benefit high income tax earners and the abolition of property tax reliefs. I believe that among many proposals, the minimum effective tax rate of 30% is an important recognition that those who can afford most must pay most. As Members are aware, a jobs budget will come up in May and it will be crucial in getting our people back to work and stemming the flow of our best and brightest going overseas. At every second door I knocked on in County Wicklow during the recent election campaign, I met someone who had directly experienced the effects of forced emigration, whether for a family member or friend. If we leave any legacy, it should be to ensure that we stop this loss which is tearing our communities apart.

It is quite clear the previous Government pursued an agenda to increase income inequality in our society, something to which both myself and the Labour party are vehemently opposed. Part of this agenda was to lower the minimum wage, a policy which widened income inequality and attempted to drive down wages for other low paid workers. This Government is committed to reversing this attack on the ordinary working person. I, therefore, look forward to the review of the universal social charge, which I have no doubt will lead to major changes in the levy as part of an overall fiscal strategy that will be implemented by the Government. I believe the review will address many of the issues raised by this motion. I am glad that the current scheme applies a lower rate for those aged 70 and over and those on a full medical card. These concessions demonstrate that more can and must be done to make the universal social charge more fair. All the fiscal proposals I have mentioned, when combined, will give the Government the flexibility to address the inequalities that exist under the current universal social charge. I look forward to working with the Minister and other interested Deputies in reshaping this charge in the context of an overall strategy to create a more fair and progressive tax system, where those who can afford most contribute the most to funding the services our society needs.

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