Joan Collins (Dublin South Central, United Left) | Oireachtas source

Is it not the case that any limited gain from changes in direct taxation for those on low to moderate incomes will be wiped out by the water tax in January? Changes in the budget are extremely modest. A single worker earning €15,000 will see a weekly €2 rise in take-home pay, which is barely the price of a cup of coffee. A married couple earning €15,000 with one income and two children will see a €4 increase in their wages per week, which is barely enough for two cups of coffee. Is it not the case that the Government panicked after the massive demonstration combined with the result of the two recent by-elections on Saturday and responded with a series of Mickey Mouse measures to curtail reaction?

The Minister for Finance announced tax relief on water charges at the standard rate of 20% up to a maximum water charge of €500 per household per year. Is this an acceptance by the Government, contrary to what we have been told repeatedly, that some households will pay up to €500 a year in water charges? This is double the amount the Taoiseach repeatedly stated would be the average charge per household. The Minister for Public Expenditure and Reform, Deputy Howlin, also announced a water subsidy worth €100 per year to those on the household benefits package and fuel allowance. However, almost 200,000 people who are short-term unemployed or who do not earn enough to pay tax are excluded from the measure. They were not included in the tax reliefs outlined by the Minister for Finance. Rather than Mickey Mouse measures, why does the Taoiseach not accept the inevitability of abolishing water charges and do so?

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