Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

Yesterday's budget was strong on rhetoric and somewhat poor on substance. There are many issues one could discuss such as the lack of initiatives on small-to-medium-sized enterprise, the lack of transparency on the health Estimate, water charges and the lack of a substantial public investment programme, but my focus this morning is on the tax changes introduced yesterday. Without question, they are unfair and disproportionately benefit the wealthy and discriminate against low-paid workers. A worker earning €17,500 a year will only gain €174 for that year, which does not include the water tax. Someone over €70,000 or someone on €150,000 will actually get €746 of a benefit. We live in a low-wage economy and there are approximately 660,000 people earning between €10,000 and €30,000. Most developed societies are moving towards low-wage economies and governments must intervene in a positive discriminatory manner to improve the lives of people on very low incomes. A couple with a single earner on €41,000 will still only get €174 whereas a single person earning over €70,000 will get €746. That is not to mention the impact of water charges, which will by definition impact to a greater extent on low-paid workers and low-paid working families.

In relation to the tax question, I ask the Taoiseach a basic question. Does he think it is fair that someone on €100,000 plus gets €746 whereas someone earning less than €30,000 only benefits by €174? Is that a fair way to do business? Finally, what is the net figure the Government will receive in revenue terms as a result of the imposition of water charges?

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