Róisín Shortall (Dublin North West, Independent) | Oireachtas source

I strongly support this amendment because I believe what is being proposed in the legislation is completely unfair and very much targets one section of society, lone parents, and single fathers in particular. These people will lose over €200 per month. If the Minister for Social Protection came up with a proposal in the budget that resulted in a cut of €200 per month in child benefit, there would be uproar. However, the effect on families of what the Minister of State proposes to do here is exactly the same. It takes money out of parents' pockets and will, undoubtedly, have a huge impact on the children concerned.

Nobody suggests that the regime as it operates currently should remain in place. We all accept there are shortcomings in it and that it is open to abuse.

What is required is a much more nuanced response to the issue and not just the sledgehammer being used which will result in children being victimised.

The programme for Government makes a very clear commitment to maintaining the current rates of income tax together with bands and credits. The Minister of State and many of his colleagues have made much of this commitment in the programme for Government, but it is quite clear that as a result of this provision the Government will break this commitment in the case of a certain section of society. Labour Party Ministers in particular have claimed credit for measures which will result in people on low incomes being protected, and keep repeating this, but in actual fact this proposal will mean a further 4,000 people will be brought into the tax net. The Government claims it will not make any tax increases but this is the reality of what it is doing. An extra 4,000 people, predominantly single fathers on very low wages, will be brought into the tax net as a result of this measure. I challenge the Minister of State to explain how on earth this is fair.

I point out to Fine Gael Members in particular that an extra 5,500 parents will now pay tax at the higher rate. How is it unacceptable to Fine Gael Members to impose a higher rate of income tax on top earners in Ireland but somehow it is acceptable to impose it on single parents on average wages? I ask the Minister of State to address this point specifically in his response. How on earth is this acceptable when Fine Gael has resisted any attempt to make high income earners pay a fair share of income tax? It is sheer hypocrisy on the part of both Government parties to speak about tax cuts next year while imposing them on single parents this year.

The most basic request coming from people campaigning in this area is that there would be at least a commencement order which would allow further consideration of this measure. This is a very reasonable approach given the rush which has been put on this and the time constraints applied to getting the legislation through the Houses. A number of groups have lobbied in this area and the approach they have taken is very reasonable. Nobody suggests matters should remain as they are, but they are looking for the Government to accept the reality of people's lives nowadays and recognise some principles we need to apply to the tax and welfare treatment of families in current day Ireland. These groups seek four principles to be accepted. Does the Minister of State accept the principle and practice of shared parenting as a fact and aspect of modern society and family life in Ireland? Is the Minister of State prepared to accept the principle that the tax credit can be transferred to the non-principal carer if appropriately crystallised through a shared parenting agreement? The third principle is that the tax credit should be awarded to reflect the additional costs and needs of children who are cared for through a shared parenting agreement, and the fourth principle is that the tax credit should recognise the costs and needs of the children concerned and therefore the tax credits should follow the children. These are very reasonable principles which reflect the reality of people's lives and the need for fairness in the tax and welfare treatment of separated parents. I challenge the Minister of State to tell me he does not accept any one of these principles. If he accepts these principles he cannot possibly proceed with these provisions.

The minor concessions made following the arguments made on Committee Stage are wholly inadequate to respond to the issues concerned. For one partner to relinquish part of the tax credit is completely imbalanced in terms of the approach to this. We must bear in mind in the vast majority of cases it is the mother who receives child benefit to reflect the costs. What is proposed is that there will be no measure to reflect the costs for single fathers who by and large do their utmost to do the right thing by their children and provide as best they can for their families.

I call on the Minister of State to stand by the commitments given in the programme for Government in terms of not increasing taxes on any sector in society, not increasing income taxes and not bringing any further people into the higher rate of tax, which is what this provision will do, and to recognise the reality of people's lives where parents do not live together and where both parents do their best to provide for their children. In light of this I ask the Minister of State to put a stay on this measure and take time to reflect on the damage it will do to families. Most of all I ask the Minister of State to respect the many parents and single fathers throughout the country who do their utmost to provide for their children and not to proceed with this measure which will result in a loss of more than €200 per month in these circumstances.

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