Enda Kenny (Mayo, Fine Gael)

I recall being a member of a local authority back in the 1970s when everybody paid rates in respect of services provided. We moved away from all of that in the intervening 30 years and it is very difficult to get people to understand the necessity of spreading the burden as equitably and as fairly as possible.

Changes were made to the taxation system in the budget. As the Deputy will be aware, there were no reductions in the basic social protection rates and the impact of Government decisions in respect of the universal social charge and the minimum wage will protect those on the lower end of the scale and will take significant numbers out of the net in terms of the requirement to pay those levies. The Minister for the Environment, Community and Local Government has already made it clear there are extensive waivers in respect of the household charge.

One person in this country, who is reputedly quite wealthy, said to me that wealth was being returned from his account to Irish banks. In a gesture of practical patriotism, there is an issue there in respect of confidence in our country. Changes have been brought about by the Minister for Finance in respect of the taxation of the higher paid in the country and there has been no reduction in the basic rates of social protection. Although this year is very challenging, people understand that the problem we have will not go away unless we deal with it and the way we must deal with it is for everybody to make a contribution. We hope that contribution is fair, equitable and affordable. Where that does not apply, exemptions and waivers will help to get people through this particularly challenging period ahead.

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