Dáil debates

Wednesday, 20 February 2013

Finance Bill 2013: Second Stage (Resumed)

 

3:35 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent) | Oireachtas source

Can one's household afford to employ a tax consultant to reduce its tax bill? A total of 40,000 senior citizens are about to lose their medical cards. I ask these questions in this debate because the tax issue is a very important part of this legislation. The top 10,000 taxpayers each have an average income of €595,900. This information was contained in a reply given by the Minister, Deputy Noonan, to a parliamentary question. Not a penny in wealth tax has been imposed and these top earners will suffer the same reduction of €260 per annum as a person in receipt of the minimum wage. These all are the real issues and this is the reason there is much anger abroad in respect of the Finance Bill. In Tallaght the other night, public sector staff were at boiling point because once again, they were being punished for the actions of others. Moreover, they are right. Why should a nurse, a teacher, a firefighter or a young garda suffer because of reckless bankers, regulators, some politicians and some developers? This is the reason there is so much anger and many Members believe that respect has gone out the window on this issue.

There has been debate this week on the Croke Park agreement. I am very worried about it because there is much misinformation abroad. For example, many German public servants earn more than do Irish public servants. The Committee of Public Accounts has found that many allowances comprise core pay. The Croke Park agreement savings are not overestimated and the Central Statistics Office has found a narrowing gap between the private and public sectors. As for public sector pay, while it is broadly in line with comparable European Union countries, many media reports give the opposite impression. In this debate, no divide and conquer approach should emanate from different people, politicians and Ministers. I am extremely concerned about the issues I have raised.

Finally, on excise duties, section 47 confirms the increase in the rates of tax on tobacco products announced in the budget. I am concerned that this is at a time when major illegal smuggling of cigarettes is taking place. In addition, small businesses again are being hammered as designated smoking areas are being closed down, which costs jobs and people's livelihoods.

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