Patrick Nulty (Dublin West, Labour) | Oireachtas source

I am very happy to contribute to this debate. I have been in this House for about 14 months. If a debate lasting a couple of hours on an issue of this nature is what passes for democracy for this country, we have some very serious questions to answer. It is not real debate and it is not appropriate to say that people contributing to the debate are engaging in bombast. This is the only opportunity elected Members of this House from all parties and political philosophies get to discuss this issue because it is being railroaded through. This is wrong regardless of who the Government is. It should be said that it is totally undemocratic.

I have a few things to say about the Title of this Bill. When people talk about this so-called property tax, they need to stop saying it is progressive. It is not progressive. A tax that is progressive is based on income and ability to pay. Someone on the average industrial wage will face the same liability for this tax as someone earning a six figure sum. That is not progressive, rather it is regressive. Any economist or first-year student of political economy can tell the difference between a progressive and regressive tax. It is quite simple.

I am disappointed that amendment No. 1 has been ruled out of order because my colleagues, Deputy Tommy Broughan and Nessa Childers MEP, have put similar proposals to the Minister about a wealth tax. My amendment in respect of section 17, which would increase the tax on homes worth over €1 million to 1% rather than 0.5%, has been ruled out of order. That would be a very moderate increase that the Minister could introduce later on this evening on Report Stage if he wanted to. I understand that it would bring in an extra €24 million which would pay for the restoration of the respite care grant, the cut in which was forced through last week. I understand it was the Minister and other Fine Gael Ministers who blocked an increase in income tax for people earning €100,000 per year because they are obsessed with protecting and looking after them. It is a case of protect the rich at all costs but attack people on low incomes.

I spoke to someone last week who paid €10,000 in stamp duty, is unemployed and faces losing their home. Where is this person going to get the extra €250 or €300 to pay this tax? The Minister must provide an explanation because this person faces losing their home. Their asset is wrapped around their neck and they do not know how to get out of the suffocating personal debt they have. The Personal Insolvency Bill will not address it either. We cannot go on getting blood from a stone and sucking money out of the economy, which is costing jobs. The budget will cost 40,000 jobs, according to the Nevin Economic Research Institute. That is not economic recovery. This Bill is not progressive. It is another attack on working people. Unless there is a dramatic change in economic policy, this economy will stagnate for years with massive structural unemployment and people picking up the pieces for years to come. This is the reality we face unless we change course. This tax is the wrong tax on the wrong people, although Fianna Fáil opposing it is absolute hypocrisy.

See this speech in context