Séamus Healy (Tipperary South, Workers and Unemployed Action Group) | Oireachtas source

This Finance Bill implements the austerity and social vandalism of the budget. It targets low- and middle-income families, poor families, the squeezed middle, everybody from the cradle to the grave. Despite the Labour Party's strong and serious commitments that no cuts to child benefit would take place, fourth and subsequent children will have their child benefit cut by €10 from January 2014. We have the despicable abolition of the bereavement grant by the Government. This Finance Bill is regressive, targets the least well-off and is at variance with the policies, commitments and promises by the two parties in Government.

It is important to note that neither Fine Gael nor the Labour Party has any mandate for the provisions in this Finance Bill. They stood in the 2011 general election on the exact opposite policies. They rightly criticised Fianna Fáil and Green Party policies during that election, were elected on diametrically opposed policies, got into power and are now imposing on everybody across the country the same policies started and implemented by Fianna Fáil and the Green Party.

During the debate I have heard some Deputies saying the country is broke. That is untrue. This country is not broke. Not long ago, the Minister of State at the Department of Foreign Affairs and Trade, Deputy Costello, confirmed that here and told us that Ireland was the seventh wealthiest country in the world.

We know from figures from the CSO that the top 10% of people in this country have increased both their incomes and assets during this recession, while the majority of people have seen huge reductions in their standard of living and incomes, as much as 18%.

What does this Bill do? It targets those who have lost out during the recession and rewards those who have maintained and increased their wealth and assets. The Bill introduces no wealth tax or third rate of income tax and does not target those people who are not paying their fair share. They should be paying a fair share. We might have expected that from a budget being implemented by Fine Gael, but we would not have expected the Labour Party to support such a situation. This Bill targets ordinary low and middle income families, who had no hand in creating the recession and lets off the hook those who created and benefited from it. It should do the opposite.

The situation in regard to the banks is a serious concern. We now have a duopoly. Government policy supports two pillar banks and there is a lack of competition in the market. We have seen ACC and Danske Bank leave the market in the past week and the position in regard to Ulster Bank is up in the air. The combination of Government policy, the bailout, the support of the two pillar banks and the lack of competition mean we are effectively in a share dealer's dream. This means the banks feel free and are in a position to rip off customers right, left and centre. They are free to bully small businesses and distressed mortgage holders.

In today's Irish IndependentCharlie Weston confirmed that the introduction and-or increase of bank fees and charges will cost the average family another €260 per year and will take €270 million out of the economy from household finances, thereby further destabilising and depressing retail businesses in particular. This cannot continue. These banks are offering options to customers, but what are those options? I have seen letters to distressed mortgage holders from these banks offering them the option of voluntary sale, voluntary repossession or eviction. Is that any sort of an option for customers? These banks are sending out these letters as we speak, but we should put a stop to that.

In February of this year I put a parliamentary question to the Minister regarding the sale of Bank of Ireland shares, the process and procedure adopted during the course of those negotiations and the changes that occurred following them. In particular, I wanted information regarding the situation where a senior public servant involved in the sales process continued to be involved at a senior level in the banking area, including contacts with Bank of Ireland. That senior official would shortly thereafter be transferred to a senior position in Bank of Ireland. This is completely unacceptable. This would not be possible in the case of a senior civil servant as there are regulations and standards to be observed in this regard. In a clarification of his response to my parliamentary question, the Minister told me a review of this matter would take place. Has that review taken place and what was its outcome? If it has not taken place, will the Minister ensure it takes place urgently?

A plethora of provisions in this Bill target low and middle income families and single parents, but wealthy pensioners will be left off the hook due to the provision to allow tax relief on pension contributions for pensions worth up to €100,000. Senior public and civil servants and senior private company directors and employees will benefit to the tune of €130 million as a result of this provision. The Bill also targets ordinary families through the local property tax, a tax the Government committed not to introduce. However, it has reneged on that promise. There are also serious implications in the Bill in regard to the health area as the budget in this regard is inadequate.

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