Thomas Pringle (Donegal South West, Independent) | Oireachtas source

In the run-up to the budget, we were constantly told it would be fair and equal and that those who can pay would do so. Yesterday, we saw where the truth lies. Low earners are left to bear the brunt of the cuts and they have the Fine Gael-Labour coalition to thank for it.

Yesterday, we were told we are near the end of the austerity budgets. Again this morning, the Minister said 85% of the heavy lifting has been done. He fails to understand that many people just cannot take any more. This is yet another budget that fails to hit the highest earners in society and targets the vulnerable in a brutal way. The Government has clearly lost sight of what people are experiencing.

Removing the €127 PRSI exemption threshold will cost every worker earning more than the minimum wage €264 per annum. A person earning €18,000 a year will pay the same PRSI increase as we Deputies, who earn €92,000. How can a Labour Party Minister justify that? Fine Gael guaranteed there would be no increases in income tax, but for low income workers PRSI is a tax on income. To say they have not increased income tax is misleading, at best.

The Minister for Finance said PRSI is good value, especially for those on the lower end of the income distribution scale and those who have shorter contribution histories. If these people's voices were heard they would say good value is when the money is in their pockets and not being taken from them with this cut.

Labour made much of wanting to increase the universal social charge for those earning more than €100,000 per year, but they lost that battle to their masters in the coalition. Nevertheless, they are happy to take away the PRSI threshold. Labour does not protect the vulnerable. It is targeting them further. How can the Minister and his Labour Party colleagues stand over the cutting of the PRSI allowance threshold? Is that what he calls a fair budget?

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