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

The Minister of State has been somewhat economical with the truth in his comments on the programme for Government. As he stated, the programme for Government states:

As part of our fiscal strategy the new Government will: ... "Maintain the current rates of income tax together with bands and credits."

Theoretically, the Minister of State is retaining the credit even if he is taking it from one group. I will concede that point to some extent, but I will not accept that he is maintaining the bands.

The figures that have been provided to us through parliamentary questions state clearly that some 4,000 parents who are currently not paying tax will be brought into the tax net as a result of this measure and a further 5,500 parents will pay tax at the higher rate. The Minister of State is not maintaining the bands for those parents. Would the Minister of State address that point about the broken commitment to maintain the bands? The point is that, in total, almost 5,500 parents stand to pay extra income tax as a result of these changes. That figure also has been provided by Revenue. It flies in the face of the commitments that have been given on taxation.

The Government, in particular, the Minister of State's party, but also the Labour Party, has steadfastly refused to increase the taxation burden for those earning over €100,000. In the light of that and the Government's stated commitment not to increase taxes, how on earth can he justify bringing 4,000 of those who are on minimum wages into the tax net and increasing the bands of 5,500 others on low wages to bring them into the higher rate of tax? It seems that when it comes to the Government, in particular, Fine Gael, there is one law for the golden circle of high earners and another law for those who happen to be single fathers on low income. That is an indefensible position for the Minister of State to adopt.

He has been given a number of suggestions of how he might deal with it.

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