Mary Lou McDonald (Dublin Central, Sinn Fein)

I listened with great interest to the chairperson of the Labour Party, Deputy Keaveney, speaking on "Morning Ireland" yesterday about the household charge and the impending property tax. His refusal to rule out the Government's muted call for a property tax to be taken directly from PAYE workers was of very little surprise. Nor was his bemoaning of what he described as a disproportionate level of protest against the household tax relative to, as he sees it, the total cost of the charge. It strikes me that it is game, set and match: the Labour Party has well and truly and fully rolled in behind Fine Gael's world view. Gone are the days when it showed empathy with struggling families or the working poor. Deputy Keaveney's argument was "Sure what is €100 anyway?" If ever there was a clear articulation of the need to reduce the pay of Teachtaí Dála, the Labour Party's chairman made it yesterday. I have no doubt that if he was seeking to raise his family while in receipt of the minimum wage or a social welfare payment, he would have a much clearer appreciation of the value of €100.

There is absolutely no point in those in the Labour Party or anyone else referring to the need for fair and progressive taxation while standing over the household charge. It is a flat tax and takes no account of household income or people's ability to pay. It has been introduced at a time when families are being put to the pin of their collar in respect of every cent. Opposition to it is defiantly set against the Labour Party's and Fine Gael's relentless and focused attack on low-income households. Tax increases and cuts to social protection entitlements have imposed greater percentage losses on struggling families' household money than on the funds of those on high incomes. While the Labour Party talks the talk of fair and progressive taxation, it certainly does not walk the walk. Budget 2012 reduced the poorest 40% of households' incomes by up to 2.5%. At the same time, it protected the top 30% of high earners whose incomes dropped by just 0.7%.

We all know that when the previous Government was in power, Fianna Fáil's cuts to social welfare, the introduction of the universal social charge, the widening of tax bands and the reduction in tax credits had a crippling effect on families least able to shoulder the burden. That is a fact. However, the Government has tragically opted to follow in the footsteps of that which preceded it. In the context of this matter, it is worth mentioning that women are most concentrated in the lower income groups. Single people with children, 73% of whom are women, on average, lost a massive 5% of their modest incomes in 2011. With Budget 2012, Labour Party and Fine Gael colleagues hit the vulnerable and low-paid again, only even harder on this occasion.

Let me make a proposition and float an idea. The Labour Party has stated this week that it wants to introduce a tax that relates to wealth. It would be based on the premise that those in a position to pay would do so relative to their wealth and property. Here is my suggestion: introduce a wealth tax. Introduce a tax of 1% on all assets with a value in excess of €1 million. Excluded from this could be working farmland, business assets and the first 20% of the value of primary residences worth in excess of €1 million. In addition, an ability-to-pay clause could be included in respect of individuals who are asset rich but cash poor and who would require a level of protection. If the Government does everything I suggest, it will raise up to €800 million. That is what the yield would be. This is a considerable amount of money and it could be levied in a fair and progressive manner.

If the Labour Party, in particular, and Fine Gael and the Government in general are truly committed to equity and fairness and to each person and family shouldering the burden in accordance with their ability to pay, why not do as I suggest? Why not drop the household charge which is unfair and has been and will continue to be resisted and opt for a fair and progressive path? That is the challenge for the Government. I put it to the Minister of State directly that this is what should be done if the Government's rhetoric about us all being in this together is to mean anything at all.

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