Enda Kenny (Mayo, Fine Gael) | Oireachtas source

We have no intention of abolishing water charges. The setting up of Irish Water to deal with the provision of water to everyone, including business and consumers, with proper standards and infrastructure has been neglected for far too long. The Government has provided a subsidy to Irish Water of between €550 million and €600 million, which is for every household in the country. This is a household charge. In addition, the allowance of 30,000 litres per household and 21,000 litres per child applies to every household and every child in the country. Beyond that, other conditions apply to people with medical conditions. Those charges are capped.

In addition, the two other benefits announced by the Department of Social Protection for those in receipt of the household benefits package means that, between the tax credit available and other facilities from the Department of Social Protection, they will cover the vast majority of households in the country. From that point of view, I agree that the changes made yesterday were modest. They were never intended to be extravagant and we are not in the position to write blank cheques. In terms of the tax position, what is involved is the first of a three-year programme of changing the income tax system to demonstrate that it pays to work, that work is rewarded, that workers are rewarded and those not in employment have the opportunity to come off the live register and get into the world of work. As they progress up the line from low-paid to middle income earners, that is where the priority of the Government has been. In the next budget at the end of 2015, and if the people decide to re-elect this Government in 2016, the same measures will apply to income tax changes. It is designed to lessen the burden on people, make it more obvious that work pays and ensure that people have a sense of extra money and confidence to invest and spend in their communities. In this way, we can build a society and the kind of country that we know we can have.

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