Brendan Howlin (Wexford, Labour) | Oireachtas source

I have answered the question a couple of times but I will do so again. One cannot look at each budget, particularly a series of crisis budgets, in isolation. One must look at the cumulative effect of budgets. For example, the analysis done by some looks at all taxation increases as being progressive, even if one has reached the very highest marginal rate of taxation in comparison with any other OECD country - in other words, if one increases taxation, that is progress, and if one reduces expenditure, it is regressive.

We need to have a realistic model to see what levels of taxation are appropriate and what types of taxation are appropriate. That is the sort of drilling down that is required, rather than a crude graph system about which the Deputy is talking. I would have thought that somebody of the calibre of the Deputy would be developing those systems and making the new committee system work, calling in the key officials in line Departments to test those theories and to ensure, for example, that our progressive taxation system, by comparison with any country in the OECD, is maintained.

I disagree with the notion that any category of social welfare recipient was subjected to a disproportionate impact, because we worked with all our might and main to protect social welfare spending, as the Deputy knows. That is a fact. If the Deputy reads any of the commentary from the external overseers in the troika, he will see that they comment on our very high levels of social welfare provision, which we were determined to maintain and which I am proud that we protected.

See this speech in context